Professional Articles

Learn how to help your clients determine how much they can afford to pay for college. This involves using all available resources, including 529 plans and financial aid, and keeping student loans to a minimum. These four questions will help you start the discussion.

As college costs continue to rise, parents and grandparents are seeking help from financial professionals to help with college funding. College is a major expense, and the amount a family invests in a 529 plan can have a big impact on their overall financial plan. Helping families with college funding can help you grow your client base and increase assets under management.

Financial professionals who sell 529 plans are required to act in their clients’ best interests and must adhere to the rules of the MSRB. The Pro 529 Evaluator is a tool designed to help financial professionals confidently recommend 529 plans while staying compliant with rules and regulations.

529 plans are an effective tool for clients who want to help pay for a grandchild's college education. But, a grandparent's financial gift may hurt their grandchild’s eligibility for need-based financial aid. Here are some important points to cover when discussing 529 plans and college funding with your clients.

529 plans were added to the Internal Revenue Code in 1996 to authorize federal tax-free status of qualified tuition plans. Federal tax benefits of 529 plans include tax-deferred investment growth, tax-free distributions for qualified education expenses including up to $10,000 in K-12 tuition and tax-free 529 plan rollovers. However, some states do not fully conform with the federal laws regarding qualified tuition programs.

FINRA’s new 529 Plan Share Class Initiative allows firms to self-report any issues with 529 plan share class recommendations and supervision by April 1 to avoid fines. FINRA hopes the initiative will help to remedy potential violations and return money to affected investors as quickly and effectively as possible.

The highly-anticipated Savingforcollege.com 529 plan rankings are here! This slideshow provides information on the top 10 direct-sold 529 plans, including performance score, program manager and how to enroll. Based on 3-year performance as of 9/30/18.

Morningstar Inc. has released a research paper about family use of 529 plans, New Lessons about 529s. The paper shows that getting middle-income families to shift college savings to 529 plans will yield increased investment returns. The paper also provides practical ideas for getting more families to invest in 529 plans.

When asked why they aren't saving more for college in a 529 plan, clients will typically give one of these 10 excuses. Here are some ways financial advisors can address their concerns and stress the importance of planning for future education costs.