Managing Uncertainty, Compounding Returns
The investment fees you pay have a significant impact on the success of your long-term investment performance. Fees represent the transfer of a significant portion of your investment capital to the financial advice industry.
Many investment products contain embedded fees and commissions. Most mutual funds charge expenses to the assets of the fund. These costs are expressed in a management expense ratio or MER.
If a mutual fund has an MER of 2.50%, then the fund manager is withdrawing 2.50% of the value of the fund's assets to cover the various costs of managing, administering, and marketing the fund. The MER represents the annual rate at which your investment assets would be declining, if there is not a positive investment return produced by the fund.
For example: using a $500,000 investment returning 8% annually over 15 years produces:
$1,116,238 with a 2.50% MER
$1,331,951 with a 1.25% Discretionary Portfolio Management fee
Therefore, reducing the investment costs you pay from 2.50% to 1.25%, results in you receiving an additional $215,713 with the identical return and time horizon.
Ask yourself if you think the advice and the investment performance you are currently receiving is worth this amount of money!
Our fee schedule aligns our interests with those of our clients by:
1. Being designed to be substantially less than mutual fund MER charges, to maximize the returns we produce for our clients.
2. Calculating our fee based on the value of the investment assets we manage for our client. These fees are not based on the asset mix of the portfolio and we do not receive any compensation from commissions to buy or sell securities.
Company Profile Risk vs. Uncertainty The Mathematics of Losses
Many investment products contain embedded fees and commissions. Most mutual funds charge expenses to the assets of the fund. These costs are expressed in a management expense ratio or MER.
If a mutual fund has an MER of 2.50%, then the fund manager is withdrawing 2.50% of the value of the fund's assets to cover the various costs of managing, administering, and marketing the fund. The MER represents the annual rate at which your investment assets would be declining, if there is not a positive investment return produced by the fund.
For example: using a $500,000 investment returning 8% annually over 15 years produces:
$1,116,238 with a 2.50% MER
$1,331,951 with a 1.25% Discretionary Portfolio Management fee
Therefore, reducing the investment costs you pay from 2.50% to 1.25%, results in you receiving an additional $215,713 with the identical return and time horizon.
Ask yourself if you think the advice and the investment performance you are currently receiving is worth this amount of money!
Our fee schedule aligns our interests with those of our clients by:
1. Being designed to be substantially less than mutual fund MER charges, to maximize the returns we produce for our clients.
2. Calculating our fee based on the value of the investment assets we manage for our client. These fees are not based on the asset mix of the portfolio and we do not receive any compensation from commissions to buy or sell securities.
Company Profile Risk vs. Uncertainty The Mathematics of Losses
WHY INVESTMENT COSTS MATTER
