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?

Vanguard
  $1000 in 1995 -> $2040

Annutity
  $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).
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