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Author: cclw Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: How should I do this Date: 3/18/2001 11:49 PM
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I need your ideas & opinions. I'm 46 years old, I have 12k in APGBX w/4% backload & 4k in MIGBX w/4% backload both are IRA's. My wife has 5k in MIGBX w/4% backload an IRA. Jointly we have 12k in AWSHX w/5.75% frontload taxable account. We each have $1,500 that we need to invest in IRAs for 2000 before the April deadline. After that we plan to dollar cost average our IRAs from now on and also maximize our taxable investments as much as we can afford each month.
The fees I'm paying to MIGBX, AWSHX, APGBX are too high by FOOL standards.

Should I invest in the funds I have for our IRAs this year?

Should I find different investments for our 2000 IRAs & move the funds We now hold over later when they are at least break even? Should I move them NOW at a loss?

I realize we have started late in the game to invest for retirement plus we have 10 year old triplets! With college around the corner.

Where should I invest to maximize my earning potential? I know that you FOOLS do not a crystal ball, but how would you ahndle my situation?

I do need to decide about the 3k for IRAs very soon. Any & all responses will be appreciated.

At this time I am enrolled in Rule Maker 2001 Seminar & the Self paced Retirement Seminar. I am trying to learn as much as possible to become a real FOOL as soon as possible.

Thank you in advance
cclw

ps I am sorry about the long story, but I though imwould get more help (sympathy).
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Author: PMcMullenCT Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28502 of 76421
Subject: Re: How should I do this Date: 3/19/2001 8:25 AM
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.... w/4% backload & ... w/4% backload ... w/4% backload .... w/5.75% frontload taxable account.

We each have $1,500 that we need to invest in IRAs for 2000 before the April deadline. After that we plan to dollar cost average our IRAs from now on and also maximize our taxable investments as much as we can afford each month.

Good idea. Get the most out of the tax deferral by depositing funds as soon as they are available, rather than waiting for the year-end deadline. With the late start, you want to try to max out your contributions. Congress is even considering a bill that will increase the maximums to $5,000 per person, per year.

Index funds tend to be tax efficient, and have low expenses, and thus may be a good bet for a taxable investment.

The fees I'm paying to MIGBX, AWSHX, APGBX are too high by FOOL standards. Should I invest in the funds I have for our IRAs this year?

You should invest for 2000, but not in these funds. Find some good no load - low expense funds, such as Vanguard's S&P 500 (No load & 0.18% expense ratio).

Should I find different investments for our 2000 IRAs & move the funds We now hold over later when they are at least break even? Should I move them NOW at a loss?

Since the money isn't leaving an IRA, whether the market is currently up or down is irrelevant. You won't owe any taxes on the transfer. Plus, with those back-end loads, you'll probably be better off getting out when their value is low. When the market bounces back, wouldn't you rather have your growing assets in a low expense, no load fund?

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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: 28526 of 76421
Subject: Re: How should I do this Date: 3/20/2001 12:23 PM
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I need your ideas & opinions. I'm 46 years old, I have 12k in APGBX w/4% backload
& 4k in MIGBX w/4% backload both are IRA's. My wife has 5k in MIGBX w/4%
backload an IRA. Jointly we have 12k in AWSHX w/5.75% frontload taxable account.
We each have $1,500 that we need to invest in IRAs for 2000 before the April
deadline. After that we plan to dollar cost average our IRAs from now on and also
maximize our taxable investments as much as we can afford each month.
The fees I'm paying to MIGBX, AWSHX, APGBX are too high by FOOL standards.


For the current contributions go to Vanguard Mutual funds and open the IRA using a money market account.

Then take your time to figure out what you want to do, then move the money.

I would look for no load funds and not put any more money in your current funds unless the return, after the load, is better than the no load funds.

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