Hello, new to the group here, but I had a question and would like input from the community if possible. I've been pretty actively involved in investing for the past 5 years. I'm mostly involved in stocks and ETFs but am also in the process of setting up Roth IRA. I already have regular and Roth 401K already set up through my employer.
When I was about 13, my grandpa was nice enough to set me up with a mutual fund account through American Funds (Now PNC/Capitol Group). Over time the fund has just been sitting there until about 2 years ago, I decided to fund it a little by throwing some money at it every month. This was until I logged onto their site and realized there was a transaction fee for that fund of around $5 per trade. I don't do transaction fees, so I cut that payment off immediately. I don't even pay interest on credit cards! Anyway, I haven't and won't be putting another dime in there due to fees for as long as I have an account with them.
The mutual fund in the account is ANCFX with an expense ratio of 0.62%. This expense seems high to me, but I haven’t messed with mutual funds other than this account.
I've been thinking about transferring that fund to a different brokerage and closing the account with Capitol Group. While I have no problem doing that, even if I transfer, it seems I will be in the same boat with the high expense ratio. The only upside that I can see is avoiding transaction fees with a better brokerage.
So I guess that leaves me with a couple of options, but I'm not sure what strategy to take.
Should I just sell it off and take the hit on taxes and use that money to reinvest in better options? Or should I transfer it to another brokerage (still would be susceptible to the expense ratio)? The other option is just leave it in there and not touch it despite the fee and at least it could still potentially grow on its own. Any way to sell it off and reinvest the funds without being subjected to taxes and fees? Any brokerages you recommend (with or without mutual funds)? Look forward to any input from the community. Thanks!
Submitted July 27, 2020 at 09:32PM by tylerbronco https://ift.tt/3jHUzns
