No. of Recommendations: 2
Hey Ray,

I challenge the IUL proponents to do the same. Run the data and post the equity curves. So far, all I've seen is handwaving. You don't prove or demonstrate that IULs are better than the S&P500 by handwaving, you do it by shwoing the data. SHOW ME THE MONEY.

Happy to do so on a strictly apples-to-apples financial performance basis. Since it is impossible for you to guarantee that any strategy you design will avoid have consecutive drawdown periods during your eventual retirement distribution years, you can structure anyway you want as long as it delivers zero annual drawdown risk, and I'll do the same.

Name your start year & end year... minimum 20 years (but longer if you want, your call.) Heck, you can cherry pick the specific start/end dates if you want to.

I'm totally up for this (with the eyes-open awareness that there *ARE* a handful of periods that an IUL might not win.)

Let's look at both with, and without trading or product costs. Of course, mine will come burdened with the requisite death benefits, but you can do it without the mortality cost burdens... I'll give it to you as a 'handicap.'

Yes, I get that IULs have a guaranteed floor and you never ever lose money. For some people, that's the #1 most important thing. I get that. You don't mind that you'll only have half the money when you retire -- just that you never see your account value ever go down. I get that.
Its the naked buy & holder who's at risk of having an account 50% of what they might have in a principal-guaranteed strategy (which, again, *CAN* be done without the insurance industry, just not anywhere as cheaply.)

Are you willing to put up? Or was your 'hand waving' comment simply self-referential? ;~)

Dave Donhoff
Leverage Planner
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.