Settlement Money For Kids' College?

Karen's young daughter is getting a huge sum of money. What's the best way to make it work for her?

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.

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