On a side note, a MER of 0.09% is nice and low. Many mutual funds have MERs ranging from 1.0% to 2.50% or even higher. Generally, the more ``active'' the management, the higher the MER.
Generally, you want to aim for a MER that's higher than 1, which demonstrates that the revenue generated from marketing activities is greater than the cost of those activities.
The total score is categorised into one of four discrete levels of financial wellness: Excellent (80–100) Good (60–79)
Relatively speaking, it's not a high % and is probably barely anything if you don't have a lot invested, but if you don't feel that you are getting value out of the relationship, then . 75% is overpriced. Ask yourself: could I and would I want to do this without a professional?
A MER above 1.5% is usually considered high, and some MERs are higher than 3%.
Industry standards show that financial advisor fees generally range between 0.5% and 1.5% of AUM annually. Placement of a 2% fee may appear steep compared to this average. However, this fee might encompass more comprehensive services or cater to more unique, high-maintenance portfolios.
This is an outline of what the 'Wellness Score' measures:
The NHS recommend scoring between 18.5 – 24.5 on the BMI scale. If you score any higher than this you have an increased risk of some of the biggest killers around including diabetes, obesity related conditions, heart disease and cancer.
Financially stable individuals typically have clearly defined financial goals, regularly invest, have the right insurance coverage, make decisions based on their own needs vs.
Importance of the Management Expense Ratio
The lower the MER fee, the better off the fund's investors are because the investment return generated is higher.
How do MERs work? The MER is expressed as an annualized percentage of daily average net asset value during the period. For example if a fund's MER is 0.78%, this means the fund incurs annual costs of $78 for every $10,000 invested in a given year.
The calculation is simple. Total revenue divided by total ad spend. Similar to ROAS, MER is expressed as a ratio. $15k in revenue on $5k in spend equals an MER of 3.0.
Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average. Some years will deliver lower returns -- perhaps even negative returns. Other years will generate significantly higher returns.
Understanding Management Fees
Management fees can also cover expenses involved with managing a portfolio, such as fund operations and administrative costs. The management fee varies but usually ranges anywhere from 0.20% to 2.00%, depending on factors such as management style and size of the investment.
There are basic levels of gross profit margin which are considered low, average, or good. Generally, a gross profit margin of between 50–70% is good and anything above that is very good.
Most people have a score between 41 and 59. You can maintain your mental well-being by taking action today. There are five evidence-based steps we can all take to improve our mental wellbeing.
Understanding your Health Score
As a general rule, if your Health Score is under 70, it's time to make some changes. If it is between 70-80, there is room for improvement, but no need to panic. If your Health Score is between 80-100, you are performing well and do not need to make any changes.
FICO says scores of 580 to 669 are considered "fair" and 740 to 799 are considered "very good." Anything at 800 or above is considered "exceptional." FICO comes from Fair Isaac Corp., the company that first developed a credit scoring system.
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
Yahoo Finance
In 2024, Americans stated that the average net worth they consider “wealthy” is $2.5 million. That's up by $300,000 over last year, when Americans said $2.2 million qualified you as rich.
According to estimates based on the Federal Reserve Survey of Consumer Finances, a mere 3.2% of retirees have over $1 million in their retirement accounts. The number of those with $2 million or more is even smaller, falling somewhere between this 3.2% and the 0.1% who have $5 million or more saved.
While a 1% annual fee may seem like a small price to pay for professional investment guidance and financial planning, it can significantly erode portfolio returns over long time horizons. Even seemingly minor differences in fees add up in a big way when compounded year after year for decades.
At Schwab, there's no cost to work with your Financial Consultant. ² There's no cost whether you're getting assistance in creating your personalized plan, or receiving tailored product recommendations and direct access to our specialists.
However, in general, it's wise to start working with a financial advisor or wealth management team once you've built a nest egg of $1M in investable assets.