Educating Clients On Confusing Choices Like 529 Plans Can Become One Of Your Best Prospecting Tools Hot

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You can start by looking at the criteria you used for picking the plans you are using for your own children.
 
The Wall Street Journal did a survey of financial advisors to find out just such criteria. The common denominator were that fees had to be low.
 
Five other criteria were:
 
1. Top notch customer service: The top two criteria here were a user-friendly website and knowledgeable reps.
 
2. Rewards programs: Most rewards programs consist of applying percentages of anywhere from 1% to 25% of purchases to your child’s 529 plan.
 
3. Tax breaks: Many states offer state income tax deductions for investing in a 529. Most often, the 529 has to be within that state. The tax advantages of investing in a state 529 plan may outweigh the low cost aspects of other plans.
 
4. Asset classes for investment: The plan should offer a wide selection of investment options including small- to mid-cap equity options two international equity options, and a few fixed-income options.
 
5. Age-based options: 529 plans don’t automatically rebalance and many investors set up the plans and then forget about them. Age-based investment plans that grow more conservative as the child gets closer to college age provide a more automated approach.

These are great opportunities for meeting with your clients and setting up educational events that double as networking events where clients can bring their friends.

 

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