Legal Question in Securities Law in California
College Fund Investing
My husband and I opened College
Funds for our children when they
were two yrs. old.
Our son is now seventeen. We
discovered his fund is down 40%.
Our Boker says he doesn't know
what happened.
The most this fund has been
was $59,000 the first quarter 2000.
By first quarter 2002, this fund was
down to $32.00
This fund is now around $45,000.
We have also contributed more cash
to this fund since the drop.
At the time of this drop in value, this
Broker was with SUTRO $ ASSO.,
and had just purchased a fund called
Goldman Sachs Internet Tollkeeper,
Class B.
My husband and I have pulled all
documents so we could see what
happened.
In 2002, SUTRO & ASSO. merged
with RBC DAIN RAUSCHER. We see
our children were charged a 'transfer
fee'! This is absurd.
We can understand if we lost value
in our own stocks/IRA's. We
understood College Funds had some
sort of protection.
We haven't spoken to anyone else
who has experienced this amount of
loss with a College Fund Invetment.
These are 'Custodial' accounts. My
husband and I feel very guilty for
allowing this to occur. Our
seventeen year old son could use
this money for College.
1 Answer from Attorneys
Re: College Fund Investing
The broker's claim that he does not "understand what happened in your account" is a suspicious circumstance. Contact us to discuss and we will try to help you. There will be no charge for your telephone consultation.
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