Mutual fund Help

[fruitbowlk]

Mutual Fund
on when I was 19 years old some one sold me a mutual fund (roth IRA) after reading suze orman The road to wealth I'm finding out this is not for me. But I don't know what to do. I need some advise. The fund is GROBX. It's a B fund which means I'm paying the person who sold it to me for as long as I have the fund. I have roughtly $250. What can I do? What should I do?

[disneysteve]

This is a Roth IRA, correct. You can roll it over to another company of your choice, though the fact that there is only $250 in the account might limit your choices. I know T. Rowe Price has low minimums in certain circumstances so that might be one to look into. Vanguard has a $3,000 minimum on most funds (I think it is $1,000 on their Star fund - still no help here). Another option is to roll it over to a CD with a bank or credit union. Then the small amount wouldn't be an issue.

Contact the bank or company you want to move the money to and they should be able to handle the transfer for you.

[sweeps]

Need more details. What is the load you will be charged to sell the fund? Typically the sales charge goes down over time and disappears completely if you have held the fund long enough.

But I believe you -- you're probably paying a high expense ratio to stay in the fund.

What can you do? Sell the fund and roll the IRA over to a reasonable fund company like Vanguard or Fidelity. Find out what the sales charge will be to get out and determine the best time to do this.

[Slug]

Need more details. What is the load you will be charged to sell the fund? Typically the sales charge goes down over time and disappears completely if you have held the fund long enough.

But I believe you -- you're probably paying a high expense ratio to stay in the fund.

What can you do? Sell the fund and buy another fund without the "assistance" of a broker. What should you do? Find out what the sales charge will be to get out and determine if it's worth it to get out now or wait a while.

Sweeps says it all, but also never go back to that chump again. Often B shares have expenses that reduce over time so that the load basically disappears over a few years. Again details would assist.

[sweeps]

I looked up the fund. That is AWFUL. It's supposed to be a "dividend strategy" fund and it only yields 1.02%? Yikes. And the expense ratio is 2.00%. OP, I'm sorry to say, but you've been had.

Give a call to Vanguard, Fidelity or T. Rowe Price, PRONTO.

[HNorton]

American Century has the My Whatever Plan which i think you can start off with as low as $500.

[fruitbowlk]

ok. I called them to check on the fees to close the account. ok they said I will be charge regular tax fees set up by the irs a nd a 10% penanty. Unless I roll it over until another fund which I have 60 days to do.

I have had this fund for around 8 years.

The lady on the phone said I will be charge a 11.99 contingency self charge as close of business day yesterday

A $30 Termination fee
And a $20 custodial fee.

Any more question.

[sweeps]

You will only be charged taxes on earnings and a 10% penalty if you cash out your Roth IRA. Roll it over directly to another company instead. Let me repeat. ROLL IT OVER DIRECTLY TO ANOTHER COMPANY. You will not pay taxes and you will not pay a penalty.

$62 in fees to get out is probably worth it depending how much we're talking.

[disneysteve]

The lady on the phone said I will be charge a 11.99 contingency self charge as close of business day yesterday

A $30 Termination fee
And a $20 custodial fee.

Any more question.

So to move your $250, you have to pay $62 in fees? Is that correct? I'd probably just leave it there and forget about it until I retire. Consider it the cost of a lesson in personal finances and investing. We've all "paid" a cost like that at some point.

[Broken Arrow]

Holy Mackerel! Imagine my shock when I realized that this is actually a Legg Mason fund! Is the fund bought through Legg Mason, or an outside firm?

Legg Mason Capital Management, in general, is well-respected in the investment community, and is headed by none other than Bill Miller himself. However, Legg Mason funds have been under-performing lately, due to the heavy bet on financials....

In their defense, I do think that while they're going through a rough patch, I would not rule them out. In fact, Legg Mason is also on my stock watchlist, if that means anything....

Still, I must agree that, for this particular fund anyway, the stats are atrocious. A 2.00% ER with a 1.02% yield is enough to shake the faith of even the staunchest stalwarts.

I guess it's a good thing you don't have much money in there to begin with....

[fruitbowlk]

Thanks everyone for your advise. I sold my fund Hopefully this is a better investment.

[disneysteve]

Thanks everyone for your advise. I sold my fund Hopefully this is a better investment.

What do you mean by "I sold my fund"? Did you roll it over into something else? If so, what?

[fruitbowlk]

yes I rolled my IRA over to T. Rowe price retirement mutal fund.

[disneysteve]

yes I rolled my IRA over to T. Rowe price retirement mutal fund.

That's great. I think you'll be much happier there.

[fruitbowlk]

Thanks I hope so. Question I have been reading and some people keep there EM fund in Mutal funds. I not ready for that yet but can anyone explain. I'm in the mist of getting my personal finances in order.