Change Your Family Tree
Karen needs help investing the $160,000 her daughter received as a settlement.
QUESTION: Karen’s daughter is 11 years old and has come into $160,000 that will pay her monthly through a settlement. How should Karen invest this money for her daughter?
ANSWER: Put the first $2,000 a year into an ESA (educational savings account).
If the child could possibly have future medical issues related to the accident, you should set aside money for those expenses.
Invest the rest in good growth stock mutual funds.