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URL:  http://boards.fool.com/sorry-it-took-me-so-long-to-reply-vacation-and-22685653.aspx

Subject:  Re: Roth IRA Date:  6/29/2005  5:15 PM
Author:  Hawkwin Number:  46720 of 74759

(sorry it took me so long to reply - vacation and then illness)

<<Hawkwin,
I certainly agree in not parsing every sentence - however, as you may have noticed, you bring a different point of view than many on these boards. I am curious about one particular piece in your response -

The returns you quoted - do those include the effect of the sales charge?>>

The above example DOES NOT include the sale charge. Thanks for asking. It would depend on how much you buy, how often, and how long you intend to hold the shares (A, B or C shares). It would be rather difficult to figure the return with, for example, of a monthly systematic purchase for 30 years as all breakpoints (and monthly market performance) would need to be considered in the assessment.

<<I am not terribly familiar with loaded funds as I am a no-load believer. However, I would imagine it would depend somewhat on the class of shares sold. I am thinking of a front-end loaded fund when posing this question. Do your returns look at a situation and say, 'this investor brought $10,000 to the table, and earned 10% in one year and so he now has $11,000'? Or do they look look at the situation and say 'this investor brought $10,000 to the table, but only invested $9650 (after 3.5% load), earned 10% in the first year and so he now has $10,615'?

Hopefully that is clear. 10% is better in the first instance than 10% in the other!>>

Exactly right. It is all depends on class of share. The example I reference uses A shares bought at NAV. Depending on the load, the performance will be slightly less. A shares are most expensive in the first 25-50K (depending on the company). If you stay with the same investment company, you can eventually buy A shares at NAV (usually when your total fund family holdings are worth 500k-1mil or more(Rights of Accumulation); or with a Letter of Intent). Also worth note is the reference return is net of all other fees.
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