Originally Posted by
Check6Viper
Isn't that.... terrible? If you had simply put money in the S&P over the last 10 years you would have had over a 10% return. A 1% management fee (is that correct) compounded over 10 years reduces your gains by another 10%. Comparing the two via an online calculator shows a difference of about 20% in total returns over the last 10 years. What am I missing?
You aren't missing anything. According to their fee schedule, it's 1% annual fee on the first $2 million. Some
basic education on fees shows this is not a good deal. They'll probably tell you they can do better than an index fund. If they do, they are taking more risks. Returns aren't guaranteed, but the high fees they charge are.