Attention college savers: If you (or someone you know) has invested in the WA State GET Plan for college tuition, keep September 12, 2018 well in mind. Up until then, you can get roughly 38% more for your GET units (over current prices) if you roll them over into WA state’s new 529 Plan for college savings. A 38% windfall is nothing to scoff off. This is a great deal for many, and should be carefully considered. First, I’ll explain what GET is, and then if it makes sense to switch to the 529 Plan.
The WA State GET program (Guaranteed Education Tuition) has been in place since 1997. Basically, it’s an insurance plan: The state guarantees that 100 GET units will fully fund one year’s worth of tuition and fees at WA’s highest-cost public university. GET unit pricing has varied widely, with the highest costs occurring 2011 to 2015, when to get 1 GET unit you had to pay between $163 and $172. Since then, WA state tuition has actually decreased. And performance of underlying investments has been very good for a decade. Hence the excess money for the incentive offer.
The offer: GET units, which are now priced at $103 ($106 as of August 1), will be valued at $143 each if they are rolled over into WA State’s 529 Plan by Sept. 12, 2018. What a deal! Should you go for it? … Read More