Autor thomas ramseyer
100*0.99^(45/1) = 63.6185486064
If USD 100 are invested with a Bank at an average Yield of 0% and a yearly commission/fee of 1% the result after 45 years will be be USD 63.62
This is what actually happens. The only thing is that investors never are told about this. Mainly not by those excessivly living off the savings of other persons.
The system of monthly mandatory transfers to pension plans help hiding the traces for such behaviour. As commissions and fees are treated as money outflows they do not affect the performance annually celebrated by the so-called investment "professionals".
In case of an excess the pensionfund is talked into loading more risk by its investment advisors. Thus the fund will increase its investments in shares.
In the aftermath of the inevitable crash, the pensionsfunds suffering from severe deficits are advised by the "professionals" to lower the risk by selling shares.
Also the pensionsfund members must reorganize its the finances by simply inject more cash. The retirees may suffer from lower pension allowances. This is valid not only for private pensions funds but for all other funds as well. Not forget to mention the governmental pensionfunds.
Nobody is willing to explain as to how the money unexplicably is vanishing throughout time. The leakage is explained with systemic risk and adjacent gobbledygook.
copyright thomas ramseyer
