Any problem with my Wife's IRA's?

**noppenbd** · 04-09-2008, 01:16 PM

Those funds are all "C" class shares, which are expensive for buy-and-hold investing. Most people buy "A" class shares which may charge a fee to buy the shares but have a lower expense ratio from year to year. "C" class shares charge no sales fee but have higher expense ratios. An example:

CVGCX (Calamos Growth Fund C Class) has gross expense ratio of 1.96% (compared to category average of 1.4%). The A-class equivalent is CVGRX (Calamos Growth Fund A Class), with an expense ratio of 1.2% and a front end sales charge of 4.75%. If you bought $16K of each today, and they both performed at 10% return over the next 20 years, the C-shares would be worth $73K, while the A-shares $80K. You would have paid $760 upfront to buy the A-shares, but $4400 more in fees over the years to hold the C-shares.

Bottom line, your wife's broker is getting his cut out of these funds. Part of the higher expenses of the C-class goes directly to the broker each year. The funds have performed ok, but be aware that the broker is taking a slice each year. You will not see these charges anywhere on your statements, they are paid directly from the fund to the broker. For instance, on the $59K you are paying approximately $600 in fees to the broker each year. You have to ask yourself if this is worth it for the time he puts in.

**sweeps** · 04-09-2008, 01:30 PM

Morningstar X-Ray is a good tool to see what you're invested in. Your wife is heavily weighted toward large, growth stocks (46%). A bigger concern as noppenbd points out is she is paying a weighted average of 1.98% expense ratio. That's highway robbery.

Ditch your advisor and transfer the IRA to Vanguard, Fidelity or T.Rowe Price where it will be much cheaper and you won't have to use Morningstar X-Ray to find out what you've invested in.

**humandraydel** · 04-09-2008, 02:21 PM

I agree with sweeps. You are paying WAY too much to invest. Do some research, ask some questions, and come up with a low cost investing plan. I'm sure folks around here will help - at least I know I will.

**Brokemofo** · 04-09-2008, 02:29 PM

Wow!!!!!!!!!!!!!!!!! You guys rock. That's why I posted here, so I could see what people in the know would say. Thanks to all of you for your input.

I also have about $30k in my 401k. Heck, maybe that is messed up as well.

Any more advice is more than welcomed.

**LuxLiving** · 04-13-2008, 05:03 AM

Broke, why not post what the offerings in your 401-K are and what percentages you have invested in the ones you've selected and let the old-hands here help you out?

**Brokemofo** · 04-13-2008, 09:29 AM

Originally posted by LuxLiving View Post

Broke, why not post what the offerings in your 401-K are and what percentages you have invested in the ones you've selected and let the old-hands here help you out?

OK, but this is all I know now. I don't have the ticker symbols.

BGI LIFE PATH FUND2030
RUSSELL 2000 INDEX
RUSSELL 3000 INDEX
MSCI EM FREE INDEX
BLACKROCK TEMPFUND
BARROW HANLEY LARGE CAP VALUE
WELLS/BUCKHEAD SMALL CAP VALUE
DFA INTL SECURITIES
DODGE & COX INTL STOCK
AIG INTL SMALL CAP
EMERGING MARKET EQUITY
CITIGROUP COMMON STOCK

These are all my selections in my 401k. Don't have the percentages handy now.

**jIM_Ohio** · 04-13-2008, 02:21 PM

The dodge and cox fund is excellent. I think I have read about the aig fund on other boards as well.

Any problem with my Wife's IRA's?