Seems pretty straighforward:
I'll use a $250,000 example because a lot of folks on here have at least that much they could invest if they were convinced:
ER cost: 28-48 bp,depending on the portfolios used. I'll use an average of 38bp.
Fee cost: 43 bp on $250,000.
A trade cost of $20-$50 PER fund bought to get started,I will use an average of $30 a trade, because I know I and most other firms can do that.
So, your $250,000 costs $330 to buy the funds, the ER is $950 a year, and the ongoing management fee (wrap fee) is $1075. You paid $2355 to get "started", and ongoing of 81bp forever ($2025) a year.........
And a lot of you are excited about it, even though you have your money in VG at ER ratios of under 30bp?? You guys make me smile............
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