THE NEW RULES OF RETIREMENT SAVING • 89
and it’s a structure we now use with most of our clients. IUL must be structured properly to deliver all the benefits we’ve discussed in this book. If you need help finding someone reputable in your area who uses our structure, call our office and we can help you identify someone. 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. So 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 index- ing, it helps stabilize the growth of your funds, because there are no negative years to deal with. So 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 financial products. This is one of the reasons I always show my clients some “worst case” scenarios as well, and why in this book I wanted to show how indexing could perform in terrible markets, like the Great Depres- sion and the first decade of this century. To get a complete picture, talk to your advisor about the full range of returns that might be reasonable to assume you could re- ceive. I’m glad that industry regulators have recently established new rules that should help prevent any advisors from showing projections that are too aggressive or unreasonable. Objection: Expense “Never use insurance to save for retirement. It’s so expensive!”
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