No. of Recommendations: 7
What I set out to do was to compare two different strategies on the same set of numbers -- the actual historical price data of the S&P500 since inception -- and then compare the outcomes.

I provided that--prepared by a statistician. Did you look at it?

Yes. Yes, I did. I even commented that his chart looked just like my chart.
I provided the link to my spreadsheet. Did you ever look at it?

So anyway, here's what I did to compare what my spreadsheet said to what your statistician's spreadsheet said. I have to modify my inputs slightly since he increases the deposit differently than I do. He increases by a fixed amount every few years, I increase by an annual percentage. But we both start at $1500/yr and end near $6000/yr. Also, he computes annually, I compute monthly.

Oh, and I report the final value as the average of all 12 IUL's, one for each anniversary month (Jan-Jan, Feb-Feb etc.) He just reports the Jan-Jan IUL.

Starting Jan 1974 ending Jan 2013
His final results:
IUL: $502,000
S&P: $939,000

My spreadsheet final results:
IUL: $477,000
S&P: $899,000

Pretty darn close. And both of them say that the S&P ends up about double the IUL.

So I'd say that my spreadsheet is confirmed. Thanks for the link -- it's nice to know that I'm not out in the weeds. Either we're both wrong or we're both right.
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.