Client Conversations: Help Your Children Live Their College Dreams—Without Student Debt Nightmares
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1Forbes, “Student Loan Debt In 2017: A $1.3 Trillion Crisis,” February 17, 2017. Most recent data available.
2Sallie Mae, “How America Saves for College,” 2018.
3Effective January 1, 2018, as part of the Tax Cuts and Jobs Act, up to $10,000 per student can be withdrawn annually to pay for private K-12 education. Qualified-expense status varies by state for withdrawals used for K-12 education. Non-qualified withdrawals are taxable as ordinary income to the extent of earnings and may also be subject to a 10% federal income tax penalty.
4CNBC, “To get more college financial aid, file sooner rather than later,” 2018
5Sallie Mae, “How America Saves for College,” 2018.
Before investing, an investor should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.
For more information about any 529 college savings plan, contact the plan provider to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Hartford Funds Distributors, LLC serves as distributor and underwriter for some 529 plans.
This material is provided for educational purposes only.