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|Subject: Re: 7702 Private Plans (indexed universal life)||Date: 3/27/2013 11:43 PM|
|Author: Rayvt||Number: 71521 of 78166|
So, anyway, here are the stats for VFINX (S&P500 index) for rolling 12-month periods, 1987 to present.
The equity curves chart is here: http://i1131.photobucket.com/albums/m543/rayvt/Equitycurves1...
We were unfortunate enough to start just in time to catch the Black Monday (Oct 1987) crash. But after that, the plain old boring buy-and-hold of VFINX is always solidly ahead of the IUL floored/capped strategy.
The worst 12-month loss was -30%. The best 12-month gain was 46%. The IUL method has a 0% floor (so you are protected from losses) and 12% cap on the returns.
22% of the periods had a loss. 35% of the periods had a gain of more than 12%.
Final values for a $10,000 initial investment: VFINX (incl dividends): $79,908. Floored/capped IUL method: $32,870
Here's the distribution of the rolling 12-month returns.
So that's the data and the analysis I have for the way IUL interacts with the