[Fern]

Start the college fund with no-load mutual funds at a well-respectef fund family with a track record, such as T. Rowe Price, Vanguard or Fidelity. She's got 17 years before college, so go with a stock fund.

Some would argue that your retirement is a more compelling need, while theoretically your daughter could find other means to fund her college tuitiion, including employment, student loans and scholarship monies if she's bright.

Either way, invest the money. I assume the part about saving for HER retirement is a typo, since that's her responsiblity, not yours.