In Practice November 7, 2008

Advisers Help Grandparents with College Savings

Grandparents want help from advisers creating a savings plan to contribute to their grandchildren’s college education, according to research from The Hartford.
Reported by

The Hartford—a provider of 529 college savings plans—said its research found that grandparents might be open to hearing more about how 529 savings plans can help them save for their grandchildren’s education. Although many grandparents want to contribute financially to their grandchildren’s education, the majority (64%) are not currently saving anything.

Advisers can help coordinate between parents and grandparents to fund college education for their children and grandchildren, according to a release from The Hartford. As adults are struggling to find the funds for their children’s college education in this economy, most grandparents (65%) are willing to contribute. However, many grandparents have not discussed it with their adult children—it seems a lack of communications between the generations has stood in the way. Three-fifths of grandparents say their children could benefit with a discussion with a financial advisers about a college savings strategy.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

“This statistic presents a wonderful opportunity for financial professionals to initiate the college savings conversation between their Boomer clients and the clients’ children,’ said Jeff Coghan, director of
529 programs at The Hartford, in the release. “Advisers can help their clients and potentially grow their business by tapping into the client base of the younger generation.’

Although all of The Hartford’s survey participants currently work with a financial adviser, only 33% have had a discussion with their adviser about college savings for their grandchildren. Feedback from those who have had a college savings conversation is positive: 76% said the discussion came at the right time; 88% said their adviser brought up tools and strategies for college savings; and 61% asked their adviser for more information about college savings options, according to The Hartford.

Nearly half of The Hartford’s survey participants who do use a 529 college savings plan enrolled in the program at the advice of their own financial professional. Participants also enrolled because 529 plans make it easy to save (61%), offer tax benefits (40%), and allow them to maintain control over the investments (59%).

The Hartford’s third annual college savings survey was conducted online by Praxis Research Partners in July, surveying 607 grandparents who have at least one grandchild under the age of 15 and who work with a financial adviser.


Products November 7, 2008

Securian Adviser Tool Helps Clients Move Past Debt

Securian said it now offers advisers tools they can use to help clients face their issues with debt and develop a strategy for setting up a steady stream of income in retirement.
Reported by

“Our research shows that debt is the barrier to saving for retirement at all ages,” said Kerry Geurkink, director, Annuity Marketing, Securian Financial Group, Inc., in a press release. “Advisers help their clients prepare for retirement. That’s why we say their biggest competition for the client’s time and attention is the client’s debt.”

Securian said the program is aimed at helping advisers assess debt for their clients, and develop a strategy for paying it down while building retirement reserves. “Life after debt: Helping your clients retire smart,” uses Securian research to educate clients about Americans’ attitudes toward debt, how they use it, and how debt affects their ability to save for retirement.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

“This is not a debt counseling program, nor is it a finger-wagging lecture about using money wisely,” said Geurkink. “It’s an education process aimed at helping clients understand the reality of their financial situations and how preparing today can help them achieve financial security in the future.”

The program includes several educational pieces including a presentation for advisers to give to a client or group of clients that builds a case step by step for facing debt and dealing with it, according to Securian. Also, the Financial Toolbox at Securian.com includes a calculator and work sheets that can help consumers figure out how quickly they can pay off any level of debt.

Securian’s research shows that nearly half of the 2,000 Americans surveyed place a higher priority on paying off debt than saving for retirement. And that statistic cuts across all age groups, from Generation Y to the Silent Generation. In fact, Securian’s study shows that nearly one-fourth of the retirees interviewed had as much or more debt as assets at retirement, according to the release.

«