I was looking at Midland/NA spread rate is 3.5 - 4% .. I don't know about you guys but this is very attractive. Penn is 6% (but they do have a 1% floor) .. Given the way the S&P goes way up and down, I think it's a strategy worth considering? Especially for younger folks... I would do it for myself. Am I crazy?
What is the downside?
I just ran a calculator with North American 4% spread rate and the 100th percentile was 6.70% .. 95% of the scenarios would return 7.67% or better. That was based on the past 50 years.
One good good 20% return from the S&P gets your IUL cash value set for good.
The only downside I can see is that there are not a lot of carriers using it, so Midland /NA could definitely go to a 5% spread without any consequences
I'm curious to see what everyone else thinks.
What is the downside?
I just ran a calculator with North American 4% spread rate and the 100th percentile was 6.70% .. 95% of the scenarios would return 7.67% or better. That was based on the past 50 years.
One good good 20% return from the S&P gets your IUL cash value set for good.
The only downside I can see is that there are not a lot of carriers using it, so Midland /NA could definitely go to a 5% spread without any consequences
I'm curious to see what everyone else thinks.