Bob Ritter, the owner and founder of Insmark, Inc., wrote a recent blog entry in which he discusses a Forbes.com article about the most recent studies on the true cost of owning a mutual fund. According to the article, the total all-in yearly expense for the average mutual fund is over 4%. When you include the tax costs in a taxable mutual fund, total annual expenses can be well over 5%! Contrast this to the average, all-in yearly expenses of a properly structured IUL contract of around 1.5%.
This Forbes article can be an important tool in making the case to your clients that a properly structured IUL is a comparatively low-expense wealth accumulation tool.