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Subject:  Re: Retirement help from Adviser with a 2% fee? Date:  1/30/2010  2:07 PM
Author:  intercst Number:  66724 of 95557

billjam writes,

My combined mutual fund expenses and brokers commissions on my self-managed Fidelity and Vanguard accounts is 0.45%. Saves me over $9,000 a year compared to Mark's fee and with him there would still be mutual fund expenses on top of that. But just considering the $9,000 over 20 years the extra expense is astounding.


It gets worse.

Matson bills himself as a DFA advisor, but uses a "fund of funds" approach that adds another layer of fees. Instead of using DFA funds directly in client portfolios, he started the "Free Market" family of mutual funds that invest in DFA Funds and then resells the Free Market funds (with about a 1.00% expense ratio) to his clients. This effectively triples or quadruples the fee a client pays for a DFA Fund.

It's a very polished operation.

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