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If you look at a 60-year investing time frame (i.e., 30 years saving for retirement, 30 years in retirement) adding a 0.35% annual fee to your portfolio results in an 18% reduction in your wealth at the end of 60 years.

Strictly looking at your analysis, you've overlooked the tax savings from using a tax-loss harvesting strategy. To include that, you'd have to make some estimate of the marginal tax savings attributable to this strategy. I have no idea how to estimate that.

Getting out of analysis mode and into a more gut-feeling mode, the cheaper way is probably to ignore the issue. I've never seen a tax loss harvesting strategy that makes sense.

--Peter
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