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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75777  
Subject: Re: Hi gang... wow!!! Date: 9/18/2013 4:03 PM
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Hi Ray,

When just looking at the numbers (that is, paying attention only to the final values, and paying no attention to the meandering path from start to finish), the IUL comes out behind the S&P500 B&H every time.
That's because, so far, the S&P has been overfunded relative to drawdown risk reserves. Balance it out to an apples-to-apples comparison, and you'll see different results.

But... you're smart. You already know this, and that's why you refuse to balance it out.

All the rest of the narrative is 'hand waving' trying to keep the focus away from the obvious.

When the reserves that are required to survive a naked S&P B&H strategy are employed in the Allianz IUL as designed, so that the field is even, the IUL wins. Doesn't take a math genius to see that a 50% reserve on the straight S&P, or a 30% reserve on the 60/40 blend, drops both below the net 7.76% return, tax free, of the IUL.

And that's before the 2% positive arbitrage on the spend down glide path.

As I said, you're smart... Most here don't understand half as well as you do. But now your efforts are just trying to save face at this community.

Dave Donhoff
Leverage Planner
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