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College Savings is an Area that Cries Out for Planning

In an article appearing in Investment News, author Liz Skinner describes the findings of a survey by Fidelity Investments of 2,196 parents who have children expected to attend college.  What they learned should be important to any agent or representative serving this lucrative market.

“Families want more specific recommendations about how much they need save to cover the cost of college for their children, as most are on track to come up short of their goals by the time their kids head off to school,” Liz Skinner wrote.

According to the Fidelity Survey:

  • Only about 29% of families are saving enough to reach their college funding targets
  • Seven out of 10 of these families would like to receive more precise counsel on how much they should save to get each of their kids through school
  • That includes details such as whether they should aim to save enough to cover half or the full cost for each child, or whether they should plan for their kids to attend a state university instead of a private college

“College savings is an area that cries out for planning,” said Matt Golden, vice president of Fidelity Institutional Asset Management. “There’s a need for guidance at the individual level that advisers are in the best position to provide.”

One reason all financial professionals should pay attention to Mr. Golden’s call to action is that parents of college-bound students are all too often willing to sacrifice their own financial security and retirement to help cover the costs of education.  That’s why the number of retirees with student loan debt quadrupled in the last decade according to the Consumer Finance Protection Bureau.

Advisys helps its customers prepare a college funding analysis for their clients in just ten minutes or less.  To watch the video click here.

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