Sunday, January 18, 2009

Revisit Washington GET program

In an earlier post, I reported Washington GET program's high initial cost. For example, in 2004, it cost $61 per unit while the payout for that year was $51 per unit. I earned a low return in 2007. It seemed wiser to put the money elsewhere.

Due to last year's Wall Street disaster, I had lost significant amount in my other 529 plan, namely, UNIQUE from New Hampshire. It is terrible since my older son is already in college :(

The money in GET will probably never lose value. Further more, due to Washington state's big deficit this year, there would be a 20% budget cut to state university funding. As a result, it is very likely to have a big hike in tuition. Since GET payout grows with the tuition, this could translate to a very good return on investment.

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