Sorry to hear about that fund. I figured it would be bad when he told you he was getting "a small percentage". As you probably know, 5.75% is not a small percentage, it is enormous. My mother in law was suckered into a fund like this from an Edward Jones guy that went door to door. All the while she was proud of herself for starting a Roth IRA.

Just looking at some numbers to see what those fees would do over time:

**Crap Fund**:

5.75 up front fee means you are only really investing $5183.75 per year instead of $5500, the rest goes to the adviser

Expense ratio of 1.06% is also very high

So let's say you max out the IRA for 20 years with this fund, and assume market returns of 7%, which means a 5.94% return after your expense ratio is paid.

You will end up with $198,980 after 20 years.

**Better fund**:

Let's say you just throw everything into VTSAX, the Vanguard Total Stock Market index fund. There is no up-front fee, and the ongoing expense ratio is only 0.05% instead of 1.06%, or 21 times lower.

Now you get to invest $5500 a year instead of $5183. So after 20 years, assuming a 6.95% return (7%-your expense ratio), you end up with $238,354.

A difference of $39,374.

The difference is actually much bigger than that if you assume that you would keep it in that fund for the rest of your life, even if you stopped making contributions in 20 years.

**After 40 years** (20 years contributions, 20 years just growth), you'd have $956,770 with the Vanguard fund.

You'd have only $652,664 with the crap fund over the same time period.

So over $300,000 difference over a lifetime.