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Learning to Invest / Portfolio Management


Subject:  Re: Frequency of Re-balancing ? Date:  2/6/2012  1:34 AM
Author:  JAFO31 Number:  6632 of 6911

Scott8147: "Sorry, I wasn't real clear on this. The total charges from Edward Jones on this runs about 1.50% per year on the balance invested and since it's in a retirement account, my accountant won't be hassled. So forgetting taxes and charges, the question is if daily re-balancing helps or hurts returns?'

Do not know, but EJ should be able to offer evidence in support of tis proposition, but if you are paying 1.5% of AUM, WOW.

The drag on return is immense. After ten years you will have given them 1/7 of your portfolio. After 30 years, you will have given EJ Nearly half (45%) of the value of your portfolio.

What does EJ do that justifies those fees?

I hope that intercst responds, because he has written far more about pricey fees than I can remember.

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