 |
Definition of 'Foregone Earnings'
The difference in earnings or performance between what is actually achieved and what could have been achieved with the absence of specific fees, expenses or lost time. Forgone earnings represent the investment capital that the investor spent on investment fees. The assumption is that if the investor had been exposed to lower fees, he or she would have generated a better return. This term is often used when referring to management fees or other expenses paid to mutual funds, exchange-traded funds, or other pooled investment vehicles.
|
 |
Investopedia explains 'Foregone Earnings'
Foregone earnings as they relate to investment performance can be a big drag on the long-term growth of assets. Something as seemingly innocent as a front-end load or a 1% management fee can cost thousands of dollars as the years pile up, thanks to the wonders of compound returns. To limit forgone earnings, it is important to look at the costs associated with each investment.
For example, say you have $10,000 to invest and one fund charges 0.5%, while the other fund charges 2%. If you invest in the 2% fund, you will be charged $200, while the 0.5% fund only charges $50. The difference, or $150, is your forgone earnings, which could have been invested instead of being lost to fees.
|
Search results for 'Foregone Earnings'
-
http://stocks.investopedia.com/stock-analysis/2010/Costcos-Growth-a-Foregone-Conclusion-COST-BJ-WMT-K-KFT1209.aspx
... Costco's Growth A Foregone Conclusion. Posted ... billion. Earnings expectations call
for $3.29 per share, or year-over-year growth of nearly 13%. ...
-
http://stocks.investopedia.com/stock-analysis/2010/A-Bullish-Stance-On-Research-In-Motion-RIMM-AAPL-MOT-GOOG-T0921.aspx
... To the market, it is a foregone conclusion that Apple (Nasdaq:AAPL) has all but ...
third-quarter sales between $5.3 billion and $5.55 billion, and earnings in a ...
-
http://stocks.investopedia.com/stock-analysis/2010/4-Solid-Short-Covering-Candidates-RINO-TWI-DMND-EBIX0824.aspx
... that a lot of open short trades means a rally is a foregone conclusion. ... Looking back
on four straight earnings beats though, the market appears to be accepting ...
-
http://stocks.investopedia.com/stock-analysis/2011/Budget-Battle-Looms-Over-Subclass-Military-Stocks-TGI-HEI-ESL-LMT-RTN-NOC-BA1101.aspx
... Spending cuts to the US defense budget are a foregone conclusion, and $450 ... aviation
space, HEICO recorded a 37% increase in third quarter earnings compared to ...
-
http://stocks.investopedia.com/stock-analysis/2010/Rural-America-Keeps-Rolling-Along-WLT-DF-RAH-TSCO-MON-WMT-FDO1103.aspx
... Its earnings might falter once in awhile, but generally they're a capable bunch. ...
Bottom Line There seems to be a foregone conclusion that rural America is ...
-
http://www.investopedia.com/exam-guide/cfa-level-1/microeconomics/tax-effects.asp
... System; 7.10 Uses and Limitations of Financial Ratios; 7.11 Basic Earnings
Per Share; 7.12 Dilutive Effect of Splits and Dividends; ...
-
http://stocks.investopedia.com/stock-analysis/2012/West-Marine-Continues-Its-Recovery-WMAR-HZO-AN-WSM0312.aspx
... the company. In an effort to right the ship, Repass has foregone his annual
salary of $100,000 in both 2010 and 2011. Furthermore ...
-
http://www.investopedia.com/articles/retirement/5-retirement-mistakes-avoid.asp
... that for every dollar you contribute to the plan up to 6% of your earnings, the
employer ... However, the total return is reduced by the foregone investment growth ...
|
|
