Battered college savings industry weathering the storm

Parents are still contributing to their children’s college funds, despite the ravages of the recession, according to research released today.
MAY 19, 2009
Parents are still contributing to their children’s college funds, despite the ravages of the recession, according to research released today. Assets in Section 529 college savings plans were down only 3% in the first quarter of 2009 from the fourth quarter of last year, dropping from $88.5 billion to $85.9 billion, according to data developed by Boston-based Financial Research Corp. and released today by the College Savings Foundation in Washington. But assets suffered a severe drop from a year ago, falling 22% from $109.86 billion in the first quarter of 2008. “Despite challenging economic times, families are continuing to invest in 529s at roughly the same pace as they did in the last quarter,” CSF chairman Kevin McMullen said in a statement. The FRC numbers were underscored by a new survey released today by Country Financial of Bloomington, Ill., showing that 61% percent of parents said they are not letting the recession change their plans for their children’s college education. What’s more, 47% said college plans are a higher priority than retirement savings. The telephone survey of 1,241 Americans who expect to be responsible for paying for a child’s education was conducted by Rasmussen Reports LLC of Asbury Park, N.J., an independent research firm.

Latest News

Vanilla locks in US patent for estate planning tech, strengthening advisor reach
Vanilla locks in US patent for estate planning tech, strengthening advisor reach

The wealth tech platform says its newly secured patent represents crucial advances in digitizing outdated manual processes.

Wealth managers weigh in on Trump's potential order to open 401(k) plans to alternatives
Wealth managers weigh in on Trump's potential order to open 401(k) plans to alternatives

Financial advisors offer their thoughts on the President's widely anticipated executive order to open retirement accounts to private market assets.

SEC: First Liberty misused fresh investor money in $140 million scheme
SEC: First Liberty misused fresh investor money in $140 million scheme

The SEC says First Liberty lured investors with high-yield promissory notes, then used fresh cash to cover defaults and interest owed to earlier investors.

SEC hits pause on Bitwise ETF offering broad crypto exposure
SEC hits pause on Bitwise ETF offering broad crypto exposure

The agency's decision to stay the approval process just hours after signing off highlights ongoing ambiguity for new crypto-focused ETF offerings.

Advisor moves: LPL swipes veteran advisors from Wells Fargo, Lincoln Investment
Advisor moves: LPL swipes veteran advisors from Wells Fargo, Lincoln Investment

Meanwhile, Cetera has boosted its own recruitment numbers with new additions from LPL and Osaic.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.