sykesix,Thank you for your thoughtful reply.You seem to agree with my premise - that if we are going to compare the 2 strategies, the mostly likely scenario is an IUL vs. a non-tax advantaged account. In that case, taxes would be at current LTCG of 23.8% and 20% for dividends. I am not intuitively good with numbers, but I suspect that this would significantly narrow the gap between the performance of the 2 strategies but leave the S&P index in the lead. The last piece of the puzzle remains the fact that the IUL "distributions" are a loan and that the full account balance remains available for the crediting of any index gains. This of course means that the account balance may actually decline if the index gain is less than 6%, but will actually grow faster in any year that the index gains more than the interest rate on the loan. In contrast, funds withdrawn from the S&P B&H strategy are no longer available to generate positive returns. Frankly, I am dubious that this factor will be able to overcome the previous outperformance of that strategy, but I would love to see the numbers run. Rayvt,You are doing a wonderful job of proving your point but please don't slip into "hand waving away" valid questions. It is a fact that loans from an IUL are considered tax free and that the loan amount does not reduce the account value available for crediting. I have read multiple IULs' prospectuses and am comfortable with these facts. I still doubt that these 2 issues will result in the IUL outperforming the S&P B&H strategy but would like to see the numbers run (let me say again that this is the most wonderful real time exercise in finance that I have ever participated in, I am grateful for your efforts, and I realize that every request that I make means significant work for you). I confess that the rest of your response quickly confused me. I am neither a financial professional nor a numbers guy and have no idea what E/R means - expense ratio??. But let's forget the SMA timing strategy and stick to the simple B&H - where taxes are only due on distributions and dividends are reduced by 20% for taxes. Given the tax implications of a worst case scenario, I would like to see how an IUL performs against the simple S&P B&H strategy - both during accumulation, and distribution assuming the tax free loan status and continual crediting of the loan amount. If you can do that, I swear that the next time I am in Arkansas, the beers are on me.thanks again for all your work,KB
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