Advisors Can Sway Boomers' View Of 529 Savings Plans, Survey Shows

Discussing college saving with a financial advisor also can strengthen parents' confidence in their advisor, the survey revealed. Of parents using an advisor, 84% thought their advisor understood their financial situation better after discussing college savings with them.

Another growth opportunity stemming from the 529 market can come from referrals, Coghan notes. Older boomers who are recent grandparents might not only be potential clients for 529s, but might also refer the advisor to their own adult children, who could be prospects for getting an early start on their college savings.

"Ask the 529 client who else might want to contribute to the account, such as godparents or friends looking for a place to do something with their savings," Coghan says. "This is not always comfortable for parents to do, but it's often well received."

He points to the Hartford survey finding that 43% of parents working with an advisor rely on contributions from grandparents to their college savings, either through regular contributions or a lump sum–compared to only 33% not working with an advisor who receive such contributions. In addition, 31% of those working with an advisor report receiving contributions from extended family members, vs. 25% of those not working with an advisor.

Helping boomer clients open 529 plans can put the financial advisor in a position to manage a larger share of the client's financial resources, Coghan says. Rather than creating a new savings program, a 529 account can often be a rollover opportunity in which assets currently in banks or other institutions, such as certificates of deposit or bonds, can come under the control of the advisor, he notes.

"It's also an opportunity to build good will," Coghan says, pointing to the survey finding that most clients thought their advisor knew them better after discussing 529 plans. "If you're not asking such questions, the client thinks you don't have their whole financial picture. If you're going to plan for their future financial needs, you're leaving something out without college planning."