I thought I was doing a good thing, signing up for a ROTH, now I understand that it is loaded upfront, 5.25%, and losing investment money as well. How difficult is it to transfer/rollover into something I can manage more myself and cut out the load fees, management fees, and whatever fees????
Thanks in advance, I know you guys know.
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To remove first post, remove entire topic.
I thought I was doing a good thing, signing up for a ROTH, now I understand that it is loaded upfront, 5.25%, and losing investment money as well. How difficult is it to transfer/rollover into something I can manage more myself and cut out the load fees, management fees, and whatever fees????
What are you talking about front end loaded..that has nothing to do with a Roth, that is the mutual fund you invested in.
With a Roth it is self controlled, so the two has nothing to do with each other..I have a Roth and I have it in stocks, you can choose what you put it in.
The problem with where you are at is that if you take it out of the mutual fund you LOSE than load, if you transfer it within fund families (same firm) then usually the load paid transfers...that is USUALLY. Check with the fund family for clarification.
Now keep in mind that you sell the fund and put it in stocks or a money market that isnt with the fund family, the load credit is surrendered.
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wiz,
What are you talking about front end loaded..that has nothing to do with a Roth, that is the mutual fund you invested in.
With a Roth it is self controlled, so the two has nothing to do with each other..I have a Roth and I have it in stocks, you can choose what you put it in.
The problem with where you are at is that if you take it out of the mutual fund you LOSE than load, if you transfer it within fund families (same firm) then usually the load paid transfers...that is USUALLY. Check with the fund family for clarification.
Now keep in mind that you sell the fund and put it in stocks or a money market that isnt with the fund family, the load credit is surrendered.
Yeah, Roth is merely how the account is designated. A Rot can invest in anything, just like a regular taxable account. Call wherever you have your account and ask questions. If you sell within a certain amount of time you may get hit with more fees. If you don't have enough for individual stocks, look into ETF's instead of mutual funds.
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Yeah, Roth is merely how the account is designated. A Rot can invest in anything, just like a regular taxable account. Call wherever you have your account and ask questions. If you sell within a certain amount of time you may get hit with more fees. If you don't have enough for individual stocks, look into ETF's instead of mutual funds.
Buying into a loaded fund is a bad idea if your not going to hold onto it for awhile, however often times you can out perform many no load funds if you hold on to it for awhile because of the sometimes much lower annual operating expenses.
Often times no load funds will charge around 1.5% in annual operating expense while loaded funds may be around .75 or lower. So over time it can even out.
Best case scenario is to look at no load & low annual operating expenses. Vanguard usually good place to start, but I wouldn't be too upset with what your in now since over the long term it tends to even out.
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Buying into a loaded fund is a bad idea if your not going to hold onto it for awhile, however often times you can out perform many no load funds if you hold on to it for awhile because of the sometimes much lower annual operating expenses.
Often times no load funds will charge around 1.5% in annual operating expense while loaded funds may be around .75 or lower. So over time it can even out.
Best case scenario is to look at no load & low annual operating expenses. Vanguard usually good place to start, but I wouldn't be too upset with what your in now since over the long term it tends to even out.
Yeah, Roth is merely how the account is designated. A Rot can invest in anything, just like a regular taxable account. Call wherever you have your account and ask questions. If you sell within a certain amount of time you may get hit with more fees. If you don't have enough for individual stocks, look into ETF's instead of mutual funds.
Thanks for the input, I need to read more into it, or ask better questions. Initially this ROTH is tied to a Mutual Fund, that charges 5.25% FOR EVERY DEPOSIT I make into it. I wasn't looking into giving away $200 to max out the ROTH this year. Currently only putting in $100 about every month, but showing losses in this fund, and trying to read through the fine print, to invest it where I want to invest it. I guess perhaps I have a broker, who is the middleman, and that is where the 5.25% is going?? Man, I used to be smart. LOL Now I don't know!
At this point, sitting at a BlackJack table would be more rewarding, at least I would understand why and how I lost. And if I won, then wouldn't worry about April 15th 2008.
The ROTH idea is great, but it's so mechanical, and complicated with fine print crap, I am getting frustrated. Or perhaps thats only MY ROTH. Your wisdom and good faith responses are much appreciated.
Thank you!
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Quote Originally Posted by depeche2:
Yeah, Roth is merely how the account is designated. A Rot can invest in anything, just like a regular taxable account. Call wherever you have your account and ask questions. If you sell within a certain amount of time you may get hit with more fees. If you don't have enough for individual stocks, look into ETF's instead of mutual funds.
Thanks for the input, I need to read more into it, or ask better questions. Initially this ROTH is tied to a Mutual Fund, that charges 5.25% FOR EVERY DEPOSIT I make into it. I wasn't looking into giving away $200 to max out the ROTH this year. Currently only putting in $100 about every month, but showing losses in this fund, and trying to read through the fine print, to invest it where I want to invest it. I guess perhaps I have a broker, who is the middleman, and that is where the 5.25% is going?? Man, I used to be smart. LOL Now I don't know!
At this point, sitting at a BlackJack table would be more rewarding, at least I would understand why and how I lost. And if I won, then wouldn't worry about April 15th 2008.
The ROTH idea is great, but it's so mechanical, and complicated with fine print crap, I am getting frustrated. Or perhaps thats only MY ROTH. Your wisdom and good faith responses are much appreciated.
It's only your Roth. Again, in practice there really is NO different between a Roth IRA account and a plain ole brokerage account. You can invest it exactly the same way. The Roth designation only effects the max you can put in per year and the taxability (or non tax) of withdrawing. Charging 5.25% to deposit is insane. Where is your account at?
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It's only your Roth. Again, in practice there really is NO different between a Roth IRA account and a plain ole brokerage account. You can invest it exactly the same way. The Roth designation only effects the max you can put in per year and the taxability (or non tax) of withdrawing. Charging 5.25% to deposit is insane. Where is your account at?
Me thinks he has a full service broker running his accounts and the broker puts him in certain fund(s) and he might not know this arrangment..
Front loaded funds are usually either a) high demand funds where the firm can still demand this pathetic outlay (5% load is HUGE) or b) a full service broker who is taking his bite off the deposit.
wiz..unless he is kicking butt for you, get to a discount broker and call the shots yourself..
Thats my cheap nickle advice for the day...
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D2,
Me thinks he has a full service broker running his accounts and the broker puts him in certain fund(s) and he might not know this arrangment..
Front loaded funds are usually either a) high demand funds where the firm can still demand this pathetic outlay (5% load is HUGE) or b) a full service broker who is taking his bite off the deposit.
wiz..unless he is kicking butt for you, get to a discount broker and call the shots yourself..
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