Reference no: EM132467023

Brando has two children from his previous marriage; Norman who is 5 years old and Kristina who is 8. They live with their mother Marie, Brando's estranged first wife. Brando pays Marie $550 a month in alimony payments and a monthly total of $1,200 in child support payments. He will cover 50% of the children's 4 years of college/university education which currently costs $8,000 a year, and these costs are estimated to grow at 5% per year. Both children will be starting university/college at age 18 (12 and 10 years respectively from now). He would like to know more about ways to fund these costs. He was also told by a friend that child support payments are no longer tax deductible and has asked you to review this for him and give him the correct answer.