Direct-Sold vs. Adviser-Sold 529 Plans

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Chapters in this video

  1. 0:00 Two paths to 529s: direct-sold vs. adviser-sold
  2. 1:27 The MSRB only regulates adviser-sold plans
  3. 2:54 Class A, B, and C share classes and fee timing
  4. 4:49 MSRB reporting and the EMMA system
  5. 6:14 Dealer disclosure rules for adviser-sold recommendations
  6. 7:07 Rapid-fire exam recap

What this video covers

  • Why direct-sold 529 plans carry lower fees, and why the MSRB has zero regulatory authority over them
  • How adviser-sold 529 plans use the same share-class structure as mutual funds, and what front-end loads, back-end loads (contingent deferred sales charges, or CDSC), and ongoing annual expenses mean for Class A, B, and C shares
  • The specific investor profile best suited for each share class, and why Class B allows 100% of money to be invested immediately
  • What Electronic Municipal Market Access (EMMA) is, and the difference between semi-annual general plan reporting and annual performance reporting to the MSRB
  • Why dealers recommending adviser-sold plans must disclose that lower-cost direct-sold options may exist, and what happens when they do not
  • How Achieving a Better Life Experience (ABLE) programs share the same MSRB reporting rules as 529 plans

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