I have a 529 account for both of my children in the Oregon College Savings Plan. [Why? See my earlier post about cost disease - I am sure college is just going to get relatively more expensive and I am trying to prepare] Luckily my kids are years away from enrolling in college because these funds have taken a hit thanks to the stock markets shedding of value (as they are years off, most of the investments are in stocks). Surprisingly, however, The Oregonian breaks the news that the supposedly 'conservative' funds (which are supposed to be mostly invested in bonds) managed by Oppenheimer have lost 38 percent of its value! Holy smokes, that is inexcusable. These are the funds you switch the money to as your kids get close to enrolling in college to be safe. There is no problem with returns in the bond market - so what happened - why would a fund manager play games with a fund that no one expects high returns from anyway? This is bad news for Oregon's higher education aspirations, at the very moment the state is trying to maintain its investment in its kids educations. It also seems indicative of a real problem in the culture of Wall Street (as if we needed more evidence) where ego and personal reward is more important than the business itself.
Thursday, December 18, 2008
Oregon's College Savings Plan Takes a Hit
I have a 529 account for both of my children in the Oregon College Savings Plan. [Why? See my earlier post about cost disease - I am sure college is just going to get relatively more expensive and I am trying to prepare] Luckily my kids are years away from enrolling in college because these funds have taken a hit thanks to the stock markets shedding of value (as they are years off, most of the investments are in stocks). Surprisingly, however, The Oregonian breaks the news that the supposedly 'conservative' funds (which are supposed to be mostly invested in bonds) managed by Oppenheimer have lost 38 percent of its value! Holy smokes, that is inexcusable. These are the funds you switch the money to as your kids get close to enrolling in college to be safe. There is no problem with returns in the bond market - so what happened - why would a fund manager play games with a fund that no one expects high returns from anyway? This is bad news for Oregon's higher education aspirations, at the very moment the state is trying to maintain its investment in its kids educations. It also seems indicative of a real problem in the culture of Wall Street (as if we needed more evidence) where ego and personal reward is more important than the business itself.
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The law of supply and demand is out to window. Business leaders are setting their own prices and the other merchants selling like products and services are following them, to make the most money that they possibly can from as many people as they possibly can. That is why only the rich can afford to live in today's world. The Business leaders are ruining America. I just have to share this with all my friends. I read this new book that was so interesting that I have to share it with you. A US soldier wrote this good provocative new book titled: "THE ROAD TO AMERICA'S ECONOMIC MELTDOWN," by RAYMOND BERESFORD HAMILTON.
One reader wrote: All Americans should read this book it tells a lot and makes more sense than Dick Morris's "Catastrophe" or Glen Beck's non-sense "Common Sense" the book focuses on the system of government that have developed over time in this country and its attitude toward different classes of Americans. It clearly shows the skewed conditions that exist in government with the favoring of big business. The author offers many challenges to the Congress to help future generations of Americans. The book is recommended for all to read and is a timely relevant product. All facts and have many teaching points. It also received many stars.
Read it for yourself you’ll find it at all online stores: Amazon, Barnes & Noble’s and others.
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