Part 1 of 4 – College Savings Series
What Is a 529 Plan, and Why Should You Care?
A 529 plan is a tax-advantaged savings account designed to help families pay for education—primarily college, but also private K–12 schooling, apprenticeship programs, and even student loan repayment (yes, they’ve upgraded). The money grows tax-free. Withdrawals for qualified education expenses? Also tax-free. It’s a rare kind of financial win—no tricks required.
In other words, it’s a simple tool with powerful outcomes—if you know how to use it.
So, why does this matter to you—the advisor, SMB owner, or marketer who’s juggling five tabs and a Slack ping?
Because a 529 plan is more than a savings tool. It’s a way to start meaningful conversations about values, goals, and future-proofing your clients’ lives.
A 529 plan is more than a savings tool. It’s a conversation starter about the future.
— Plum Direct Marketing
3 Reasons to Talk About 529 Plans with Clients
1. It’s a Doorway, Not a Detour
Bringing up 529 plans isn’t a pitch—it’s a trust-building moment. Clients open up when you ask about their kids’ futures. Suddenly, you’re not just managing retirement portfolios or selling services. You’re helping people dream smart.
2. Most Clients Don’t Know This Exists
Despite being available for decades, the average family has no idea how a 529 plan works. You’ll be ahead of 90% of their financial contacts—just by explaining it clearly.
Want to help your clients explore their options? Here’s a breakdown of the best 529 plans by state and category that you can share or review.
3. It Feels Personal—Because It Is
A college savings plan isn’t just numbers on a spreadsheet. It’s prom photos, dorm move-ins, and proud graduation selfies. The emotional tie-in makes this a powerful relationship tool that just so happens to also be great financial strategy.
Advisors: Use This as a Conversation Starter
You don’t need a three-hour seminar or a branded PDF with graphs. Try this:
“Hey [Client Name], have you ever thought about setting up a 529 plan for [Child’s Name]? I’ve been seeing more families ask about college planning, and it’s a surprisingly simple, tax-friendly option.”
That’s it. That one line opens the door to an ongoing, trust-based client relationship.
SMBs: Offer It as an Employee Benefit (Even Informally)
You don’t have to start a 401(k) to support your team’s future. Start by educating your staff on 529 plans or pointing them to a trusted advisor. It shows that your company values more than just productivity—it values people and their futures. Guess what that helps with? Retention, morale, brand perception… basically, all the things your culture slide deck hopes to do.
FAQs Clients Will Throw at You (So Be Ready)
Can anyone open a 529?
Yes—parents, grandparents, rich uncles, bosses with a heart.
What if my kid doesn’t go to college?
You can change the beneficiary, or use it for other education options. Worst case, you pay a small penalty on earnings.
Are there limits?
Yes, but they’re generous. Plus, some states offer extra tax breaks.
Want to go deeper into 529 rules straight from the source? Here’s the official IRS Q&A on 529 plans.
TL;DR
529 plans are simple, effective, and wildly underused. And unlike most good intentions, they actually help people stick to their long-term goals. If you’re in the business of relationships—and let’s be honest, you are—there’s no better time to bring this up than now.
Hint: 5/29 Day is coming. You’ll look brilliant if you mention it before May 29.
Ready to Start the College Savings Conversation?
Whether you’re a financial advisor, a business owner, or just someone who believes in smart planning, here’s your next step:
Take one of the conversation starters in this post and use it with a client or team member today.
It could be a quick line in your next meeting, a sentence in your newsletter, or a simple email check-in. That’s all it takes to open the door.
Looking for more ideas or just want to bounce around a draft?
Feel free to reach out—we’re always happy to talk strategy.
Want to go deeper? This post is part of our College Savings Week series, helping advisors make the most of 529 plans and client conversations around education funding.
Explore the rest of the series:
