I have recently opened up a roth IRA and have about 2.5K in it

As usual I have realized a bit late or early enough that I made a mistake in choosing the institution. My institution is WAMU and all the funds that were picked by the advisor are class B funds which require me to pay 5% load when I sell them. This probably means I have to pay 5% everytime I change my portfolio.

I found that Vanguard is a better institution when it comes to choice of funds. I just am not sure how to deal with my Roth situation

Please advise

thanks heaps

Well, what are your goals? I can tell you what I'd do if it were me, but you and I don't necessarily want the same outcome.

If it were me, I'd whine about not being able to contribute to a Roth at all so I have to envy your crappy Roth.

Let's see, you can either sell them and pay the load (and likely an early redemption fee if you sell shortly after u purchased them), or hold onto them for however long and not sell them. Seems like a pretty clear cut situation to me.

I'm guessing you're wondering if there's some way to wiggle away w/o the load? Doubt it. Suck it up, it's a tough lesson learned. Read what you're buying into. Sorry.

thanks for the ideas guys. Simplemoney I will follow your strategy

Lorcha please be happy now. I am 29 and am saving to contribute with steps like walking to work etc.

lorcha said:fwvisitor said:Simplemoney I will follow your strategyI never thought I'd see those words uttered.

God help you.

God help us ALL.

Read the fine print of list the actual funds:

linky
If You Buy Class B Shares:

Class B shares typically do not charge a front-end sales charge, but they do impose asset-based sales charges that may be higher than those that you would incur if you purchased Class A shares. Class B shares also normally impose a contingent deferred sales charge (CDSC), which you pay when you sell your shares. For this reason, these should not be referred to as "no-load" shares. The CDSC normally declines and eventually is eliminated the longer you hold your shares. Once the CDSC is eliminated, Class B shares often then "convert" into Class A shares. When they convert, they will begin to charge the same asset-based sales charge as the Class A shares.

Class B shares do not impose a sales charge at the time of purchase. So unlike Class A purchases, all of your dollars would be immediately invested. But your expenses, as measured by the expense ratio, may be higher. You also may pay a sales charge when you sell your Class B shares.

If you intend to purchase a large amount of Class B shares, you may want to discuss with your financial adviser whether Class A shares would be preferable. The expense ratio charged on Class A shares is generally lower than for the Class B shares, and the mutual fund may offer large-purchase breakpoint discounts from the front-end sales charge for Class A shares.

To determine if Class A shares may be more advantageous refer to the mutual fund’s prospectus, which may describe the purchase amounts that qualify for a breakpoint discount.