How is fee drag calculated?

Each year: balance grows by the annual return, then the applicable annual fee is deducted. For scaling fees, the storage percentage is applied to the post-growth balance.

Why does the scaling model underperform the flat model?

Scaling fees grow with the portfolio, compounding their drag. A flat fee stays fixed even as the balance grows, so its proportional cost shrinks over time.

Fee Drag Analyzer

Project how a flat-rate versus percentage-based storage fee structure erodes a precious metals IRA over time. All calculations use exact-decimal arithmetic.

Recalculating with your inputs…

FAQ

How is fee drag calculated?: Each year: balance grows by the annual return, then the applicable annual fee is deducted. For scaling fees, the storage percentage is applied to the post-growth balance.
Why does the scaling model underperform the flat model?: Scaling fees grow with the portfolio, compounding their drag. A flat fee stays fixed even as the balance grows, so its proportional cost shrinks over time.