Corrected Allianz backtest.There was an error in my spreadsheet -- the IUL fee calculation took out too much. And IUL withdrawls were double-counted.===================================Starting 1/1/1965, accumulate until 1/1/2013. Initial $10,000 and add $1000/mo. IUL has load & fees as above.On 1/1/2013:S&P final balance: $12,003,000IUL final balance: $2,789,000 <<WRONGIUL final balance: $2,852,000 <<Corrected===============================Deccumulation...S&P B&H start $5000/mo withdrawal on 1/1/1970 with a starting balance of $12,003,000.Final value 20 years later, 1/1/1990: $95,615,000 (not a typo).IUL, same parameters as before, starting balance of $2,852,000. <<CorrectedFinal value: $5,627,000 (investment account) -$2,310,000 (loan account) = $3,317,000 <<WRONGFinal value: $7,951,485 (investment account) -$2,127,897 (loan account) = $5,823,589 <<CorrectedStraight withdrawal, rather than loan-type withdrawal. << NEWFinal value: $5,797,317 << NEWTotal withdrawals: $1,200,000 either way.====================Now, 20 years of inflation is going to have a big effect on the buying power of that $5000/mo. Let's increase the withdrawal by 2.5% a year to compensate for inflation. The withdrawal in the last year is $14,100 per month. <<WRONG$7,993 per month. <<CorrectedTotal withdrawn: $1,533,000S&P B&H final value: $94,571,000IUL, same parameters as before, starting balance of $2,852,000Final value: $5,151,000 (investment account) - $2,811,000 (loan account) = $2,340,000 <<WRONGFinal value: $7,951,485 (investment account) - $2,603,415 (loan account) = $5,348,071 <<CorrectedStraight withdrawal, rather than loan-type withdrawal. << NEWFinal value: $5,309,883 << NEW
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