Despite rising college tuitions and ballooning student debt, only 36% of Americans can correctly identify a 529 plan as an education savings tool, according to a recent study conducted for Edward Jones — a one percentage point decline from 2012, when the firm did its first annual study of the plans.
The recent study also found that only 20% of parents report having saved or planning to save for their children's education using a 529 plan.
In lieu of saving for education with 529 plans, American parents have saved or are planning to save for education costs with a mix of personal savings strategies and financial aid options, with 40% utilizing a personal savings account, 23% relying on scholarships, and 22% employing federal or state financial aid in their education savings strategies, the company said in a release.
Barriers that respondents cited as keeping them from contributing to 529 plans included paying off their own student loans (15%), the fear of being penalized on unused funds if a child doesn’t go to college (14%), and the feeling that they don’t make enough money to open a 529 account (12%).
“With 67% of Americans admitting that they were not aware of the features and potential tax benefits of 529 plans and 65% unaware of their possible uses beyond higher education, there is an opportunity to fill the education gap with the help of a trusted financial adviser,” the firm said.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
