No. of Recommendations: 0
Hi AJ,

Actually, on that board/set of threads, I would say that your position is closer to ideological religion.
Sure... like I said before, the phlebotomist is the wild-eyed heretic at the jehovah's witness conference. I get it... I'm "crazy" to those folks...

IUL propoonents have been asked multiple times to supply numbers that disprove Rayvt's numbers showing that over a period of at least 20 years, investing in the S&P 500 with dividend reinvestment, will result in a larger pot of money than investing in an IUL, with associated fees and caps.
I don't know about any otehr IUL proponents, but Ray's already conceded he can't outperform an IUL with the same safety and liquidity parameters, and I've already conceded that there are *lots* of ways to outperform an IUL when risk of loss is no question.

Over 2 months later, no numbers have been supplied by IUL proponents, only rhetoric and pitches about 'highly complex' Monte Carlo simulations, and how there is 'no risk' with IUL, vs. 'lots of risk' with the 'naked' S&P strategy.
I don't know about all that... must be on the boards since after my last visit. I'll try to go catch up.

Unless you can prove with numbers that the IUL provides a bigger pot of money with the same amount invested over a 20 year period, your obsession with risk avoidance is what borders on religious, IMO.
An IUL is not a reward-chasing vehicle, it is a 'capital mothership' that remains virtually unsinkable (versus all similar alternatives) and outperforms all similar alternatives. When you *want* to take risks, because the rewards outweigh the risks, you are free to pull out capital as a collateralized loan (lower loan costs than the principal gains) to do so without losing the compounding growth on the total principal.

There is no comparison with a naked S&P position that has random risks of up to 50% loss.

And there still hasn't been any answer to the risk that was raised about the insurance company going belly up as a risk in your 'zero risk' IUL.

If there is ever an environment where a statutory reserve IUL company goes belly up, *AND* the participating competitor companies if that state's guarantee associations are unable to pick up the existing client contract... the naked S&P account will have long prior been decimated.

Just as with hiking in bear country, there is no absolute safety... but there are ways to make sure you are safer than the hiker next to you (who ends up as the bear bait.)

Hi PSUE,

More than one person is waiting for your numbers.
Exactly *zero* have said so to me, other than you now.

If need be, I can ask every day until you produce. This is the second time you've said you are not contributing because nobody seems interested.
Right... and after the 1st time I answered several questions... and faced insulting personal attacks that were apparently highly popular among the board participants.

Why would anyone of real substance bother with that kind of mob?

First time I've known for you to run from a discussion.
Not running... ignoring. Again, 'phlebotomy to the JW's'...

But I'll give it one more shot.
Dave
Print the post  

Announcements

Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.