July 9, 2007
To whom it may concern,
The 12b-1 fees help me manage my practice in many ways. My clients may see me or call me anytime they wish without having to pay to see or visit with me. I advise my clients not just in shaky markets but also up markets. I help them re-balance their portfolios at no extra cost to manage their risk tolerance goals. I also change ownership and beneficiary designations at no charge to the client. I also settle estate accounts at no charge to the client.. Why because my company allows those changes and updates for the client at no cost. My company does not reimburse me for cost of paper, postage, ink or time spent with clients to service the above issues. The 12b-1 fees help compensate for these expenses. In addition, my company no longer provides copies of client statements for my client files, I must print them at my expense or pay the company for them. The fees help compensate for those expenses. I must also pay my own staff and purchase all my own equipment, files and pay all my expenses. The 12b-1 fees help offset some of these on going costs. I am not an advisor doing big business, but do make an honest living helping my clients with their investments and their goals. The 12b-1 fees help me offset expenses that continue to rise with out having to charge an additional fee. Yes, I could charge but I do not want to be excessive with my clients.
A local competitor wanted to charge my client $400.00 to change the ownership on their accounts at his brokerage company. (It was joint tenants with rights of survivorship and the spouse had died.) The client had one investment with them and it was a very small account. The client made a fuss and the broker finally agreed to do it for $100.00. Why should the client have to pay to take her deceased husband's name off of a jointly held account? That seemed excessive. Especially since the broker was also receiving 12b-1 fees.
Thank you.
Deborah P.
Financial Advisor
Ameriprise Financial
Ameriprise Financial Services, Inc.