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Author: shuffm1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5741  
Subject: Re: Help For A Friend Date: 7/14/2005 2:04 PM
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I'm sorry. I don't normally read a lot of these posts and even less seldom respond. I thought the topic would be about the loss of a spouse, and the other spouse's ability to carry on the household, take care of the children and plan for the future. My wife has very little financial experience. Even though I try to keep her informed, I take care of everything. I thought this post would be some good info I could send on to her.

Am I reading this wrong? Here you have a woman, who already has the tough job of raising kids as a single mother, and then loses her father? Raising kids as a married person is hard enough, and I lost my own mother as a young man, so I can sympathize with the loss of a parent.

Here's where I become unpopular. What I can't seem to sympathize or empathize with is how receiving $750,000 is a problem. Even under less than desirable circumstances, this is like winning the lottery and complaining about the taxes.

What were this women's prospects of paying for college as a single mother with two kids to begin with? My parents didn't have the money to send me to school, and I put myself through college without a scholarship or any grant money. I did it with a job and some student loans. I would think that 3/4 of a million dollars kind of solves the "how am I going to pay for college" question...wouldn't you think? I know tuition is expensive, but jeez...and it's not like they're infants...they're teenagers...$750k can still buy a lot of text books in a few years.

Instead of being concerned, she should be relieved. She has been given a way to pay for her children's college without strapping herself or them with debt. This money has opened the doors for them to attend pretty much any college they want...if they can get in. It is also a blessing that her children are college bound, which is an honor and a privelege both for them and for her as a parent.

She already has survived on one income and raised two kids. She'll be fine. She lost her father, which is sad, but it is much worse for people to lose a spouse when they have young children. Not only do they have to have money to raise the kids until adulthood, but they have to deal with the shock of single responsibility paying for a lifestyle built for two...usually without experience to do it.

Sorry for ranting. I think it's only fair I try to answer the question now.

I could be totally wrong on this, but I believe it used to be that determining financial aid was based upon the assets of the student and the last two (or three?) years of income of the parent. I don't believe they took into consideration savings of the parents. Put as much of the money into a retirement vehicle as possible. Then, as much into a long-term savings vehicle. The better protected the investment the better. Don't give the money to the kids or invest in the kids's names. Don't put it into an education ira. she should take care of herself first. put aside the amount she thinks she needs to pay for college in a safe investment...like a CD (if the kid is going to college in 3 years...a 3 year CD, etc.)...rates aren't bad.
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