No. of Recommendations: 0
The first check might be to simply apply the floor and ceiling caps to the S&P 500, as this would be the equivalent of applying the caps with absolutely no fees or expenses. If the strategy underperforms a mix of the S&PP with US treasuries at the same volatility, then there's no need to go any further. However, if it outperforms, then we would need to model it using the fees and expenses of the actual product.

I should clarify that the above pertains solely to comparing an IUL as a cash accumulation vehicle to an equity/bond investment mix. There are other aspects of an IUL or any insurance product that may make them attractive, including but not limited to the death benefit inherent in life insurance and the tax advantages of an insurance policy (tax-free cash build-up and tax-free withdrawals through surrenders to basis and policy loans for any contract that is not a MEC). The suitability of any investment or any insurance product will be different for an individual depending on their objectives and goals.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.