The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/the-practical-reality-is-that-dollar-for-dollar-30870877.aspx

Subject:  Re: Hi gang... wow!!! Date:  9/14/2013  7:28 PM
Author:  Rayvt Number:  72842 of 76392

The practical reality is that, dollar-for-dollar, over some long period of time for the S&P vs. a hypothetical IUL (they've been in existence for only about 20 years), the balance in the S&P account will be higher--depending, of course, where in the market cycle one pauses to compare.

But the S&P has the risk of being slaughtered from time to time and the IUL doesn't.


But historically, the only time that the slaughtered S&P is smaller than the IUL is if it happens in the early years. But in the early years: 1) the account values are quite small because they haven't had time to grow, and 2) the account value doesn't matter because you won't be withdrawing until many decades later.

An S&P account that got cut in half from $2M to $1M is *still* more than a never-drop IUL account worth $500K.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us