State college savings plan posts big losses

INDIANAPOLIS -- Declining stock values have contributed to the state's college savings program posting double-digit losses for the year in three of its key portfolios.\nAbout 43 percent of the plan's participants have children in the early years of elementary school and will most likely have plenty of time to recover from the loss, state officials said.\nIndiana Treasurer Tim Berry said officials were exploring ways to widen investment options for participants. Berry said details on such a plan would likely be announced this year.\nDespite the performance of the plan this year, Berry said enrollment and assets are up. The plan has about 20,000 participants, up from about 7,000 at the beginning of 2002. Assets have grown over that period to more than $45 million from $36 million.\nScott Putney signed up for the Indiana plan partly to avoid the burden of taxes he paid on mutual funds intended for his 5-year-old son's college costs. He said he figures he has at least another 13 years before he needs the money.\n"The longer the horizon, the more risk I'm willing to take," he said.