GSantos
New Member
- 14
Why does the "Classic – 0.90% Guaranteed Bonus No Additional Charge":
Allocations:
Bloomberg US Dynamic Balance II ER Index annual point-to-point: 50% (15 year historic average 6.89%)
PIMCO Tactical Balanced ER Index annual point-to-point: 50% (15 year historic average 6.62%)
Illustration better than the "Standard Allocations – No Bonus No Additional Charge Allocation Assumed Rate?"
Allocations:
Bloomberg US Dynamic Balance II ER Index annual point-to-point - 50% (15 year historic average 9.20%)
PIMCO Tactical Balanced ER Index annual point-to-point - 50% (15 Year historic average 8.84%)
My question is why does the index allocation with a guaranteed bonus & no additional charge illustrate better then the same exact index strategy with no bonus and no additional charge when the historical rate of return on the "Classic – 0.90% Guaranteed Bonus No Additional Charge" is less then "Standard Allocations – No Bonus No Additional Charge Allocation Assumed Rate"
Also how can two of the exact same indexing strategy's have such different rate of returns especially when one has the bonus??
(Note: The strategy with a bonus has a lower 15 year historical rate of return then the strategy with no bonus!! This is so counterintuitive and is hurting my brain).
Someone please expand.
Thank you.
Allocations:
Bloomberg US Dynamic Balance II ER Index annual point-to-point: 50% (15 year historic average 6.89%)
PIMCO Tactical Balanced ER Index annual point-to-point: 50% (15 year historic average 6.62%)
Illustration better than the "Standard Allocations – No Bonus No Additional Charge Allocation Assumed Rate?"
Allocations:
Bloomberg US Dynamic Balance II ER Index annual point-to-point - 50% (15 year historic average 9.20%)
PIMCO Tactical Balanced ER Index annual point-to-point - 50% (15 Year historic average 8.84%)
My question is why does the index allocation with a guaranteed bonus & no additional charge illustrate better then the same exact index strategy with no bonus and no additional charge when the historical rate of return on the "Classic – 0.90% Guaranteed Bonus No Additional Charge" is less then "Standard Allocations – No Bonus No Additional Charge Allocation Assumed Rate"
Also how can two of the exact same indexing strategy's have such different rate of returns especially when one has the bonus??
(Note: The strategy with a bonus has a lower 15 year historical rate of return then the strategy with no bonus!! This is so counterintuitive and is hurting my brain).
Someone please expand.
Thank you.
