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: 11/17/2007 Subject: rollover from lump sum
Question i have an $80,000 lump sum,plus $2,900 monthly pension.my advisor suggest i roll the $80,000 over into 4 diff american fund accounts. they are all loaded 3.5% funds. is there any way i can roll this money into no load funds? i obviously don't want to withdraw it because i will be taxed immeadiatly.
Answer Yes, there are many mutual fund companies and mutual funds that are no load. The reason the broker is recommending loaded funds is because this is how he/she gets paid. If you are comfortable picking funds on your own then you can set an account up at a company that offers no load funds and invest on your own. Another form of advisory pay is fee-only which means an advisor charges a flat fee for managing the acount and will typcially use no-load funds. However, with 80k to invest, it may be difficult to find someone that will offer advice for $800/year, the tpyically 1% of account balance charge. I hope this helps.
