"Houston, we've had a problem..."
What to do to Prevent A(nother) 35% Decline in College Savings:
College Costs
College Savings
PROTECT ASSETS.  In 2008, three of the largest 529 Plan's top-selling funds posted the following annual results: -30.06%, -36.80% and -39.07%.  The stockbrokers who sold parents the 529s probably said what stockbrokers always say when the market suffers one of its inevitable major declines: "It's not a problem; we're in for the long term."  But what if your child was a high school junior or senior in 2008?  Let's take a quick look.

Suppose you had accumulated $50,000 in her 529 plan and were ready to use some of it in the Fall of 2009 to offset the cost of college.  How much would the accumulated $50,000 be worth is 2009, were we to pick the middle-performing fund?  $31,500.  How did that "long term" thing work out?

What if there were far safer alternatives for Juniors and Seniors than holding 529 Plans that invest in 100%-Principal-At-Risk funds?  What if there were ways to provide 100% Principal PROTECTION for kids about to leave for college?  There are, contact us.

"Parents can go into our Age-Weighted plans," some might say.  But what is that, really?  For many 529s, the "age-based" portfolios are just a shift from 100% principal-at-risk stocks to 100%-principal-at-risk-bonds.  In an era of record-low interest rates, bonds may be less safe than stocks!

See Sample Solutions, here.
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