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I am a new investor. I recently rolled over a traditional I.R.A. from a credit union to a Roth I.R.A in the Pioneer Balanced Fund since I did not have much in it. My financial advisor suggested that I do this because I would earn more interest. Even though I read that no-load accounts are the way to go, the one I invested in is a Class A load account. I knew that there was a 5.75% fee for rolling over the account, but I did not realize who got this fee. I called the Pioneer Company. They explained that they received just .75% The other 5% goes to a company that my financial advisor represents. This will happen every time I make a transaction which means that amount will be taken out when I want to add to the account or take it out when I am older. I planned to keep this account at least 7 years to avoid any penalties of rolling it over into something else.

I am disgusted with myself for doing this since I have read that load funds are not any better managed than no-load funds over all even though my financial advisor tried to convince me that they are.

My question is: should I keep the I.R.A. that I have and roll it into a no-load one when I can even though it will cost me in some penalty fees?I have about $10,000 in the fund. Or, should I let it stay there not adding to it and open up a 2nd I.R.A. in a no-load fund someplace else?

Any suggestions would be appreciated!

Thank you.

Pam - a conservative and new investor
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