American funds F2 share classes

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Mar 22, 2009 9:19 am

I am upset with wachovia finet because of their policy of pocketing 12b1 fees in IRA wrap fee accounts. I have a large amount of assets in American Funds F! shares where the firm pockets the 12b1. I would interested to hear which independents offer the American Funds F2 class(no 12b1) or rebate the 12b1 fee on the F1 shares to the client in IRA wrap accounts. I know it is a mixed bag for taxable accounts.Thanks .

Mar 22, 2009 10:58 am

You should sell index annuities. 

Mar 22, 2009 11:48 am

I could be wrong but I believe F shares have no 12b1 fees.

Mar 22, 2009 12:54 pm
Sam Houston:

I could be wrong but I believe F shares have no 12b1 fees.




Neither do index annuities. In fact, they have no fees at all.

Mar 22, 2009 1:49 pm
Blitzkrieg Bop:
Sam Houston:

I could be wrong but I believe F shares have no 12b1 fees.




Neither do index annuities. In fact, they have no fees at all.

 
So I take it your plea for attention on your own site has failed?  That's ok, keep supporting your competition, they get a good chuckle out of it.
Mar 22, 2009 3:37 pm

F1 share classes like gfafx have 12b1 fees.

Mar 22, 2009 4:41 pm
Sam Houston:
Blitzkrieg Bop:
Sam Houston:

I could be wrong but I believe F shares have no 12b1 fees.




Neither do index annuities. In fact, they have no fees at all.

 
So I take it your plea for attention on your own site has failed?  That's ok, keep supporting your competition, they get a good chuckle out of it.



Here we go again!

Mar 22, 2009 10:36 pm
Sam Houston:
Blitzkrieg Bop:
Sam Houston:

I could be wrong but I believe F shares have no 12b1 fees.




Neither do index annuities. In fact, they have no fees at all.

 
So I take it your plea for attention on your own site has failed?  That's ok, keep supporting your competition, they get a good chuckle out of it.



I'm sorry that you're struggling to make ends meet, but it's your own fault. Find something that people want to buy and sell it to them. That's what I did.

Mar 22, 2009 10:59 pm

Mar 22, 2009 11:35 pm
Blitzkrieg Bop:
Sam Houston:

I could be wrong but I believe F shares have no 12b1 fees.




Neither do index annuities. In fact, they have no fees at all.



So, do you tell your customers that?  Do you tell them you also work for free?  Or do the insurance companies just pay you a pittance out of kindness?

Mar 22, 2009 11:49 pm

I thought this forum was for REGISTERED reps only.

Mar 23, 2009 8:12 am
HymanRoth:
Blitzkrieg Bop:
Sam Houston:

I could be wrong but I believe F shares have no 12b1 fees.




Neither do index annuities. In fact, they have no fees at all.



So, do you tell your customers that?  Do you tell them you also work for free?  Or do the insurance companies just pay you a pittance out of kindness?



Of course, I tell them that. It's true. You'd be surprised at how many people would rather have an insurance company pay me a commission rather than THEM paying fees and/or commissions to a broker.

Mar 23, 2009 11:58 am

He probably just skims over the 15 year surrender @ 22%.  Or the forced annuitization.  Or the point to point indexing.  Or the participation rates.  Or the 10% cap.

 
None of that's important.  What is important is that the clients don't lose any value.  They lose control, flexibility, and understanding instead. 
Mar 23, 2009 6:59 pm

And people wonder why rule 151a was passed and why EIA salesman get such a bad rap.

Mar 23, 2009 7:05 pm
Spaceman Spiff:

He probably just skims over the 15 year surrender @ 22%.  Or the forced annuitization.  Or the point to point indexing.  Or the participation rates.  Or the 10% cap.

 
None of that's important.  What is important is that the clients don't lose any value.  They lose control, flexibility, and understanding instead. 



If I told them all of that stuff, they wouldn't buy anything from me. Kind of like how you never tell anyone that they can lose at least half of their money.

Mar 23, 2009 11:44 pm

F2 share classes are the ones without the 12B1's.



Fidelity, as with the other major custodians, offers this share class for RIAs.



C

Mar 24, 2009 9:39 am

I charge a higher fee for retirement assets and rebate any 12b-1 fees to client.  Top line fee is higher, net fee in almost all cases for me was equal to pre-fee change time or lower by .02 bps.  No trouble raising the fees after the fact either, if you properly disclose your income from all sources in the past that is.  If you have been operating as an IAR and not a fence squatter under the ML rule that is.....

Mar 24, 2009 10:01 am
Amp2Indy2006:

I charge a higher fee for retirement assets and rebate any 12b-1 fees to client.  Top line fee is higher, net fee in almost all cases for me was equal to pre-fee change time or lower by .02 bps.  No trouble raising the fees after the fact either, if you properly disclose your income from all sources in the past that is.  If you have been operating as an IAR and not a fence squatter under the ML rule that is.....




Isn't rebating illegal?

Mar 24, 2009 11:25 am

Rebating is probably the technically incorrect term.  Many B/D's credit the 12b-1's received in advisory accounts back to the client, since it was charged to the client via the MFD they own.  In order to claim they don't accept any fees from fund companies, they have to credit them back to the client.


I am guessing that you knew this already, and were just trying to be difficult.  But just in case you didn't...
Mar 24, 2009 7:53 pm
B24:

Rebating is probably the technically incorrect term.  Many B/D's credit the 12b-1's received in advisory accounts back to the client, since it was charged to the client via the MFD they own.  In order to claim they don't accept any fees from fund companies, they have to credit them back to the client.


I am guessing that you knew this already, and were just trying to be difficult.  But just in case you didn't...
 
thanks for pointing out that it is a 12b-1 credit.  Or as the moron Susan Collins Sen from ME would say  "12-1b".