Suggest ESP provide an option to input an investment management fee percentage.

I would like to see the option to input an investment management fee percentage which would show as a spend item in the reports. This would naturally reduce the SOL.
History: In the build-up to retirement, I considered this fee to be just part of my investments and although I was certainly aware of it, I didn't consider it as a spend item in my Quicken spend tracking because I lived off my work income and this fee is paid from my investments. NOW, as I enter retirement and my income is from my investments, this fee is a significant spend item that will compete with other items in my SOL.


dan royer's picture

You could certainly add a series of payments under Special Expenditures to handle that.

True, but since the fee is a percentage of the managed assets, it gets a little complicated as the assets are reduced or increased by varying amounts on a year-on-year basis. My thought is that a computation within the program would be doable.

bulgmaf's picture

Why don't you just adjust the return on your investments to offset the percentage you are getting charged? This approach should be fairly accurate.

dan royer's picture

I was going to suggest the same . . . if you are paying 1% fee, just drop your expected return in Assumptions down a full percentage point. That would nail it.

Agreed this would work for an assumed return however I'm using Monte Carlo. I appreciate your comments and for me at the point of retirement, I am now aware of the impact and will adjust accordingly. It was quite a surprise to realize that this 1% fee works out to be about 16% of the available consumption. Having this as an input that results in a line item in the total spending report would help future users to realize this impact earlier in the process.

Do I hear Jack Bogle chuckling somewhere?

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