Risk vs. Reward is one of the most important considerations for any serious investor. But what about Performance vs. Fees?
Does a mutual fund manager deserve to get paid a 1 ½ to 2 percent management fee for underperforming their respective benchmark index?
For example, what's the logic of owning a fee riddled large-cap mutual fund that can't even outperform the S&P 500 or another corresponding large-cap index?
You may think that paying 1 ½ to 2 percent is not a big deal, but think again! What if you paid 2 percent too much on your mortgage? Would that be a wise financial decision? Whether you realize it or not, a 1 to 2 percent cost difference over long periods of time can translate into hundreds of thousands of lost dollars. Just take a look at the numbers below!
$ 100,000 invested for 30 years at 9% compound interest with a 2 percent annual fee will grow to
$ 761,225. $ 100,000 invested for 30 years at 9 percent compound interest with just a ½ percent fee will grow to $ 1,155,825.
Did the $ 394,000 difference catch your attention?
Exchange-traded funds (ETFs) are renowned for their low expense ratios and can help you to cut the fat of overrated investment advice produced by Wall Street.
Our "Ready-To-Go Portfolios" give you the important portfolio data you need by doing all the work for you. ETFguide constructs and manages 6 different and unique ETF portfolios. Just follow along!
Here's a short list of the 6 all ETF portfolios available:
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Capital Defense |
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Strategic Balance |
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Generation Growth |
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Contrarian Fox |
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Sector Savvy |
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World Travel |
Choose the “Ready-To-Go Portfolio” or the combination of portfolios and you are ready to go. |
