Michael Beloff, a financial planner for the Shelton, Conn.-based Barnum Financial Group, an affiliate of MetLife, says a 529 plan is now a more attractive college savings option than in the past "because you can move the money among beneficiaries." And although financial advisors have played a diminished role in selling the 529, Beloff thinks that they still have a part to play in getting these vehicles into the hands of investors.
"With the plethora of financial college saving plans out there, I think it's confusing for individual investors," Beloff says. "There is an education component for advisors to educate families on things such as in-state versus out of state, [or] why you might choose an out-of-state 529, even if there is a state tax deduction for their home state plan. All these are reasons to work with an advisor."
This can be particularly remunerative for advisors cultivating relatively young clients, since this demographic actually has some reason to start thinking about college savings earlier than one would expect.
"Most advisors concentrate on the 55-plus market; that's where the money is," Beloff says. "They're not necessarily involved with parents and clients in their 30s and 40s. By focusing on that market, you're looking at a younger client base than your traditional client base in their 50s and 60s as a way to get those folks early by helping with a real issue: What is the best way to save and pay for college?"