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Subject:  Rerun of Dave's IUL scenario Date:  4/9/2013  12:54 PM
Author:  Rayvt Number:  71868 of 80423

Now that the spreadsheet has gotten quite sophisticated, it is worthwhile to revisit Dave's original scenario.
This is a backtest of investing directly in the S&P500 vs. investing in the S&P500 index the way that an IUL (Indexed Universal Life) policy does.

IUL parameters (all annual):
Floor: 0%
Cap: 12%
Fees: 0.75%
Policy loan interest rate: 6.0%
S&P methods pay 15% tax on dividends. No other taxes considered.

Starting dates are beginning of that month.
Ending dates are end of that month.

Accumulate and grow for 28 years, then withdraw for 10 years.
Initial $10,000 deposit. Adding $100/mo
Start Jan-1975
Begin withdrawals Jan-2003
Withdraw $1,500/mo,

Final values (strategy, Net final value, ending date):
B&H w/div	$844,962	Dec 2012
10mSMA $599,997 Dec 2012
IUL (loan) $41,003 Dec 2012