B & C Shares

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Feb 6, 2008 4:24 pm

During my initial training with Jones, it was implied that there's a special place in hell for folks who sell anything but A shares.


Then, all of a sudden, B and C shares became acceptable to sell. Not encouraged, mind you, but acceptable.

Obviously, I don't plan on trying to make a living from $100/month ROTH contributions from 20-year-olds, but I've opened a couple lately and am thinking a B or C share may have been more appropriate than A shares.


I don't guess it really matters for this amount of money, but I'm interested in knowing how you all approach the different shares classes and the factors you use to determine which class to sell.

Feb 6, 2008 4:46 pm

5.75 is too much to pay, esp when American C-shares will convert to F-shares anyway. B-shares, for me, are only for much older folks who are not investing for the next generation so they want to avoid a load (CDSC waived on death)

Feb 6, 2008 4:49 pm

CDCS is also waived at rmd.  and B shares convert to A share in 7.

Feb 6, 2008 5:11 pm

Yes when you think about it  5.75  +   (.25 per year for 10 yrs)  = 8.25 vs. 1 per year for 10 on the C.  PLUS what if that 5.75 makes 10% the first year  (.575).  I have seen 10 yr numbers with C shares outperforming.  Client's are much more satisfied in the early going in C shares which makes them likely to keep contributing and stay with you.  Throw in all the people who bail or make changes before 10 yrs and  it can make a lot of sense.  

Feb 6, 2008 5:13 pm

"likely to keep them contributing.."     EXACTLY RIGHT

Feb 6, 2008 5:17 pm

while it's true that Bshares convert in 7 years to me the hassle of the CDSC is not worth it. No one remembers it, it ticks em ff----go with C-share to avoid it unless can reach a good Ashare brkpt. JONES IS WRONG---they just want the commission --so very obvious, to hxll with what's best for the client

Feb 6, 2008 5:20 pm

BTW, these other share classes "became acceptable" at Jones because the regulators were/are questioning this whole "A-Share only" concept.

Feb 6, 2008 5:34 pm

Great calculator I use when I show people what their share class will cost. I end up selling more A shs than C shs & do almost no B shs at all. Also, for purchases of C shares $50K or more if this is in the file w/ the client's signature on it the questions stop. As for C shs beating A shs in the 10 yr time. Must be under $50K that you put in & had a HUGE year the first year. Otherwise, I'm not buying it.



http://apps.finra.org/investor_Information/ea/1/mfetf.aspx

Feb 6, 2008 5:49 pm

Yes Ashares over 50K, unless you want/need more flexibilty between fd families. Bshares are for the BROKER

Feb 6, 2008 6:36 pm
newnew:

Yes Ashares over 50K, unless you want/need more flexibilty between fd families. Bshares are for the BROKER





That's what wrap is for!

Feb 6, 2008 6:41 pm

Except wrap accounts at my firm have 25 and 50k minimums

Feb 6, 2008 6:50 pm

Wrap a $100 dca'er?

Feb 6, 2008 6:57 pm

Personally, I think a 5.75% commission under any circumstances is tantamount to larceny.

Feb 6, 2008 7:49 pm

Ya'll need to find with people with money.

Feb 6, 2008 7:54 pm
Ashland:

Ya'll need to find with people with money.







I have.



(And it's spelled, "Y'all".)

Feb 6, 2008 10:35 pm

Thx, Kevtch. Beacuse of you I'll never make that erorr again.

Feb 7, 2008 7:07 am

Not a problem, Ash. If you're going to pretend to be from the South, you must get that right.



Anyway, glad to be of service!