Wealth Management Blog | WrapManager

Doug Hutchinson

CFA®, Director of Research and Trading

Advisor Fees and Mutual Fund Expenses - Doug's Quiz Corner

Posted by Doug Hutchinson | CFA®, Director of Research and Trading

September 16, 2015

Advisor Fees and Mutual Fund Expenses - Doug's Quiz Corner

Quizmaster Doug Hutchinson has come up with another great quiz that explores advisor fees and mutual fund expenses to consider when choosing an advisor. Let’s see what the math has to say.

Good luck!

Consider the following scenario:

Sam, Frank, and Kathy use different financial advisors. Each financial advisor has a different fee structure.

Sam pays a flat fee of 1% to his advisor. There are no other fees associated with his account.

Frank pays his advisor a fee of 0.9%. The advisor invests Frank's assets in a mutual fund with an expense ratio of 1.6%.

Kathy pays her advisor a flat fee of 0.75%. Her advisor invests Kathy's assets in a mutual fund with an expense ratio of 1.25%.

Pre-tax or After-tax Retirement Investment? - Doug's Quiz Corner

June 17, 2015

Quizmaster Doug Hutchinson has come up with another great quiz that explores pre-tax and after-tax options for retirement investing. Let’s see what the math has to say. Good luck! [+] Read More

Adding an Asset to Your Portfolio - Doug's Quiz Corner

May 13, 2015

Quizmaster, Doug Hutchinson, has come up with a great quiz that illustrates how adding an asset with higher volatility can actually lower overall volatility of a portfolio. Let’s see what the math has to say. Good luck! Consider this scenario: Your friend Mary has a portfolio consisting of one asset, Asset A. She is considering adding a second asset to the portfolio and her new portfolio would be weighted as 50% Asset A and 50% of the new asset. She would like the new two asset portfolio to have the lowest risk (as measured by standard deviation) possible, given the other options that she is considering adding to her portfolio: Asset B and Asset C. [+] Read More

Volatility and Wealth Accumulation - Doug's Quiz Corner

April 15, 2015

Quizmaster, Doug Hutchinson, has come up with another great quiz for us regarding how volatility can affect wealth accumulation. Let’s see what the math has to say. [+] Read More

How Emotions Affect Your Decisions - Doug's Quiz Corner

March 11, 2015

Quizmaster, Doug Hutchinson, has come up with another great quiz for us regarding how our emotions can influence our decisions. Let’s see where you stand. Good luck! [+] Read More

Buy-and-Hold Versus Rebalance - Doug's Quiz Corner

February 11, 2015

Quizmaster, Doug Hutchinson has come up with another great quiz that compares buy-and-hold versus account rebalancing. Let’s see what the math has to say. Good luck! [+] Read More

Cash Drag - Doug's Quiz Corner

January 14, 2015

Quizmaster, Doug Hutchinson, has come up with another great quiz for us regarding the cash we keep in our portfolios and its effect on performance. Test your investment knowledge of how your money is invested and what makes the most sense for your situation. Good luck! [+] Read More

International Volatility in Q3 - WHV Commentary

January 7, 2015

While the US equity market performance was generally positive in the 3rd quarter, international equity markets were hampered by lackluster economic data in Europe, continued geopolitical turmoil in Ukraine, and disappointing economic growth in China. International equity manager WHV Investments, summarizes a volatile 3rd quarter in international equity markets, while suggesting that international policy makers may take actions to stimulate economic growth in the future. Download WHV's Full Commentary Here Get Free Research Reports on WHV Investments [+] Read More

The Psychology of Gains and Losses - Doug's Quiz Corner

December 16, 2014

We are fortunate to have a brilliant CFA here at WrapManager, Doug Hutchinson. At our weekly staff meetings, he has been testing our abilities with financial quizzes. This month, he demonstrates how we make choices given our tolerance for risk. Risk Aversion Consider and choose A or B for each of the following scenarios: 1. You are asked to choose between getting $800 for sure or an 80% chance of getting $1,000 A.) Getting $800 B.) 80% chance of getting $1,000 (and a 20% chance of getting nothing) 2. You are asked to choose between losing $800 for sure or an 80% chance of losing $1,000 [+] Read More

Learning About ETF Fees - Doug’s Quiz Corner

November 11, 2014

We are fortunate to have a brilliant CFA here at WrapManager, Doug Hutchinson. At our weekly staff meetings, he has been testing our abilities with financial quizzes. These are great tests of your investment knowledge. Good luck! Scenario: ETF A has an expense ratio of 0.05% ETF B has an expense ratio of 0.20% Assume ETF A and ETF B track the same index and both track that index perfectly. So if the index returns 5%, then ETF A will return 4.95% (including the expense ratio) and ETF B will return 4.80% (including the expense ratio). Assume the index returns 5% a year for each of the next 3 years. Manager A invests $10,000 in ETF A at the start of Year 1 Manager B invests $10,000 in ETF B at the start of Year 1 What is the difference in wealth accumulation (in dollar terms) between Manager A and Manager B after 1 year? After 3 years? [+] Read More

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