First, if anything you do moves money from a "securities" account, and you don't have a 6, 7, or 65, then you could potentially get in trouble. Insurance companies and FINRA are on the look out for this now.
Second, a 6 allows you to sell mutual funds and VA's (paid by commission). A 65 lets you sell fee-based securities accounts (paid by a % charge against assets in the account, or a set fee schedule for services).
Most 529 plans would be very awkward in a fee based account because they start out small and have monthly contributions. Even if the family put in a lump sum, the amounts will still be smaller. Fee accounts really don't make a lot of sense until the account is 75k to 100k in size. For smaller accounts, the standard mutual fund 529 route would be better.
With the 6/63 you have a BD and E&O insurance. The difficulty will be finding a BD when you have no assets and no plan to acquire assets quickly enough to satisfy the BD (they have expenses just to have you on their books). I've heard there are some that will take small brokers, but their payout is usually below 50%. So you'll pay 1k-3.5k each year for the BD toolkit and E&O insurance.
With the 65 you have to set up your own RIA (or got through a BD and use their RIA with the costs outlined above). The overhead of the RIA and the cost of setting it up will run about 3k-5k each year. Plus, you'll need to get your 24 license so you can "oversee" you own transactions, and you'll have to be your own compliance officer (time and grunt work overhead).
Save yourself the hassle, and don't do it.
Second, a 6 allows you to sell mutual funds and VA's (paid by commission). A 65 lets you sell fee-based securities accounts (paid by a % charge against assets in the account, or a set fee schedule for services).
Most 529 plans would be very awkward in a fee based account because they start out small and have monthly contributions. Even if the family put in a lump sum, the amounts will still be smaller. Fee accounts really don't make a lot of sense until the account is 75k to 100k in size. For smaller accounts, the standard mutual fund 529 route would be better.
With the 6/63 you have a BD and E&O insurance. The difficulty will be finding a BD when you have no assets and no plan to acquire assets quickly enough to satisfy the BD (they have expenses just to have you on their books). I've heard there are some that will take small brokers, but their payout is usually below 50%. So you'll pay 1k-3.5k each year for the BD toolkit and E&O insurance.
With the 65 you have to set up your own RIA (or got through a BD and use their RIA with the costs outlined above). The overhead of the RIA and the cost of setting it up will run about 3k-5k each year. Plus, you'll need to get your 24 license so you can "oversee" you own transactions, and you'll have to be your own compliance officer (time and grunt work overhead).
Save yourself the hassle, and don't do it.
