Oregon unveils hybrid 529 savings tool

The Oregon College Savings Plan plans to introduce a new investment product next month that combines the principal protection of a certificate of deposit with the upside potential of the Standard & Poor’s 500 stock index, a first for the 529 college savings plan industry. “We think it will appeal to parents who don’t want market risk, but do want some upside,” said Michael Parker, Salem-based executive director of the Oregon plan, speaking at the 529 Technical Conference here presented by Savingfor college.com. The Education CD Plus product will be sold once every quarter, with a five-year investment horizon, Mr. Parker said. Investors will be guaranteed the principal of their investment and at least 70% of any gain in the S&P 500 during the five-year time frame. The product, which will be introduced November 26, will be sold by financial advisers through Oppenheimer Funds 529 program and managed by J.P. Morgan Chase.