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Subject:  Re: Strategy comparison S&P500 vs. IUL [rev 1] Date:  4/8/2013  12:45 PM
Author:  aj485 Number:  71804 of 88775

Imagine...all that from simply putting a grand a month into the S&P 500 over a few decades.

Not so hard to imagine when at the starting point that you proposed putting 'a grand a month' into the S&P500, 'a grand a month' was 174% of the median family's income. That means, in order to invest 'a grand a month' and still live the lifestyle of the median family, the invesotor would have had to have been making 274% of the median family's inoome - and that's without considering the marginal tax rates at that time, which in 1965 were 90%.

So in order to have 'a grand a month' to invest, the investor would have likely needed to be making 10 grand income a month over and above median family income, or a minimum of $126,900/year (assuming that the investor was willing to live the median family lifestyle) at a time when the median family income was $6900/year. That's 18.4 times the median family income. Someone making that income would likely already be considered 'a gazillionaire' in that time frame.

But I won't let the facts get in the way, because it's a great sales pitch.

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