Any investment/accounting types on here?

[RECHRGD]

I have invested in some mutual funds over the years.  They are with a very reputable firm and the one fund in question has been around since 1968 (a very good year btw).  These funds pay a dividend that I just let buy more shares every month.  A few months back I purchased more shares of a fund that is not in an IRA, as the other shares are.  Because of that, I get two separate monthly statements for the same fund.  One of the statements has multiple funds on it, so I just normally look at the bottom line.  This month I was looking at things a bit closer and discovered something that makes no sense to me.  The fund with the lesser amount of shares made more money (unrealized gain) than the one with more shares.  Purchase prices were both the same along with the purchase dates.  There was a 3% difference on the gain between the two statements on the exact same fund during the exact same dates.  When I called my adviser about it he kind of stumbled about a bit and then said it was because of the way they do the accounting on the statements.  He said it had to do with the dividends going back into the funds purchase price and that one of the funds was purchased years before the other.  I've played with the math every way that I can think of and nothing works for me.  I can't imagine that a firm that has been around as long as this one has, would try to pull some kind of creative accounting that seems so easily detectable.  So can any financial professionals enlighten me as to what's going on?

[XH29N0G]

I do not know the answer, but I would ask again, and this time get it all spelled out, and worked out, until you understand.  I suppose there could be real differences, but you want to know what they are. 

[RECHRGD]

I do not know the answer, but I would ask again, and this time get it all spelled out, and worked out, until you understand.  I suppose there could be real differences, but you want to know what they are. 

I plan on having him take me through it step by step until it makes sense to me, if nobody here can clear it up.  But, I just can't wrap my head around this.  In simplistic terms, it is just like having 15 shares of stock that makes that makes $30.00 one month and also having 10 shares of the same stock that makes $35.00 in the same month.  Smoke and mirrors......

[XH29N0G]

I am cynical.  Businesses do what is allowed and what will make them money.  It may be that one type of account allows certain fees to be charged or has a market that will allow it. 

[lukedukem]

you said "A few months back I purchased more shares of a fund that is not in an IRA, as the other shares are." what are they in, roth ira, nothing. i think there is some taxes getting taken out if i'm thinking correct. depending on what those shares are in.

luke

[RECHRGD]

you said "A few months back I purchased more shares of a fund that is not in an IRA, as the other shares are." what are they in, roth ira, nothing. i think there is some taxes getting taken out if i'm thinking correct. depending on what those shares are in.

luke

Yes, one is an IRA and one is "nothing".  I recieve a 1099 on the one that is not an IRA and am responsible for taxes on the gain.  No taxes are taken out by the investment company.  All fees are paid at the time of purchase, but we're talking a lot more than any fee would be.

[johnnyseville]

Is one a load fund and the other a no load fund?  Hard to say without knowing exactly what you have.  If you have another broker you trust run it by him and he can check valuations, if not and you are not getting the answers you need either contact the fund directly, if still not satisfied file with FINRA, they will get to the bottom of it. Creative accounting is not unheard of.

[RECHRGD]

Both funds are identical in every way.  I'll have to research further and get an explanation that that works for me.

[adauto]

If your "advisor " cant tell you its time for a new one. I'm on #3, belive me when I tell you that unless you have a mega $$$ account your very low priority

[RECHRGD]

If your "advisor " cant tell you its time for a new one. I'm on #3, belive me when I tell you that unless you have a mega $$$ account your very low priority

Well, I'm no Bill Gates, but, I should not be on the "low priority" list.  This is what bothers me.....

[adauto]

If your "advisor " cant tell you its time for a new one. I'm on #3, belive me when I tell you that unless you have a mega $$$ account your very low priority

Well, I'm no Bill Gates, but, I should not be on the "low priority" list.  This is what bothers me.....

Same situation, I like communication, 2/3 times a year. And face to face. Make any needed "adjustments". I know guys that just blindly send in money hoping for the best. Hope you get some answers, its YOUR MONEY!   

[RECHRGD]

If your "advisor " cant tell you its time for a new one. I'm on #3, belive me when I tell you that unless you have a mega $$$ account your very low priority

Well, I'm no Bill Gates, but, I should not be on the "low priority" list.  This is what bothers me.....

Same situation, I like communication, 2/3 times a year. And face to face. Make any needed "adjustments". I know guys that just blindly send in money hoping for the best. Hope you get some answers, its YOUR MONEY!   

Absolutely!  You need to stay on top of things.  EVERYBODY wants your money......