UnThreaded | Threaded | Whole Thread (44) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: MajorMajor78 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: Loaded Funds, IRA Date: 2/20/2011 2:15 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
PIMCO Unconstrained Bond Fund - Holy %^&$!! 2.052 Expense Ratio and a 3.75% load load on a bond fund!? The 1 year return on the fund is 5.17% and they are going to charge you 5.802% the first year for the honor of taking your money? This is one of those funds that are designed for clueless people who can't be bothered to look at their investments. I don't care what wonderful arguments the advisor gives you, just do the math... 5.17% return - 5.82% expense. Ridiculous.

If you have no interest in picking stocks then you probably want some nice, simple, well-diversified index mutual funds that track the stock market and will get you where you need to go. I second the Vanguard suggestion. Just about the least expensive funds around and for disclosure sake, I own several myself. My wife's 401K is locked into Fidelity and they offer some good funds in the Spartan family; expense ratios around .1-.2% None of this 1-3% BS this guy is shoveling you. If you really want to educate yourself on mutual funds read "Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition" by John C. Bogle. He is the founder of Vanguard and essentially created the low cost market index mutaul fund.

Even if your choices of funds are limited by your employers plan there should hopefully be a better selection than this. Often the selection isn't as great as I'd like but anything over 1% needs to generate impressive consistant returns to justify the espense and few funds can do this. I've read from many sources that 80% of mutual funds underpreform the S&P 500 after espenses.

Keep the deposit in cash until you read s book or two. Keep in mind that load fees tend to pay the comission of the sales people so take a moment and add up the loads this guy is wanting you to pay. Multiply that by the 401K deposit you have transferring in and get an idea of how many dollar signs are written across your forehead when the guy talks to you.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (44) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement