Q: We recently changed financial advisors and are now putting away money for our grandkids in a different 529 fund. Previously, the fund was "CollegeBound" managed by "National Planning Corporation." The quarterly statements never listed any investment costs.
Now with our new financial advisor's recommendation, we are investing with Franklin Templeton Investments in the "Franklin Templeton 529 College Savings Plan" and are paying an initial 3.5% each time we invest.
We never saw any costs associated with investing with "CollegeBound". You recently recommended taking a look at California's 529 college savings plan called "ScholarShare". The most that any of the ScholarShare plans charge is summarized as an annual "Total Annual Asset Based Fee" of 0.61 percent (most charge .3 percent or less).
My question: Is 3.5 percent a reasonable fee for each monthly investment? I did ask our advisor about it, but her response didn't make sense at the time and I wasn't aware of the Scholarshare plan with its documentation detailing expenses.
Thanks, Papa - Roseville