good time to roll over 401Ks?

Mike · 2008-06-11T19:11:54+00:00

I have maybe $50k spread amongst a couple of 401k accounts and an IRA.I'm considering moving all the money into an American Funds accountand letting a financial adviser manage it and future contributions forme. With the dollar being kind of low right now, though, is it a badidea to sell my current holdings so I can move the money into a newfund -- particularly since it'll cost me about $2250 in a one-time feeto do so?Thanks for any help.-------------------------------------- is a moderated newsgroup where Moderators striveto keep the conversations on-topic for financial planning. Other postingguidelines include a request for brevity and another for trimming posts towhich we respond. For all of the other tips and suggestions, see "FROM THEMODERATORS: Posting to ", a weekly post now on theNewsgroup.

D

Default User 18 years ago

Sure. I just wanted to clarify things for him. You're correct that having a TIRA and Roth shouldn't present any difficulty for the broker.

Brian

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D

Default User 18 years ago

I did in a follow-up. I got it right eventually.

Brian

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B

BreadWithSpam 18 years ago

B shares are at least as costly as A shares. The difference is that the cost is spread out over several years.

Often A shares are the cheapest way to buy load funds if you are investing enough that you hit one of the breakpoints. See

for some details.

That said, *all* load funds - A, B or C shares - are *very* expensive ways to get advice. And that's what that load ought to be paying for - if you're not getting a hell of a lot of great advice - if you're just buying some funds - run, don't walk, run away.

In the OP's case, 2+ thousand dollars - plus a cut of all future additional investments - should buy him a hell of a lot of great advice from a real planner instead of a salesman.

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K

kastnna 18 years ago

American Funds have nothing to do with captive agents. To my knowledge there are NO captive American Funds agents. I choose not to, but I am appointed to sell AF as well as about 3 dozen other loaded funds and I am not a "captive agent" of any company.

B shares cost MORE than A shares over long periods of time because the expense ratios, on average, are higher. The risk in both cases is that the advisor profits from buying and selling, not holding. Is regularly buying and selling part of your investment plan?

Try this app:

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Otherwise, I agree with your post. To the OP, stay away from loaded funds: be aware of the possible hard feelings that will arise if you ever become displeased with your friend/advisor; consult a fee-based financial planner that doesn't profit from selling specific products.

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