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Old 11.09.2019, 12:47
ElonMuskrat ElonMuskrat is offline
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Re: Liberty vested benefit account?

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I have these with Liberty as well but after reading this one from UBS I wonder what's the catch:

Looks like it's 0 fees and you can go up to 95% on equities. Am I missing something?
UBS Vitainvest 100 World charges 1.28% management fee plus 1.65% ongoing charges. Therefore UBS eats 2.93% of your portfolio value every year. If the market return 0% you lose 2.93%. If the market goes up 2.93% you get 0%.

To put that in perspective, I back-tested against historical S&P 500 returns and dividends. A 100k investment that would return an expected $283k in 10 years, would instead return $225k with UBS gobbling a hefty $58k in fees.

Meanwhile Vanguard Total World Stock Market ETF [VT] charges only a 0.09% expense ratio.

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