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[quote=Anonymous][quote=Anonymous][quote=Anonymous]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

[/quote]

This 100%.  Put it in CD for 18 month/2 years currently and lock in the 5%+ for that timeframe.  The interest alone in 2 years will be enough for undergrad and half of Med/Law school/PHD program. without ever touching the principle

Then leave the rest in trust for her kids (your grandkids).  [/quote]

We are getting distracted...but don't buy an 18-month CD at 5% when you can buy 10-year treasuries at 4.2%.  The 10-year treasury won't pay state taxes and it is locked in for 10 years.  If the fed starts cutting rates in 2024 as expected, your 18-month CD rates will start declining and you are probably re-investing at lower rates.

Take the guaranteed 10 year money.[/quote]

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