This web site is dedicated to investment fund investor education and protection. The multi-billion fund industry plays a key role in the savings and retirement plans of millions of Canadians. Many industry practices provide beartraps for the unsuspecting investor and securities regulations have not kept up with the pace of change in the industry.
Wednesday, June 5, 2013
Research: The Arithmetic of Investment Expenses by William F. Sharpe
Research: The Arithmetic of Investment Expenses by William F. Sharpe
ABSTRACT Recent regulatory changes have brought a renewed focus on the impact of investment expenses on investors’ financial well-being. The author offers methods for calculating relative terminal wealth levels for those investing in funds with different expense ratios. Under plausible conditions, a person saving for retirement who chooses low-cost investments could have a standard of living throughout retirement more than 20% higher than that of a comparable investor in high-cost investments. In other words fees count.High fees plus conflicted advice= Freedom 75. With higher Canadian fund expenses , the impact on retirement savings is much higher.Read the full article
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