Pensinger Financial
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keep your costs low

“it’s not what you make, it’s what you keep that counts” 

It is a simple fact – the less money you pay in fees the more money you will have.  For example, take two identical investments: Mutual Fund A and Mutual Fund B.  Each mutual fund has a $50,000 initial investment; Mutual Fund A charges a 1% annual management fee, while Mutual Fund B charges a 2% annual management fee.  In other words, Mutual Fund A charges $500 in annual fees, while Mutual Fund B charges $1,000 in annual fees.  The following example shows the impact of paying double the management fee on a $50,000 initial investment for the exact same mutual fund, and thus the same return, over a 25 year period.

Mutual Fund A – 1% Management Fee; $50,000 Initial Investment:

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Mutual Fund B – 2% Management Fee; $50,000 Initial Investment:

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Source: http://www.bankrate.com/calculators/retirement/mutual-funds-fees-calculator.aspx

It is very simple to see that you will be paying an additional $60,000 in fees and lost earnings (opportunity cost) over a 25 year period for the exact same mutual fund.  The amount of lost money (fees and opportunity cost) alone are even more than your initial investment of $50,000!

A fair question to ask then would be “Won’t I have less money in my retirement portfolio if I am paying you a management fee?”

Yes!  You are 100% correct.  You are paying Pensinger Financial for our expertise, knowledge, and advice; you are paying us so that you don’t have to do this yourself.

If you feel confident and comfortable that you can replicate our services on your own then please do so – it will be cheaper for you.  But if you want somebody you can trust who will be by your side throughout this whole process then please consider partnering with us.


To learn more about how costs impact your portfolio read this article written by Michael Pensinger.
ABOUT US
A Quick Look
Core Values
Background
What it Means to be a CFP
Code of Ethics
Investment Philosophy
WHAT WE DO
Our Services 
Our Pricing 
401(k) / 403(b) Rollover
Small Business Retirement Plans
​HCBA Retirement Solution
RESOURCES
Client Access
Investment Returns
Helpful Links
Reading Recommendations
Frequently Asked Questions
EXTRAS
Videos
​The Right Way To Invest Blog

Photos
​​That Familiar Voice
DFA Youtube Channel
CONTACT
Lemont, Illinois 60439
630-754-7580 Phone
630-590-9392 Fax

© 2015 Pensinger Financial, Inc