Section 529 And CHET
Let's review a few investment choices for small savers looking to send a child or two to college.
The Connecticut Higher Education Trust, or CHET, is open to new investors. With CHET, you may open an account with as little as $25 -- or $15 if you agree to have this sum deducted automatically from your weekly or biweekly paycheck.
CHET may be described as a basket of mutual funds designed to help parents and grandparents save for a child's college education (more on CHET below).
Several mutual fund companies, including Invesco, Strong, TIAA-CREF, and USAA will also let you open accounts for as little as $50 a month. You must, however, agree to have $50 a month withdrawn from a checking or savings account to open an account.
But CHET, now managed by TIAA-CREF, might offer the most sensible deal of all for most savers looking to build up a kitty for college, said Joseph F. Hurley, an accountant and author of "The Best Way to Save for College: A Complete Guide to Section 529 Plans."
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