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Oregon College Savings Plan investments take a serious dip
Oregon College Savings Plan has lost 25 percent of its worth, Oppenheimer fund has lost 38 percent in recent months
Lauren Sigel
Issue date: 2/5/09 Section: News
In the case of the Oregon 529 College Savings Plan, people are investing less money into future higher education funds for their college-bound children.
A recent board meeting of the Oregon College Savings Plan resulted in the drop of a poorly performing fund due to steep investment losses.
A 529 plan is, according to the Oregon 529 College Savings Network's official website, a "state-sponsored, tax-advantaged investment vehicle designed to help and encourage families to save for the higher education expenses of a designated beneficiary."
All withdrawals are both state and federal tax-free if used for "qualified college expenses" such as tuition, books and room and board.
The Oregon College Savings Plan is one of three savings plans that the Network currently offers, and each plan has its own set of investment options. The other plans include the MFS 529 Savings Plan and the Oppenheimer Funds 529 plan.
The savings plan has lost about 25 percent of its worth within the last few months, but it is the Oppenheimer fund that is turning heads with a loss of 38 percent of its total value. This decline has led to a nine percent drop in the plan's most conservative option, which is marketed towards families with children in college or about to start.
Jill Petreny, a manager for Marketplace West concept EBGB's and a mom of a freshman college student, said that poor marketing of the 529 plan might be a reason for sagging investment levels.
"I've personally never heard of the Oregon 529 College Savings Plan," Petreny said. "I might have actually invested in it had I known more about it."
"The investment decline is probably a combination of a general unawareness of the program and the fact that people are scared of investing in government-sponsored programs due to the economy's state."
Chief Oppenheimer Funds investment officer Kurt Wolfgruber said in a recent article that "the market upheaval was unprecedented and steps taken to shore up the fund - such as investing in high-quality securities - actually worked against it."
A recent board meeting of the Oregon College Savings Plan resulted in the drop of a poorly performing fund due to steep investment losses.
A 529 plan is, according to the Oregon 529 College Savings Network's official website, a "state-sponsored, tax-advantaged investment vehicle designed to help and encourage families to save for the higher education expenses of a designated beneficiary."
All withdrawals are both state and federal tax-free if used for "qualified college expenses" such as tuition, books and room and board.
The Oregon College Savings Plan is one of three savings plans that the Network currently offers, and each plan has its own set of investment options. The other plans include the MFS 529 Savings Plan and the Oppenheimer Funds 529 plan.
The savings plan has lost about 25 percent of its worth within the last few months, but it is the Oppenheimer fund that is turning heads with a loss of 38 percent of its total value. This decline has led to a nine percent drop in the plan's most conservative option, which is marketed towards families with children in college or about to start.
Jill Petreny, a manager for Marketplace West concept EBGB's and a mom of a freshman college student, said that poor marketing of the 529 plan might be a reason for sagging investment levels.
"I've personally never heard of the Oregon 529 College Savings Plan," Petreny said. "I might have actually invested in it had I known more about it."
"The investment decline is probably a combination of a general unawareness of the program and the fact that people are scared of investing in government-sponsored programs due to the economy's state."
Chief Oppenheimer Funds investment officer Kurt Wolfgruber said in a recent article that "the market upheaval was unprecedented and steps taken to shore up the fund - such as investing in high-quality securities - actually worked against it."
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Your Portland Financial Advisor
posted 3/14/09 @ 1:56 PM PST
Chief Oppenheimer Funds investment officer Kurt Wolfgruber said in a recent article that "the market upheaval was unprecedented and steps taken to shore up the fund - such as investing in high-quality securities - actually worked against it. (Continued…)
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