Comments on post “CollegeBacker”
Miguel Sebada
@miguel_sebada
Wow! This is really impressive, but (saying this as a total idiot about savings accounts). How safe is this investment? Will the money be easily accessible once the child reaches a certain age? What's the legality of this?
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Jordan Lee
@jordanglee · Founder & CEO, CollegeBacker
Hey @miguel_sebada, thanks for the questions!
All investing carries risk, but we help the parent choose a low-cost, age-adjusting portfolio that starts out more aggressive (when the beneficiary is young) and automatically becomes more conservative (as they approach college age). The money is accessible at any time to the parent (who is typically the account owner), though they can also arrange to have a check sent directly to the beneficiary or to the school they're paying for.
Regarding legality, we're registered with the SEC as an investment advisor and all funds are placed in a state-sponsored account (ScholarShare) that's managed by a national investment company (TIAA).
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