The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: sw113 on January 03, 2018, 02:53:12 PM
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Howdy,
Newbie mustachian here - more whisker like at this moment.
I've recently transferred all my ROTH American Funds to a Vanguard account. I'd like to sell the American Funds and buy some low cost Vanguard Admiral shares. Vanguard shows they will charge $0 for the sale. But I can't figure out with any certainty what (if any) fee American Funds will charge to sell. They are class A shares with a front-end load so at this point I'm thinking there wouldn't be a fee to sell. Does anyone know where I can find definitive information? The fund prospectus states:
"Maximum deferred sales charge (load) (as a percentage of the amount redeemed) = 1.00*.
*A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.
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You are good.
A shares charge you on the front end.
That deferred sales charge notice is because American Funds waves the front end sales load on 1 million + investments so it turns into a back end sales load if you sell it too quickly.
If you are still worried call Vanguard.
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Thanks for the input!
Interestingly, I called Vanguard before I wrote my initial post. They couldn't confirm what (if any) fees American Funds might charge.