Handling advisor fees.

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Joined: Fri Nov 18, 2011 3:31 pm

Handling advisor fees.

Post by markrm »

Is there a direct way to input the percentage management fee my advisor charges?
If not, is a reasonable workaround to change the portfolio expected return to Custom and subtract it from the original software provided return?
Posts: 699
Joined: Thu Feb 28, 2008 6:48 pm

Re: Handling advisor fees.

Post by jimr »


You're correct that there's no direct way to account for advisor fees in the planner. However the workaround you suggest is a reasonable one.

Also, it's important to consider that the default return/standard deviations used for each investing style are only educated guesses. No one really knows what the future will present, so it's always prudent to try different combinations of values using the custom setting. This will allow you to test the sensitivity of the plan to higher than expected volatility and lower than expected returns.

Hope that helps,

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