$5M for college education

[Anonymous]

OP, my parents had a similar philosophy. He told us he'd pay for all of our education, no questions asked, but after we were done with school, there would be no further financial assistance or inheritances. I had a fantastic undergraduate experience, including I studied abroad for half of it. I graduated from law school debt-free and started my career in a great spot. I am so grateful for the gift of education and to be a self-supporting adult, as are my siblings. I firmly believe there is no better gift, and have saved to provide the same for my kids.

[Anonymous]

Anonymous wrote:I’m so sorry for your losses. What a lovely relationship grandad had with DD. You don’t need to start throwing money away on everything education related. Do not donate! DD can give alumni contributions as she sees fit in the future. Maybe fund a scholarship of her choice.

Gramps wasn’t a financial idiot. He knew very well what a private university costs. The best thing for your daughter is to see you flourish along with her. That money should be used for her education, of course, but just as importantly to make your lives easier— together. A comfortable home, travel, funding the needs of a long and well lived life. You do not need to blow 50-100k on a college counselor. Her private school counseling department will suffice. Maybe an SAT tutor now, and a private college counselor if it’s needed junior/senior year. First things first, find a financial advisor and estate attorney. Let the 5m compound, do all the things to ensure you are cared for in retirement and your daughter is secure on her path. Be well!

OP, I’d check with your lawyer before following pp’s advice. “Make your lives easier—together” sounds like the start of every story where the Hollywood child star ends up estranged from their parents. I’d pay for what the trust permits and be really up front with my kid if it went to things like better housing or family travel.

[Anonymous]

Anonymous wrote:That is a crazy amount of money for one person's education. Very generous but also strange, because it's way more than one needs to get even a top-notch private school education + private college + grad school.

No doubt in large part due to the generation skipping effect. Grandpa wants a Mulligan after the first goof.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is an amazing opportunity. You should make a ~250K donation to whatever her top choice is. That is a guaranteed way to secure acceptance.

OP, this is terrible advice. $250k buys you nothing.

If you know so much, how much would OP need to donate? 1M? 3M?

I don't know, maybe $25M gets you face time with the university president, which may help you? What I do know is that plenty of families at our private school would happily pay a $250k fee on top of full pay tuition to get our kids into our top choice, my family included.

We’ve given 7 figures….
Kid still deferred.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Things That Didn't Happen for $500, Alex

Don't listen to this troll, OP. Use that money wisely to get her the best education you can. Good luck.

+1

We will fully fund education like this for any future grandkids. Would much rather spend the $1-2M per grandkid during the formative years as well as giving their parents $300-400K for a home downpayment. During the time it makes the most impact.
Much rather do that during formative years than leave $5-10M when we die for each Kid (to be used for our kids and grand kids).

💯
Here too.
Only have $40m saved right now though. Once we get to $50 plan to set this up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is an amazing opportunity. You should make a ~250K donation to whatever her top choice is. That is a guaranteed way to secure acceptance.

OP, this is terrible advice. $250k buys you nothing.

If you know so much, how much would OP need to donate? 1M? 3M?

I don't know, maybe $25M gets you face time with the university president, which may help you? What I do know is that plenty of families at our private school would happily pay a $250k fee on top of full pay tuition to get our kids into our top choice, my family included.

We’ve given 7 figures….
Kid still deferred.

Haha, loser.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Things That Didn't Happen for $500, Alex

Don't listen to this troll, OP. Use that money wisely to get her the best education you can. Good luck.

+1

We will fully fund education like this for any future grandkids. Would much rather spend the $1-2M per grandkid during the formative years as well as giving their parents $300-400K for a home downpayment. During the time it makes the most impact.
Much rather do that during formative years than leave $5-10M when we die for each Kid (to be used for our kids and grand kids).

Hi, I'm 33 F, willing to be adopted.

[Anonymous]

This is either a troll or weird. If it’s true, you need professional help. Most who have no money and suddenly get it, blow it. Do not make a donation to a school. Remember, the kid has to be capable of and interested in the education. Also, education can be interpreted broadly. Yes, undergrad. Yes, graduate and professional school. Yes, apprenticeships. Yes, living costs while in these programs. But could be post docs, “independent studies,” etc. after school. Who says “education” only occurs in a school? This could support her for her entire life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wow! I wish we all had a grandpa like that. When my husband’s father passed, he left $200,000 to our family but my husband in insisted on spending the money on a luxury boat while he could of put the money into a trust fund for our children’s account. Now he’s my ex husband.

Good God! what an idi@t!

+1

Unless college is fully funded (all kids, 85K+/year), retirement set and your mortgage paid off, at least 75% of that should go towards those items. Then maybe $20-30K can be a splurge. I'd divorce someone that stupid with money as well

[Anonymous]

Not reading all the comments but I would talk to an attorney, see if the will requires receipts and keep this information confidential. You don’t want to be swindled out of this blessing by “well meaning” relatives, boyfriends, friends, etc.

[Anonymous]

Anonymous wrote:Wow! I wish we all had a grandpa like that. When my husband’s father passed, he left $200,000 to our family but my husband in insisted on spending the money on a luxury boat while he could of put the money into a trust fund for our children’s account. Now he’s my ex husband.

If you both paid for or will pay for college, then his choice wasn’t so dumb. Presumably, he was able to keep his separate asset (inherited money) as his separate asset. Had he dumped it into a trust fund for your kids, he would have gifted them his separate asset. So maybe it was selfish but it was also a wise financial decision for him (ignoring the fact the board are financial losers). At least this way he has an asset that’s still separate and exists.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wow! I wish we all had a grandpa like that. When my husband’s father passed, he left $200,000 to our family but my husband in insisted on spending the money on a luxury boat while he could of put the money into a trust fund for our children’s account. Now he’s my ex husband.

Good God! what an idi@t!

+1

Unless college is fully funded (all kids, 85K+/year), retirement set and your mortgage paid off, at least 75% of that should go towards those items. Then maybe $20-30K can be a splurge. I'd divorce someone that stupid with money as well

How can there be a splurge? It’s for education.

[Anonymous]

Anonymous wrote:This is either a troll or weird. If it’s true, you need professional help. Most who have no money and suddenly get it, blow it. Do not make a donation to a school. Remember, the kid has to be capable of and interested in the education. Also, education can be interpreted broadly. Yes, undergrad. Yes, graduate and professional school. Yes, apprenticeships. Yes, living costs while in these programs. But could be post docs, “independent studies,” etc. after school. Who says “education” only occurs in a school? This could support her for her entire life.

It's obviously a troll. Can't believe this got 4 pages of comments. You could get a four year degree at the most expensive college and a JD and an MD and a PhD and not spend $5M. No one earmarks $5M for education.

[Anonymous]

Anonymous wrote:If it were me I'd put the principal into an interest bearing acct. right away, one can be very conservative with that amount, so say a 5% interest acct. Then I'd fund DD's education (private HS, college, grad school, private counselors and tutoring) with the interest earned while preserving the principal. DD can then later utilize that account for her own family and keep the cycle going. $5M if not touched for a year at 5% will throw off $250K interest. Of course OP would use some for private HS but there is still more than enough to do this.

$5,000,000 @5% in Yr 0
$5,250,000 Yr 1
$5,512,500 Yr2
$5,788,125
$6,077,531
$6,381,408
$6,700,478
$7,035,502
$7,387,277
$7,756,641
$8,144,473

This! Consult a lawyer about setting up a trust. Put the money to work so it will grow. If done properly, the funds can pay for your daughters education, her kids' education, and so on. Grandfather would surely approve of educating his future generations.

[Anonymous]

You need to talk to the attorney to understand exactly what the terms and conditions on the funds are. If it’s truly restricted it’s probably already in a trust. Once you understand that, you need to find a fee-for-service financial planner to figure out how to manage and invest whatever money you have access to. (You may not have access to very much money directly if it’s already tied up in a trust).

Do NOT make some big donation to a college in hopes of buying your way in. She will be a full-pay student at any school she’s qualified for, so she has options for small private colleges that suit her talents and educational desires. You can afford $80k a year which many can’t.

Focus on working with the school you are in now to set her up for success in college and get whatever tutors she needs to get the grades and scores to place her in the running. Have her take a summer program on a college campus that interests her so she can get a taste of college and living away from home.