Segment: Mutual Funds
Publication date: Wednesday, June 04, 2008
# Pages: (28 pages)

Abstract | Table of Contents

With the cost of higher education rising faster than inflation, investors need to develop a solid financial plan for their children’s education as early as possible. With this in mind, firms should provide advisors with 529 sales kits so that they can help their clients understand the challenge of funding a college education and thus achieve their goals.

This report looks at the hardcopy 529 kits advisors can order from firms’ literature order systems. Fifty-nine percent of MFM-A firms offer 529 kits, and we rated each firm in the following areas:

• Advisor-only materials
• Client-ready materials
• Quality of resources

Overall, we were disappointed with the 529 packages we received. The quality of the kits was unimpressive, although a few firms did manage to incorporate colorful, eye-catching booklets. In addition, firms did a poor job of incorporating advisor materials into their 529 kits. In fact, only three firms included advisor-only materials at all. The firm that best addressed advisor needs inserted all materials into a large, full-color booklet full of college savings sales strategies for advisors.

Investor-ready materials were more abundant. All but one firm provided a client-ready promotional brochure or magazine to introduce college savings plans to prospects. In terms of forms and applications, 66% of firms included an account application, while 44% provided a rollover form.

The report includes the following key findings:

• Fifty-five percent of firms offer a plan comparison chart.
• Seventy-eight percent highlight rising college costs.
• Only one firm offers a CD-ROM.

Subjects

Financial Planning

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