I find thes IUL threads informative, educational, and entertaining.I get a chance to download some historical data into Excel and polish up my spreadsheet skills. And Dave gets to argue about how you CAN TOO polish a t*rd until it shines like a gold bar.Dave, did you look at the equity curve chart I uploaded? It kinda demolishes the contention that The floor/cap indexing strategy outperforms the S&P in most markets. True, it only goes back to 1993, because that's the inception date of SPY. It could be extended back to 1976 by using VFINX, but I have no doubt that it would look essentially the same. (Dang! Yahoo only has VFINX back to 1987. Well, maybe I'll grab what they have.)There's not a big difference in using monthly, quarterly, or annual periods. What I posted shows that pretty clearly. At any rate, I relied on information I found with google, like "Each indexed segment has a segment date where the beginning value of the underlying equity index is recorded and the percentage change in the index value is calculated. Segment index periods vary by company. ... There are several methods of excess interest crediting based on rate changes over daily, monthly and annual periods, such as annual point-to-point, monthly averaging, daily averaging and variations on these methods. ...The index-crediting method is the process of calculating the index growth rate at the end of the index period. Nearly every company offering EIUL today uses the annual point-to-point method. "Whether you use a cap of 12% annual or 1% month or 3% quarter, it makes little difference. I did it first for 1% monthly, because I already had a spreadsheet that did that. But changing it to annual or any other period is simple.I notice that you didn't make any comment or come-back on the difference in final values between the S&P500 and the floored/capped strategy. A difference of growing a $10K initial investment from $37K to $70K would seem to be a big deal.
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