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Financing Education Is on Advisors’ Minds

By Crucial Clips     September 18, 2013
The following text is a transcript of a portion of a speaker's presentation made at an industry conference or during an interview. This transcript solely represents the view of the individual who spoke, and not the view of Financial Advisor IQ or any other group.

CHRIS LATHAM, FINANCIAL ADVISOR IQ: Hi. This is Chris Latham with Financial Advisor IQ. Students across the country are headed back to school, and advisors have been discussing education financing on Twitter.

Rick Kahler kicks us off by linking to a Forbes article that gives 21 steps to funding college education while preserving wealth. One of the things that’s mentioned in that link is 529 plans.

That’s also something that CFP Roger Wohlner applauded on his Twitter page, although he’s talking about Fidelity’s move to lower their management fees in relation to 529 plans. That might help clients who have teenagers who’ll be headed off to school in a few years.

Meanwhile, the CFP Board linked to an article where a New Jersey advisor had to set a couple straight on the need to prioritize their own retirement planning ahead of their kids’ college dreams.

On the wirehouse perspective, Merrill Lynch posted some tips for adults who are considering going back to school. This is a tack that maybe advisors would want to take with their own clients.

Some of the questions posed in the Merrill link include why the client might want to return to college anyway. Another consideration is whether the client’s employer could offer some tuition reimbursement. And one of the hardest questions is whether the client’s overall life circumstances may complicate going back to school. Think about health care costs, or an elderly parent in need of care.

The Merrill link caps it off with a handy online calculator that factors in everything from age to the type of university to the savings balance of the client, all of which factors into cost.

And for those advisors who serve clients who are educators, PLANADVISER has some tips regarding 403(b) plans, specifically, in regard to plan providers, how to determine if the plan provider actually allows independent advisors to get in on the action. And the next step is to figure out just how robust the product offering is for certain plan providers.

403(b) aside, PLANADVISER says that educators make for good clients when serviced properly, because they are loyal and prone to giving referrals.

That wraps up the buzz on Twitter. Please let us know how you discuss education or back-to-school needs with your clients. Maybe we’ll send you a message or mention you in the next video. Thanks.