To help you stay abreast of market conditions, here we provide a monthly snapshot of trending indexes, as well as a resource to monitor your individual IUL performance.
Maturity Dates: 11.15.23 - 11.15.24 *S&P 500 one-year point-to-point with a participation rate of 100% and a cap of 10%. **S&P 500 Uncapped one-year point-to-point with a current spread/threshold of 6.5%, a participation rate of 100%, and no cap. ***BlackRock Endura (available through Pacific Life) one-year point-to-point with a participation rate of 200%, with no cap, with an additional multiplier of 2.36 times (for an extra cost of 7.5%).
BEGINNING INDEX VALUE
ENDING INDEX VALUE
INDEX CHANGE RATE
SAMPLE IUL RETURN
INDEX
S&P 500
4495.70 5949.17
32.33% 10%*
S&P 500 Uncapped
4495.70 5949.17
32.33% 25.83%**
BlackRock Endura
124.67
136.79
9.72% 38.38%***
HOW IS YOUR IUL LASER FUND PERFORMING? Scan the QR code to use our IUL Performance Calculator to see your unique IUL index returns. While there, get a quick look at samples of actual recent returns on other available indexes (like the one to the right)!
To help you optimize your index strategies, here we offer index recommendations based on current market conditions. Consult with your IUL specialist for guidance in making any desired changes when your current segments come up for maturity. Recommendations are not guarantees of future performance.
Up above, we showed the BlackRock Endura index with a multiplier, which is available exclusively from Pacific Life.
To understand how we arrived at the net return rate, here’s what to do: Start with the index return of 9.72% times a 200% participation rate, which equals 19.44% for your regular return. Then you multiply that by 2.36, for a gross return of 45.88%. Finally, you subtract the 7.5% multiplier cost, for the net return of 38.38%.
A few things to point out:
• Here you can see the impact of a multiplier (38.38% versus 19.44% return in this example). • Keep in mind, multipliers do carry a cost, which can give you more upside potential. • You can also choose from different multipliers. We showed a 7.5% fee for a 2.36 multiplier. You could also opt for a 2.5% fee for a 1.46 multiplier or a fee of 4.98% for a 1.91 multiplier.
• Now, if the market drops and you have a multiplier, you’re still protected from market loss with your 0% floor, but you will incur the multiplier fee (which would be 7.5% in our example). • This is why multipliers work really well during up markets, supercharging your return. • If you’re feeling bearish about the market, however, you will want to turn your multiplier off on your anniversary date for the coming year.
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