Which IUL for Me?

[Tahoe Ray]

No... illustrated current costs and used an if statement to determine the return that would have happened year by year. If s&p went down, return was zero minus fees, if s&p went up, return was whatever it was up til the cap of 15, minus fees. Its all based on mnl's illustrated values. I did the same for aviva's iul and it actually loses to the market a lot of the time

I am always interested by these spreadsheets...any chance you could pm it to me?

 

[vic616283]

I am always interested by these spreadsheets...any chance you could pm it to me?

Yeah as soon as i get to a computer

 

[macmarill]

Post an email, I will send you a spreadsheet where I compare the two. I took the historical S&P 500 end of year values, and I compared investing $36,000 every year into the an S&P500 index ETF vs investing it into an iul. Trying to favor the S&P I assumed no transaction costs, no bid ask spreads, and no premium above NAV (I did this because when I did this work, I was on your side of the fence and I was trying to prove that IULs are bad- my spreadsheet is even named something like "IUL is a scam.xls"). I also assumed no loans taken out on the IUL but rather a full surrender with income taxes paid. The iul wins almost every time. The only time the mutual fund comes out on top is if you time your retirement just right so that you retire at the very peak of a bull run.

In addition to this, no investment should be evaluated in terms of pure return unless you're a dummy. Seeking alpha is better than seeking returns any day. If this weren't the case then why don't we all throw all our savings at penny stocks all day? IUL's offer alpha which is leaps and bounds better than the market. The historical returns are out there - some of the index strategies by companies mentioned in this thread are in the 7.5-8.5% range, with resulting IRRs in the high 6's and low 7's. This is with very low volatility. This alpha beats the market any day.

Hi Vic can you send a copy of your comparison to me as well? Thanks Marcia [email protected]

 

[chrislovessushi]

Can you actually make money with IUL?

 

[Norwayguy]

Can you actually make money with IUL?

Yes as a policyholder and as an agent.

 

[macmarill]

Post an email, I will send you a spreadsheet where I compare the two. I took the historical S&P 500 end of year values, and I compared investing $36,000 every year into the an S&P500 index ETF vs investing it into an iul. Trying to favor the S&P I assumed no transaction costs, no bid ask spreads, and no premium above NAV (I did this because when I did this work, I was on your side of the fence and I was trying to prove that IULs are bad- my spreadsheet is even named something like "IUL is a scam.xls"). I also assumed no loans taken out on the IUL but rather a full surrender with income taxes paid. The iul wins almost every time. The only time the mutual fund comes out on top is if you time your retirement just right so that you retire at the very peak of a bull run.

In addition to this, no investment should be evaluated in terms of pure return unless you're a dummy. Seeking alpha is better than seeking returns any day. If this weren't the case then why don't we all throw all our savings at penny stocks all day? IUL's offer alpha which is leaps and bounds better than the market. The historical returns are out there - some of the index strategies by companies mentioned in this thread are in the 7.5-8.5% range, with resulting IRRs in the high 6's and low 7's. This is with very low volatility. This alpha beats the market any day.

I would like to see this spread sheet as well.

 

[scottstreet]

Yoohoo, oh Brandon......I think Brandon may have done a post at one point on this issue on his Insuranceproblog.com