Frederick W Rosenberg JD

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    fredrosenberg45@optimum.net

    973-761-8866

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    Wrap Fees: The 1% Dilution.

    Wrap fees are the industry's method for monetizing inactive accounts. It is an annual fee intended to cover all account charges. Wrap fees specifically exclude portfolio management or advisory services. The fee primarily covers all trading commissions, and provides enhanced reporting and access to research. Historically, 80% of a broker's commissions are derived from 20% of his or her clients. Wrap fees change that reality as every account, active or inactive, generate

    Are You Cannibalizing Your Assets?

    If you currently receive monthly distributions from an equities portfolio or fund through an automatic withdrawal plan, chances are you're doing just that! By today's standards 4% annual distributions seems to be the limit for sustainability of a portfolio. The dividend yield on the SP500 is 1% leaving a 3% annual cash shortfall. That shortfall is made up through monthly share liquidations regardless of performance. Look at it this way, automatic withdrawal plans liquidate

    Sequence Risk may be a Retiree's Biggest Risk Overall.

    "Sequence Risk" or "Sequence of Return Risk" applies to equity accounts burdened by fixed distributions. If Negative or even flat returns occur in the early years of withdrawals, long-term sustainability of the distributions will be permanently impaired. In short, lose money early and you will run out of money years before you planned. This is called Sequence of Return Risk and it only applies to accounts in distribution like retirement accounts. Google the term for broad

    Frederick W Rosenberg JD

    fredrosenberg45@optimum.net

    973-761-8866

    27 Village Green Ct
    South Orange, NJ 07079
    USA

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