Fidelity College Savings Indicator Finds Parents Are Projected to Meet Only 21 Percent of Future College Costs - Three Point Decrease from One Year Ago

Business Wire, Oct 1, 2008

College Planning Resources for Parents

To help families make better informed college planning decisions, Fidelity offers complimentary financial guidance online, through dedicated college planning phone representatives, and access to educational seminars at the firm's 126 Investor Centers across the country. In addition, parents can visit Fidelity's College Planning Web Portal on Fidelity.com to research and learn more about available college savings options, so they can make the right choices that may facilitate a successful college funding experience.

Fidelity's College Planning Web Portal features several tools and resources, including the new College Savings Evaluator. In a few short steps, Fidelity's College Savings Evaluator helps investors establish their college savings priorities, and identify the savings vehicle which may be right for them.

For those individuals for whom a 529 may be the right savings vehicle, Fidelity's College Planning Web Portal (http://www.fidelity.com/college) also hosts a 529 Plan Comparison Tool that allows investors to conduct a side-by-side review of the features and benefits of hundreds of college savings plans, and a 529 State Tax Deduction Calculator, which helps investors determine if there is a significant tax advantage to investing in the 529 plan offered in their state of residence.4

529 college savings plans also represent an opportunity for advisors to strengthen client relationships by incorporating it as part of a broader financial planning interaction. Fidelity provides advisors with 529 plan information, marketing support, and online planning tools such as the 529 State Tax Deduction Calculator and the College Savings Planning tool. For more information about Fidelity's 529 resources, advisors can visit https://advisor.fidelity.com or call Fidelity at 1-800-544-9999.

About the Fidelity College Savings Indicator

As part of the study, Fidelity conducted a survey of parents with college-bound children of all ages. Parents provided data on their current and projected household asset levels including college savings, use of an investment advisor and general expectations and attitudes towards financing their children's college expenses.

Using Fidelity's proprietary asset-liability modeling engine, the firm was able to calculate future college savings levels per household against anticipated college costs. The results provide insight into the financial challenges that lie ahead for many parents.

Data for the Indicator (number of children in household, time to matriculation, school type, current savings and expected future contributions) are collected by Research Data Technology, an independent research firm, through a national online survey of almost 3,000 parents nationwide with children aged 18 and younger who are expected to attend college; with household incomes of $30,000 a year or more; and are the financial decision makers in their household. College costs are sourced from the College Board's Trends in College Pricing 2007. Future assets per household are computed by Strategic Advisors, Inc. (a registered investment adviser and wholly owned subsidiary of FMR LLC). Within Fidelity's Asset-Liability model, Monte Carlo simulations are used to estimate future assets at a 75 percent confidence level.