Complimentary Return, Expense, and Risk Analysis

The basic FAIR SHARE MARKET EXPENSE ANALYSIS ^SM allows long-term investors to estimate cumulative dollar returns, egregious expenses, and associated risks by inserting the following items:

Amount invested ($1,000 to $10,000,000,000).

Expected annual return (1.0% to 15.0%).  The global 50/50 balanced estimate was 6.3% as of January 1, 2023.  Various sources and methods were used to calculate the consensus return.  They are for educational purposes only to help investors set reasonable expectations.  For example, due to a lack of clear data, ten-year estimates were used for the forty-year forecasts.  Also, as a reference, from 1926 to 2022 the 50/50 balanced return and inflation estimates were 8.1% and 3.0%.

It should also be noted that global equity and fixed estimates as of January 1, 2023 were 8.0% and 4.6%.

Estimated total fees (generally 1.0% to 3.0%).  Aggregate expenses can include:
Financial planning, registered investment adviser, and mutual and exchange traded fund fees;
Transaction (commissions, markups/markdowns, payments-for-order-flow, etc.) fees;
Custodial and other administration fees.

Midwest total fees.  Combined internal and external portfolio management expenses should be 0.2% to 0.6%, depending on account size.

Time horizon in years. Forty years is used to help investors realize the cumulative negative effect that egregious charges have on their economic well-being – see The Wisdom of John Bogle – 2023 research.  For large accounts, customized maturities, cash flows, and other factors can be provided.

NOTE: This chart is for illustrative purposes and does not represent actual or guaranteed results.  For further information, please contact us.