A thought experiment:When you are showing a client an "Illustration Sheet" for an IUL, also show them the graph from the spreadsheet created by a credentialed authority that CC posted the other day. "S&P 500 1974 to Present.xlsx"Tell them, "This is what your account would have looked like, if you had started investing in 1974."Point out the two times the blue took a huge drop. Point out the red line and the fact that it never took a drop and certainly never got hit for a 36% loss -- let alone *two* 36% losses.Don't point out that one line goes to $500,000 and the other goes to $940,000 -- let them figure that out by themselves.Then ask the client which line he likes better, and which way they would prefer to have their money invested.I'm undoubtedly projecting, but I bet the majority will say "The Blue one."
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Rat