THE NO-COMPROMISE RETIREMENT PLAN • 81
Objection: Unrealistic Proposals “They’re making IUL look better than it is by using unrealistic as- sumptions about future growth.” Truthful Scale: ** It’s impossible to predict what any financial instrument will do in the future. The best we can do is look at past performance and project that forward. It’s true with IUL, and it’s true with 401(k)s, IRAs and most financial products. However, IUL has the power of indexing. If you remember from our discussion of indexing, it helps stabilize the growth of your funds, because there are no neg- ative years to deal with. While the market may be up 30 percent one year and down 40 percent the next, indexing is more stable and thus less susceptible to unrealistic assumptions than other fi- nancial products. This is one of the reasons I always show my clients some “worst case” scenarios, and why in this book I wanted to show how in- dexing could perform in terrible markets, like the Great Depres- sion and the “lost decade of investing.” To get a complete picture, talk to your advisor about the full range of potential results — both in IUL and in any other strategies you may be pursuing. Learn how a poor market would impact your IUL strategy, compared to how that market would impact a stock account or other vehicle. Finally, I’m glad that industry regulators have recently estab- lished new rules to help prevent any advisors from showing pro- jections that are too aggressive or unreasonable.
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