Susan Light Cautions on Fees Related to 529 Plans

In a Tribune News Service article published in the Miami Herald and others, Financial Services partner Susan Light commented on a new FINRA self-reporting initiative regarding 529 plan sales practices for broker-dealers and what consumers need to know about 529 plan fees. Sue encouraged those who work with adviser brokerage firm to "get a considered opinion to develop a solid withdrawal strategy. For example, some funds impose fees that are better for a long-term investment horizon, while other funds impose fees that are more beneficial for short-term investments." She notes that it's important to get a thoughtful plan that considers tax efficiency, level of risk and making changes as the education goal gets close. Sue stated, "529 plan brokers should have discussions with investors about what plan to use, who is the beneficiary and how it will be used. It's only with a fulsome discussion of all these factors that an investor can make a sound decision." ("The Journey: Is Your Adviser Steering You Into Fee-Heavy 529 Plan?," April 15, 2019)