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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 76238  
Subject: Re: 7702 Private Plans (indexed universal life) Date: 3/30/2013 3:11 PM
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sykesix wrote: If I may back up a bit, this debate arose over the claim that IUL provide "market returns without market risk." (or something very close to that statement). That's the question that kicked this whole thing off. [...] If we are going to evaluate that claim, then we have to look at how a IUL performed vs. "the market." For purposes of this discussion, it appears to me people have been assuming the market is the S&P 500 index. I think that is a reasonable assumption. One other assumption is that we are looking at retirement time horizons. Twenty years, something like that. The OP was looking to do this instead of his 401(K), so those assumptions seem reasonable to me. [...]

sykesix's parameters are as good a starting point as any. No one claimed that an IUL would perform as well as ANY/EVERY stock market strategy. No one said one could find the most blazingest trader out there--a consistent annual winner, if such a person exists--and say that an IUL will match his/her performance, so let's just take that off the table. So...

~ Self-traded S&P 500 vs. IUL (with 12% cap)
~ January 1975 (age 28) to December 2012 (age 65) [37 years of systematic contributions]
~ Monthly investment amount: $1,000 (round number)
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