Have you lost money in your 529?

Adam Gana

Attorney
(866) 735-1102 Ext 301

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We have all suffered losses over the past few months. The stock market is down over 43% since the third quarter of 2007. Losing our money is hard enough but losing money saved for our children's education is unbearable. 529s were designed as a safe and sensible way to save, tax free, for your children's college expenses.However, as the world markets experienced unprecedented growth 529's broadened their risk exposure by offering too many investment strategies that over-concentrated positions in risky stocks and bad investments strategies. As the Wall Street Journal reposted on March 20, 2009, "Of the 3,506 options (including funds with different sales charges) in college plans tracked by Morningstar, 93% fell in value over the past year, and 1,098 lost at least 40%." One of the worst performing funds was the Oppenheimer Core Bond fund (OPIGX) and the Oppenheimer Champion Income Fund (OCHBX, OPCHX and OCHCX) offered by 529 plans in Oregon, Texas, Maine and New Mexico. The Oppenheimer Core Bond Fund fell 36% last year, vs. a loss of about 5% for the average intermediate-term bond fund, according to Morningstar. Napoli Bern Ripka LLP is investigating losses in 529's and specifically in losses caused by the Oppenheimer Core Bond fund and the Oppenheimer Champion Income fund. If you suffered these types of losses contact Adam Gana.