NEW YORK, NY, May 24, 2016 /PRNewswire/ - Foresters Financial Services, Inc. proudly supports National 529 College Savings Day—a national college savings plan awareness campaign held May 29 to highlight the importance of 529 college savings accounts in paying for higher education expenses.
Now in its eighth year, the campaign is coordinated annually by the nonprofit group, College Savings Plans Network (CSPN), as part of a nationwide effort with more than 30 states organizing events to promote their own individual state 529 plans with some offering incentives for families to open accounts. Foresters Financial™ is promoting the event as well to raise awareness with clients through its network of more than 600 Financial Representatives in 42 branch offices nationwide.
"Opening a 529 Savings Plan is one of the best investments you can make for your child's college education," said Paul Prete, Vice President for Retirement Programs at Foresters Financial Services, Inc."Earnings in a 529 plan grow federal tax-free and will not be taxed when the money is withdrawn to pay college expenses. In addition, your state's 529 Plan may offer state tax deductions for contributions—and unlike Roth IRAs and Coverdell Education Savings Accounts, 529 plans have no income limits, age limits or annual contribution limits."
In general, 529 plans are college investment accounts sponsored by state governments and individuals can join any state plan they choose. While most 529 plans are designed as traditional savings-and-investment vehicles, some states also offer prepaid 529 plans, which allow savers to pay tuition at certain schools in advance at current rates.
"In addition, most state plans allow you to set up automatic investments that link to your bank account or payroll deduction plans," Prete added. "And with few exceptions, the named beneficiary has no legal rights to the funds so you can be assured that the money will be used for its intended purpose."
In the true spirit of this annual campaign, Prete hoped people will take the time to learn more about 529 college savings plans and encourages them to speak with a Foresters Financial Representative who can help choose the state 529 plan that's best for them.
Founded in 1991, CSPN is a national nonprofit association and the leading objective source of information about Section 529 College Savings Plans and Prepaid Tuition Plans—popular, convenient and tax-advantaged ways to save for college. An affiliate of the National Association of State Treasurers (NAST), CSPN brings together administrators of 529 savings and prepaid plans from across the country, as well as their private sector partners, to offer convenient tools and objective, unbiased information to help families make informed decisions about saving for college. For more information, visit the CSPN website at http://www.collegesavings.org/
To see what each state is planning for National College Savings Day, please visit: www.collegesavings.org/plan-by-state-map-2016.
*Foresters Financial is not affiliated with the College Savings Plans Network (CSPN).
About Foresters Financial Holding Company, Inc. (formerly First Investors)
Foresters Financial Holding Company, Inc.consists of a group of diversified financial services companies that include a registered broker-dealer, an investment adviser, a life insurance company and a transfer agent. Foresters Financial Services, Inc., a broker-dealer, helps everyday families reach their financial goals by offering solutions and guidance through its network of financial representatives working in 42 branch offices across the United States. Foresters Investment Management Company, Inc. is the investment adviser to the First Investors family of funds, which had nearly $11 billion in total assets under management as of March 31, 2016. Foresters Life Insurance and Annuity Company, Inc., a New York domiciled insurance company, offers a range of insurance and annuity products and maintains an "A" (Excellent) rating by A.M. Best1.forestersfinancial.com
Foresters is an international financial services provider with more than three million clients and members in Canada, the United States and the United Kingdom. We provide life insurance, savings, retirement and investment solutions that help families achieve their financial goals and make a lasting difference in their lives and communities. Foresters has assets of almost $14 billion, total funds under management of $34 billion and a surplus of $2.3 billion (all figures in Canadian dollars as of December 31, 2015) and maintains an "A" (Excellent) rating by A.M. Best¹. For more information, visit foresters.com.
Foresters Financial™ and Foresters™ are the trade names and trademarks of The Independent Order of Foresters, a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9 and its subsidiaries, including Foresters Financial Holding Company, Inc. (FFHC). Foresters Financial Services, Inc. is a registered broker-dealer and subsidiary of FFHC. Securities, life insurance and annuity products are offered through Foresters Financial Services, Inc. Insurance products are issued by Foresters Life Insurance and Annuity Company, New York, or The Independent Order of Foresters.
¹ An "A" (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. In assigning Foresters rating on July 1, 2015, A.M. Best stated that the rating outlook is "stable", which means it is unlikely to change in the near future. See ambest.com for our latest rating.
SOURCE Foresters Financial