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URL:  http://boards.fool.com/how-much-is-that-5-spread-out-over-20-30-40-30622392.aspx

Subject:  Re: Strategy comparison S&P500 vs. IUL [rev 1] Date:  4/4/2013  5:51 PM
Author:  Rayvt Number:  71707 of 79717

How much is that 5% spread out over 20, 30, 40 years?
Quite a lot, actually. Compounding over a period of several decades has a far more major effect than people generally realize. Human brains just aren't equipped to intuitively grasp compounding. Addition, yes. Multiplication, yes. Compounding, no.

The 5% fee is certain. The benefit of raising the cap from 12% to 17% is not.
Although, historically, the S&P hit the 12% cap 35% of the time, and hit the 17% c