UnThreaded | Threaded | Whole Thread (147) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: CCinOC Big funky green star, 20000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75839  
Subject: Re: Strategy comparison S&P500 vs. IUL [rev 1] Date: 4/7/2013 2:06 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I can make another [Excel spreadsheet] with whatever parameters you want. Just let me know.

Alrighty.

http://www.businesswire.com/news/home/20120726005911/en/Alli...

~ Starting balance in IUL and S&P of $10,000
~ Monthly contribution $1,000 to IUL and S&P
~ Monthly contributions to IUL and S&P from January 1965 (age 20) to January 2013
~ Cap on IUL = 11% (Allianz Life Pro+)
~ No losses in the IUL policy; floor = 2%
~ IUL annual reset locks in all credited interest each year
~ Monthly withdrawal of $5,000* from both from February 2013 (age 68) to December 2033 (age 88)

* In the case of the IUL, it won't really be a "withdrawal" but a loan at 5.3%. The entire IUL balance continues to accrue with no losses. Only the balance (minus withdrawals) in the S&P continues to appreciate (or not).

Which strategy runs out of money first?

Obviously, this question can't be answered because we don't know what the future performance of the S&P will be, but which strategy runs out of money first is the crux of this debate. Since the S&P is poised to correct (in my opinion), I wouldn't want my money in the S&P at this time. But that's just me.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (147) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
Post of the Day:
Macro Economics

Should You Be an Index Investor?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement