Skip to main content
No. of Recommendations: 0
intercst -

OK, you said: "Anything over the 0.17% expense ratio of the Vanguard S&P500 index fund plus the 0.35% mortality expense in a Vanguard annuity (Total = 0.52%) is too high in my opinion."

So what if the gross return on your annuity is 12%, leaving you a net return of 11.48%, and my annuity grosses 13%, with expenses of 1.5%, leaving me a net return of 11.5%. Which annuity is better? The one with lower expenses of the one with higher net return?

I'd pick the one with the better bottom line every time. Whether annuity, mutual fund, stock, CD, or whatever - I look at the net return as a primary indicator as an investment's value to me. Sure, there might be other factors to consider, but I don't let an investment's expenses necessarily eliminate it from my consideration. I just happened to be looking at top performing mutual funds & found this site:
http://funds.marketwatch.com/groups.phtml? abr=CA&wk=&yr=3&code=GEF&Go=Go

CBS Marketwatch lists Van Kampen Aggressive Growth Fund
as #4 in its category (Capital Appreciation) for 3 year average - 70.6%. It has annual expenses of 1.56% and a load of 5.75%, yet still outperformed peers.

Just my 2¢

PP
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.