will announce tomorrow that it will offer a new 529 program for New Hampshire. The Boston Behemoth already manages three 529 programs in New Hampshire, Massachusetts and Delaware. What makes the new program different will be that it will be part of Fidelity Advisors program.
The decision by New Hampshire to offer a broker-sold program to complement its existing no-load program managed is part of a discernable trend in the industry. Last week, for example, Virginia announced its decision to offer an additional program using American Funds investments and distribution. American Express Financial Advisors also recently won a second program as did Waddell & Reed.
, founder of SavingForCollege.com, said that more states are becoming interested in intermediary distributed program and for obvious reasons. Although more and more Americans are becoming familiar with 529s, these programs still need an added boost to attract assets.
Additionally, the process of saving for college is a natural fit for the estate planning services that advisors are providing to clients.
Interestingly, New Hampshire has no plans to cease offering the existing program which uses Fidelity no-load funds. Obviously, both Fidelity and the state are expecting there to be plenty demand for advisors' services since the new plan will offer load-only funds.
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