NU Online News Service, March 11, 4:08 p.m. – Manulife Financial Corp., Toronto, says Section 529 college savings plans are catching on with U.S. financial advisors
Seventy-four percent of the financial advisors it surveyed in December 2001 said they were selling 529 plans, and advisors say the clients who buy the accounts make their decisions quickly.
Sixty-five percent of the clients who opened 529 accounts did so within two weeks after discussing the program with their advisors, advisors reported.
Manulife was expecting high-income clients to flock to the program to take advantage of the generous tax breaks and estate-planning opportunities it offers. But company researchers found that 51% of the account holders are parents and 57% have annual household incomes between $50,000 and $100,000.