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A “trusted contact person” is a person that you authorize your brokerage firm to contact in limited circumstances, such as if your broker has trouble reaching you or has a reasonable belief that your account may be exposed to possible financial exploitation.
Naming someone as a trusted contact person does not give that person any authority to act on your behalf, execute transactions or engage in activity in your account.
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When your brokerage firm suspects fraudulent or unusual activity on your account, the first course of action is to validate the transaction. If you are unable to be reached, a trusted contact can serve as a second line of defense.
A trusted contact can confirm:
- Your current contact information
- Your health status
- The contact information for other authorized parties on the account, such as a power of attorney.
While you may not be required to have a trusted contact, establishing one can help your financial firm move more quickly and decisively when addressing fraudulent activity. Even if you already have a power of attorney or spouse listed on your account, a trusted contact provides an additional resource if an issue arises.
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Anyone who is at least 18 years old can be a trusted contact. Trusted contacts are usually family members or close friends – people you trust and wo are likely to be in the best position to know your current situation.
You’ll also want to review and update your trusted contacts regularly in case their contact information changes or you no longer want them to play this role.
Before investing, carefully consider the plan’s investment objectives, risks, charges, and expenses.
Consider before investing whether your or the beneficiary’s home state offers a 529 plan that provides its taxpayers with state tax and other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available in such state’s qualified tuition program.
Tax and financial aid treatment of 529 plans is subject to change. As with any investment, it is possible to lose money by investing in this plan
Qualified education expenses can include tuition, fees, books, supplies, equipment, and room and board. Certain costs associated with K-12 tuition, participation in a registered apprenticeship program, or payment of a qualified education loan up to $10,000 may also be considered qualified educational expenses. The availability of tax or other benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distribution, or other factors. Clients should consult a qualified tax advisor to discuss their individual situation.