No. of Recommendations: 3
Back out the 3% contribution inflation, and start it 40 years back as the IUL ran 40 years, and the B&H S&P lost to the risk-factored IUL... and that's before distribution eats it.

Actually, the latest figures I've been posting have no increase. Just the straight constant $150/mo. The way the sheet is set up, all the alternatives (B&H, Timed, IUL) get the exact same monthly deposit & withdrawal (if any).

Which brings up another point. With your own S&P account you can increase the deposits for inflation. And increase withdrawals, too, without having to pay extra for an inflation rider.
Jan'73 to Jan'13, 40 years, initial $15K, monthly deposit of $150, no increase ever. Fees: 9 bps for S&P, 22 bps for IUL. No withdrawals.

Final Values:
60/40 S&P500/bonds:
B&H: $1,122,000
IUL: $586,000
# of months the IUL value was higher than the B&H value: 53 of 480 -- 11%.
Largest amount ahead: $4,420

Timed S&P: $1,240,000

100% S&P500:
B&H: $1,500,000
IUL: $586,000
# of months IUL was higher: 84 of 480 -- 18%
Largest amount ahead: $7,620
We're not talking about a 5 or 6 digit shortfall here. $7600 is not going to make the difference between getting an expensive life-saving operation or not.

Timed S&P: $2,061,000

I need to upload the new spreadsheet.
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