Hi Ray,A 50/50 asset allocation has 50% in the S&P500 and 50% in US Treasuries. That's your "reserves" right there, that 50% in treasuriesOK, what's the worst drawdown on that blend from '73 to present?IUL account: $586,000Why do you ignore the actual run numbers?IUL = $769,585If we go crazy-wild low-risk: 25/75. 25% S&P500 and 75% in 10-yr T-billsOK, what's the worst drawdown on that blend from '73 to present?Can't just ignore historical drawdowns in a comparison where one option has none by guarantee.=====PSUEYou keep saying that but I haven't seen any real calculations. For stocks and bonds, I can find lots of calculations of various scenarios on the web, in addition to what Ray has provided. I keep pointing out simple ways to account for the risk of forced liquidation during drawdowns, and Ray keeps avoiding them, and ignoring the real IUL projections provided.I'm busy in a real daytime gig, but I don't ignore & obfuscate the facts.Ray's retired with discretion... yet the dodging appears intentional. Might lead to wonder why...Can you point me to similar calculations for IUL's? I provided an illustration designed for growth performance over 40 years, using an assumed average rate that hit in 95% of all rolling 25 year periods.Ideally, I would like to see Monte Carlo calculations showing various start and end dates. That might be somewhat interesting, I don't have those. Monte Carlo calculations wouldn't tell much unless we could also plug in actuarial data form the overall casualty & insurance industry to try to approximate the likelihoods and degrees of catastrophic events, and their correlation with market drawdowns.I definitely don't have that... but I know its significant. Significant enough when considering that *all* capital prior to reaching retirement counts *AS* retirement investing.Dave DonhoffLeverage Planner
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. M