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I have a 529 for my 16 year old who will (hopefully) be entering college in September 2010.

He has 4 different 529 American Funds mutual funds, three of which involve stocks, and one a bond fund. Last month, when I saw he was losing significant value in the three stock funds, I sold all three and put everything in the bond fund.

I assumed the bond fund was a "safe" place where growth was minimal, but little chance of losing value.

I checked today and noticed that, this year to date, the bond fund has lost 14% of value.

Can anyone help me understand the risks associated with bonds, and alternatives, within the 529 world, where I can stop losing money.

Thanks, Jeff
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