giacona

I have a Roth IRA with American funds that was set up with B shares. However they will no longer offer B shares. As of the end of April I will go into C shares. C shares like B shares have a deferred sales charge but after a certain amount of time will convert to f1 shares.

I was interested in just doing a shares, but the lady I spoke to from American funds told me for every purchase with A shares, there is a 5.75% sales charge. Meaning if I invest 100.00 per month each purchase I will have to pay 5.75, for every purchase which is something I don’t want to get hit with.

So what is going to happen is the B shares will just stay B shares until they convert to A shares few years down the line. As long as I don't take this money out which I am not, I don't have to pay any sales charges on the B or C when they convert.

I just want to know am I doing the right thing by going into C shares? Once they convert to f1 shares are they any good? Also was the rep correct stating every purchase I make with an A share will be hit with a sales charge or is it just a one time fee?

I want to do what is best for me and my retirement savings at 29 years old.