Making a bigger foray into the 529 college savings plan market, Putnam Investments was selected as the program manager for Nevada’s 529 College Savings Plan, which is sold nationwide through financial advisors, effective October 1.
The advisor-sold 529 program–to be called the Putnam 529 Plan for America–is expected to break new ground in the college savings industry in that it will offer a comprehensive tuition payment analysis tool to help further engage participation of families and individuals–working with their advisors–in the college savings process, as well as provide advisors with a dedicated portal to manage all Putnam 529 client plans with a single login. In addition, the program is expected to incorporate innovative investment strategies into its offerings.
Putnam has been managing Ohio’s 529 college savings plan for the past 10 years, but that contract ends as of Sept. 30.
Bob Reynolds, president and CEO of Putnam, told AdvisorOne in an interview on Thursday that Nevada’s desire to ensure the advisor-sold plan was “priced very, very competitively and the idea that [Nevada] wanted to have something very different than what’s in the 529 market, appealed to [Putnam] greatly.” More specifics about the advisor-sold plan will be available on October 1, Reynolds says.