The Motley Fool Discussion Boards

Previous Page  
Investing/Strategies / Retirement Investing 

URL:
http://boards.fool.com/startingbalanceiniulandsamppof1000030625789.aspx


Subject: Re: Strategy comparison S&P500 vs. IUL [rev 1]  Date: 4/7/2013 12:09 PM  
Author: Rayvt  Number: 71769 of 87437  
~ Starting balance in IUL and S&P of $10,000 ~ Monthly contribution $1,000 to IUL and S&P I bypassed this earlier, but now that you've repeated it, I have to ask... Do you realize how much this is??? Now absurd it sounds? $1000/mo is $12,000/yr. 2013  1965 is 48 years. Total contribution is $576,000. Oh, plus the initial $10,000. $586,000. Back of envelope figuring: Rule of 72 says 7.2% growth doubles every 10 years. Average S&P growth is close to 7.2%, so let's go with that. So we double about 5 times. Average balance is half of $586K or $293K. Double that 5 times = 32 times. 32 * $293K = about NINE MILLION dollars. When figured accurately, the 1/1/2003 value of S&P500 B&H is $6,200,000. SIX MILLION DOLLARS. That's only backofenvelope figuring. Details to come. 

Copyright 19962018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us 