What is the difference between a 529 plan and Backer?

CollegeBacker

Backer

Backer serves as your investment adviser, providing you with recommendations on how to best save for college. We help you invest your college savings in a 529 plan and select the right portfolio for your family. If you don't already have a 529 plan account, we help you enroll in a low-fee 529 plan that is highly-rated and provide investment advice as your child starts his or her journey toward college. (If you already have a 529 plan account, you can connect it to Backer to take advantage of our ongoing investment advice, account management features, and gifting platform.)

Once your account is set up, Backer makes it easy to manage your child’s college fund through our website or app. Through our platform, you can set up one-time or recurring contributions, check your progress towards your savings goals, and make changes to your investment portfolio selection. Once your child is ready to enroll in college, we help you make withdrawals to pay for qualified education-related expenses.

Our platform also lets you involve your family and friends in the savings process by creating a unique gifting page for your child that you can share on special occasions like birthdays and graduations. Your child's backers can continue to stay involved as your child progresses toward college, providing encouragement and motivation through contributions into the college fund. Backer is the only product on the market that creates a rich, social experience around college savings.

529 Plan

Your 529 plan is where your college savings will be invested. The plan serves as the investment manager and recordkeeper of your investment. You will receive account statements from your selected 529 plan. Backer will continue to serve as your investment adviser, helping you manage your 529 plan account and in making any investment changes, such as your portfolio selection.

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