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Hi Michael:
Nov 29 12:51 pm
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All Comments by Geoff Considine »Safe Portfolio Withdrawal Rates: Beyond The 4% Solution [View article]
I am including expenses--except fro brokerage fees for rebalancing, but these are low cost funds. I can tell you that the impact is substantial. Higher fees can have a truly deadly impact on your ability to fund future income. QPP clearly shows this--perhaps I should do this as an article--nice suggestion. We already know that the average mutual fund investor lags the performance of the average mutual fund by 2% and the average equity mutual fund lags the market by 2%. Lagging by 2.5% is better than many investors get. The reality is that when real return (return - inflation) for the market as a whole is around 5%, losing 2% to fees is a major impact--especially because you still have all the volatility.