High Net Worth / Trusts-Estates
Midwest can help to manage your financial assets.
Midwest can help you over the next ten years.
Global stock and bond annual forecasts from 2019 to 2028 are 5.5% and 3.5% before inflation, fees, and taxes. ¹
Both estimates are lower than their 9.9% and 5.3% 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.
- Most portfolios are highly diversified and can be tailored to owner-beneficiary circumstances, including tax-efficient strategies.
- Their custodial services are considered among the best and safest with respect to their fiduciary, compliance, and other responsibilities.
Midwest builds and manages portfolios using mostly 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 shows, the return difference on an efficiently managed $1 million low-cost vs. high cost portfolio over ten to forty years can be $200,000 to $2,000,000 or more.
To create the 4.5% expected annual balanced return below, ten-year 5.5% stock and 3.5% bond 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 2.0%.
Contact us for a complimentary telephone conference or meeting. To start:
$200,000 minimum please.
¹ Benz, C. Experts Forecast Long-Term Stock and Bond Returns: 2019 Edition, Morningstar.com, January 10, 2019. Please contact us for details.
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.
4 Depending on portfolio size ($200,000 minimum), this will range from 0.3% to 0.7%.
5 Depending of active or passive style and portfolio structure (separately managed or comingled) this will range from 1.0% to 3.0%.
Midwest Asset Management, Inc.
8383 Greenway Blvd., Suite 600
Middleton, WI 53562 USA
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