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Author: PMcMullenCT Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75665  
Subject: Re: How should I do this Date: 3/19/2001 8:25 AM
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.... w/4% backload & ... w/4% backload ... w/4% backload .... w/5.75% frontload taxable account.

We each have $1,500 that we need to invest in IRAs for 2000 before the April deadline. After that we plan to dollar cost average our IRAs from now on and also maximize our taxable investments as much as we can afford each month.

Good idea. Get the most out of the tax deferral by depositing funds as soon as they are available, rather than waiting for the year-end deadline. With the late start, you want to try to max out your contributions. Congress is even considering a bill that will increase the maximums to $5,000 per person, per year.

Index funds tend to be tax efficient, and have low expenses, and thus may be a good bet for a taxable investment.

The fees I'm paying to MIGBX, AWSHX, APGBX are too high by FOOL standards. Should I invest in the funds I have for our IRAs this year?

You should invest for 2000, but not in these funds. Find some good no load - low expense funds, such as Vanguard's S&P 500 (No load & 0.18% expense ratio).

Should I find different investments for our 2000 IRAs & move the funds We now hold over later when they are at least break even? Should I move them NOW at a loss?

Since the money isn't leaving an IRA, whether the market is currently up or down is irrelevant. You won't owe any taxes on the transfer. Plus, with those back-end loads, you'll probably be better off getting out when their value is low. When the market bounces back, wouldn't you rather have your growing assets in a low expense, no load fund?
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