Is there a low-cost way to sell your DSC mutual funds? + MORE Sep 16th

WASHINGTON – U.S. household wealth rose at a solid pace in the April-June quarter, pushed by steady gains in home values and stock portfolios.
The Federal Reserve says net worth climbed 1.2 per cent to $89.1 trillion, led by a $474 billion increase in housing wealth. Americans’ stock and mutual portfolios climbed by $452 billion. Money in checking and saving accounts also rose slightly.
Americans are also taking on more debt, particularly mortgages, which suggests they are more confident in their economic futures and their ability to handle the debts. Mortgage debt rose 2.5 per cent, the most since the recession.
Household wealth, or net worth, reflects the value of homes, stocks and other assets minus mortgages, credit card debt and other borrowing. The Fed’s figures aren’t adjusted for population growth or inflation.
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AMMAN, Jordan – Conflicts in Middle Eastern countries such as Iraq, Libya, Syria, and Yemen have erased “development gains for a whole generation,” including driving up already high levels of poverty and unemployment, the head of the International Monetary Fund said Friday.
The international community must be prepared to scale up long-term development aid in the region to rebuild infrastructure and institutions, IMF chief Christine Lagarde wrote in a blog accompanying a report by the fund on the economic cost of conflict in the Middle East.
More than $11 billion pledged by donor countries for Syria and the region through 2020, if indeed delivered, “would not be enough given the magnitude of the crisis,” she wrote. Aid should come in the form of grants and concessional loans to ease the financial burden on the countries receiving the support, she added.
Lagarde noted that more than 20 million people in the region are displaced and an additional 10 million are refugees, more than at any time since World War II…

Q: My 25-year-old daughter just invested $8,000 into mutual funds with deferred sales charges (DSCs) that will apply if she sells them before six years. I believe this is a bad choice for her. Can the advisor switch her into a new crop of DSC funds without her knowledge in six years? Is there a low-cost way to sell these?
—Libor, via email
A: In my opinion, regulators should outlaw DSCs. Although investors are supposed to be told how DSCs work—you’ll face a penalty of up to 6% if you sell them before they mature, usually in six or seven years—people rarely understand their full impact.
Salespeople who use DSC funds argue they’re designed to compensate the advisor for upfront services, such as financial planning. But often there is no useful planning, and advisors often roll over the investments into new DSC funds when the maturity date approaches. That’s unforgivable. But there’s lots of time for your daughter to get on a better track. She should begin by never putting another cent into DSC funds…

TORONTO – The Toronto Stock Exchange was down in late morning trading today as the financial and energy sectors pulled back.
The S&P/TSX composite index fell 70.91 points to 14,432.76.
The Canadian dollar dropped 0.30 of a cent to 75.69 cents US.
The declines came as the price of oil slipped.
The November crude oil contract lost 56 cents to US$43.96 per barrel, while the October natural gas contract fell 0.4 of a cent to US$2.923 per mmBtu.
The December gold contract was down US$3.70 to US$1,314.30 per ounce.
In New York, the Dow Jones industrial average fell 94.23 points to 18,118.25, while the broader S&P 500 index dropped 12.85 points to 2,134.41.
The Nasdaq composite slipped 21.61 points lower to 5,228.08.
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