July 19, 2007

I am a licensed insurance professional and mutual funds salesperson.

I almost find it laughable to know that the 12b-1 fees are in question. How would it be to pay my plumber a one time up front fee and any service work in the future would be free. Or what about Chem-lawn that helps make my grass greener, each time they come back it would be free. That would be absurd and I have never once thought about that or complained that each time I seek the services of another professional that I have to pay for it. The difference is the 12b-1 is very very modest in comparison to other simple services we pay for on a regular basis.

We live in a society where people have a hard enough time saving and investing on their own. We know that because last year the United States hit the lowest savings rate since the depression. Not only that but social security has many issues and future problems of its own. People need a professional to show them how to start saving and investing and they are going to need those services throughout the rest of their lives. Eliminating the 12b-1 fee greatly reduces the desire for me and many of my associates to assist others in saving and investing because we prefer not to work for free. Their is always the option of charging them a fee whenever we meet or service their plan, but that is an area I've always avoided partly because it can be far more expensive for the client to pay those fees than the modest 12b-1, which I might add, I have never heard a single complaint about my entire career from any one of my clients.

I am against the elimination of the 12b-1 fee and I appreciate your time in reading my comments.

Thank you for your consideration of my views on this subject.