Redemption Fee On Super Saver Fund

[Wretched Wrench]

It's starting.

Anyone have any ideas on whether it will spread to other funds? I suspect they are floating a trial balloon on this one.

I already know several retirees or wannabes that are getting out in anticipation of redemption fees on more funds with even shorter notice.

I think they done stepped in it on this one.

https://www.jetnet.aa.com/jetnet/jps/Displa...D=200&SB=1&LN=1

 

[eolesen]

Did you read the fine print?

You transfer into the American Beacon Mid-Cap Value Fund when you transfer dollars in by rebalancing your account through exchanges from other investment options (note: payroll contributions, rollovers and loan repayments are not considered a transfer into the Fund for redemption fee purposes) and you transfer out of the American Beacon Mid-Cap Value Fund when you transfer dollars out by rebalancing your account through exchanges into other investment options (note: distributions, rollovers, hardship withdrawals and loans from the Plan are not considered a transfer out of the Fund for redemption fee purposes).

As I read it, the only people who will get hit with this are people trying to "day trade" their 401K.

 

[Bob Owens]

Did you read the fine print?
As I read it, the only people who will get hit with this are people trying to "day trade" their 401K.

[post="291419"][/post]​

For all those who think that Bush's plan to privatatize Social Security is a good thing take heed. We could spend our whole lives saving while all these money changers bleed us dry with Fees and surcharges.

 

[aafsc]

For all those who think that Bush's plan to privatatize Social Security is a good thing take heed. We could spend our whole lives saving while all these money changers bleed us dry with Fees and surcharges.

[post="291456"][/post]​

BINGO!

 

[FWAAA]

Did you read the fine print?
As I read it, the only people who will get hit with this are people trying to "day trade" their 401K.

[post="291419"][/post]​

Exactly. Since only a moron would try to day trade their 401K, this fee is just a tax on the terminally stupid, not unlike lottery tickets.

Since frequent traders impose much higher costs on the plan, it seems sensible to charge the morons for their misguided notions of "investing."

 

[Wretched Wrench]

Did you read the fine print?

Yup. And I don't trust it. The word obfuscatory comes to mind.


One of my sons is a CPA and a CFA, so I sent it to him. I am awaiting his reply.

 

[Oneflyer]

Yup. And I don't trust it. The word obfuscatory comes to mind.

Good grief. Almost every mutual fund company has this on certain funds and it protects about 99.99999% of the shareholders in the fund.

 

[Wretched Wrench]

Good grief. Almost every mutual fund company has this on certain funds and it protects about 99.99999% of the shareholders in the fund.

[post="291554"][/post]​

I stand corrected. I overreacted. Mea Maxima Culpa. Here is my son's reply:

"Nope, its all good stuff. May seem convoluted, but its better disclosure than you will often see elsewhere. Its important to note that they are not making any revenues from the redemption fee, it is just going back into the fund to help offset costs. A lot of my funds have redemption fees as well, which is good as long as the holding period required to avoid the fee is not unreasonable. A 180 day holding period is not unreasonable. Good for the long term investor, bad for anybody trying to daytrade or market time."


Guess it's a good thing I just pull wrenches, huh?

.

 

[upsilon]

Yes, I'm glad you just "pull wrenches". But having flown single engine military, I appreciate what you do.

Seconds before posting what is in italics below, I previewed my post and found your latest at the top.

Obviously this is another plot of the vast right-wing conspiracy led by President Bush to deprive working people of their Social Security benefits - as well as those who, god forbid, might also have a employer-sponsored 401(k) of their rights under their plan.

Just look at the prior postings of the three "Chicken Little" posters above.

Thanks for checking with your son. I have found mine to be a redeeming aspect of fatherhood. We may agree on little else; but I know we can both be proud of what we worked to have go forward.

Best Wishes.

 

[Garfield1966]

OH my god. Am I reading this right. Something done at AA is good? Alert the media, stop the presses.

 

[Buck]

Did you read the fine print?
As I read it, the only people who will get hit with this are people trying to "day trade" their 401K.

[post="291419"][/post]​

What about monthly trading based on performance?

 

[j7915]

What about monthly trading based on performance?

[post="291670"][/post]​

Buck, did you read the CPA/son's message? A 180 day holding period is not unreasonable.

I tend to agree, have seen several folks loose their shirts because they could and did, exit on the first bit of "bad news".

If you want to day-trade use Scottrade, they are cheap, and leave the 401k alone, or just pay the fees 🙂

 

[Buck]

Buck, did you read the CPA/son's message? A 180 day holding period is not unreasonable.

I tend to agree, have seen several folks loose their shirts because they could and did, exit on the first bit of "bad news".

If you want to day-trade use Scottrade, they are cheap, and leave the 401k alone, or just pay the fees 🙂

[post="291739"][/post]​

I do not want to day trade. I said monthly.

EZ Tracker

I use this organization.

When you are required to pay fees in a fund, you obtain service. The difference here is this only a fee to move assets from fund to fund. If I have an "A" fund or a "Loaded" fund I have no problem paying a fee. However if I it is a "No Load" fund there should be very little cost.


(J7915 - if you won't use a non union garage to change your tires why would you use a discount broker?)

 

[j7915]

I do not want to day trade. I said monthly.

EZ Tracker

I use this organization.

When you are required to pay fees in a fund, you obtain service. The difference here is this only a fee to move assets from fund to fund. If I have an "A" fund or a "Loaded" fund I have no problem paying a fee. However if I it is a "No Load" fund there should be very little cost.
(J7915 - if you won't use a non union garage to change your tires why would you use a discount broker?)

[post="291858"][/post]​

Buck, even monthly trading imposes costs on the fund. Shares have to be sold, regardless of market condition. which is why there are restrictions, it's not only the direct trading commissions.

Know anyone who consistently successfully timed the market ? As a disclaimer, I am a very conservative invester, which means I missed the up in 1987, and the dot.com boom flew by me. That said, I did average over the long haul compared to the market.

As I said previously, if they start allowing monthly trades the benefit of funds will disappear, read mutual fund prospectuses.

I could draw an analogy here to other situations where a minority thought they knew better, but that would be off topic 😀

I don't know if the place I buy tires from is union or not, are there any unionized tires shops? As I recall my standing question to you is: if you require that the fellow mounting your tires is a certified car mechanic, or wether you settle for a task trained (i.e. SRP/OSM) technician? I never asked about union membership.

 

[Wretched Wrench]

As I recall my standing question to you is: if you require that the fellow mounting your tires is a certified car mechanic, or wether you settle for a task trained (i.e. SRP/OSM) technician?

I am sure you will find that the fellow mounting your tires has no certification of any kind.

.