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Investing/Strategies / Retirement Investing
|Subject: Re: Strategy comparison S&P500 vs. IUL [rev 1]||Date: 4/8/2013 5:08 PM|
|Author: Rayvt||Number: 71834 of 78168|
Corrected Allianz backtest.
There was an error in my spreadsheet -- the IUL fee calculation took out too much. And IUL withdrawls were double-counted.
Starting 1/1/1965, accumulate until 1/1/2013.
Initial $10,000 and add $1000/mo. IUL has load & fees as above.
S&P final balance: $12,003,000
IUL final balance: $2,789,000 <<WRONG
IUL final balance: $2,852,000 <<Corrected
S&P B&H start $5000/mo withdrawal on 1/1/1970 with a starting balance of $12,003,000.
Final value 20 years later, 1/1/1990: $95,615,000 (not a typo).
IUL, same parameters as before, starting balance of $2,852,000. <<Corrected
Final value: $5,627,000 (investment account) -$2,310,000 (loan account) = $3,317,000 <<WRONG
Final value: $7,951,485 (investment account) -$2,127,897 (loan account) = $5,823,589 <<Corrected
Straight withdrawal, rather than loan-type withdrawal. << NEW
Final value: $5,797,317 << NEW
Total withdrawals: $1,200,000 either way.
Now, 20 years of inflation is going to have a big effect on the buying