In 2004, I was pondering saving for my kids’ college tuition, considering my options between Washington’s Guaranteed Education Tuition program and the Missouri MOST 529. At the time, the GET credits were priced with an equivalent of a 2-year front-end load. Based on my relatively late start, I felt it was enough of an issue that I should stick with a 529.
I revisited this in 2010 shortly after the market had its 2008 meltdown. It was too late to really do the GET. Carolyn Adolph, the local NPR affiliate interviewed me. I couldn’t find the transcript, but I think I was feeling kind of dumb for going with a 529 vs the Washington State GET plan.
How did it work out?
Kiddo #1 attended a private, liberal arts college. The 529 covered approximately 60% of tuition, scholarships 20% and out-of-pocket the rest. The annual growth rate of the initial contribution was 5.98%. The annual tuition rate increased 5.58% (thus, we were keeping up, barely). It was pretty lean the years we had to front the difference.
Kiddo #2 attended a public, in-state university. COVID-19 hit midway, and they moved back home. By graduation, we had used only about 60% of the 529. They are now taking advantage of the 2025 tax law to roll it into a Roth IRA.