inquisitive
Recycles dryer sheets
- Joined
- Apr 7, 2008
- Messages
- 223
Something I've never really understood: do I need to be concerned with fund turnover in a tax-advantaged retirement plan?
In a regular account, what is the affect of high turnover on the numbers? I can't really subtract an amount from the return like I can with an expense ratio right (eg a 7% yearly return with a 1% expense ratio is actually a 6% return)? Because the performance of the fund is already taking into account whatever turnover there was and the associated taxes?
In a regular account, what is the affect of high turnover on the numbers? I can't really subtract an amount from the return like I can with an expense ratio right (eg a 7% yearly return with a 1% expense ratio is actually a 6% return)? Because the performance of the fund is already taking into account whatever turnover there was and the associated taxes?