Author Topic: Contributing to an Employer Simple IRA with only load funds?  (Read 1416 times)

lithy

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I'm looking for some advice here, I'm about to finish my accelerated student loan payments and deciding where that money is going to start going after that.

My employer offers a 3% fully vested match in a Franklin Templeton Simple IRA, I have been contributing 16% of my pay for a rough annual total of $6500.  The problem is that right now I've got it going into fund FTTAX.  It has a 5ish% front load that barely diminishes with any sort of values I'm likely to hit anytime soon.  I've looked through other Franklin Templeton funds but it seems like they are all load funds, and the only ones with lower loads of 3% are more conservative investments.

I know the 3% match from my employer is worth staying in the fund for 3%, but I'm not so good on the taxes benefit.  From looking at the 2012 tax tables, it seems like the difference in reduced taxable income will make up for the roughly 700 dollars I am giving Franklin Templeton, but I just wanted to be sure.

I will make roughly 35k this year, household income will be about 80k, in all likelihood using the standard deduction with no kids.  If anyone can offer and help or advice I would really appreciate it.

Or if there are no load Franklin Templeton funds that I just don't know about that would be awesome too.

matchewed

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Re: Contributing to an Employer Simple IRA with only load funds?
« Reply #1 on: June 07, 2013, 08:59:43 AM »
Any way to work together with fellow employees and HR to not get screwed on fees? Perhaps find a different company to invest with?

That aside a quick perusal of their site did not really show a no front load fund. And remember that reduced taxable income isn't just for the short term. That investment grows tax free for until you withdraw.

If all else fails do enough to get your match and look for alternative investments like a regular IRA, Roth IRA or other some such.

TheDude

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Re: Contributing to an Employer Simple IRA with only load funds?
« Reply #2 on: June 07, 2013, 10:35:03 AM »
How big is your company? Maybe you could talk to them about moving providers. My little company uses TD Ameritrade. I think they picked it because they don't charge the company anything. I like them because I can buy ETFs for free.