Help me with my 401K?

[Carl_William]

Dear jively,

I appreciate you posts. I am retired and have been investing for a long time. I have done OK. I survived the bubble bust in the years late 2000 until early 2003. I had many friends (many brilliant engineers and scientists) who got hit hard when the bubble collapsed. In the last few years I bought most all of the asset allocation books (William J. Bernstein; etc.) and learned a lot -- stuff I wish I was aware of when I was 35 through 55. I feel; if the young guys follow your advice they will benefit many fold in the long run. I’m going to ask you a favor, and I will understand if you don’t answer, or if you don’t know the answer….

The question is in regard to the loads and 12b-1 fees that load mutual fund companies charge investors. For instance, America Funds generally charge a 5.75% (6.1% net) upfront load for Class A funds up to a $25,000 purchase. Eighty-six percent (86%) of this load fee is funneled back to the brokerage house that sold the fund to the individual. I was curious; in general, what percent of this money funneled back to the brokerage house is shared with the broker salesman (the account rep). If you know the answer, I would appreciate also knowing it.

Also America Funds did charge a yearly Class A fund 0.12% 12b-1 fee; now increased to a 0.23 or 0.24%. This fee is funneled back to the brokerage house. Again – I am curious what part of this fee is shared with the broker salesman (the so-call account executive). I would guess many 60% is given (earned by?) to the salesman. Do you know or have an opinion? I would appreciate it if you (or anybody else) gave me an estimate (just a ballpark estimate). I realize that most brokers don’t want to share stuff like this with the public.

Most warm regards, Carl

PS: I have one America Fund that I bought 35 years ago and it is up 55 times with the dividends & cap gains re-invested; but I paid lots of tax on this fund, but it did great. Most of my other mutual funds are in my 401(k) which CityStreet manages; or with the Vanguard Group which I manage.