walkinwood
Thinks s/he gets paid by the post
I was re-reading Bob Cylatt's Work Less Live More and was reminded of the need to deduct fund management fees (and other fees) from my SWR withdrawal.
ie. if you take a 4% SWR from a $1M portfolio and your fund management fees total .5%, you start with $35,000 not $40,000 (as I was thinking).
The reason for doing this is that fees are not accounted for in the SWR studies. When you think about it, you need to estimate the transaction fees that you incur as your fund manager trades stock.
Do you deduct the fund management fees when you do your SWR calculations?
My fund management fees come to .54% due to some actively managed funds I have. I would sell them if it wasn't for the capital gains taxes I'd have to pay. I need to put a spreadsheet together to balance the extra fees with the cap-gains tax if I were to sell.
ie. if you take a 4% SWR from a $1M portfolio and your fund management fees total .5%, you start with $35,000 not $40,000 (as I was thinking).
The reason for doing this is that fees are not accounted for in the SWR studies. When you think about it, you need to estimate the transaction fees that you incur as your fund manager trades stock.
Do you deduct the fund management fees when you do your SWR calculations?
My fund management fees come to .54% due to some actively managed funds I have. I would sell them if it wasn't for the capital gains taxes I'd have to pay. I need to put a spreadsheet together to balance the extra fees with the cap-gains tax if I were to sell.