In 2015, 91 percent of advisors in a Strategic Insight survey recognized college financial planning as part of a holistic financial plan. But the percentage of advisors who saw 529s as something that helped them retain clients dropped to 69 percent, and those who thought of 529s as a way to acquire new clients fell to 40 percent.
Some of the advisors are having trouble distinguishing what 529s do, Curley said. “And college financial planning is complex,” he said. “But that’s actually where you add value: helping your clients to think about the tax, the financial aid, the estate planning dynamics of college financial planning.”
Michaud said advisor teams may fare better than a stand-alone advisor when it comes to offering college financial planning because one person on the team can focus on college savings goals.
Hughan said CPAs and estate planning attorneys aren’t savvy about 529s either. “So teaching advisors how to have that conversation and educate the estate attorneys and CPAs is powerful for multiple reasons,” he said. One reason being that it creates a source of referrals for the advisors.
Hughan said John Hancock has had success using virtual meetings and CE credits to educate advisors. "We're really trying to meet them where they want to be communicated with," he said before stating that company sales were up more with virtual meeting attendees than with those advisors who did not dial in.
Other panelists at the College Savings Foundation conference included Tom Morgan, the director of U.S. wealth advisory at BlackRock, and Bill Wostoupal, the executive vice president of sales at NorthStar Financial Services.