Why a CB529 plan may be perfect for your clients

For many families investing in the futures of their children or grandchildren, nothing seems more daunting than the sticker shock of college tuition. The rising costs of education can make parents feel uneasy, unsure of what to do to save enough money for their children’s tuition. This is one of the biggest reasons why less than half of Americans have an education savings plan. Many think they’ll have enough time to kick the can down the road and deal with it later.

Financial professionals are in a good position to help families make the right choices and build a good plan to meet their education savings goals. An important tool in meeting this goal is the 529 plan. While most people may have a general understanding of what a 529 plan does, giving them information about the advantages of a 529 plan can help parents gain peace of mind and encourage them to make smarter investment choices. When discussing the benefits of a 529 plan, be sure to cover the following exciting advantages.

Benefits of a 529 plan

• Tax advantages: Earnings on a 529 plan aren’t taxed by the government, and many states offer tax credits or deductions on 529 contributions.
• Flexibility and control:  Beneficiaries of a 529 plan can be changed easily; that means that if a student has already finished their education and funds are still available, a new beneficiary can be named to use those remaining funds. The account owner, not the beneficiary, is in control of the distributions to ensure the proper use of funds. 

• Minimal impact on financial aid: Students can still apply for financial aid, and the earnings on a parent-owned 529 plan won’t be counted as income on the FAFSA.

• More than just college … not just for kids: A 529 plan is usually known as a college savings plan, but it can be used for any type of schooling, even K-12 education. Also, there are no limits on who can be the beneficiary, so even parents can take advantage of 529 earnings. 

• Family and friends can help: Anyone can contribute to a 529 plan, making it a great choice for a gift contribution.

• No expiration: The earnings of a 529 plan never expire. Since beneficiaries can be changed, a 529 plan can be given to other family members for as long as funds are available.

Advantages of Invesco CollegeBound 529 plans

Invesco CollegeBound 529 plans offer a wide range of investment options to maximize earnings for education. Actively managed by Invesco financial professionals, these portfolio options meet the needs of client capability and risk tolerance.

• Three-tier investment portfolio options   
  - Age-based
  Portfolios grow and adapt to align with the child’s expected year of college
  
  - Target risk
  Portfolios are comprised of a blend of active and passive funds that match the investor’s level of risk: conservative, moderate, and growth
  
  - Individual
  Individual portfolios give access to equity, fixed income, and capital preservation options
  
  
• Team of Education Savings Consultants ready to support your 529 business-building efforts
  - Support from a dedicated team of field and internal education specialists
  - Access to webcasts, digital tools, and other materials from Invesco’s 529 experts

Invesco offers a wide range of resources for financial professionals to help their clients save for the future. Learn more.