Insurance Agent Forum

[529s.com]

I'm doing some research and looking for frank and honest feedback (bring it on!)

I run 529s.com, a web site that helps parents and grandparents learn about 529 savings plans. I know that insurance agents sell these plans, but I'm curious what value you'd place on 529 plan leads.

Some people I've talked to said they don't make much money from selling 529 accounts, but that it's a good hook for other business because you have a new client that you know has kids (and will later need car insurance for them, etc.)

I have listings pages for 529 "advisors" in each state, but I'd like your opinion on if you think this is worthwhile.

Thanks,
Andrew

[CHUMPS FROM OXFORD]

I would be interested in the leads...but I probably would not pay more than $2 per lead with a VERY generous and liberal return policy. Prospects would have to be pre-qualified.

Some brokers might pay more...and some mght not pay anything.

[padthaiforlunch]

How do I sign on to sell these plans?

[mmb98]

Originally Posted by 529s.com

I'm doing some research and looking for frank and honest feedback (bring it on!)

I run 529s.com, a web site that helps parents and grandparents learn about 529 savings plans. I know that insurance agents sell these plans, but I'm curious what value you'd place on 529 plan leads.

Some people I've talked to said they don't make much money from selling 529 accounts, but that it's a good hook for other business because you have a new client that you know has kids (and will later need car insurance for them, etc.)

I have listings pages for 529 "advisors" in each state, but I'd like your opinion on if you think this is worthwhile.

Thanks,
Andrew

I'd probably be willing to pay a few bucks for a lead like that if I could choose the zip codes. It would be a good way to supplement my term life sales, plus you never know what else might come up.

[DM77]

Originally Posted by padthaiforlunch

How do I sign on to sell these plans?

529s are typically offered through mutual fund companies or through the State itself. There are some compliance issues surrounding them, especially if you sell a plan that's not your state's plan. For example, here in Montana, the approved plan is through Pacific Funds (or the state's plan). The participant gets certain state tax benefits for funding the plan using the state approved plan. However, if I were to sell them a 529 say at American Funds or Franklin Templeton, then they don't get the state tax benefits. I have to explain why I sold them the A/F or F/T plan so FINRA doesn't have a cow. The state plan is typically CDs.

529's are fine. I'm finding that parents aren't funding their retirement plans adequately and prefer they max that out before funding their child's education. As they say, you can get a loan for college but you can't for retirement. Plus, a Roth IRA gives you much of the same tax benefit if the money comes out for education purposes. Sure, the Roth doesn't allow you to put in more than $5k/year but if you find someone isn't maxing out their Roths and employer retirement plan, then you'd best fund the Roth before doing a 529. Well, that's my advice anyway.

It would be great if more grandparents were funding 529s with lots of money but I'm not seeing that here in MT. There's an attitude that the grandkids already have too much and they need to struggle through just like they did to make it. I don't know if it's like that everywhere else but that's the feeling here.

[djs]

I think I actually lose money everytime I sell a 529 plan. Yes, the cost of overnighting the application exceeds the usual commission. Someday, I'll have someone who funds them better.

I sell them to existing clients as a benefit, rarely as the entry.

Dan