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by Iburinoc
2544 days ago
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The "200 basis point spread" comes from the difference between the very low or non-existent interest paid on the cash in brokerage accounts and the rates the brokerage can earn by lending that money out basically risk-free. If you keep 10% of your assets in cash, a 200 bp interest spread becomes effectively a 20 bp management fee on your assets. |
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