OT: CHET plans

[UC313]

First posted thread. Gentle.

My 4 year old just ended his 3 1/2 year run at daycare for a magnet school pre-k program and with that, im losing that run in tax deductions. We'd like to put tgat daycare money into a college fund for junior and CHET is an option. Any opinions for a fella?

 

[John]

First posted thread. Gentle.

My 4 year old just ended his 3 1/2 year run at daycare for a magnet school pre-k program and with that, im losing that run in tax deductions. We'd like to put tgat daycare money into a college fund for junior and CHET is an option. Any opinions for a fella?

Blue Horseshoe loves Anacott Steel.

 

[Matrim55]

Any opinions for a fella?

Don't get investment advice from an internet message board.

 

[MattMang23]

I used to work for the state treasurer. When I was there in 2006 we were heavily trying to recruit people to CHET. Don't know how many people are enrolled now, but very few were back then. The treasurer loves it though, I do know that. She's really made it a priority.

 

[wethyhusky]

First posted thread. Gentle.

My 4 year old just ended his 3 1/2 year run at daycare for a magnet school pre-k program and with that, im losing that run in tax deductions. We'd like to put tgat daycare money into a college fund for junior and CHET is an option. Any opinions for a fella?

I have been using CHET since my kids were little and have about 50K in it. Oldest 2 about to enter college and the big negative is the money is considered "mine" when doing the FAFSA. If you have a trusted relative (grandparent) that would open the account and you put money in, you will save a bunch when kids are ready to go to college.

 

[John]

I have been using CHET since my kids were little and have about 50K in it. Oldest 2 about to enter college and the big negative is the money is considered "mine" when doing the FAFSA. If you have a trusted relative (grandparent) that would open the account and you put money in, you will save a bunch when kids are ready to go to college.

we use CHET because it was easy to do and I was too lazy to research other plans, however other people that I trust have researched other State's CHET-type programs, and apparently CHET looks really bad in comparison. So long story long, don't forget that you don't have to be a resident to use a different State's program.

 

[David 76]

I have been using CHET since my kids were little and have about 50K in it. Oldest 2 about to enter college and the big negative is the money is considered "mine" when doing the FAFSA. If you have a trusted relative (grandparent) that would open the account and you put money in, you will save a bunch when kids are ready to go to college.

I have a HS senior too. I thought it was better to have the .money in my name. They require a lower percentage of what is in my name to be committed to the cost vs a higher percent of my kid's. ??

 

[David 76]

CHET is a good thing but it is always worth seeing if you can get a better return. Worst decision is not saving. IMHO

 

[UCweCONN]

When I was younger, I put all of my work bonuses into a CHET plan and also had direct deposits from my payroll for a while. However, I stopped contributing maybe ten years ago. I contributed about $22K and it's worth almost $50K now. I'm hoping my kid goes to a state school like Western or Southern and her education can be covered. She's going to be in college in a couple years. I have it in an aggressive stock portfolio but am thinking to shift it to a conservative portfolio soon to hold on to the profits (which are supposed to be tax free). It is true that the money is considered my asset and hurts my already non-existent chance of any type of financial aid for my kid.

 

[8893]

we use CHET because it was easy to do and I was too lazy to research other plans, however other people that I trust have researched other State's CHET-type programs, and apparently CHET looks really bad in comparison. So long story long, don't forget that you don't have to be a resident to use a different State's program.

I did the Virginia plan because they offered American Funds, which had a lot better investment options than the CT plan.

 

[Excalibur]

The options under CHET are in line with what you will find in most other 529's. The fund line up consists of the same basic options and you can select based on age and risk tolerance. The state plans are basically commodities at this point, but don't let that stop you from looking into other state's offerings.

 

[8893]

I have a HS senior too. I thought it was better to have the .money in my name. They require a lower percentage of what is in my name to be committed to the cost vs a higher percent of my kid's. ??

You are correct, as between you and your child. He's talking about having it put in someone else's name.

 

[shizzle787]

Don't get investment advice from an internet message board.

Especially if the advice is a little too good to be true and trips up the IRS.

 

[Doheny]

however other people that I trust have researched other State's CHET-type programs, and apparently CHET looks really bad in comparison.

Here is rating of plan performance:

2016 Three-year Top Performing Direct Plans Q2

Connecticut is 45th.

However, with CHET you can deduct contributions on your CT tax. So a $1000 contribution only costs $940. Long term you're better off with another states plan, if that state maintains a better rate of return than CT.
If you're using the funds within a few years you're better off with CHET.
It's kind of like choosing between a front-load and a no-load mutual fund.

 

[MilliniumPrince]

CHET is fine, but as others have said there are better options. I recommend taking a look at Utah's version. I am using CHET for my sweet little dictator...daughter.

 

[UC313]

Much appreciated thoughts and advice everyone!