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.
Get recommendations across fees, taxes, risk, returns, and downside factors.
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. The linear framing is intended to make the trade-off easy to interpret at a glance. 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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