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URL:  http://boards.fool.com/greetings-ptp-however-i-cant-get-over-this-23054854.aspx

Subject:  Re: Best way to invest in a ROTH IRA Date:  9/20/2005  10:51 AM
Author:  jbking Number:  47633 of 76419

Greetings PTP,

However, I can't get over this 5.75% fee. Of every $300 we deposit, she is only buying about $282 worth of the fund. Is this a typical fee?

For front-end load funds, yes unless you invest enough to get a break on this, e.g. if you were investing a million dollars they may waive the fee. Course you could look at the other side of this in that there are possibly share classes where you don't get dinged up front but rather have higher fees for as long as you hold the fund, e.g. so instead of losing 5.75% upfront you pay an extra .75-1.5% each year you hold the fund and possibly have a back-end load should you try to get out early.

How can she set up a ROTH IRA with direct monthly deposits that is automatically invested in mutual funds of her choice without paying this financial advisor to do nothing more than a bit of paperwork and cheerleading?

Fidelity, Vanguard, T. Rowe Price, Schwab and many other brokerages and fund companies have funds without an upfront fee. I would likely suggest looking at the Fidelity Freedom or Vanguard Target Retirement funds as the type of fund your wife could own and not have to worry about shifting from fund to fund.

Regards,
JB

FD: I do own shares in a couple of Vanguard funds in a Roth IRA.
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