XDRoX
New Member
Cash: $ 0.70
Posts: 3
Joined: 14 Feb 2007
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| R shares question |
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I have started a Roth 403b at my work. When I met with the lady to set it up I asked her if the shares were loaded.
She told me they were R shares, which meant that they aren't front or rear loaded. But they charge .30% fee.
She also said that many of the funds I picked were A Load, but the load was waived because on our school plan.
So what are these R shares?
And do I have a better choice than them?
I always try to buy no load, but in order to invest in a Roth 403b, I either need to use this plan or use a broker in which case I am going to have to pay loads, right?
Thanks.
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Thu Aug 09, 2007 3:46 am |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
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I am not familiar with a 403b, although, I heard they get hit with possibly hidden fees because they are variable annuities instead of mutual funds. But then my 401k trustee is an insurance company which instead of mutual funds, calls their funds "separate accounts", which are effectively variable annuities unrelated to any life insurance.
However, if you are considering Roth 403b vs. Roth IRA, most brokers do not charge any fees for IRA accounts or no-load mutual funds. Although, they may charge a nominal fee to purchase funds not on their network. For example Fidelity has over 1000 funds with no transaction fee (inclucing non-Fidelity funds). But brokers do charge their normal trade fees if you trade ETF's, stocks, bonds, etc.
Note that Roth IRA limits are separate from 403b or 401k limits. So if you have the money, you could max out both the Roth IRA and your 403b. A Roth IRA at a broker would likely have many more investment options.
I have my Roth IRA and part of my IRA at one broker and the rest of my IRA at another broker with lower trade fees for shorter term trades and options. Neither one charges an account fee, nor for a wide range of mutual funds.
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Fri Aug 10, 2007 12:32 am |
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