whit wrote:as for the fees, you never just look at fees, if they're performing better then the lower fee products so that at the end even with the fees factored in you make more, what's the problem?
True, there is a lot of good research out there that shows that it is difficult to consistently beat an index fund. Some do, but not many by 1.6%.
Most my investments personally are in various index funds with extremely low expense ratios (.05%-.12%). I looked into CPC and since I don't wire a lot of money it doesn't make sense for me to go over. I actually did a pretty extensive comparison, my current broker to CPC over the last 5 years and there was quite a disparity. And if I forecast that same model over the next 25-30 years it gets even larger.
Now the only thing I didn't do is forecast it from the perspective of someone that has >$1MM, maybe it would be closer in line, but the difference in rate of return in my model was still about 25-50 bips just glancing at the fees. But I'd be curious how that models out.
I'm assuming when your in JPM its a whole different ball of wax, but the point I was trying to make was people with $250K or more in assets can get the Palladium if they go to CPC, but I'm assuming most don't because they are middle class like me and $4000 a year to have someone manage my money to get that card doesn't make sense when my portfolio is performing quite well. I.e. making it not as exclusive as the Centurion, but likely more rare.