Humbly, I'd love some smart-checking (is that a word or phrase? haha) on my 'plan' of putting $70k of TIRA college funds currently in cash, into various laddered CDs for use in 2-7 years. What am I missing ? reasonable plan ?
Background:
Son is HS junior, age 17, plans to attend college fall of 2019, in roughly 1.5 to 2 yrs.
Me, wife and mom, age 55, works 1/2 time at University year 4 of 5-year grant, minimal income as it's a transition job from stressful, travel-heavy consulting career to the next chapter, with retired husband and son off to college.
Husband/dad, retired, age 64. Pension/Annuity income.
Our 2016 AGI = $60,000 from above sources & inherited rental income (minimal).
We (finally) have $70k in cash in husband's TIRA account, knowing husband would be over 65 when son needed funds for college. (older parents, obviously). Some of these cash funds could be needed as soon as 2 years, with remainder being needed the 3 years post, and likely 2 years beyond for graduate school, so out 7-8 years.
Should I ladder CDs ? other choices I should consider ? Obviously not wanting to invest in the market.
Son's academics strong - scored top 99% in ACT he took in the fall. We will very likely NOT get need-based aid, due to value of inherited rental, and no debt on our home. Merit aid is a likely bet, depending on where he chooses, but will not amount to a lot, we think. All these unknowns will be clear next year in the spring when he hears back from college's he's applied to. Will apply to some private reach schools just to see the real numbers on aid and our out-of-pocket cost, as well as State University Honor's Colleges. His interest is science/engineering. Obviously we can only help our son with college, not fund the entire thing....and will advise he choses NOT to go far in debt for his education. Thankfully, he's of the frugal bent, like his parents. haha.
What am I not considering ? Any thoughts suggestions appreciated -- ! Thanks so much for your time and expertise.