Lux Investing

How much do financial advisors charge you to buy a mutual fund/529 college savings plan?

I want to buy my daughter a college savings plan (for Christmas?) but I am worried that there are fees you have to pay the financial advisors and I can't afford to put very much away for her education as it is. Does anybody know how much they charge and if you have to mee with them every so often? I just want to give them the money and tell them to invest it as wisely as they know how and then put $25 to$100 in it a month and not touch it or think about until she's ready for college.

Public Comments

1. You can set one up directly with the big mutual fund houses like Vanguard or T. Rowe Price - no need to go through an advisor.
2. You can go through a financial advisor as well. The fees are imbedded into the price of the fund/plan. Some may say I don't want to pay for him but that would be as silly as saying you don't want to pay for a mechanic when you know nothing about cars. It is money well worth the spending. It's not money out of pocket. Ask around and find someone you trust who has a relationship with someone they have used and been satisfied with for many years and storms. Dollar cost average over the long haul (monthly) into a conservative mutual fund. You will do well.
3. The fee depends on the advisor. Some charge you by the hour for the consultation. Some charge commissions instead. If you buy an fund with a 5% commission (usually called a "sales charge" or "load"), then the advisor keeps 5% of your money and the rest gets invested in the fund. I agree with the person who says that there is nothing wrong with paying a fee if you need the professional help. However, I'll add one thing to that. Beware of advisors who work on commission. They have to sell you something in order to earn a living. Some of these people are reputable. Some are unscrupulous and will sell you the investment with the highest profit to them even if its a lousy investment. You want the highest profit for you. Interview the advisor carefully and make sure that you can trust him/her. Do you have family members or friends who are knowledgeable about investing? Maybe someone can give you some ideas for a low-cost plan without paying fees. If you know people with children, ask them if they are investing in a 529 plan and how they selected it.
4. Normally a financial advisor will not charge you anything to set up a mutual fund as a 529 college savings plan. There are a lot of things to consider which one would be best suited for you, based upon what state you live in Investing in any mutual fund will not give you an accurate picture of what you will earn in the future. What ever fund you select, or whatever advisor you select, can not guarantee future results. You can look at what the mutual fund has done in the past, but there is no way in hell can they predict the future. You can set it up yourself via the internet. Then you still going to have to worry about is this the best 529 for me. In addition, who you going to call when you have a question. I would prefer to go through a financial advisor and would recommend someone Ameriprise Financial Services "AMP" They have more than 12,000 advisors scattered throught the country and I am sure there will be one located near your. AMP is a spin off from the American Express, before that it named call IDS.