The higher the costs the lower the investor return
Once we understand financial gravity i.e. that there is a finite long term investment return (a 7% real return from shares and 2.5% from inflation linked bonds), we then appreciate that the higher the total costs of investing, the lower the investor's return (profit). This inescapable fact is not disclosed by any investment company.
10X Retirement plan back-tested since 1900 with different cost ratios
The lower the return the higher the investor failure rates
At 10X Investments, we understand the extent to which costs erode the real return and long term wealth of investors. We have developed an integrated operating platform that is highly effective and focused. Our clients benefit directly from our efficient cost structures. Our low costs increased the chance of members meeting their retirement goal by more than a third (a success rate of 100% versus 65%) and increase their investment value by around 70%.
We are a low cost provider
We are the only service provider to offer a comprehensive retirement plan at a cost that greatly lowers the risk of missing your retirement goal. In fact, our total cost percentage of 1.3% is less than half the estimated industry average of 3.0%. [1]
Why costs count
Costs are the single most important factor in determining the success or failure of your retirement plan. A long term real portfolio return of 5% is a reasonable projection. However, a 3% total cost ratio will absorb 60% of the investors' real return. Your odds of meeting your retirement goal with this cost drag are incredibly low.
Whose money is it anyway?
Why do the owners, who are the members, whose capital is at risk, know very little about their retirement fund? How can the managers, who earn large fees without risking any capital, keep this critical information from the owners? There is a huge gulf between information-rich service providers and information-poor investors.
Footnotes
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Costs
10X cost ratio of 1.3% versus an estimated average of 3% for small to medium size funds. This should include costs for advice, member administration, retirement fund administration, investment management, securities trading, asset consulting, structured products and trades, product guarantees, regulatory, custodian etc.