Local News

A gift that lasts for years to come

By Wendy B. Dore, Special to JTNews

    Like most Jewish

    families, our children’s education is a very high priority

    in our financial planning. Almost as soon as they were born,

    we began setting aside funds to contribute toward their

    college expenses.

   

    The cost of

    college, however, has risen faster than their savings could

    grow, outpacing the rate of inflation on a regular basis.

    The cost of an in-state four-year college has increased 130

    percent in the last 12 years.

   

    Even with the

    dot-com boom factored in, unless one was a major Microsoft

    investor, or had lucked into other investments, earning an

    after-tax return that was big enough to fund a college

    education was tough. And with the decrease in investment

    values in the last few years, many of us have had reality

    checks.

   

    That’s why our

    family invested for our son’s college in Washington’s

    Guaranteed Education Tuition, or GET, program. GET is

    Washington’s IRS Section 529 Prepaid Tuition Plan.

   

   

    GET allowed us to

    pre-purchase units of tuition several years ago, at the unit

    price in effect at that time, and use them now, at no

    additional cost. This means if you purchase one year’s worth

    of tuition units today, you will still have one year of

    tuition when the student enters college, no matter how much

    tuition has increased.

   

    The value of GET

    units grows tax-free if used for college, and the value is

    100 percent guaranteed by the State of Washington to keep

    pace with the rapidly rising cost of college. Just since we

    bought our son’s units, tuition has increased nearly 40

    percent. That means that this portion of his college fund

    has grown nearly 40 percent, tax-free, in three-and-a-half

    years. I don’t know of many other investments that have

    performed that well in recent years. If the student does not

    attend college or receives scholarships, the funds are

    refundable.

   

    In addition,

    Washington’s GET units can be used at over 35,000 colleges,

    universities, technical or trade schools across the country.

    Our son is attending college this year on the East Coast

    using his GET units. With GET, the cost of his attending an

    out-of-state school is closer to the cost if he had chosen

    an in-state school.

   

    That was

    important to us. We wanted our son to have as much choice as

    possible when he selected a college.

   

    GET units can be

    purchased for any Washington State resident and can be

    purchased either in a lump sum or over time on a monthly

    payment contract, providing enough flexibility to meet

    almost any budget.

   

    Anyone can

    contribute to a GET account. Grandparents, other relatives

    or friends can open or contribute to a GET account for any

    student. GET accounts can be opened for students of any age,

    from newborn to adult. GET units make great Hanukkah gifts

    (or birthdays, graduations, etc.) It can be the gift that

    really does keep on giving throughout a child’s lifetime.

   

    And one thing you

    always know — the cost of college will continue to rise.

    Currently, it costs about $69,000 to attend one of our

    in-state research universities for four years. It is

    expected that in 18 years (when today’s infants will begin

    college) it could be as much as $200,000, if one assumes an

    annual increase of 7 percent.

   

    One hundred GET

    units are equal to one year of tuition and state-mandated

    fees at Washington’s most expensive public university. If

    the student attends an out-of-state or private school, or a

    technical/trade school, the value of the units in Washington

    can be applied to the cost. Any difference is the

    responsibility of the student. You may purchase as few as

    one or up to 500 total units per student.

   

    If the student

    attends a community or regional school, any excess units can

    be applied toward room and board, books or other qualified

    educational expenses.

   

    Our family is

    glad we have GET units for our son. If you are interested,

    don’t delay. GET’s annual enrollment period of September 15

    through March 31  is open now.

   

    To get more

    information, simply visit the GET Web site at www.get.wa.gov,

    or call 1-877-438-8848. But act now — the unit price is now

    $61, but it will increase for the next enrollment period.

   

    GET is a great

    way to ensure peace of mind that you have provided for your

    children’s college expenses.

In addition to being a happy GET account owner Wendy Dore, is associated with the GET Program.