finra

FINRA

For Release:
Contacts:
Tuesday, June 4, 2002
Nancy A. Condon
202-728-8379
Michael Shokouhi
202-728-8304

NASD Launches College Savings Investor Education Initiative

Washington, D.C. — NASD has launched an investor education effort to help families better understand 529 Plans and other college savings options. As part of the initiative, the NASD unveiled a new publication, Smart Saving for College - Better Buy Degrees: 529 Plans and Other College Saving Options, to help families better understand their college savings choices.

 

More Americans than ever before are investing in 529 Plans. Almost every state offers at least one 529 Plan, and the tax advantages, investment options, restrictions and fees can vary a great deal. Together with Coverdell Education Savings Accounts, saving bonds and custodial accounts, families now have a number of tax-advantaged ways to save for college.

 

Smart Saving for College explains the different tax-advantaged alternatives available for saving for college, detailing the advantages, disadvantages and costs of these options and listing resources families can use to obtain more information on saving for college. The on-line version also provides interactive calculators to take the math and the mystery out of questions like: "How much do I need to save for college?"

 

"Every family needs to know its options for saving for college - plainly, simply and without bias. Only when families understand the risks and rewards of each college saving alternative can they make a smart choice," said Mary L. Schapiro, President of NASD Regulation, Inc.

 

The online version of Smart Saving for College is available on the NASD Website, www.nasd.com. A print version can be ordered by calling 240-386-4200.

 

The National Association of Securities Dealers, Inc (NASD) is the largest securities-industry, self-regulatory organization in the United States. For more information about the NASD and its subsidiaries, please visit the following Web site: www.nasd.com.