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This answer is from Why do so many financial advisors promote American Funds? They say that their company's 401 k is with American Funds.

Robert Schmansky, CFP®Napfa_small
Expert Partner
5 months ago

I do think they are a company that is often sold via commissions; the performance and lower operating fees are probably what makes them an easy choice for brokers.

But, many advisors who access them without the load and 12b-1 fees also sometimes select their funds because of the team aspect in how they are managed.

Just because a broker's 401k is with American Funds shouldn't mean anything to you. For one, they won't be paying the expenses you will. They also may give themselves options they don't bring up to their 401k plan sales.

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