From: Edward C. Auble
I am a licensed insurance and mutual fund salesperson with 35 years professional experience. Regarding 12b-1 fees, I have never had a client question those fees. In fact, I would guess that if I had a full-blown discussion of those fees, my clients would say that they are reasonable and that I should be paid for ongoing services. Last year, I sold mutual funds to a client for which I was paid the usual first- year fee. The client asked me what that first-year fee was, I told him and his response was essentially, "Fine, you need to be paid". And that fee was in the 4-5% range. For a modest 25 basis points, my clients know that they can turn to me for support and answers to their questions.
Edward C. Auble, CLU, ChFC, MSFS, FLMI, LUTCF, CASL