Advice Latency Cost Estimator - Tool
What this tool is for
The estimator answers a practical question: “If a documented change is expected to add X% per year, what does waiting cost?” Industry education often discusses how frictions may influence long-term outcomes, though actual effects vary. Quantifying these differences can help users understand potential illustrative impacts of delay under their own assumptions.
Key Takeaways
- The tool converts an assumed annual edge (in %/yr) into a hypothetical monthly burn and estimate total lost value for any delay length.
- If there’s a one-time switching cost, it also estimates a break-even delay - beyond that point, waiting tends to cost more than implementing.
- Results show quick-view totals (3/6/12 months) and a cumulative lost value chart to make the tradeoff visible.
- It’s diagnostic, not predictive: users supply the edge and costs. The math simply prices the time decision by illustrating how time interacts with the assumptions entered.
Inputs - each field explained (and why it matters)
- Amount Impacted
The dollars affected by the change (for example, the account moving to a lower-cost share class, or the cash that could benefit from automation). Scale matters: the same edge on $50,000 vs. $500,000 produces very different dollar impacts. - Expected Annual Edge (%/yr)
A conservative estimate of the improvement the change may deliver each year before taxes - e.g., a fee cut of 0.40%/yr, or a 0.50%/yr process benefit. This is a planning input, not a promise. - Delay (months)
The time someone plans to wait before implementing. The tool translates this into a cumulative lost value at the entered edge. - One-Time Switching/Implementation Cost (optional)
Any up-front cost - transfer fees, a one-off tax prep cost, or time spent onboarding. The estimator uses this to compute a break-even delay: if the plan is to wait longer than that, the waiting likely costs more than switching.
How the math works (plain English)
- Monthly burn ≈ Amount × Edge% ÷ 12.
- Lost value (for a selected delay) ≈ Monthly burn × Delay (months).
- Break-even delay ≈ One-time cost ÷ Monthly burn.
- Quick-view provides 3/6/12-month snapshots using the same linear math.
This linear approach keeps the decision frame simple. Users who want to explore compounding can run separate hypothetical calculations; this tool focuses on a simplified linear framework.
Reading the outputs
- Lost value (selected delay) - Estimate the total dollars given up by waiting the chosen number of months.
- Monthly burn - The per-month dollar impact of not acting. This is the key “heartbeat” of the decision.
- Break-even delay - If a one-time cost was entered, this shows the maximum “rational” delay; beyond it, waiting generally costs more.
- Decision context - A short note (e.g. “Edge is positive → cost grows with time”) to guide interpretation.
- Quick view (3 / 6 / 12 mo) - Fast benchmarks for common delays.
- Cumulative lost value over time (chart) - A rising shaded area that makes the opportunity cost tangible.
This interactive tool is for educational purposes only. It provides a simplified illustration of the potential opportunity cost associated with delaying an investment-related decision. The calculations rely on user-provided inputs and linear assumptions that may not reflect actual market conditions, future returns, taxes, fees, or individual circumstances. The output is not a prediction, projection, guarantee, or estimate of future performance or portfolio outcomes. Results are hypothetical and may differ materially from real-world results. Nothing shown here should be interpreted as investment advice, financial advice, or a recommendation to take - or delay - any action.
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