Message Font: Serif | Sans-Serif
No. of Recommendations: 1
I have been informed that there is a 4% sales commission that will be paid to our New England sales rep. It was described as a one time back load.

This sounds like a "Contingent Deferred Sales Charge" -- it should decrease with time, going to zero after possibly 5 or 6 years.

Better check the information -- prospectus? -- you were given, and make sure you understand it.

I looked at the New England Funds web site, and don't see any index funds. I agree with the two previous posts, that the expense ratios you quoted sound too high for index funds.

When my employer had a 401(k) with Fidelity, we paid no sales charges of any type, because Fidelity was glad to have the (very large) account. Small employers cannot so easily avoid at least CDSCs. I do think you're better off than many, who end up with variable annuties.

Better read your materials, and be sure you know what you're investing in! It is a good idea to ask about more economical plans, but don't automatically assume someone is dishonest or incompetent. There are economies of scale that not every employer can take advantage of.

Good luck!
Print the post  


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.
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.