Fee Base Schedule

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Aug 22, 2008 1:16 pm

Vic

What funds are you using that charge 2.5% - 3.5%?
Aug 22, 2008 1:53 pm

[quote=Vic Mackey] [quote=Indyone]Under $100K - 1.5% or C-shares

$100K-250K - 1.25% $250K & up - 1%   Yes, I've bent this schedule in the past, but now that I have a reasonable asset base, I don't see me discounting going forward, except in very rare circumstances/large accounts.[/quote]

Wow! Most mutual funds cost 2.5 to 3.5% and you add 1% on top of that? I hope you weren't expecting to get into heaven, someday.[/quote]   Hello again, "Bobby".  You're a little high on your mutual fund expense ratios and frankly, you should be worrying about whether or not you go to heaven and leave my situation for me to worry about, OK?
Aug 22, 2008 1:54 pm
Spaceman Spiff:

And so your solution is?  Indexing, I’d bet.  ETFs.  Passive money vs managed money.  Can we not have this discussion again please?

  I think we know what Vic the VA salesman would sell.
Aug 22, 2008 2:06 pm

[quote=snaggletooth][quote=Indyone]Under $100K - 1.5% or C-shares

$100K-250K - 1.25% $250K & up - 1%[/quote]   Indy, at these price points, how many bps does your custodian take?[/quote]   It depends upon the size of the account, but I usually factor in 8-10 when I figure my part.  Larger accounts are charged less on a sliding scale.
Aug 22, 2008 2:16 pm

[quote=Indyone][quote=Vic Mackey] [quote=Indyone]Under $100K - 1.5% or C-shares

$100K-250K - 1.25% $250K & up - 1%   Yes, I've bent this schedule in the past, but now that I have a reasonable asset base, I don't see me discounting going forward, except in very rare circumstances/large accounts.[/quote]

Wow! Most mutual funds cost 2.5 to 3.5% and you add 1% on top of that? I hope you weren't expecting to get into heaven, someday.[/quote]   Hello again, "Bobby".  You're a little high on your mutual fund expense ratios and frankly, you should be worrying about whether or not you go to heaven and leave my situation for me to worry about, OK?[/quote]

Expense ratio is only part of it. There are costs of turnover, ordinary taxes on ST tax distributions, taxes on enbedded gains, and, of course, the opportunity cost of the funds keeping an uninvested cash balance to meet liquidation demands from the other comingled investors.

You do understand all of this and explain it to your clients, don't you? Are those costs not important to you? With your background, I'm sure you understand the concept of materiality, don't you? Do you explain to them that you don't rebalance because you want to avoid ticket charges?

I look forward to your substantive response.
Aug 22, 2008 2:58 pm

…well keep looking forward to that.  I’ve got plenty to do without playing your games.

Aug 22, 2008 3:14 pm

[quote=Indyone]…well keep looking forward to that.  I’ve got plenty to do without playing your games.[/quote]

I knew you wouldn’t have the guts to address these issues. You can dish it out, but you can’t take it.

Expense ratio is only part of it. There are costs of turnover, ordinary
taxes on ST tax distributions, taxes on enbedded gains, and, of course,
the opportunity cost of the funds keeping an uninvested cash balance to
meet liquidation demands from the other comingled investors.

You
do understand all of this and explain it to your clients, don’t you?
Are those costs not important to you? With your background, I’m sure
you understand the concept of materiality, don’t you? Do you explain to
them that you don’t rebalance because you want to avoid ticket charges?


I look forward to your substantive response.

Aug 22, 2008 3:51 pm

Vic

  Not all of us have all day to try to teach you how things work.   Most of us here have clients to service and make a living doing so.   Maybe you should go to a want a be web site and make your comments.     
Aug 22, 2008 3:58 pm

[quote=Greenbacks]Vic

  Not all of us have all day to try to teach you how things work.   Most of us here have clients to service and make a living doing so.   Maybe you should go to a want a be web site and make your comments.     [/quote]

Expense ratio is only part of it. There are costs of turnover, ordinary taxes on ST tax distributions, taxes on enbedded gains, and, of course, the opportunity cost of the funds keeping an uninvested cash balance to meet liquidation demands from the other comingled investors.

You do understand all of this and explain it to your clients, don't you? Are those costs not important to you? With your background, I'm sure you understand the concept of materiality, don't you? Do you explain to them that you don't rebalance because you want to avoid ticket charges?
Aug 22, 2008 4:52 pm

You didn’t answer the question about what you use instead of funds.  So, we’ll keep guessing. 

  Are you really counting taxes into the cost of a fund?  What if it's in an IRA?  Turnover I understand, but  you'd have such a difficult time quantifying the cost any one fund has in turnover that it would be difficult to have anything other than a general conversation about it. What about funds that have eMbedded capital losses?  Tax advantaged funds?  Why wouldn't you just find a fund that keeps itself 100% invested at all times?  Aren't there some risks to that too?  Like turnover.      
Aug 22, 2008 5:49 pm

[quote=Indyone]…well keep looking forward to that.  I’ve got plenty to do without playing your games.[/quote]

You are a coward. Does the AICPA know that you’re misleading clients?

Aug 22, 2008 5:59 pm

[quote=Spaceman Spiff]You didn’t answer the question about what you use instead of funds.  So, we’ll keep guessing. 

  Are you really counting taxes into the cost of a fund?  What if it's in an IRA?  Turnover I understand, but  you'd have such a difficult time quantifying the cost any one fund has in turnover that it would be difficult to have anything other than a general conversation about it. What about funds that have eMbedded capital losses?  Tax advantaged funds?  Why wouldn't you just find a fund that keeps itself 100% invested at all times?  Aren't there some risks to that too?  Like turnover.      [/quote]

Embedded losses stay in the fund. They are not distributed. Why do you like them? Does it make you feel good to select funds that did a crappy job? Again, you've PROVEN that you are ignorant and that you are lying to your clients.
Aug 22, 2008 6:14 pm
Vic Mackey:

[quote=Indyone]…well keep looking forward to that.  I’ve got plenty to do without playing your games.[/quote]

You are a coward. Does the AICPA know that you’re misleading clients?

  I believe I've proven otherwise.  Don't think you can bully me, big boy.
Aug 22, 2008 6:26 pm
Indyone:

[quote=Vic Mackey] [quote=Indyone]…well keep looking forward to that.  I’ve got plenty to do without playing your games.[/quote]

You are a coward. Does the AICPA know that you’re misleading clients?

  I believe I've proven otherwise.  Don't think you can bully me, big boy.[/quote]

Don't listen to what I say. Watch what I do.