The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Strategy comparison S&P500 vs. IUL [rev 1] Date:  4/7/2013  2:06 AM
Author:  CCinOC Number:  71757 of 88772

I can make another [Excel spreadsheet] with whatever parameters you want. Just let me know.


~ Starting balance in IUL and S&P of $10,000
~ Monthly contribution $1,000 to IUL and S&P
~ Monthly contributions to IUL and S&P from January 1965 (age 20) to January 2013
~ Cap on IUL = 11% (Allianz Life Pro+)
~ No losses in the IUL policy; floor = 2%
~ IUL annual reset locks in all credited interest each year
~ Monthly withdrawal of $5,000* from both from February 2013 (age 68) to December 2033 (age 88)

* In the case of the IUL, it won't really be a "withdrawal" but a loan at 5.3%. The entire IUL balance continues to accrue with no losses. Only the balance (minus withdrawals) in the S&P continues to appreciate (or not).

Which strategy runs out of money first?

Obviously, this question can't be answered because we don't know what the future performance of the S&P will be, but which strategy runs out of money first is the crux of this debate. Since the S&P is poised to correct (in my opinion), I wouldn't want my money in the S&P at this time. But that's just me.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us