Quote:
Originally Posted by Rutuu
The ETF that tracks the index only charges 0.15% or less.
You don't build the whole thing at once, you build the direct debit piece first and it's a complete pass through. Set up the legal/tax reporting and run it like an app that you download yourself and it makes contributions to the selected 4x ETFs based on the user profile you select. A minimal and transparent volume fee to cover expenses, no trail fees, no lock ins, no incentives to pick certain funds, just a mandate to put people in a passive strategy that over the last 9yrs has returned 80%+.
There are obviously challenges, but it can be done and there are some smart folks with the right backgrounds on this board.
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Well I am an advisor and use those same companies to build portfolios so I know, when you just look at that you would think that someone could build something and it would be super cheap. And you can...just with no service. That is what the robo-advisors are doing. But as soon as you add customizing and tailoring to the mix then things add up.
I do run things cheaply and I fully disclose all the fees, but the truth is that you can't work for free and no one is going to. So the idea of paying only for the investment and super small amounts over is difficult because someone has to pay the regulators, compliance has costs and of course just running this platform costs money.
And as far as the passive, that's great. I do that for people. But it's not purely set it and forget it. You have to be monitoring and rebalancing and there are other considerations, methods to the rebalancing and plenty of work involved. I think that the idea of "I will just buy the S&P 500" sounds great, but even when you mix-in 2-3 indexes you start making decisions and have tax ramifications, currencies and risk that should all be factored in.
tl;dr: I would be more than happy to work on something like this, but people would need to go in with their eyes wide open.