What is Wealth Coaching?

How much are your investments costing you?

Are you truly diversified?

Modern Portfolio Theory Quiz

Who are you, really?

Prudent Retirement Plan

Wealth Advisors Group

The Stewardship Alliance


WHAT ARE YOUR REAL INVESTMENT COSTS?
Most investors have no idea of their mutual fund's annual costs. The money managers who buy and sell (this is called Turnover) frequently create higher costs for the investors than money managers who buy and hold. If a fund has a turnover rate of 35% or more, it is excessive. Always require your investment advisor to show you all your investment's turnover rates, which are found in the www.Morningstar.com reports. The below figures represent the Annual Costs associated with the turnover rates of each fund.

Investment
Turnover Rate
Annual Cost
AIM Global
111%
6.65%
Met Life Alger Mid Cap Growth
285%
11.40%
Amer. Skandia ASAP NY MFS Growth
210%
9.51%
Berger Growth
70%
12.35%
Equitable Momentum Evergreen Omega
227%
10.03%
Equitable Momentum MFS Emerg GR
278%
12.09%
Fidelity Asset Mgr Growth
164%
6.50%
Fidelity Balanced
150%
6.66%
Fidelity Contrafund
166%
7.70%
Fidelity Independence
249%
12.98%
Pioneer Emerging Markets A
133%
7.75%
Putnam Vista A
109%
9.33%
SEI Inst. Small Cap Growth A
119%
8.38%
Strong Discovery
482%
20.78%
Sun America Balanced Asset 2
362%
16.53%
Transamerica Landmark Asset Allocation
221%
9.70%
Van Kampen Amer. Value A
175%
9.90%
Waddell & Reed Accum
483%
11.81%

How expensive are your current investments? You know there is no free lunch. Hidden costs are inside your mutual funds and variable annuities.

There is another way to invest: The Modern Portfolio Theory (MPT) investment strategy, which typically reduces your costs over 50% because they use a passive investment philosophy. Passive means they do minimal buying and selling of stocks.

Modern Portfolio Theory
Turnover Rate
Annual Cost
Institutional Asset Class Mutual Funds
35%
3.50%