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 2022 to 2031 are 4.8% and 1.9% before inflation, fees, and taxes. ¹
Both estimates are lower than their 10.5% and 5.3% averages from 1926 to 2021, 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.
In addition, many accounts should be managed in a passive, low-cost manner. Most actively managed portfolios underperform investable indices due to high/unnecessary fees and subjectivity. There is also a higher uncertainty of investment returns, and administrative duties are increased.
Midwest builds and manages High Net Worth portfolios using mostly Vanguard funds based on specific client goals.
- 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 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 $100,000 to $1,000,000 or more.
To create the 3.4% expected annual balanced return below, ten-year 4.8% stock and 1.9% 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 0.3%. External fees are generally less than 0.2%. Accordingly, Midwest’s total passive expense estimates are less than 0.5%. Peer passive or active expense estimates are 1.5%.
Contact us for a free, confidential consultation.
¹ Benz, C. Experts Forecast Long-Term Stock and Bond Returns: 2022 Edition, Morningstar.com, January 14, 2022 and others. Please contact us for details.
² Vanguard 2017 economic and market outlook: Stabilization not stagnation, December 2016, pp. 20-25, for 1926 to 2016 period. From 2017 to 2021 various indices compiled by Midwest Asset Management, Inc.
³ Vanguard performance report: Indexing | Vanguard Advisors, 10 years to September 30, 2021, p. 4., and others.
4 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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