The Markets March 3, 2011
FRC Sees Strong 529 Plan Growth
College savings plans have seen a 56% growth in assets over the past
24 months, according to industry data from Financial Research
Corporation (FRC).
Reported by PLANADVISER staff
Investor contributions to 529 savings plans have increased by 35% over the past two years, FRC reported, adding that broad market indexes have been positive over the last two years while volatility has decreased.
Investors have shifted back into longer-term investment products as well. FRC found net outflows of $1 trillion from money market mutual funds over the last two years.
“The dramatic growth of college savings plans is nearly 30% higher than previously projected. It is also worth noting that new accounts opened during this same time period increased by 15%,” said Paul Curley, Director of 529 College Savings Research at FRC.