re: Indexed Universal Life policy. Who has done it?

quote:

---

Well based off what I’m putting in right now at 58 I’m going to have 65k a year In tax free income. If I pay it to 63 I’ll have about 75k per year…..TAXFREE

---

I’d like to see these IRR calculations. Since 1928 the S&P 500 would have returned only 5.78% annualized with those stipulations (up to 10% cap in up years, flat in down years). Even without accounting for product fees, your 23 year FV of premiums would be ~$653,500, yet someone is going to give you $65k per year tax free for 30+ years off of that money, which would require a rate of return in the distribution phase of at least 9.25%???

The math simply doesn’t add up, even before you take into consideration the fact the insurance company is in business to actually make a profit.

ETA- the best 23 year rolling period since 1928 would have had annualized returns of 6.7%, which would have grown your capital to $747,000. $65k per year in withdrawals off of that for 30 years would require an annualized rate of return of 7.78%, which literally has never happened in any 15 year rolling period in market history, much less any 30 year period. This is some snake oil math my friend.