An assessment of a new client's financial status shows the following:

Name:	Jim/Jane Smith
Ages:	42 and 38
Marital Status:	Married - No Children
Income:	$82,000 per year - both work
Retirement Plan:	No
Life Insurance:	No
Risk Tolerance:	Low

Client Balance Sheet:
Assets
Cash on Hand:	$8,000
Marketable Securities:	$61,000 ($22,000 in Money Market Fund; $39,000 in Treasury Bonds)
Auto:	$39,000
Home Ownership:	$200,000
Liabilities
Credit Cards Payable:	$5,000
College Loan:	$22,000
Auto Loan:	$25,000
Mortgage:	$160,000
Net Worth: $96,000

The wife informs you that she is pregnant, and that she will stop working to take care of the child. The couple wishes to begin to set aside money for the child's higher education expenses and wishes to minimize current taxes. Which recommendation would be most appropriate for this couple?

The $39,000 Treasury Bond investment should be:

A used to pay off the Auto Loan and the College Loan and a Second Mortgage should be taken on the house with the proceeds used to open a cash account that will purchase blue chip stocks

B reallocated to a 50/50 mix of STRIPS and Treasury Bonds held in the same account

C reallocated in full to aggressive growth stock investments in a Custodian Account opened for the child to provide for future college education expenses

D partially used to buy a $200,000 life insurance policy on the husband at an annual premium of $1,000 and to open an IRA account investing in growth stocks by making the maximum annual contribution