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URL:  http://boards.fool.com/on-a-simple-annual-point-to-point-the-opening-day-30622529.aspx

Subject:  Re: Strategy comparison S&P500 vs. IUL [rev 1] Date:  4/4/2013  7:40 PM
Author:  Rayvt Number:  71714 of 80374

On a simple annual point-to-point the opening day and anniversaries are the market data points. If the ultimate year's returns were 12%, then any principal balance in place from the initial anniversary gets a credit of the full 12%,
Yes. That't the way I did it.

and any subsequent mid-year contribution gets a pro-rated credit according to the portion of time in.
I didn't do that. I just credited the entire year's worth of additional contributions all at once.
[Let me check... be right back....]
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[I'm back.]
Yes. No prorated credit.
New value = (gain_factor * (old_value - expenses)) + all intra-year deposits.
I can change it to a better approximation. Assuming level additions, on average, full gain on the average annual additon balance is Close Enough. Adds to the complexity, though, so CC will scream. ;-)

Yup, it makes things a bit better. For $10,000 & $100/mo, ends with $351,300 instead of $343,700

At the anniversary, all original principal, plus any accumulated growth to date, is considered principal going forward. The straight PTP IU