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Education savings plan helped more than 100K students save for college since 2001
BOSTON, July 2, 2021 /PRNewswire/ - John Hancock
Investment Management, a company of Manulife Investment Management,
today celebrates the 20-year anniversary of the John Hancock
Freedom 529 education savings plan, an offering that has helped
American families save towards higher education since 2001. The
education savings plan has helped more than 100,000 students pay
for college and currently has approximately 230,0001
accounts in the program, with assets totalling over $6.4 billion.2
"We are proud to mark 20 years of success with the John Hancock
Freedom 529 plan and remain focused on helping families save for
college," said Andrew G.
Arnott, CEO, John Hancock Investment Management and head of
wealth and asset management, Manulife Investment Management,
United States and Europe. "As college costs only continue to
increase, we are pleased to offer this option to investors that
brings our multimanager expertise and, in partnership with T.
Rowe Price and the Education Trust
of Alaska, a level of investment
oversight that is hard to match with other 529 plans."
Through the utilization and implementation of the overall
investment guidelines established by the Education Trust of
Alaska, John Hancock Investment
Management and T. Rowe Price jointly
research and select asset managers for the plan's investment
options. The managers are continually monitored to help keep
investments on track.
"The 20-year partnership we have had with both John Hancock
Investment Management and T. Rowe
Price is a noteworthy anniversary for any education savings
plan offering consistency to our account holders. Simultaneously,
the plan has also made a significant difference to families and
their ability to pay for college," said Tammi Weaver, Trust Administrator for the
Education Trust of Alaska. "We are
pleased to help families pursue their children's education
goals."
For the past 50 years, the annual pay gap between those who earn
at least a bachelor's degree and those who don't has grown
increasingly wider. At the same time, college costs have increased
at a rate that has far outpaced the rise in cost of food, housing,
and medical care, which in turn has pushed each generation to take
on larger loans as a way to finance this cost. It is estimated that
34% of Gen Xers and 48% of Millennials have taken out a college
loan and are faced with debt ranging from $17,950 to $39,400,3 depending on the state, upon
graduation.
"There are also reasons to contribute to a 529 savings plan that
go beyond helping to save for a four-year university tuition for a
child – or what people traditionally think of when it comes to 529
savings plans. Education savings plans may also help with
apprenticeships, and estate and legacy planning," said John Bryson, head of investment consulting and
education savings at John Hancock Investment Management. "Speaking
with a financial professional can help investors decide which 529
plan may be the best fit for their family and help manage the
investment options, determine how much to invest, and oversee the
distribution phase when the time comes."
______________________
|
1
|
As of 12/31/20.
Source: T. Rowe Price
|
2
|
As of 5/30/21.
Source: T. Rowe Price
|
3
|
"Student Debt
and the Class of 2019," The Institute for College Access and
Success, 2020.
|
About John Hancock Investment Management
A company of Manulife Investment Management, we serve investors
through a unique multimanager approach, complementing our extensive
in-house capabilities with an unrivaled network of specialized
asset managers, backed by some of the most rigorous investment
oversight in the industry. The result is a diverse lineup of
time-tested investments from a premier asset manager with a
heritage of financial stewardship.
About Manulife Investment Management
Manulife Investment Management is the global wealth and asset
management segment of Manulife Financial Corporation. We draw on
more than a century of financial stewardship and the full resources
of our parent company to serve individuals, institutions, and
retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public
and private markets are strengthened by an investment footprint
that spans 17 countries and territories. We complement these
capabilities by providing access to a network of unaffiliated asset
managers from around the world. We're committed to investing
responsibly across our businesses. We develop innovative global
frameworks for sustainable investing, collaboratively engage with
companies in our securities portfolios, and maintain a high
standard of stewardship where we own and operate assets, and we
believe in supporting financial well-being through our workplace
retirement plans. Today, plan sponsors around the world rely on our
retirement plan administration and investment expertise to help
their employees plan for, save for, and live a better
retirement.
As of March 31, 2021, Manulife
Investment Management had CAD $764.1
billion (US $607.6 billion) in
assets under management and administration. Not all offerings
are available in all jurisdictions. For additional information,
please visit manulifeim.com.
About T. Rowe Price
Founded in 1937, T. Rowe Price
(NASDAQ-GS: TROW) is an independent global asset management company
with $1.34 trillion in assets under
management as of August 31, 2020. The
organization is focused on delivering investment excellence and
retirement services for institutional, intermediary, and individual
investors. Our strategic investing approach, driven by independent
thinking and guided by rigorous research, helps clients feel
confident in pursuing financial goals. For more information, visit
troweprice.com, Twitter, YouTube, LinkedIn, Instagram, or
Facebook.
About the Education Trust of Alaska
The Education Trust of Alaska
helps families provide for the increasing cost of education through
tax advantaged savings and investments in accordance with the
provisions of Section 529 of the Internal Revenue Code. The
University of Alaska serves as trustee
and T. Rowe Price Associates, Inc. serves as program manager. The
Trust offers three separately marketed 529 savings plans:
Alaska 529, marketed directly to
investors within Alaska; the T.
Rowe Price College Savings Plan, marketed directly to investors
nationwide; and the John Hancock Freedom 529, marketed nationally
through financial advisers. To learn more, visit
educationtrustAK.com.
John Hancock Freedom 529 is an education savings plan offered by
the Education Trust of Alaska,
managed by T. Rowe Price, and
distributed by John Hancock Distributors LLC through other
broker-dealers that have a selling agreement with John Hancock
Distributors LLC. John Hancock Distributors LLC is a member of
FINRA and is listed with the Municipal Securities Rulemaking Board
(MSRB). © 2021 John Hancock. All rights reserved.
If your state or your designated beneficiary's state offers a
529 plan, you may want to consider what, if any, potential state
income-tax or other state benefits it offers, such as
financial aid, scholarship funds, and protection from creditors,
before investing. State tax or other benefits should be one of
many factors to be considered prior to making an investment
decision. Please consult with your financial, tax, or other
professional about how these state benefits, if any, may apply to
your specific circumstances. You may also contact your state 529
plan or any other 529 education savings plan to learn more about
their features. Please contact your financial professional or
call 866-222-7498 to obtain a Plan Disclosure Document or
prospectus for any of the underlying funds. The Plan
Disclosure Document contains complete details on investment
objectives, risks, fees, charges, and expenses, as well as more
information about municipal fund securities and the underlying
investment companies that should be considered before
investing. Please read the Plan Disclosure Document carefully
prior to investing.
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SOURCE John Hancock Investment Management