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!

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.

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!

And the gift of knowledge triumphs!

Anonymous wrote:

Anonymous wrote:

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 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).

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.

I'm PP with the cashflow layout above: This is actually the better strategy. And end result cash is pretty much similar.

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

Lucky you, it’s a Daily Double! I suggest you bet it all.

Very off topic but what did Gramps study? Might be the perfect tribute for DD to follow in his footsteps if she is interested in his career path. This made by day to know that people still value education like they did back in the day.

Anonymous wrote:

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 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).

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.

Hire the best college counselor you can find. Hire an SAT tutor. Encourage your DC to go on some fabulous study-abroad adventures in college and then pursue some graduate-level education. What an amazing gift!

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.

Yup! If it worked that way the Varsity blues scandal wouldn't have happened, they would have just donated to the university of choice.

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 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).

Anonymous wrote:

Anonymous wrote:You should not need $5mil for one person’s education.

And you don't. K-12 at $50K/year equals $650K.
90K*4 years = $360K
Med school or Law school= ~$100K/year, so $300-400K

Add in $10-15K for college counselor (you don't need to spend $50K+)

Max Total: $1.4-1.5M

That is Private all the way from K-Graduating Law/med school.

Oh and add in another $50K total for Preschool and maybe $50K for tutoring

Either way, you could send 2 kids from birth thru law/med school for the $5M easily

BTW...put the $5MM into a 10 year treasury earning 4.2% = $210,000 per year of risk-free income.

You won't even touch the principal, and in fact have much more than $5MM, even with all the expenses above.

Anonymous wrote:

Anonymous wrote:You should not need $5mil for one person’s education.

And you don't. K-12 at $50K/year equals $650K.
90K*4 years = $360K
Med school or Law school= ~$100K/year, so $300-400K

Add in $10-15K for college counselor (you don't need to spend $50K+)

Max Total: $1.4-1.5M

That is Private all the way from K-Graduating Law/med school.

Oh and add in another $50K total for Preschool and maybe $50K for tutoring

Either way, you could send 2 kids from birth thru law/med school for the $5M easily

Agree with all of this, but the handholding you get from the $50k+ college counselor is 100x that of a $10-$15k counselor...that it makes all the sense in the world to spend the extra $35k in this instance.

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).

Anonymous wrote:You should not need $5mil for one person’s education.

And you don't. K-12 at $50K/year equals $650K.
90K*4 years = $360K
Med school or Law school= ~$100K/year, so $300-400K

Add in $10-15K for college counselor (you don't need to spend $50K+)

Max Total: $1.4-1.5M

That is Private all the way from K-Graduating Law/med school.

Oh and add in another $50K total for Preschool and maybe $50K for tutoring

Either way, you could send 2 kids from birth thru law/med school for the $5M easily