Customer Jane Jennings' suitability information is presented below:

Age:	39
Marital Status:	Single
Dependents:	1 Child - Age 10
Annual Income:	$80,000
Tax Bracket:	28%
Net Worth:	$510,000 excluding home
Home:	$350,000 fully paid
Investment Portfolio:	$422,000 (60% equities; 20% long bonds; 20% money market)

The customer wants to start a college fund for her child. The anticipated tuition, starting 8 years from now, is $50,000 per year ($200,000 total tuition). Which of the following recommendations is most appropriate for this customer?

A liquidate $200,000 of common stock in the client's portfolio and invest the entire proceeds in 8-year Treasury Notes

B take out a second mortgage on the customer's residence in the amount of $200,000 and invest the proceeds in a tax-deferred annuity funded by an income separate account

C liquidate $160,000 of the common stock and invest the proceeds in laddered Treasury Notes and Bonds of $40,000 amounts maturing 8, 9, 10 and 11 years from now

D liquidate $100,000 of the bonds in the customer's portfolio and $100,000 of common stock in the customer's portfolio and invest the entire proceeds in 8-year Adjustment Bonds