Edelman Financial Engines

… you shouldn’t need an engineering degree and an MBA to understand “skim”.

New Ways to Create Retirement Income and Make Your 401(k) Pay Off Like a Pension Plan

Edelman, which charges up to 0.6% of an account balance annually for its managed-account service, is making Income Beyond Retirement available for no extra cost, said Christopher Jones, chief investment officer.

A 0.6% fee for an managed account is 15% of a $40,000 annual withdrawal from a $1 million retirement portfolio (i.e, the “4% rule”). Most retirees are paying far less than 15% in Federal income taxes.

No thanks.



Other than promising to charge 0.6%, what else promising the client?

It sounds like the old Car Talk Capital Depreciation Fund.