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Investing/Strategies / Retirement Investing
|Subject: Re: Strategy comparison S&P500 vs. IUL [rev 1]||Date: 4/8/2013 12:13 AM|
|Author: Rayvt||Number: 71790 of 81979|
CC: I'm awaiting the conclusion just like everyone else, but I see no one--that's right, no one--providing convincing evidence that investing in the S&P 500 over a sustained period of time will result in a final figure of $92 million.
the "back of the envelope" must be a bazillionair by now.
MurrayS: I'm beginning to think someone does not know how to operate a spreadsheet or even how to calculate time value of money.
Quick & dirty back-of-envelope:
This is getting embarrassing.
Coming up with this spreadsheet took me less than 5 minutes.
*Grow each deposit by the number of years remaining in the 40 year accumulation period, then add them together.
* Grow that amount for the 20 year deccumulation period. Being a quick&dirty calculation, ignore the withdrawals. Withdrawal rate is $60,000/yr from a ~$7 million portfolio, which is negligible.
Is $48 million close enough to "bazillionaire" for you?
It's in the same order-of-magnitude as the more complete calculations, so it lends credibility.
I'd like to see a response to Murray's question: Could you please tell us what data has convinced you that IULs are better investments in the long run?
Do you have any data, or is it just a gut feel and the attractiveness of the story (sales literature)?
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