Even with the regulation, I see it as a bump in the road. Brokers need to get comfortable with the regulatory environment and have some common sense rules. |
I always thought the financial aid treatment was the biggest problem with prepaid tuition plans. This change will make them more attractive. It's a good vehicle to hedge against tuition inflation. |
It's a double-edged sword because you definitely want protection for investors, but at the same time you don't want a cloud so investors are afraid to invest in them and their advisors are afraid to use them. |
It's a small ticket. When the average account size is around $10,000, the most a broker might earn is $300 to $400. |
They couldn't decide whether it was a bus or a boat. |
They're all different animals as far as income limits, taxes, contributions, who controls the assets, and taxes. And like any other investment strategy, you're better off having more diversity, meaning you want to have a combination of them. |