KCGeezer
Thinks s/he gets paid by the post
- Joined
- Jan 2, 2015
- Messages
- 1,539
I’ve been running searches for threads discussing ‘realistic’ expense ratios. I didn’t find a lot but that could easily be user error. I also tried to figure out how to make a poll but that didn’t work out either.
I know Firecalc has a default setting of .18 for expense ratio. I have seen comments where people referenced meeting or even going below that. I’m at .28 and with a couple of changes maintain my roughly 60/40 AA and get it down to .19.
Trouble with that is, based on published returns for the specific funds involved, last years performance would have been .5% lower. I recognize that past performance is no guarantee for the future but not sure what else to use.
Running my situation through various scenarios with expense ratio as the only variable in Firecalc each .1% seems to have a 1-1.5% variance in survivability. In my case, not a make it or break it factor. I think I’ve reached the point of diminishing returns for the amount of brain cells and time I’ve used up thinking about this.
So, my question for the community is, what is a ‘reasonable’ expense ratio? For anyone that uses outside help, exclude that fee. For people that roll their own portfolio with no fund managers, count your trading fees as the expense ratio.
Thanks in advance.
I know Firecalc has a default setting of .18 for expense ratio. I have seen comments where people referenced meeting or even going below that. I’m at .28 and with a couple of changes maintain my roughly 60/40 AA and get it down to .19.
Trouble with that is, based on published returns for the specific funds involved, last years performance would have been .5% lower. I recognize that past performance is no guarantee for the future but not sure what else to use.
Running my situation through various scenarios with expense ratio as the only variable in Firecalc each .1% seems to have a 1-1.5% variance in survivability. In my case, not a make it or break it factor. I think I’ve reached the point of diminishing returns for the amount of brain cells and time I’ve used up thinking about this.
So, my question for the community is, what is a ‘reasonable’ expense ratio? For anyone that uses outside help, exclude that fee. For people that roll their own portfolio with no fund managers, count your trading fees as the expense ratio.
Thanks in advance.