ONE FUND within theI llinois Bright Start College Savings plan suffered a huge loss not directly related to the stock market decline. It was a bond fund that should have provided low, secure, and positive returns. Instead, it appears that the Fund Manager took extreme actions with the portfolio, resulting in a loss of more than 30 percent of the value of this fund, which is included in the age-based portfolios.
State Treas Alexi Giannioulias is threatening to file suit to recapture the $85 million lost because of this bond fund.
IMPORTANT: Losses in stock market funds are to be expected in a bear market. So thisis not an attempt to recoup market losses in the stock funds.
Please post your comments here, and I am sure the Treasurer and AG will be looking at these personal stories!
Here's a link to that column: http://www.suntimes.com/business/savage/1376279,CST-FIN-savage14.savagearticle
BRIGHT START
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Terry Savage
Terry Savage writes a syndicated personal finance column for the Chicago Sun-Times and for TheStreet.com. Her latest book is "The Savage Number: How Much Money Do You Need to Retire?" Read more at TerrySavage.com.
Dear Terry,
I read this article about the Bright Start College Savings in the newspaper print version and there was a website to go to for more details, but I have seem to have lost that article and do not see the web address on the web article. Could you please advise. Thank you.
SAVAGE SAYS: The plan website is www.brightstartsavings.com -- But there is no current additional news about the restoration of that contested $85 million loss in the "core bond fund." If there's a final resolution, you'll see it on the front page of the Sun-Times!