No. of Recommendations: 0
Year   S&P 500    Gain using Vanguard index   Gain using Annuity
                        (0.20% expense)          (3% expense)

1995     615 
1996     740                 20.1%                    15%
1997     970                 30.9%                    15%
1998    1229                 26.5%                    15%
1999    1469                 19.3%                    15%
2000    1320                -10.3%                     0%
2001    1148                -13.2%                     0%
2002     879                -23.6%                     0%
2003    1111                 26.2%                    15%
2004    1211                  8.8%                   5.8%
2005    1256 (today)          3.5%                   0.5%

What would the annuity be worth if returns were as listed above?

  $1000 in 1995 -> $2040

  $1000 in 1995 -> $2138

It's still more.... interesting... how often do you see three years in a row of
double-digit negatives though?? The only time close was 1972-1974 where you had two years 
in a row of -18% and -30%. 

Be interesting to compare to other ten year periods... You'd probably lose big 
starting anytime in the 80s... but any ten-year period that included 1972-1974 might 
do pretty well under this plan.

It all depends on how many negative years you have to deal with (and how negative 
those years are). 

Seems a pretty interesting hedge if you're a bear - and I am.I still think 
we're headed for another drop or a long set of mostly nothing years 
(like between 1966 and 1982).
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!
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.