Unlocking Potential: Navigating 529 Plans and Beyond in Education Planning

Education planning is critical in giving your clients’ children the chance to pursue their dreams and aspirations without financial constraints. Education planning is a multifaceted process that encompasses more than just setting aside funds for tuition fees. It involves meticulous research, strategic thinking, and informed decision-making.

Below are the key components you’ll want to account for when supporting your client through the education planning process.

Putting into Practice:

• How to Add a 529 Plan in the Facts
• Reports Dedicated to Education Planning
• Solutions for Funding Shortfalls

How to Add a 529 Plan in the Facts

Enter the 529 Plans your clients have for each of their children within Advanced Facts by choosing 529 Plans under Investments.

Once all 529 Plans have been entered properly, you can start to take advantage of the education reports.

Reports Dedicated to Education Planning

Within the Education Planning report family, there are a number of sub-reports that assist with planning dedicated to education.

• The Right Savings Plan: This report is a great place to begin if your client has no idea where to start when it comes to saving for a child’s education; it compares key features of the most common savings vehicles.
• Funding & Spending Details: This top education report shows each year through the end of the goal. The table displays savings and withdrawals from the funds dedicated to this goal, the amount spent on the goal, and the balance of funds at the end of each year.
• Cost of Waiting (Monthly): If your client is thinking of waiting to put money aside for their child’s education, this report shows how waiting to save increases the additional monthly amount required because the funds have less time to grow. The longer the delay, the greater the impact on the amount required.
• Cost of Education: With education costs significantly outpacing inflation, the total cost of a college education can become burdensome if you don’t start saving early, this report will help show your client the cost of their future education.
• Funding Your Education: This report shows where the client is with respect to their education funding needs.

Solutions for Funding Shortfalls

Now that you’ve had the opportunity to review costs and funding, it’s the perfect time to explore potential solutions to any funding shortfalls using the Options for Meeting Needs report. While still in the sub-report Education Planning category, this report deserves a special call out.

The Options for Meeting Needs report looks at the funding shortfall of the client’s education goal and provides solutions to close the funding gap. This report details how much more they need to save each month, put aside in bulk now, or, if necessary, what kind of reduction in costs would be required to meet their goal.

Additional Resources:

• Contributions to a 529 Plan
• How to Create a 529 Rollover
• Education Planning