You know the Dimensional investment philosophy. You believe in the substantial research and science that backs up their portfolio management decisions. You understand that owning the Dimensional story in a tax-deferred account can liberate growth from taxation and lead to strong accumulation. It can be agreed, that whenever possible, the elimination of taxation in an investment account is a desirable thing. You are aware that you can own Dimensional in tax-deferred retirement accounts and annuities as well as within the tax-free Roth IRA account. Of course, the Roth is the superior tax-advantaged retirement account for long-term accumulation and income, but most high-earners can’t qualify for it anymore.
What if the IRS announced that they are dropping all income level and contribution restrictions on Roth IRAs while eliminating any age-based penalties for tax-free withdrawals? There is no doubt you would see an unprecedented amount of money flood into Roth IRAs immediately. Even if there was an additional cost associated with these accounts, as long as that cost didn’t outweigh the benefits of the tax-free wrapper, it would be a no-brainer.
Every American wants to invest for their future and for their family’s future. Every American wants to receive the best possible financial advice and guidance. Every American deserves to know all the suitable options available to them, especially those that offer superior tax-saving structures for investment and legacy planning. Investment VUL is one of the single greatest stories that Americans aren’t hearing about. It is a complete failure of our distribution model. It is a complete misconception of cost and process by financial professionals. It is the suffocating industry jargon and singular focus on death benefit that boxes out a massive market opportunity.
The investment VUL sale isn’t driven by the need for insurance but for the need to find a viable alternative to the Roth IRA. It is as simple as that, and there are thousands of clients who want and need to hear about that alternative. By its nature it is a story that can’t be progressed by a discussion around death benefit. It is a story that is driven by an investment mindset that needs to be spoken using the investment language that financial professionals understand. It needs to come from the investment companies that make up the underlying engine for growth. Insurance is just the tax-free wrapper; the investments are the real story. Clients are already heavily solicited for taxable and tax-deferred investment opportunities utilizing these funds. Why is the tax-free opportunity excluded?
Nationwide’s investment VUL offers access to the strongest investment lineup available in the industry. They are a trusted, high-quality household name. Within this top-tier investment lineup is exclusive access to eight, low-cost Dimensional fund options. There are hundreds of financial professionals and clients who subscribe to the Dimensional investment philosophy. Their performance and reputation speak for itself. The pairing of Dimensional and Nationwide is an absolute powerhouse of a story.
Nationwide is a Fortune 100, ninety-year-old company based in the U.S. with $27 billion in operating revenue annually. Nationwide offers annuities, mutual funds, life insurance, and retirement plans within their financial services division and consistently maintains the highest rankings from the rating agencies. Nationwide continues to be one of the most recognized and trusted brands in financial services.
Dimensional is a 37-year-old asset management company headquartered in Austin, Texas with 1,300 employees around the world. As of September 2018, they have $596 billion in assets under management with 13 offices in nine countries. Dimensional’s investment approach is rooted in academic research and science with its origins stretching back to the workings of Eugene Fama and Kenneth French who continue to work at the company, among several others. They are a very well-known manager throughout the investment channels.