BUM BROKERS

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If a mutual fund company pays abrokerage firm to be put on the broker'spreferred list, guess which fundyour account rep is going to push—even if it's not right for you. With85% of all mutual funds being soldthrough third parties, there's ampleopportunity and incentive to rip offphysician-investors. SECChairman William Donaldson wantsfinancial advisors to tell investorshow they get paid when they sell amutual fund. Another common brokererror is failing to pass on volumediscounts when clients buy bigblocks of front-end load funds. Fundcompanies usually offer discountswhen a buyer puts $50,000 or moreinto a fund, and may have even betterbreaks at higher investment levels.Ask your broker if you're entitledto a discount on large mutual fundbuys.