Hypothetical or simulated performance results have certain inherent limitations. Unlike actual performance record, simulated results do not represent actual trading or the costs of managing the portfolio. Also, since the trades have not actually been executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs are also subject to the fact that they are designed with the benefit of hindsight. Further, hypothetical performance does not account for the impact of financial risk in actual trading. The ability to withstand losses are material points that can adversely affect trading results. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Simulated results are net of management fees of 0.50% and are time-weighted calculated daily. Returns reflect the reinvestment of dividends, interest, capital gains and periodic rebalancing.
Simulated performance does not represent past performance and is presented for illustrative purposes only.
Avoidable Fees and Taxes
For illustration, we assume hypothetical gains on an initial $10,000 investment over 30 years at 8% annual returns. For Longwave returns, we apply our 0.50% advisor fee and a 0.29% average ETF expense ratio. We also assume no capital gains taxes imbedded in the ETFs themselves. For Typical Investor returns, we assume 1.24% advisor fees as per Advisory HQ’s “Average Financial Advisor Fees in 2016. How much does a Financial Advisor Cost”, and a 1.19% active mutual fund expense ratio as per Morningstar’s “2015 Fee Study: Investors Are Driving Expense Ratios Down”. For mutual fund capital gains taxes, we assume 61% turnover as per 2015 Investment Company Factbook and a 30% tax rate. Sources: AdvisorHQ, Bloomberg, Morningstar.
This website is operated and maintained by Longwave Advisor LLC (“Longwave”), an SEC Registered Investment Advisor. For information pertaining to the registration status of Longwave, please view the United States Securities and Exchange Commission’s website at www.adviserinfo.sec.gov.
SEC registration does not indicate a certain level of skill or training. Past performance is not a guarantee of future results and may have been impacted by events and economic conditions that will not prevail in the future.
Investing involves the risk of loss and investors should be prepared to bear potential losses. Unless otherwise specified, all return figures shown above are for illustrative purposes only, and are not actual customer or model returns. Actual returns will vary greatly and depend on personal and market circumstances. No portion of this commentary is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice.
Certain information is derived from sources that Longwave believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages. Brokerage services provided to clients of Longwave Advisor LLC by Interactive Brokers LLC, an SEC registered broker-dealer and member FINRA/SIPC.
Investments are not FDIC insured and may lose value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Longwave Advisor’s charges and expenses.