The total return of the portfolio recommended above is based on the gross returns of markets, not the net of fee and commission return of mutual funds and investment advisors. An adjustment needs to be made to lower the expected return of the portfolio by the commissions and fees. A second problem comes during investment selection. If the couple invests in actively managed mutual funds or individual stocks the results could be far different than those of the market. To avoid the high cost, unpredictable returns, and confusion of an actively managed stock portfolio, the couple should use no-load index mutual funds .
Index funds deliver the return of the markets, with minimum fees.
Finally, there is a deeper problem with the suggested allocation. His firm specializes in low cost, tax efficient investment strategies for high net worth individuals, family estates, trusts, and business concerns. Straight Talk about Investing for Retirement is available at the Mutual Fund Bookstore . More feature articles can be found here . Investors should consult all available information, including fund prospectuses, before making any fund purchase, and must exercise their own independent judgment when making any investment decision.