Administration March 3, 2011
FRC Sees Strong 529 Plan Growth
March 3, 2011 (PLANSPONSOR.com) – College savings plans have seen 56% growth in assets over the past 24 months, according to industry data from Financial Research Corporation (FRC).
Reported by PLANSPONSOR staff
College savings plan growth is beating expectations: Investor contributions to 529 savings plans have increased by 35% over the past two years, FRC said. In a news release, FRC said all broad market indexes have been positive over the last two years while volatility has decreased.
Investors have shifted back into longer-term investment products; investors have posted 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.