If so here is your answer.
I snipped this out of a conversation going on in the Mentor Program Alumni forum and as is my habit whenever someone makes a bold pronouncement regarding something like stops I like to dig a little deeper.
On Baskin financials website they boast the following performance.
At first glance it appears interesting – they seem to outperform their benchmark on a regular basis. However, with performance numbers what you see is not always what you get. On their website Baskin state –
Baskin Financial will customize your Managed Account to your unique needs for capital preservation, income, growth and liquidity while also considering your tax situation.
So income is a component of their marketing blurb – this means they should be comparing themselves to a total return index. When this is done a slightly different view is generated.
I have highlighted the years in which they underperform the index. As you can see they manage this feat in 6 of the last 10 years. This under performance means that Bakins 10 year compound return is 7.9% versus the index’s 9.97%. This differential may not seem like much but consider that $100,000 invested for 10 years at 7.9% is $213,901.80 but at 9.97% it is $258,667.73. Over a 20 year period the differential blows out to a staggering $212k.
For the pleasure of them charging you whatever they charge they have managed to under perform the total return index. Once again we see why fund managers are generally a drag on performance.
