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| I guess I was using compounding, as that is what'I'm used to and markets are figured in compound rates. You were using simple interest. That's where the discrepancy lies. And you are right, you're way gets you all the gains, but you get all losses too. Suffer a 40% loss in the market and it takes 67% gain just to get back to even. On those loss years, an indexed annuity gets credited with a zero. I get it's not for you, but many folks really appreciate that feature. I compare it to 2 chairs at a blackjack table in Vegas. One chair is the way it is, you get all the winnings, but have to cover all the losses. The chair right beside it, you get to keep the majority of the winnings, the house covers your losses. Can you honestly say that's not the chair you'd choose if given the opportunity? And a 75,000 Dow in 20 years is less than a 6% annual compounded return. I wouldn't pronounce that's spectacular results for all the risk involved. Don't get me wrong, I absolutely believe the market is the place to be while in the accumulation phase. But it's a piss poor place to be for the OP, and that's who I am replying too. I'll bet you're a lot younger than him. Apples and oranges as to what I'd recommend as suitable for you compared to his situation.
Edited by Boone & Crockett 7/1/2018 06:22
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S&P 500
