Investing General Discussion

The biggest question to ask is what are their fees. Then ask for historical fund performance vs the indexes they are marked against. These funds all make their money in fees, so it would need to be a considerable savings of which I am skeptical.

People really tend to overcomplicate things. DCA into a low cost index and forget it. These managed funds tend to hook wealthier clients because they are so loss averse and constantly seeking greater returns. Suddenly a managed account (charging fees for AUM) seems appealing. In reality, the fees are a drag and negatively compound against you.

Here is a visual on fee drags on a basic account over 30 years.

Nearly $400k lost in your final portfolio balance at 1% fee. A whopping $650k lost for a 2% fee.