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 2016-2017, the average cost of a year at an in-state public university was approximately $20,000, while a year of private school was more than $45,000.2 When you consider a household with multiple children, affording this is no small feat.
The average graduate leaves college with around $37,000 of debt.4 Outstanding student debt in the U.S. has swelled to approximately $1.34 trillion, surpassing those of credit cards ($784 billion) and auto loans ($1.19 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.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
Regular investing does not ensure a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.