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No. of Recommendations: 5
CC: I'm awaiting the conclusion just like everyone else, but I see no one--that's right, no one--providing convincing evidence that investing in the S&P 500 over a sustained period of time will result in a final figure of \$92 million.

the "back of the envelope" must be a bazillionair by now.

MurrayS: I'm beginning to think someone does not know how to operate a spreadsheet or even how to calculate time value of money.

::sigh::
Quick & dirty back-of-envelope:
`Annual Growth Rate:  10.5%Col A is the depositCol B is the number of years for that deposit to growCol C is what that deposit grows to.The Formula (column C)is  =A7 * ((1 + B\$4) ^ B7)Where "7" is the row number of that row.Cell B4 is the (constant) growth rate.		Deposit	# yrs	Grows to\$10,000	40	\$542,614\$12,000	39	\$589,264\$12,000	38	\$533,271\$12,000	37	\$482,598\$12,000	36	\$436,740\$12,000	35	\$395,240\$12,000	34	\$357,683\$12,000	33	\$323,695\$12,000	32	\$292,937\$12,000	31	\$265,101\$12,000	30	\$239,911\$12,000	29	\$217,114\$12,000	28	\$196,483\$12,000	27	\$177,813\$12,000	26	\$160,916\$12,000	25	\$145,626\$12,000	24	\$131,788\$12,000	23	\$119,265\$12,000	22	\$107,932\$12,000	21	\$97,676\$12,000	20	\$88,395\$12,000	19	\$79,995\$12,000	18	\$72,394\$12,000	17	\$65,515\$12,000	16	\$59,289\$12,000	15	\$53,656\$12,000	14	\$48,557\$12,000	13	\$43,943\$12,000	12	\$39,768\$12,000	11	\$35,989\$12,000	10	\$32,569\$12,000	9	\$29,474\$12,000	8	\$26,673\$12,000	7	\$24,139\$12,000	6	\$21,845\$12,000	5	\$19,769\$12,000	4	\$17,891\$12,000	3	\$16,191\$12,000	2	\$14,652\$12,000	1	\$13,260	Total	\$6,617,633\$6,617,633	20	\$48,747,040`

This is getting embarrassing.
Coming up with this spreadsheet took me less than 5 minutes.

*Grow each deposit by the number of years remaining in the 40 year accumulation period, then add them together.

* Grow that amount for the 20 year deccumulation period. Being a quick&dirty calculation, ignore the withdrawals. Withdrawal rate is \$60,000/yr from a ~\$7 million portfolio, which is negligible.

Is \$48 million close enough to "bazillionaire" for you?

It's in the same order-of-magnitude as the more complete calculations, so it lends credibility.

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I'd like to see a response to Murray's question: Could you please tell us what data has convinced you that IULs are better investments in the long run?

Do you have any data, or is it just a gut feel and the attractiveness of the story (sales literature)?

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