Segment: Mutual Funds
Publication date: Thursday, December 07, 2006
# Pages: (41 pages)

Abstract | Table of Contents

While many firms offer different types of accounts geared towards college savings, the state sponsored 529 plans offer investors an attractive three-tiered tax benefit making them a popular investment choice. It is important for firms to provide customers with both educational and planning resources focused on these plans to both attract new investors to the site and aid customers with these important investment decisions.

Our research uncovered the fact that of the 18 firms covered in this report, 13 offer 529 content directly on their site. Each 529 section contained similar features, such as price and performance information, age based or enrollment targeted portfolios and education savings comparisons charts. Firms deficient in one area usually atoned by providing above average capabilities elsewhere. Many firms provided links to independent, third party sites that contained the bulk of the information on their managed plans. Although these sites tend to provide an abundance of information about their offerings without causing navigation problems on the main site, investors seeking guidance and service from their trusted firm can be thrown off when being redirected to an unrecognized site with unfamiliar branding.

Subjects

Financial Planning

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