If an investment broker earns commissions on the sale of a particular 529 plan, doesn that mean he is biased and will try to sell me just that plan?
Although brokers have an incentive to sell only certain 529 plans, their obligation is to ensure that any recommendations they make to you are suitable. A sale of a 529 plan by a broker is subject to the investor-protection rules of the Municipal Securities Rulemaking Board and these rules are enforced by FINRA. A broker should be able to tell you about some of the differences in competing 529 plans, and should make sure you are aware that your own state’s 529 plan (which may or may not be available through the broker) offers special benefits that you may not get with an out-of-state 529 plan. Most brokers value their relationship with you as a client much more than the commissions they may earn on the sale of a 529 plan and will work in your best interest in recommending a 529 plan and fitting it to your overall financial situation.
