IUL - Indexed Universal Life Cash Value Illustration

[Scottgbrooks]

How can I show the cash value growth of a LIRP (Life Insurance Retirement Plan) in the client's portfolio as well as showing them taking income distributions at retirement from the LIRP. I am also trying to illustrate this for an Annuity but so far it seems that all asset types are grouped together in one lump sum. Is there any way to separate the different assets?

[jimr]

Unfortunately, the planner's model groups all assets into three portfolio buckets (taxable, tax deferred, tax free). There's no option to track separate assets outside of these three portfolios.

Usually you can at least handle the cash flows from these types of assets by creating specific cash flows in the additional inputs window. However, you'll want to be extra careful that the planner is handling these cash flows the way you expect by verifying everything in the year-by-year detailed view table after you run the planner. Pay particular attention to how the inflation handling is done. (Keep in my that the year-by-year detailed view table shows everything in present value dollars, so an inflation adjusted amount stays exactly the same from year to year, while non-inflation adjusted amounts decrease each year by the inflation rate).