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Ok, So I fell for the sales pitch from USPA&IRA. The funds are front loaded. Dummy. They don't beat the S&P for the last 5 years, either. I should move my IRA to an index fund. But, what's the best method to avoid more fees. Sooner or later, I have to make some money.

Help. Help. Help.

Dave Kimball
highorder@hotmail.com
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Since the funds were front loaded there should be no additional fees. Read your prospectus on this.

If you can meet the minimum opening balances, you could move directly to the index fund of your choice. Open your new fund account first and fund it by a "transfer of assets". The new fund will do all the paperwork involved in contacting your current fund.

If you're not happy with your current investment choices, by all means, switch now.

But congratulate yourself, the first step has been taken.
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Greetings, Dave, and welcome. You asked:

<<Ok, So I fell for the sales pitch from USPA&IRA. The funds are front loaded. Dummy. They don't beat the S&P for the last 5 years, either. I should move my IRA to an index fund. But, what's the best method to avoid more fees. Sooner or later, I have to make some money. >>

As others have pointed out, there's no difficulty in transferring this IRA to another in an index fund of your choice. As long as you have sufficient money in that account, all you have to do is contact the index fund of your choice and tell them you wish to arrange for a direct transfer of the existing IRA to an IRA with the index fund. You will have to complete two forms to do so, a basic IRA application to set up the index fund IRA and a set of transfer instructions to your old IRA custodian. The latter directs the old custodian to liquidate that IRA and send the proceeds to the new IRA. The direct transfer avoids any and all tax hassles so you will have no problem with the IRS. If you select a no-load index fund, the only fee you may encounter is a final IRA administrative charge from the existing IRA custodian.

Regards…..Pixy

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