How does Backer make money? Are there conflicts of interest that affect me? How are they addressed?

CollegeBacker

Backer makes money from the monthly fee. Backer charges a $6 monthly fee for Backer Pro users.

We work hard to minimize any conflicts of interest. First and foremost, it’s important to know that as an investment adviser, we have a fiduciary duty to put your interests first. We never take commissions, always recommend low-fee investments, and use cutting-edge encryption and security practices to safeguard your personal information.

Backer receives no fees or other compensation from the 529 plans for recommending investments in those 529 plans. Backer receives compensation from 529 plans for providing technological services to the 529 plans that are unrelated to the investment advisory services that Backer provides to its advisory clients. Specifically, when making its gifting features available to non-client participants in a 529 plan, Backer collects service fees from the plan administrator.

Our employees do not receive commissions or other compensation related to client assets, our clients’ investment activities, or selection of securities. Instead, they are paid a salary and discretionary bonus based on overall job responsibilities and performance. Certain employees also receive equity in our company.

Backer’s personnel and their families may invest in the same 529 plan that we recommend to our clients. This recommendation offers little or no opportunity for a conflict of interest to arise, given that the advice is expected to relate to well-established mutual funds or similar vehicles unaffiliated with Backer that sell shares at net asset value. Those facts about what Backer’s clients invest in indicate that Backer’s personnel will not be in a position to benefit from influencing the issuers of shares, trading ahead of clients, or trading on nonpublic information. In the event that a conflict of interest is perceived to exist, Backer will seek to eliminate or mitigate that conflict of interest, such as by prohibiting or monitoring trading that is identified as potentially representing a conflict of interest.

For more information about the monthly investment advisory fee that we charge, please see: How does Backer charge for its service? What fees will I pay?


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