Thursday, November 12, 2009

529 Dropouts - Yahoo! Finance


"When Michael Singer of Coral Springs, Fla., started saving for his children's college education about six years ago, he relied mainly on a 529 savings plan sponsored by the state of New Mexico. Then the 49-year-old high-school teacher lost about half of his 529 savings because of an Oppenheimer bond fund that had bet heavily on mortgage-backed securities. Mr. Singer decided not to make the big contribution he had planned to his 529 this year, and he is now saving for college on his own."

With all the articles that have been written about the stock market decline, the vast majority of them were focused on 401K and IRA plans. This is the first one I've seen that even mention 529's. It's difficult to imagine a hard working middle class couple taking a hit on their house, 401K and 529 college fund all at the same time. It must also be hard on you Grand Parents out there who also set up a 529 for the grand kids only to see it take a serious decline. My heart goes out to all of you.

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