New research reveals knowledge gap on 529
plans
TD Ameritrade Holding Corporation (NASDAQ: AMTD) today announced
a series of improvements to the TD Ameritrade 529 College Savings
Plan effective November 18. The plan is available nationally and is
one of four 529 plans offered by the Nebraska Educational Savings
Plan Trust and administered by the Nebraska State Treasurer. The
competitively priced plan will become the first to offer socially
aware portfolios (also known as an Environmental, Social and
Governance or ESG offering), along with its core traditional
investing options.
“At TD Ameritrade, we are pleased to be the first to offer
investors ESG portfolios as part of our updated 529 College Savings
Plan,” said Dara Luber, senior manager of Retirement at TD
Ameritrade. “This will be a welcome improvement for those in the
thick of investing and saving college funds for their children who
are seeking strategies to better align with both their investing
objectives and their values. There is growing demand to invest in
companies with stronger ESG practices, particularly among the
younger generations.”1
While 529 savings plans can be an effective investment vehicle
to help cover education expenses, confusion still abounds.
According to a new survey conducted by The Harris Poll on behalf of
TD Ameritrade, American parents aren’t aware of the many benefits
of 529 plans:
- Less than a third (32%) know that withdrawals from 529 plans
are free from federal tax
- Only six in 10 (59%) who have or are considering 529 plans are
aware that it can cover their children’s textbooks
- And even fewer (48%) know that it can cover school
supplies
- Just half (51%) who have or are considering 529 plans realize
on-campus housing can be covered
“The lack of understanding surrounding 529 plans may factor into
why six in 10 parents don’t have a 529 college savings plan and
don’t plan to start one, while those who do or plan to start one
lack confidence in how to take advantage of it,”2 said Luber. “At
TD Ameritrade, we’re working to bridge that knowledge gap and help
people better understand the choices available to them when it
comes to covering education expenses.”
The redesigned plan will leverage expertise from portfolio
consultant TD Ameritrade Investment Management, LLC (TDAIM) for
Age-Based and Static Investment Options and will be offered through
both direct-to-consumer and registered investment advisor (RIA) TD
Ameritrade channels. The investment structure will remain focused
on Age-Based, Static and Individual Investment Options and all
funds will be nonproprietary with no annual maintenance fees and no
account minimums. In addition, Age-Based and Static Investment
Options will now all be passive investments.
The TD Ameritrade 529 College Savings Plan (the "Plan") is
sponsored by the State of Nebraska and administered by the Nebraska
State Treasurer. The Plan offers a series of investment portfolios
within the Nebraska Educational Savings Plan Trust (the "Trust"),
which offers other investment portfolios not affiliated with the
Plan. Nebraska Educational Savings Plan Trust serves as Issuer. The
Plan is intended to operate as a qualified tuition program to be
used only to save for qualified higher education expenses, pursuant
to Section 529 of the U.S. Internal Revenue Code.
An investor should consider the Plan’s investment objectives,
risks, charges and expenses before investing. The Program
Disclosure Statement at
https://www.tdameritrade.com/account-types/education/529-plans.page,
which contains more information, should be read carefully before
investing.
Investors should consider before investing whether their or
their beneficiary’s home state offers any state tax or other state
benefits such as financial aid, scholarships funds, and protection
from creditors that are only available for investments in such
state’s qualified tuition program and should consult their tax
advisor, attorney and/or other advisor regarding their specific
legal, investment or tax situation.
Participation in the Plan does not guarantee that contributions
and the investment return on contributions, if any, will be
adequate to cover future tuition and other higher education
expenses, or that a beneficiary will be admitted to or permitted to
continue to attend an eligible educational institution.
Investments in the TD Ameritrade 529 College Savings Plan are
not guaranteed or insured by the FDIC or any other government
agency, and are not deposits or other obligations of any depository
institution. Investments are not guaranteed or insured by the State
of Nebraska, the Nebraska State Treasurer, the Nebraska Investment
Council, First National Bank of Omaha, TD Ameritrade, TD Ameritrade
Investment Management, LLC or their authorized agents or their
affiliates, and are subject to investment risks, including loss of
the principal amount invested.
The Nebraska Educational Savings Plan Trust serves as Issuer.
The Nebraska State Treasurer serves as Trustee and First National
Bank of Omaha serves as Program Manager, First National Capital
Markets, Inc. serves as Distributor, Member FINRA, SIPC. TD
Ameritrade, Inc. serves as sub-administrator. TD Ameritrade
Investment Management, LLC serves as Portfolio Consultant. First
National Capital Markets and First National Bank of Omaha are
affiliates.
TD Ameritrade, Inc. renders certain marketing and administrative
services to the TD Ameritrade 529 College Savings Plan. TD
Ameritrade Investment Management, LLC renders portfolio consulting
services to First National Bank of Omaha and the Nebraska
Investment Council. TD Ameritrade is a trademark jointly owned by
TD Ameritrade IP Company, Inc. and the Toronto-Dominion Bank. All
rights reserved. Used with Permission. Investment Products: Not
FDIC Insured. No Bank Guarantee. May Lose Value
Source: TD Ameritrade Holding Corporation
About TD Ameritrade Holding Corporation TD Ameritrade
provides investing services and education to approximately 12
million client accounts totaling approximately $1.3 trillion in
assets, and custodial services to more than 7,000 registered
investment advisors. We are a leader in U.S. retail trading,
executing an average of approximately 800,000 trades per day for
our clients, more than a quarter of which come from mobile devices.
We have a proud history of innovation, dating back to our start in
1975, and today our team of 10,000-strong is committed to carrying
it forward. Together, we are leveraging the latest in cutting edge
technologies and one-on-one client care to transform lives, and
investing, for the better. Learn more by visiting TD Ameritrade’s
newsroom at www.amtd.com, or read our stories at Fresh
Accounts.
About The Harris Poll The Harris Poll is one of the
longest-running surveys in the U.S., tracking public opinion,
motivations and social sentiment since 1963. It is now part of
Harris Insights & Analytics, a global consulting and market
research firm that strives to reveal the authentic values of modern
society to inspire leaders to create a better tomorrow. We work
with clients in three primary areas; building twenty-first-century
corporate reputation, crafting brand strategy and performance
tracking, and earning organic media through public relations
research. Our mission is to provide insights and advisory to help
leaders make the best decisions possible. The Harris Poll is
separate from and not affiliated with TD Ameritrade, which is not
responsible for their services or policies.
Survey Methodology This survey was conducted online
within the United States by The Harris Poll on behalf of TD
Ameritrade from August 8-14, 2019, among 1,015 U.S. adults aged 23
and older with at least $10,000 in investable assets. Key
populations include: 484 parents with children under the age of 18;
274 parents with children 18 and older. This online survey is not
based on a probability sample and therefore no estimate of
theoretical sampling error can be calculated.
1
https://s1.q4cdn.com/959385532/files/doc_downloads/research/2018/Socially-Responsible-Investing-Survey_research-data.pdf
2
https://www.amtd.com/files/doc_news/research/2019/college-savings-survey.pdf
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191024005181/en/
For Media: Becky Niiya, 402-574-6652 Director, Corporate
Communications rebecca.niiya@tdameritrade.com @TDAmeritradePR
For Investors: Jeff Goeser, 402-597-8464 Managing Director,
Investor Relations jeffrey.goeser@tdameritrade.com
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