CHET and 529 Plans Explained Part 1 #33
What plans have you put in place to make sure your kids or grandkids will have access to a quality higher education? Let’s face it, most people don’t think about this critical aspect of long-term investing until it’s too late! I don’t want to see smart and savvy financial planners like you get blindsided by this preventable scenario.
On this episode, you’ll hear part one of my two-part series where we will dive into the CHET plan and other 529 plans to explore how they work. I’ve always been a firm believer that the more information and understanding you have on a particular subject, the less intimidating and overwhelming it can be. I hope you pen and paper close by, you’ll want to take good notes on this episode - there’s no time like now to start planning for your future!
You will want to hear this episode if you are interested in...
What is a CHET plan? [1:00]
How a 529 plan works [3:30]
The great value of getting started early (especially in Connecticut) [9:30]
How the CHET plan has recently changed [11:30]
529 plans and analyzing risk [14:30]
Closing thoughts [17:00]
What is CHET?
Many of you may have heard of 529 plans - in short, they are a tax-advantaged investment vehicle designed to encourage saving for the future higher education expenses of a designated beneficiary. Since I live here in Connecticut, I have been able to participate in the CHET program for my son. To help families save for college, the State of Connecticut offers the Connecticut Higher Education Trust (CHET), Connecticut’s 529 College Savings Plan.
Recently, State Treasurer Shawn T. Wooden, CHET plan trustee, selected Fidelity to be the new program and investment manager for the CHET plan because of the experience we can provide to help Connecticut families reach their college savings goals.
Tune into this episode as I share my experience with the CHET program and why I think it is a great idea to start investing in future higher education expenses as early as possible!
Making the right investment decision
It has been an honor to serve many individuals and couples over the years who are just trying to do the right thing by investing in their child’s or their grandchild’s future with a 529 plan. Unfortunately, many people are unaware of how the plans work and what they should do to make sure their funds are doing what they are supposed to.
When it comes to 529 plans, each one is a bit different. With the CHET program, I am able to pick my risk tolerance and how much of my investments located in stocks and bonds. When planning for the long-term, you want to make sure that you are more risk-averse as you get closer to the time when you need to access the funds. Too many people just set their 529 plans and then forget about it - don’t let that happen to you! Join me on this episode as I explain how savvy investors like you can make the most of 529 plans like CHET and so much more!