High Net Worth
Midwest can help to manage your financial assets.
Midwest can help you over the next ten years.
Global bond and stock annual forecasts from 2019 to 2028 are 3.5% and 5.5% before inflation, fees, and taxes. ¹
Both estimates are lower than their 5.3% and 9.9% averages from 1926 to 2018, and these levels are prudent under current circumstances. Accordingly, investors are encouraged to allocate at least 50% of their publicly held assets to highly diversified portfolios (see High Net Worth Brochure).
In addition, many accounts should be managed in a passive, low-cost manner. Most actively managed portfolios underperform investable indices due to subjectivity and high fees, there is a higher uncertainty of investment returns, and administrative duties are increased.
- Over the past ten years most of Vanguard’s funds have outperformed the peer-group averages. ² That relative performance should continue.
- Research shows that properly balanced portfolios earned similar inflation-adjusted returns during both expansions and contractions from 1926 to 2009. ³
- Vanguard’s fee control structure is impressive and transparent.
- Many (if not most) of their portfolios are somewhat tax efficient.
Midwest builds and manages portfolios using Vanguard funds based on client goals.
Midwest oversees all portfolios in an unbiased, cost efficient, and easy-to-understand manner.
Expenses do matter.
As the chart below show, the return difference on an efficiently managed $1 million low-cost vs. high cost portfolio over ten to forty years can be $100,000 to $1,500,000 or more.
To create the 4.5% expected annual balanced return below, ten-year 3.5% bond and 5.5% stock estimates were used.¹ For lack of available forecasts, the same assumptions were used for the eleven to forty-year periods.
Midwest passive fees range from 0.1% to 0.5%, depending on size and complexity. External fees are generally less than 0.2%. Accordingly, Midwest’s aggregate expense estimates were 0.5%. Peer active aggregate averages were 1.5%.
Contact us for a complimentary review of your current portfolio, with no obligation. To start:
$200,000 minimum please.
¹ Vanguard economic and market outlook for 2019: Down but not out, December 2018, pp. 31-34. Figures based on 3.0%-4.0% and 4.5%-6.5% fixed and equity ranges.
² Vanguard performance report: Vanguard funds outperformed peers over long haul, 10 years to September 30, 2018, October 29, 2018, p. 1.
³ Vanguard performance report: Recessions and balanced portfolio returns, October 2011, p. 2.
Midwest Asset Management, Inc.
8383 Greenway Blvd., Suite 600
Middleton, WI 53562 USA
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