529: A better way to save for education
Give your child a head start on their future education with a 529 plan.
Why save with a 529 plan?
When it comes to saving for higher education, the choices don’t have to feel overwhelming. Your Franklin Templeton 529 Plan makes saving for education easy for families. A 529 plan is a powerful tool for saving for education, offering both tax advantages and flexibility.
Tax advantages
Contributions to a 529 plan grow tax-free, and withdrawals are also tax-free when used for qualified education expenses like tuition, fees, books, and room and board. This can add up to more savings for f amilies like yours.
Flexibility
A 529 plan isn’t just for traditional four-year colleges. Whether your child dreams of becoming a physical therapist, a journalist, or an engineer, these funds can be used at a variety of educational institutions including two-year colleges, trade schools, and technical programs across the country.
A 529 plan is as easy as 1-2-3
Saving for your child s future education has never been easier with a Franklin Templeton 529 Plan.
1
Open an account
With a Franklin Templeton Plan, you can save for your child's future education on your terms—starting with as little as $25.
2
Choose an investment option and save regularly
Select from flexible portfolio options according to your investment comfort level or target enrollment year.
3
Withdraw for education expenses when you are ready
Any growth in your account is tax-free, and withdrawals are tax-free when used for qualified education expenses.
This is a hypothetical illustration to represent the effects of compounding assuming an annual rate of return of 7%. It does not reflect an actual investment, investment expenses, or any taxes payable upon withdrawal which would lower the amounts shown. Returns are not guaranteed and may be less than or greater than the amounts illustrated. Source: Franklin Templeton.
Get a head start on their future, your way
When saving for college, starting early can make a significant impact on savings. This chart shows two new parents who want to save for college – Liz (the blue line) and John (the yellow line.) While Liz starts investing today, John procrastinates for 5 years. In this example, John ends up with 40% less money than Liz when his child is ready to start college. Starting early can make a difference.
Don't worry about life's what ifs
Your Franklin Templeton account has more flexibility than you may realize. Your 529 savings can be used to help pay for college and universities, graduate programs, vocational and trade schools, or an apprenticeship that is registered and certified with the Secretary of Labor.
Regardless of the school, your 529 savings can also be used for a variety of qualified education expenses, including tuition, room & board, books, fees, computers, supplies and more.
More questions? Not a problem! Explore our 529 FAQs.
All investments involve risk including possible loss of principal.
Investors should carefully consider the 529 plan’s investment goals, risks, charges and expenses before investing. To obtain the Program Description, which contains this and other information, talk to your financial professional or call Franklin Distributors, LLC, the manager and underwriter for the 529 plan at (800) DIAL BEN/342-5236 or visit franklintempleton.com. You should read the Program Description carefully before investing and consider whether your, or the beneficiary’s, home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in its qualified tuition program.
Franklin Templeton’s 529 College Savings Plan is offered and administered by the New Jersey Higher Education Student Assistance Authority (HESAA); managed and distributed by Franklin Distributors, LLC, an affiliate of Franklin Resources, Inc.,
which operates as Franklin Templeton.
Investments in Franklin Templeton’s 529 College Savings Plan are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of New Jersey, Franklin Templeton, or its affiliates and are subject to risks, including loss of principal amount invested. Investing in the plan does not guarantee admission to any particular primary, secondary school or college, or sufficient funds for primary, secondary school or college.
This material is being provided for general informational and educational purposes and should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel and provided for educational and informational purposes only. Franklin Templeton does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact your results. Franklin Templeton cannot guarantee that such information is accurate, complete or timely; and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.