AboutJohn D Smith, CFP Expertise I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related financial planning/investment issues. I have a B.S. degree in Financial Planning & Counseling. I am also a Certified Financial Planner practitioner and have performed fee only investment management and financial planning services for the past 11 years.
Expert: John D Smith, CFP Date: 11/7/2007 Subject: Invested in Loaded Mutual Fund -what should we do
Question QUESTION: I helped my 25 year old daughter set up her mutual from a friend from Primerica. We don't know until later that she is buying loaded mutual fund. Can we open another account from Vanguard or Fidelity and transfer all the money to the new account? What are the pros and cons. Does she need to stop contributing or closed the account all together. Please advise.
ANSWER: To better clarify, which type of loaded fund is it; A, B, C shares, etc? Thanks.
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QUESTION: Hi, sorry it took us a long time to find for the statements. But I am not sure what it is but here is the Fund Name & symbol maybe you could tell what it is:
NASDAQ Symbol: SHRAX (LMP AGGR GROWTH A) Her balance is approximately $7,000.00 now - $300 monthly contribution.
Hoping to hear your advise soon.
Thank you.
Answer Hi. This is the Legg Mason Agressive Growth Fund class A shares which means the commission was paid up front when the shares were purchased. Your options are completely open as to what you want to do since there will be no penalties for selling the fund. Whether or not this fund is right for your daughter depends on her specific financial goals, risk tolerance and the related, which is hard for me to comment on since I am not familiar with these aspects. I hope this helps!
