No. of Recommendations: 3

I have been thoroughly enjoying the debate of IULs vs. a simple S&P index. Thank you for your contributions.

If I may, allow me to offer a small suggestion to the question about what amount of cash or "non-risked reserves" to hold. I believe a reasonable and conservative approach is to hold 5 years worth of cash or cash equivalents. In this case it would be 5 years worth of the proposed withdrawls. I believe you are calculating a withdrawl rate of $1500/month or $18,000/year. So I would suggest that the year withdrawls begin, $90,000 be taken out of the S&P index and placed in CDs. This would represent "risk free" money that could be used to avoid having to sell securities during a severe market correction.

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