Photo by: soldiersmediacenter
Well, honestly, I didn’t. My mother picked them out for the girls under her name for a Christmas present in 2006. She lives in Montana and her investment rep told her that she would be best suited to buy through him as he’d “pick the best plans for her”, which is a COMPLETE lie. He’s SELLING her a plan, not INVESTING her in a plan. I have been following up with her and the Pacific Funds plan she’s involved in and I’ve found that she doesn’t even NEED to go through him to invest the money. She can do the exact same thing he is doing by signed a few documents Pacific Life sends her and then she’d automatically be allocated in the same funds he was putting her in. Needless to say when we called him on it, he didn’t return our calls or emails.She’s invested in the Montana 529 plan
that has turned almost 0.004% profit (CPAEX)
over the year after the “rep” takes his cut from it. So needless to say, I think I could probably find a better home for that money. Unfortunately with paperwork involved in these, we can’t transfer the fund to my name, nor transfer the state it is invested in. It can ONLY be transferred to the recipient (my daughter) in the case that my mother dies. That’s fine, we don’t need to have it in my name. It is there for the kids anyway. So that is fine, but we don’t want to craft up the check to the “rep” to invest for us; but again, that takes another form and a stamp of approval.I get to thinking about this and I realize that I don’t really need to worry about this too much. Is it worth it for the $500.00 we’ve put into the account? We don’t NEED to put any more into it. It can just sit there till they graduate and I can open another, more friendly and profitable 529 plan
that has been researched. Thanks fivecentnickel
– good post.
The plan in 2008 is to find a better plan that I can own and get the “rep” off my mothers plan so she can decide if she wants to keep investing in CPAEX. I’m going to advise her not to, but the Montana 529 plan DOES have the ability to deducted the donations from her taxes, so that still might be a viable option for her. As for myself, I’m going to find a new plan and start dumping cash there sometime soon…
Filed Under: financial education • Frugal • Investing • Mutual Funds • Net Worth • Portfolio