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Jun
14
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Luna asked:
A few years ago I started investing in a 529 plan when my child was born. It was steadily growing. With the recent market, the investment says it’s -25% of it’s original contribution. What would happen if the stock market keeps going down to the point that it went past 100%? Does that mean it is permitted to go back up again when the market recovers or does that mean all the investment is lost. Thanks.
MICHALE
A few years ago I started investing in a 529 plan when my child was born. It was steadily growing. With the recent market, the investment says it’s -25% of it’s original contribution. What would happen if the stock market keeps going down to the point that it went past 100%? Does that mean it is permitted to go back up again when the market recovers or does that mean all the investment is lost. Thanks.
MICHALE
Comments
STL Biker on 17 June, 2009 at 11:59 am #
Your investment is never lost unless you sell it. You still will always have the same amount of shares that you puchased no matter what. If you are in a well diversified mutual fund then it is impossible for your investment to decrease 100%.
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