No. of Recommendations: 1
It will cost more now than investing in a no-load mutual fund, but the end amount of money in the Roth will be the same regardless of the amount it costs to get it there.

Um, I'm not sure this is true. You can only put $4K into the fund. The load is taken out by the mutual fund so by that point your contribution has already hit your yearly limit. So you're down $230 off the bat and will remain down 5.75% for the rest of your investing lifetime (although each dividend reinvestment probably also takes 5.75%, so all your dividend earnings will also lose 5.75%.

Even if the above *was* true, which I still doubt (depending on exactly who it taking the fee, I guess), then you're still paying $4244 in order to get that $4K into the account, again losing out on $244 right off the bat.

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. You are completely correct to be uncomfortable with this.

If you know him personally and/or like his advice, perhaps you could ask if he would be willing to do an annual for-fee, not for-commission, review with you and your wife. That way his advice is certainly intended in your best interest and not to line his own pockets (and that of the fund company).
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.