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.

Potential 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.

Potential Advantages of Invesco CollegeBound 529 plans

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

• Three categories of investment options
  - Year of Enrollment Portfolios
  This option is simple: Just choose the Year of Enrollment Portfolio that aligns with the year your child will enter college. Invesco manages the portfolio allocation among equities, fixed income, and capital preservation options to gradually become more conservative as the expected date of college enrollment nears. The portfolios are adjusted quarterly to become more conservative and rebalanced monthly to help ensure you stay within appropriate risk levels.
  
  - Target Risk Portfolios
  With this option, you choose the portfolio that matches your client’s current desired risk/reward potential — conservative, moderate, growth, or aggressive. The portfolios are rebalanced monthly to help ensure they stay within appropriate risk levels.
  
  - Individual Portfolios
  This options allows the creation of a custom portfolio using the individual building blocks in the investment lineup, which includes a variety of equity, fixed income, balanced, 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

For more information or assistance, please contact your Invesco Education Savings Consultant, call us at 1-800-410-4246, or visit collegebound529.com.