The Real Cost of Owning a Mutual Fund

May 13, 2015

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.  See my article here that explains how to discuss IUL expenses with your client.

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