Announcement

Collapse
No announcement yet.

how do I change 529 brokerage account

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • how do I change 529 brokerage account

    I currently have 529 for each kid.  2 kids, middle school.  ~50k/each.  I only started it a few years prior and my accountant told me he would "take care of everything."  I have VCSP/COLLEGEAMERICA (529 American growth portofolio class C). It has gross expense ration 1.65%.

    I just did the math with my 10 year old.  I'm hoping to teach her about finance as I am learning myself.  By the time she starts college, even without me putting any additional money in the 529, she will be down $10k.  i.e. @ 1.65% gross expense ratio and calculating 8% return, 80k principal in the brokerage account vs ~90k if I put in a low cost 0.2%.

     

    I think I did the math correctly; by hand as opposed to looking up a calculator.

     

    Thus, I want to roll over the money out of my accountant's management and put into a vanguard nevada 529.  I think that is the best reading on this forum.

     

    How do I roll over?  Do I have to contact my accountant directly or can I do it myself?

    Did I understand correctly that NV vanguard is the way to go since I am a california native?

  • #2
    Regardless which 529 Plan you choose to switch to, here are the steps you need to take:

    1. Open your new 529 Plan, making sure you keep the same owner and beneficiary arrangements.

    2. Complete the Transfer request form from your new 529 Plan. This is the form that will tell CollegeAmerica to liquidate your holdings and forward them to your new 529 Plan.

    3. Once you receive confirmation that the transfer has been received by your new 529 Plan, allocate the account as you desire.

    Comment


    • #3
      how does the commission to my accountant work when he sells these American funds to me? Does he get a one time payout or does he get a continuous cut of the 1.65% thruout the years?

      Comment


      • #4




        how does the commission to my accountant work when he sells these American funds to me? Does he get a one time payout or does he get a continuous cut of the 1.65% thruout the years?
        Click to expand...


        Ouch! So your accountant has gotten into the act...his payout depends upon the agreement he has with you. Read the fine print carefully and consider whether this relationship really is in your best interest - or his.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

        Comment


        • #5
          P.S. After you transfer this these 529, get a different accountant.

          Comment

          Working...
          X