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Kinda a strange write about 529's. The below almost implies that one may invest in a single stock; although one has to presume the writer intended to convey that such a company as described could be inside an EM fund.
The article writer states: "An investment in a rare mineral extraction company in an African country might seem like it has big potential for high returns," she says. "And it may, unless the government destabilizes, or the company turns out to be poorly managed, or the local currency dramatically rises or falls. If that money is needed within a couple of years, there may not be time to recover any losses suffered in that situation."
I'm sure there are 529's that offer a seperate EM fund/index. 529's generally have a global/international fund/index that would likely include some EM exposure; and I don't know of any with a brokerage feature. I'm not taking the time to dig into this area.
The restrictions upon transactions within a 529 are so tight, that fiddling with a narrowly focused fund, as mentioned, should be given some good thought; as only 1 change of investment allocations is allowed during a calendar year.
Not quite sure where the writer was headed with this piece. Perhaps she had her own allocation/obligation duties for writing an article for her employer.
Comments
The article writer states: "An investment in a rare mineral extraction company in an African country might seem like it has big potential for high returns," she says. "And it may, unless the government destabilizes, or the company turns out to be poorly managed, or the local currency dramatically rises or falls. If that money is needed within a couple of years, there may not be time to recover any losses suffered in that situation."
I'm sure there are 529's that offer a seperate EM fund/index. 529's generally have a global/international fund/index that would likely include some EM exposure; and I don't know of any with a brokerage feature. I'm not taking the time to dig into this area.
The restrictions upon transactions within a 529 are so tight, that fiddling with a narrowly focused fund, as mentioned, should be given some good thought; as only 1 change of investment allocations is allowed during a calendar year.
Not quite sure where the writer was headed with this piece. Perhaps she had her own allocation/obligation duties for writing an article for her employer.