Whoa! These numbers from Forbes magazine are shocking! You need to know them to both protect your current client base or to leverage to bring on new clients.
In the article “The Real Cost of Owning a Mutual Fund” they make a case, based on empirical evidence, that when you include both the reported and hidden fees of a typical mutual fund the fees are astronomical.
MF in a Tax-Deferred Account MF in a Taxable Account
Expense ratio 0.90% 0.90%
Transaction cost 1.44% 1.44%
Cash Drag 0.83% 0.83%
______ 1.00%
3.17% 4.17%
That should shock some prospects into moving into Managed Money or Fixed Indexed Annuities!
If you’d like the link to the article you can find it here.
