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" It appears that you didn't quite understand what I wrote. Let's say you have $3M invested for retirement, and you withdraw 3.2% of it each year to cover your annual expenses (above pensions and social security). So you withdraw $96,000 a year from that $3M invested. Now, let's say you invest in something like STEW with a 1.6% expense ratio. That means that you are paying the fund a fee of 1.6%, or $48,000 a year to manage your $3M for you. A FULL HALF of your annual withdrawal goes to the fund managers! That's absurd, don't you think?"
Thanks, if you have the time do this math. You put three million into brk 5 years ago. I buy a million ADX ,a million CET, and a million STEW. adx and cet have .6 expense ratios , stew added the leverage 3 years ago. Let's say the entire portfolio has a 1 % expense ratio, on average. At the end of 2023 how many shs of brk do you own after selling 3.2 % a year? ADX did a tender two weeks ago, I sold 30 % of my stock back to the fund at 98% of NAV or 22.49 a share. I never sold one share of the funds to meet my RMDS because the divs more than covered it. I have no idea which plan would have been better off BUT, I thought stew might do something shareholder friendly, maybe even close it down and sell it off but so far, that wasn't the plan. When they sold off 1/3 of their Bs in 2023 I was very surprised, terrible timing after holding it for decades. Hence, I sold most of the stew. They sold 1/2 their WMT too timing is hard. Thanks.
