Over 17 years (example taken from elsewhere in the thread) that works out to 14.1% of the total amount assuming the total amount is paid out when the beneficiary of the trust reaches the age of majority.

Founder/CEO TrustEgg - For most families the only option they have, or are using right now, are savings accounts which over time will lose to inflation. We offer a way for accounts to receive a market rate of return. As for pricing, an adviser based 529 plan is going to add an additional 1% to the management fee, or ~6% load on deposits.

Your comment is very misleading. Families can invest in any of the same investments you do, directly via Fidelity or Vanguard, and save an enormous amount in fees. You may add value by being a nicer UI/wrapper around these existing services, but at least be honest about that and what your customers are paying for.

Founder/CEO - TrustEgg - We eliminate the minimums. To open a Vanguard 'Wellington Fund' account - you would need $3,000. Also when purchasing, or making a trade, you are usually going to pay a fee.

> Also when purchasing, or making a trade, you are usually going to pay a fee.

Obviously, when buying a Vanguard fund at a Vanguard account there is no fee

It seems they are charging ~.5% on top of whatever Vanguard charges, whose own expenses are typically around .3%.

For the general case it probably makes more sense to just invest in Vanguard directly. The downside is that people would have to do their own research in regards to asset allocation. But imo that endeavor would be worth it seeing how these accounts will be around for potentially decades.

Vanguard will tell you exactly how to allocate: in the retirement 20xx fund for the year you want cash.