Assisfecl !MN, with catered services `Trusting' The Grandkild in Leauliful surroundin g s created especiall y for older adults. Studios and suites with private baths Three well-planned daily meals Emergency call systems Housekeeping and linen services Round-the-clock staffing Nurse manager Personal care assistance Spa with pool and exercise room Scheduled activities Game room Library Hair salon Sundries shop Transportation TOURS AVAILABLE DAILY call 248.683.1010 • 4460 Opckapci La 48323 Phone: 248.683.1010 West Bloomfield, MI 12/17 1999 A6- e Paul Hack advises one of his clients, Dr. Martin Charles. ALAN ABRAMS Special to the Jewish News S o now you finally are a proud grandparent, and you want to set aside some money towards the education of your grandchild. Ideally, say local investment advis- ers, both your grandchild and your investment for their education should reach maturity at the same time. Why? "Because you have to look at the time horizon," says Paul Hack, a certified investment management con- sultant with Raymond James & Associates, formerly Roney & Company, in Farmington Hills. "If it is a new grandchild, then their first year of college is 18 years away and their last year of college may be 21 years away. That's a long enough time frame to make long-term investments. "The stock market is cyclical. You never know if you're coming in on the top or the bottom," said Hack. "Cycles last three to five years, trough to trough. If you don't have a three- to-five year time frame, you shouldn't be in the market. "But for a newborn, that's four to five cycles. Historically, the stock mar- ket has outperformed fixed income CDs and bonds. But the time frame determines the type of investment you can make," said Hack. But what if you come into money all of a sudden, and your grandchild is already 17? Then Hack suggests you are better off investing in a series of CDs. But he stresses you follow that route only if you have one to four years to cover your grandchild's edu- cation, and you do not have the luxu- ry of time. Another factor to consider are the tax laws. You do not have to file a gift tax return if you give $10,000 or less per year. And that's just for one per- son. Each grandparent can give $10,000. However, Hack cautions there still could be tax ramifications if the child is under 14. Then, income is taxed at the custodial rate. "People need to look into the tax ramifications of their investment. The parent may be in the