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Author: Judois Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75616  
Subject: Exchange a Roth IRA for Another? Date: 1/25/2000 2:43 PM
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I allowed my broker to talk me into opening a Roth IRA last year in the Munder Net Net B class fund. Now I realize how volatile this sector is and too that the B class shares will probably benefit him more than it will me as an IRA is obviously a long term investment. I have lost my trust in him and would like to remove my account from this brokerage firm and move the money in this Roth IRA account into another fund. Is that allowable and if so, what would the cost be?

Thank you.
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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18216 of 75616
Subject: Re: Exchange a Roth IRA for Another? Date: 1/25/2000 3:48 PM
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To change brokers isn't hard, but there can be some expense involved. Class B shares in a load fund will cost you a fee-maybe 4.5 or 5%--to liquidate. The brokerage firm will probably charge you $50 to close the account.
The mechanics are easy--you select your new broker, get forms for opening the account, and direct that everything in the old account be transferred to the new one. Send to new broker with a copy of your statement from the old one. Then wait a few weeks.
Look in the paper and see whether there is a different fund in the same family you could switch to. You should be able to exchange shares for a different fund within the same family without incurring any sales charges. Maybe that would at least let you postpone your problem.
In general, stay away from Class B shares!
Chris

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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18217 of 75616
Subject: Re: Exchange a Roth IRA for Another? Date: 1/25/2000 6:31 PM
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I allowed my broker to talk me into opening a Roth IRA last year in the Munder Net Net B class fund. Now I realize how volatile this sector is and too that the B
class shares will probably benefit him more than it will me as an IRA is obviously a long term investment. I have lost my trust in him and would like to remove my
account from this brokerage firm and move the money in this Roth IRA account into another fund. Is that allowable and if so, what would the cost be?

I have not transferred load funds, but I would look for a broker who sells the fund (Schwab does) and ask then what it would cost to move the account.

You want to avoid selling the shares and rebuying.

They will do the work for you. The old broker may make a small(?) closing charge.

If this does not work ask Munder for some help. They maybe able to transfer the shares for you.

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Author: Judois Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18225 of 75616
Subject: Re: Exchange a Roth IRA for Another? Date: 1/25/2000 9:18 PM
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Chris, thank you so much for answering my questions. You've been a big help. May I impose on you one more time?

I hope you're allowed to answer this question on this board: In your opinion, do you feel that my broker did me a disservice to recommend the Munder Net Net B class fund to me as a Roth IRA? He also recommended another fund in the C class to me. I feel like this guy took advantage of my ignorance. I just plunked another $4000 in these two funds a couple of weeks ago, unfortunately prior to getting myself educated.

I phoned one fund and was told that if I transferred funds within the same family of funds, the same broker would still continue to receive commissions. I feel the only way to get out from under him (so to speak) is to flat out sell both, pay my penalties and learn from the experience.

Thank you once again.

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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18227 of 75616
Subject: Re: Exchange a Roth IRA for Another? Date: 1/25/2000 10:09 PM
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Whether this particular fund was good for you or not The 12b1 fee provides yrequires more knowledge of your circumstances and tolerance for risk as you presented them to your broker than you have given. Brokers feel that they deserve a commission for recommending a fund that seems to meet your needs. Load funds are sold. People buy no-load funds. In the long run, one does as well with the Vanguard S&P as anything else. You could, I believe, have your Roth with Vanguard if that is what you would like to do. {I know they have IRA, don't know for sure about Roths.)
our broker with a continuing stream of income as long as you hold the fund. So if you are po-ed enough to want to deprive him of that, you can sell the fund for spite.
Good luck and welcome to Fooldome! Chris

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Author: adamw13 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18231 of 75616
Subject: Re: Exchange a Roth IRA for Another? Date: 1/25/2000 11:14 PM
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> I phoned one fund and was told that if I
> transferred funds within the same family
> of funds, the same
> broker would still continue to receive
> commissions. I feel the only way to get
> out from under him (so to
> speak) is to flat out sell both, pay my
> penalties and learn from the experience.

I'm not the most knowledgable around, but can't you transfer the whole fund to another brokerage (Datek, for example, will do it free of charge) ... then liquidate the fund, and buy something else. The only penalty you'll pay is commission on the buying and selling of what you exchange. I've thought of doing the same thing because I'm sick of being in managed funds entirely.

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Author: Judois Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18301 of 75616
Subject: Re: Exchange a Roth IRA for Another? Date: 1/27/2000 12:33 AM
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Thank you so much, rjm1. I've already called Munder and ethically they can't help. I will call Schwab though. Thanks for the suggestion.

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Author: phooley Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18303 of 75616
Subject: Re: Exchange a Roth IRA for Another? Date: 1/27/2000 12:48 AM
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I'm not the most knowledgable around, but can't you transfer the whole fund to another brokerage (Datek, for example, will do it free of charge) ... then liquidate the fund, and buy something else. The only penalty you'll pay is commission on the buying and selling of what you exchange.

Not so. Remember, these are B shares. On selling, he would incur not a commission, but a fee of maybe 4% or 5% of the total investment -- not to be taken lightly.

Plan ahead...

Phooley

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Author: Judois Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18497 of 75616
Subject: Re: Exchange a Roth IRA for Another? Date: 1/31/2000 2:35 AM
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Thanks so much for your reply. I'm still learning how to use this forum.

What do you mean by "The only penalty you'll pay is commission on the buying and selling of what you exchange." ? I want to exchange the entire amount. Luckily it's only a year old. I just funded it with $1000 and it more than doubled since last year. These are B class shares, one year old. I just want to get the heck away from this broker and out of this fund. Even though it's doubled since last year, its expense and the class that he recommended to me along with the volatility of the tech sector make it a bad investment

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