What Is the Effective Annual Cost (EAC)?

Gary Andrew
Feb 12
1 min read

The Effective Annual Cost (EAC) measures the total annual percentage cost of your investment, including:

Platform fees
Advice fees
Asset management fees
Policy charges

If your investment earns 8% per year but costs 4%, half your growth is lost to fees.

That is not market underperformance.

That is structural inefficiency.

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What Is the Effective Annual Cost (EAC)?

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