UnThreaded | Threaded | Whole Thread (318) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: CCinOC Big funky green star, 20000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76398  
Subject: Re: Hi gang... wow!!! Date: 9/19/2013 11:42 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
By showing a 50/50 mix (a few different ways, in fact) he thinks, from his viewpoint, he's provided a way to mitigate the volatility risk that you have brought up.

Mitigate, but not eliminate. Which is Dave's point. Echos of the Great Depression still exist in this country, when entire fortunes were virtually wiped out. When the pundits talked about the Great Recession, references to the Great Depression were never far behind.

Dave is saying that by virtue that your principal is guaranteed, while still offering upside, is a feature of IULs that can be quantified by a percentage or dollar amount.

If you agree with this (I don't), by what percentage should the mitigation of risk be measured?

Dave erred (in my opinion) by stating emphatically from the outset that "The IUL will outperform the S&P500 B&H in the long run" without clearly defining what he meant and proceeding from there. This omission muddled the conversation but we're a bit farther along now, I think.

Dave thinks the IUL should get credit (so to speak)--a lot of credit, in his opinion--for eliminating (not just mitigating) market risk. How to quantify that "credit" is what we're discussing now.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (318) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement