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URL:  https://boards.fool.com/the-fact-that-they-advertised-it-as-23365629.aspx

Subject:  Re: Retirement Plan - Which Way To Go? Date:  11/30/2005  10:39 PM
Author:  rrosenkoetter Number:  48538 of 96184

The fact that they advertised it as "free" means they are crooks, or ignorant.

Seriously...

Brokerages will put you in funds with "B" shares... B shares have no up-front costs, but will charge some extra 12b-1 management fees, usually costing around 1% more a year than their A shares...

After 7 years or so, your B shares will change to A shares...

You'll end up paying an extra 1% a year for the next 7 years.... That is NOT free (They also have surrender charges to keep you from cashing out before the 7 years is up)

Ask the brokerage if they plan on buying B shares for you... Then ask them how much more B shares will cost you and how long until they turn into A shares...

Then ask them how they can honestly say their services are "free". (And then, if I were you, flip them the bird and walk out)

(That last step is optional) :)

That said, $4,000 for a plan seems a bit high to me... But I have no idea how much they are doing for you (retirement alone, or insurance, wills, etc. as well).

Also I suppose it depends on how much money you're investing... but I always thought fee-only planners were per hour.. not as a percentage of your assets.
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