Nine out of 10 parents believe their kids will pursue higher education,1 but with college costs continuing to rise, it can feel like an insurmountable task. Use the following resources to answer common client concerns and demonstrate how a 529 plan can help your clients pursue their college-savings goals.
In 2015, the cost of a year at a public university averaged more than $23,000, while a year of private school was approximately $40,000.2 When you consider a household with multiple children, affording this is no small feat.
The average graduate leaves college with $35,000 in debt.4 Outstanding student debt in the U.S. has swelled to approximately $1.19 trillion, surpassing those of credit cards ($703 billion) and auto loans ($1.01 trillion).5 When clients consider this, the question becomes not “How can I afford to save?” but “How can I afford not to save?”
Saving for college with a 529 account can represent an advantage over taxable accounts.
Saving for college is often a family affair, with parents, grandparents and even beneficiaries contributing to the goal. Opening a college savings account allows everyone to pitch in.
This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Source: Bureau of Labor Statistics, Earnings and unemployment rates by educational attainment (2014)
Source: wealthmanagement.com, Tackling Student Debt (August 2015)