College Savings
3 MIN ARTICLE
Help your clients save for their children’s education with talking points addressing these important questions:
TABLE OF CONTENTS
Nine out of 10 parents believe college is an investment in their children’s future,* but with college costs continuing to rise, saving enough 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.
Related content
* Sallie Mae, How America Pays for College (2020)
† The College Board (2020). Total Includes tuition, fees, room and board.
ǂ Bureau of Labor Statistics, "Unemployment Rates and Earnings by Educational Attainment, 2018" (September 2019)
** https://studentloanhero.com/student-loan-debt-statistics/ (January 2020)
† † Federal Reserve Board of New York, Quarterly Report on Household Debt and Credit (August 2020)
ǂǂ https://bigfuture.collegeboard.org/pay-for-college/college-costs/college-costs-calculator. (2020) Results are based on the assumption that college costs rise at 6% a year.
§ Assumes a 6% average annual rate of return (compounded monthly) for both investments and a 25% income tax rate. (The typical mutual fund investor falls into the 25% tax bracket.) Example assumes taxes were paid annually out of the account. Your tax rate may vary. Current minimum tax rates on capital gains and dividends could make taxable investment returns higher, thus reducing the difference between the two ending values. Results shown are hypothetical and are not intended to represent an investment in a specific fund. Your investment experience will differ. Regular investing does not ensure a profit or protect against loss. You should consider your willingness to keep investing when share prices are declining.