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Subject:  Re: Best way to invest in a ROTH IRA Date:  9/20/2005  1:55 PM
Author:  cliff666 Number:  47644 of 88772

I, and the vast majority of Fools, are completely in the camp that there is no way you should pay this. Thank him for his time and take your investing to one of the mentioned mutual fund companies/brokerages who will not charge you a load.

Another aspect of mutual funds. They all charge a fee of some kind. Some get a front-end load. Some get a fee at time of sale. All get management fees every year. American Funds' management fees are among the lowest of all actively managed funds. Over a period of years this can amount to more than the front-end load. American is usually less than 1% a year. Many funds are more than 1%, some are quite high. Funny thing about people. They all want to be paid when they provide a service or product, and the user pays for that service. Other costs are related to trading. American Funds portfolios tend to be relatively low turnover, which holds costs down.

The front end load is still high.

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