The challenge:
Client has a current 401K, with multiple fund holdings, and is not entirely certain on overall investment costs or its potential impact on performance ahead of transitioning to retirement.
Addressing the Concern:
In this instance we analyze current account structure and investment holdings to determine the overall cost of ownership and what the biggest contributors to that cost are.
Personal
Fund
PORTFOLIO COST REPORT
Portfolio Value
$357,348
Last Year’s $ Cost of Ownership
$9,046
Last Year’s % Cost of Ownership
2.53%
LAST YEAR’S WEIGHTED ITEMIZED COSTS
Fund Management Fees
Fund administration fees
$1,117
0.31%
Fund advisory fees
$1,654
0.46%
Uncategorized management fees
$1,334
0.37%
Total fund management fees
$4,105
1.15%
Amount paid for fund distribution
$0
0.00%
Pro-rata share of fund transaction costs
$1,367
0.38%
Estimated Advisory Fee
$3,573
1.00%
One-Year Total Cost of Ownership
$9,046
2.53%
CURRENT ASSET ALLOCATION
U.S. Stocks
$214,868
60.1%
Intl Stocks
$102,471
28.7%
Fixed Income
$18,799
5.3%
Real Estate
$0
0.0%
Alternatives
$20,683
5.8%
Cash
$527
0.2%
TOP 10 POSITIONS
| Ticker | Name | Fund Class | Amount Invested | Expense Ratio | Turnover | Fund Fees | Trading Costs | Cost $ | Cost % |
|---|---|---|---|---|---|---|---|---|---|
| SELCX | Large Cap Growth Fund; F | Large-Cap Growth | $86,236 | 0.97% | 67% | $979 | $237 | $1,216 | 1.41% |
| TRMVX | Large Cap Value Fund; F | Multi-Cap Value | $82,930 | 0.93% | 22% | $784 | $86 | $869 | 1.05% |
| SEITX | International Equity Fund; F | International Multi-Cap Core | $67,010 | 1.09% | 87% | $761 | $507 | $1,268 | 1.89% |
| SIEMX | Emerging Markets Equity Fund; F | Emerging Markets | $31,486 | 1.71% | 95% | $531 | $260 | $791 | 2.51% |
| SESVX | Small Cap Value Fund; F | Small-Cap Value | $14,362 | 1.23% | 39% | $179 | $30 | $209 | 1.46% |
| SSCGX | Small Cap Growth Fund; F | Small-Cap Growth | $13,332 | 1.23% | 175% | $167 | $124 | $291 | 2.18% |
| SAMAX | Multi-Asset Accumulation Fund; F | Flexible Portfolio | $11,871 | 1.30% | 72% | $155 | $29 | $184 | 1.55% |
| SLGAX | Large Cap Fund; F | Multi-Cap Core | $9,546 | 0.95% | 26% | $97 | $12 | $109 | 1.14% |
| TRLUX | Core Fixed Income Fund; F | Core Bond | $5,119 | 0.73% | 34% | $38 | $20 | $58 | 0.74% |
| SCLAX | Multi-Asset Capital Stability Fund; F | Flexible Portfolio | $4,226 | 0.98% | 103% | $43 | $15 | $57 | 1.36% |
The positions in this portfolio are all in tax-sheltered accounts.
Result:
Can now work with client to potentially reduce overall cost of investing while aligning strategy with retirement goals, thus increasing potential of long-term performance and eliminating return erosion due to higher expenses.
