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URL:  http://boards.fool.com/gtgt-even-though-i-read-that-no-load-accounts-10296284.aspx

Subject:  Re: I.R.A. fund fees Date:  8/27/1998  3:57 PM
Author:  ziggy29 Number:  5202 of 74759

>> Even though I read that no-load accounts are the way to go, the one I invested in is a Class A load account. I knew that there was a 5.75% fee for rolling over the account, but I did not realize who got this fee. I called the Pioneer Company. They explained that they received just .75% The other 5% goes to a company that my financial advisor represents. <<

Isn't that a nice racket? :(

>> This will happen every time I make a transaction which means that amount will be taken out when I want to add to the account or take it out when I am older. I planned to keep this account at least 7 years to avoid any penalties of rolling it over into something else. <<

Are you saying there's a back-end load if you get out within seven years? How much? If it's a small amount, it might be worth it just to be free of these robbers. According to what I see, this fund has no back-end loads. How could they get you any more? The prospectus says there is no redemption fee.

Do you have the text of this handy? In a prospectus, in an IRA application hich you signed, in an agreement with the advisor? I'd love to hear it.

>> My question is: should I keep the I.R.A. that I have and roll it into a no-load one when I can even though it will cost me in some penalty fees? <<

Pam, can you elaborate on those "penalty fees?" WHo is charging them? Pioneer? The financial advisor? What are the details? If Pioneer is charging it, they shouldn't as there is a load on class A shares but no redemption fee (per their prospectus dated 4/30/1998). If it's the advisor, make sure this is legit according to any contract you may have with them. And then, IMO, get rid of them.

>> I have about $10,000 in the fund. Or, should I let it stay there not adding to it and open up a 2nd I.R.A. in a no-load fund someplace else? <<

Well, $10,000 should be enough to get a no-fee IRA with many discount brokerages and fund families. Compare that with the savings form not paying this advisor any more, who doesn't seem (IMO) terribly interested in your best interests.

Oh, and by the way...if your financial advisor is getting paid kickbacks based on trades...get rid of them and find one that is fee-only; i.e. has no conflict of interest to do something that isn't in your best interests.

Tim
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