What does it cost to invest?
How to calculate your total cost of investment (TCI).
TOTAL COST OF INVESTING (TCI)
To calculate your TCI, we need to include the fees and expenses of the following three elements.
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CUSTODIAN $
A custodian is a financial institution that holds customers’ securities and cash for safekeeping in order to minimize risk. Custodians can be banks, trust companies or broker dealers.
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INVESTMENTS $
An investment is an asset or item acquired with the goal of generating income or appreciation. Typical investments include exchange traded fund (ETF), mutual fund (Funds) and individual equities (Stocks).
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ADVISOR $
The advisor is the person or company that assists in identifying the types of accounts you need, the amount of money to save, the kinds of insurance you require, how to invest and assists with estate and tax planning.
EXAMPLE TCI & PERFORMANCE
Below are a few samples of Right Decision Target allocations, click on the Allocation to get the underlying Portfolios’ Hypothetical Performance and Cost report. See what the cost and performance of $10,000 might have been, if you had a commission free account managed by Right Decision Financial Planning.
HYPOTHETICAL RISK & RETURN
RDFP Most Aggressive
This hypothetical strategy demonstrates our low cost for an initial investment of $10,000 with a target for aggressive growth over a ten year period.
Total Cost
HYPOTHETICAL RISK & RETURN
RDFP Growth
This hypothetical strategy demonstrates our low cost for an initial investment of $10,000 with a target for moderate growth over a ten year period.
Total Cost
Investment Options
HYPOTHETICAL RISK & RETURN
RDFP Growth
This hypothetical strategy demonstrates our low cost for an initial investment of $10,000 with a target for conservative growth over a ten year period.
Total Cost
Investment Options
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