Federal deficit hits 5-year low, but cuts drag economy

WASHINGTON -- The federal deficit will drop to less than $1 trillion for the first time in five years, but massive spending cuts that have improved the budget outlook are also slowing the economy, according to a report released Tuesday by the Congressional Budget office.

The nonpartisan arbiter of federal budgets said the combination of new tax revenue from the "fiscal cliff" deal as well as looming cuts that kick in March 1 will push the deficit down to $845 billion for fiscal 2013. Deficits have topped $1 trillion in recent years.

The projections will fuel the coming budget debates, which started Tuesday as President Obama was calling on Congress to steer around the coming budget cuts.

The budget office said the cuts will contribute to an economy that lags in 2013. The unemployment rate likely will remain above 7.5% through the year. It predicted that the gross domestic product will be well below its potential, growing by just 1.4%, more than half a percentage point slower than would happen if the spending cuts were averted.

At the same time, the nation's debt load is expected to fluctuate but ultimately rise to record levels this decade, largely because of increased spending on healthcare and the federal safety net for older Americans with the aging of the baby boom population.

Additionally, the outlook shows how difficult it will be for House Republicans to accomplish their goal of balancing the budget in 10 years with potentially deep austerity measures.

Even though revenue is rising and spending is decreasing, the overall budget outlook remains stark. By the end of the decade, public debt is set to rise to 77% of GDP, a decade of highs on par with debt levels in World War II.

"The projected path of the federal budget remains a significant concern," the CBO wrote.

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Lisa.mascaro@latimes.com

Twitter: @LisaMascaroinDC

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Super Bowl power outage under investigation

NEW ORLEANS—

The National Football League was still working with New Orleans officials on Monday to determine what caused the power outage at Sunday's Super Bowl at the Superdome, so far dismissing any connection with the Beyonce halftime show.

With a record U.S. television audience watching along with viewers in 180 countries, about half the stadium lights went dark early in the second half of the game, in which the Baltimore Ravens defeated the San Francisco 49ers, 34-31.

NFL commissioner Roger Goodell told reporters on Monday an investigation was under way to determine the cause of the 35-minute disruption but one possible explanation had already been eliminated.

"There's no indication at all that this was caused by the halftime show," Goodell said. "I know that's out there, that Beyonce's halftime show had something to do with it. That is not the case from anything we have at this point."

Entergy Corp, the utility providing power to the Superdome, said its distribution and transmission feeders were serving the Superdome at all times.

Early indications were that the outage resulted from an abnormality in the Superdome's power system but it was too early to speculate on what went wrong, said Doug Thornton, senior vice president of the Superdome's management company, SMG.

A piece of equipment designed to monitor electrical load sensed an abnormality in the system where the Superdome equipment intersects with Entergy's feed into the building, triggering an automatic cut in power, SMG and Entergy said in a joint statement.

There was never any concern the power could not be restored, but it took time because of the size of the stadium and the complexities of the power system, Thornton said.

"We had people in place that could quickly work to restore power. We had experts on site, as we normally do when we have big events like this, our electrician, our electrical consultants were there and we were able to quickly work on that," Thornton said.

"There were no injuries, people remained calm, we had a pre-programmed announcement that was actually played. These are things that we actually drilled for."

None of the players or coaches said the stoppage had any impact on the game, and Goodell said the power problem would not adversely affect future bids by New Orleans to stage the Super Bowl, the United States' most-watched sports event.

"I fully expect that we will be back here for Super Bowls," Goodell said. "I hope we will be back. We want to be back ... I don't think this will have any impact at all on what I think will be remembered for one of the greatest Super Bowl weeks."

(Editing by Daniel Trotta and Dale Hudson)

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Fall Out Boy ends three-year break with new album, tour

LOS ANGELES (Reuters) – Fall Out Boy unveiled plans for a new album and world tour on Monday, three years after the pop punk band‘s four members announced a hiatus to pursue solo projects.

“This isn’t a reunion,” the band said on its website, “because we never broke up.”

The new album, “Save Rock and Roll,” will be available worldwide on May 6-7. A tour kicks off Monday night in Chicago.

A new song, “My Songs Know What You Did In the Dark (Light Em Up),” is available on iTunes.

“When we were kids the only thing that got us through most days was music,” the band’s website statement said. “We needed to plug back in and make some music that matters to us. The future of Fall Out Boy starts now.”

Fall Out Boy soared to fame in 2005 with the album “From Under the Cork Tree.” Hit songs like “Sugar, We’re Goin Down” and “Dance, Dance” mixed energetic guitars and angst-ridden lyrics. The group released two more albums in 2007 and 2008 but went on an indefinite hiatus in 2009.

The band’s members include bassist and lyricist Pete Wentz, vocalist and guitarist Patrick Stump, guitarist Joe Trohman and drummer Andy Hurley.

(Reporting By Nichola Groom; Editing by Bill Trott)

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Well: A Doctor's Struggle With Numbers

My youngest child has been struggling with numbers.

This all started around the time of his 4th birthday, in mid-November. He knew he was getting older and asked a lot of questions about babies, who were “too little to have a number,” being less than 1 year old. Then, on the day of his birthday, he wanted to know when he was turning 4.

I told him that today was his birthday, that he turned 4 today.

“But when do I turn 4?” He had recently learned to emphasize certain words in an effort to assist his dim parents in getting his questions answered.

I told him at 8 in the morning, the time he was born.

“No, no, when do I turn 4?”

I looked at him helplessly, wondering whether he was expecting some pivotal moment when he would suddenly gain five inches in height. He decided that the anointed time occurred later that day, after he received his presents.

A week later, his mother and I went for a car ride with her parents, both in their mid-70s. In a rare quiet moment amid the usual barrage of instructions on how to navigate the rural western Pennsylvania roads, our son spoke up.

“When is Pappy going to die?”

The adults fell over themselves responding, trying to both reassure him and ourselves, as if the faster and louder we answered his question, the more we would negate it: A lot of years. Not for a long, long time. We hope he never does.

This satisfied him for the moment, but much like his father, he broods about these types of important topics. A couple of hours later, back at the house, he asked as if in mid-thought: “But, what is the last number?”

I repeated his question, stalling.

“Yes, what is the last number? What’s my last number?” he asked. His mother and I glanced at each other, in a quick game of chicken to see who would answer first.

“We don’t know, honey,” I finally said. He looked up at my wife, who nodded in agreement.

My son’s words came back to me the following Monday when I saw my first patient, a man in his 70s whose leukemia didn’t get worse on chemotherapy, but unfortunately also didn’t get better. We had run out of options, aside from supportive care.

“How long does he have?”

My patient’s son asked the question that was on everyone’s mind, and when he did, the wave of emotion that washed across the room was almost palpable. My patient’s daughter crossed her legs, and his wife started to cry. So did my patient, though he tried to hide it, glancing up at the fluorescent ceiling lights of the clinic room. Guys in his generation, I’ve found, don’t like to appear weak in front of their family.

I turned to my patient and asked him if he wanted me to talk about this, about his prognosis. My first responsibility in this type of situation is always to my patient and what he wants to hear. Some people want to know specifics, down to the half-month of predicted survival; others want no information at all, as if hearing a number will seal their fate.

“Sure, I guess so,” he answered. He did want to know, but he didn’t want to know.

Oncologists are notoriously bad at predicting survival, and none of us wants to be known as “the doctor who told me I would be dead by now,” the doctor who made a prediction of imminent demise, sending a family into a terrifying tailspin of goodbyes, only to be proven wrong and subsequently mocked for years to come. One of my patients, upon being told by another doctor that she had two months to live, held Christmas in April so she could spend one last holiday with her grandchildren. She survived to see two more Christmases.

At the same time, we need to be truthful and give guidance to people who want time to prepare, time to write wills and pay off debts, to say goodbyes and to leave instructions, to tie up the loose ends of a life now heavy with meaning.

We try to provide hope, but not false hope.

So we give ranges, starting with the best estimate of survival, because my patients have told me they shut down after they hear the worst estimate. We talk about setting goals, about maximizing quality of life, because we don’t have much leverage with quantity of life. We emphasize spending as much time as possible with family and friends, and as little time as possible with people wearing white coats. We tell them we’re not going to give up if they don’t give up.

But the truth is, we don’t know.

---

Dr. Mikkael Sekeres is director of the leukemia program at the Cleveland Clinic.

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Gas takes biggest bite of income in 30 years

Fuel costs are taking a big bite out of household budgets, according to separate reports Monday from the Energy Department and from the Union of Concerned Scientists.

The Energy Department says U.S. households spent an average of $2,912 on gasoline, or almost 4% of their pretax income, the highest percentage in 30 years.

That's despite the fact that Americans consumed less fuel in 2012 for a variety of reasons, including more efficient driving habits and higher-mileage vehicles.

PHOTOS: Best car values for fuel economy

"The effect of the higher prices in 2011 and 2012 outweighed the effect of reduced consumption," the Energy Department said.

In fact, researchers at the University of Michigan said Monday that the average fuel economy for new vehicles sold in the U.S. reached a record 24.5 mpg in January -- up 0.4 mpg from a revised figure for December.

Meanwhile, the Union of Concerned Scientists reported that most Americans "are likely to spend almost as much on gasoline over the life of their vehicle as its original cost."

“You’re basically paying for a second car every 15 years. The only thing really benefiting from your oil use is oil companies' bottom line," said Joshua Goldman, the report’s author and a policy analyst for the advocacy group.

ALSO:

Top 10 cars most likely to be collector's items

U.S. automakers enjoyed big sales gains in January

Toyota, Ford, Honda rank highest in Consumer Reports survey

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Robbery suspects charged with threatening girls with baseball bat

Photo: Carlos Alvizo (left) and Elias Martinez (February 3, 2013)

By Rosemary Regina Sobol




Tribune reporter

12:49 p.m. CST, February 3, 2013

Two Chicago men armed with a baseball bat are accused of trying to rob two 15-year-old girls during an attack  on Friday night that was foiled by two off duty police officers, police said.

Carlos Alvizo, 18, of the 5600 block of South Homan Avenue and Elias Martinez, 21, of the 2300 block of South Trumbull Avenue were both charged with two counts of attempted armed robbery of two 15-year-old girls that happened in the 3600 block South Hoyne Avenue in the city’s McKinley Park neighborhood, police said.

One of the suspects was wielding a baseball bat as they demanded “everything’’ from the girls, according to a police report.

One said: “Give me everything. I don’t want to whack you. Do you have any money? Do you have your cell phone? What do you have in your pocket?”’ according to the report.

Alvizo reached into a pocket of one of victims before but both men fled when they spotted two people – who happened to be off duty police officers from Chicago and Forest Park – who began running after them, the report said.

Both men jumped into a gray Dodge Neon but as Martinez turned on its ignition the officers were able to stop them before they drove away in the car, police said. 

The girls later identified them and they were arrested about 6:15 p.m.

rsobol@tribune.com

Twitter:@RosemarySobol1

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Kuwaiti gets five years for insulting ruler

KUWAIT (Reuters) – A Kuwaiti court sentenced a man to five years in prison on Sunday for insulting the emir on Twitter, a rights lawyer and news websites said, in the latest prosecution for criticism of authorities via social media in the Gulf Arab state.

The court gave Kuwaiti Mohammad Eid al-Ajmi the maximum sentence for the comments, news websites al-Rai and alaan.cc reported.

In recent months Kuwait has penalized several Twitter users for criticizing the emir, who is described as “immune and inviolable” in the constitution.

“We call on the government to expand freedoms and adhere to the international (human rights) conventions it has signed,” said lawyer Mohammad al-Humaidi, director of the Kuwait Society for Human Rights, commenting on the case.

Courts in Kuwait generally do not comment to the media.

Amnesty International said in November Kuwait had increased restrictions on freedom of expression and assembly.

It urged Kuwait to ensure protection for users of social media, whether they supported or opposed the government, as long as they did not incite racial hatred or violence.

Kuwait, a U.S. ally and major oil producer, has been taking a firmer line on politically sensitive comments aired on the internet. Twitter is extremely popular in the country of 3.7 million.

In January, a court sentenced two men in separate cases to jail time for insulting the emir on Twitter.

In June 2012, a man was sentenced to 10 years in prison after he was convicted of endangering state security by insulting the Prophet Mohammad and the Sunni Muslim rulers of Saudi Arabia and Bahrain on social media.

Two months later, authorities detained Sheikh Meshaal al-Malik Al-Sabah, a member of the ruling family, over remarks on Twitter in which he accused authorities of corruption and called for political reform.

The recent Twitter cases have been carried out under the state security law and penal code. Last year Kuwait passed new legislation aimed at regulating social media.

Public demonstrations and debates about local issues are common in a state that allows the most dissent in the Gulf, but Kuwait has avoided the kind of mass unrest that unseated four heads of Arab states in 2011.

But tensions intensified between authorities and opposition groups last year ahead of a parliamentary election deemed unfair by opposition politicians and activists.

The opposition movement said new voting rules introduced by Sheikh Sabah by emergency decree in October would skew the December 1 election in favor of pro-government candidates. The emir said the old voting system was flawed and that his changes were constitutional and necessary for Kuwait’s “security and stability”.

(Reporting by Ahmed Hagagy, Writing by Sylvia Westall; editing by Sami Aboudi and Andrew Roche)

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Affleck’s ‘Argo’ wins Directors Guild top honor

LOS ANGELES (AP) — Ben Affleck has won the top film honor from the Directors Guild of America for his CIA thriller “Argo,” further sealing its status as best-picture front-runner at the Academy Awards.

Saturday’s prize also normally would make Affleck a near shoo-in to win best-director at the Feb. 24 Oscars, since the Directors Guild recipient nearly always goes on to claim the same prize at Hollywood’s biggest night.

But Affleck surprisingly missed out on an Oscar directing nomination, along with several other key favorites, including fellow Directors Guild contenders Kathryn Bigelow for “Zero Dark Thirty” and Tom Hooper for “Les Miserables.”

Affleck’s Oscar snub has not hurt “Argo” and may even have earned it some favor among awards voters as an underdog favorite. “Argo” has dominated other awards since the Oscar nominations.

“I don’t think that this makes me a real director, but I think it means I’m on my way,” said Affleck, who won for just his third film behind the camera.

The Directors Guild honors continued Hollywood’s strange awards season, which could culminate with a big Oscar win for Affleck’s “Argo.” The guild’s prize for best director typically is a final blessing for the film that goes on to win best-picture and director at the Oscars.

Affleck can go only one-for-two at the Oscars, though. While “Argo” is up for best picture, the director’s branch of the Academy of Motion Picture Arts and Sciences overlooked him for a directing slot.

Backstage at the Directors Guild honors, Affleck said he had nothing but respect for the academy and that “you’re not entitled to anything.”

“I’m thrilled and honored that the academy nominated me as a producer of the movie,” Affleck said. “I know our movie, we’re a little bit underdog and a little bit the little engine that could, and you take me out of it maybe helps … it’s just about that picture. I feel like it’s OK, I’m really lucky, I’m in a good place.”

With 12 Oscar nominations, Steven Spielberg’s Civil War saga “Lincoln” initially looked like the Oscar favorite over such other potential favorites as “Argo,” ”Les Miserables” and “Zero Dark Thirty,” since films generally have little chance of winning best picture if they are not nominated for best director. Only three films have done it in 84 years, most recently 1989′s best-picture champ “Driving Miss Daisy,” which failed to earn a directing nomination for Bruce Beresford.

But Affleck’s “Argo,” in which he also stars as a CIA operative who hatches a bold plan to rescue six Americans during the hostage crisis in Iran, has swept up all the major awards since the Oscar nominations. “Argo” won best drama and director at the Golden Globes and top film honors from the Screen Actors Guild and the Producers Guild of America.

Many of the same film professionals who vote in guild awards also cast ballots for the Oscars, so all the wins for “Argo” are a strong sign that the film has the inside track for best picture.

Milos Forman, a two-time Directors Guild and Oscar winner for “One Flew Over the Cuckoo’s Nest” and “Amadeus,” received the group’s lifetime-achievement award. Guild President Taylor Hackford let the crowd in a toast to Forman, who was ill and unable to attend.

Malik Bendjelloul won the guild’s documentary award for “Searching for Sugar Man,” his study of the fate of critically acclaimed but obscure 1970s singer-songwriter Rodriquez. The film also is nominated for best documentary at the Oscars.

Jay Roach won the guild trophy for TV movies and miniseries for “Game Change,” his drama starring Julianne Moore as Sarah Palin in her 2008 vice-presidential run.

Roach said that he watched John McCain rush to choose Palin as his running-mate, potentially putting her second in line for the presidency.

“I said, ‘We gotta talk about this,’” Roach joked.

“Girls” star Lena Dunham earned the guild honor for TV comedy, while Rian Johnson won for drama series for “Breaking Bad.”

Dunham won for directing the pilot of “Girls,” which focuses on the lives of a group of women in their 20s.

“It is such an unbelievable honor to be in the company of the people in this room, who have made me want to do this with my life,” Dunham said.

Filmmaker Alejandro Gonzalez Inarritu (“Babel,” ”Amores Perros”) won for best commercial for a Procter and Gamble spot he directed.

Among other TV winners:

— Reality program: Brian Smith, “Master Chef.”

— Musical variety: Glenn Weiss, “The 66th Annual Tony Awards.”

— Daytime serial: Jill Mitwell, “One Life to Live.”

— Children’s program: Paul Hoen, “Let It Shine.”

Affleck’s win Saturday nicks the Directors Guild record as a strong forecast for the eventual directing recipient at the Oscars. Only six times in the 64-year history of the guild awards has the winner there failed to follow up with an Oscar. This will be the seventh, since Affleck is not up for the best-director Oscar.

Peer loyalty might play in Affleck’s favor at the Oscars. The acting branch in particular, the largest block of the academy’s 5,900 members, might really throw its weight behind “Argo” because of Affleck’s directing snub. Actors love it when one of their own moves into a successful directing career, and Affleck — who’s rarely earned raves for his dramatic chops — also delivers one of his best performances in “Argo.”

Affleck has had no traction in acting honors this season, and he’s joked that no one considered it a snub when he wasn’t nominated for best actor. So a best-picture vote for “Argo” might be viewed as making right his omission from the directing lineup and acknowledging what a double-threat talent he’s become in front of and behind the camera.

A best-picture prize also would send Affleck home with an Oscar. The award would go to the producers of “Argo”: George Clooney, Grant Heslov and Affleck.

But it’s not as though Affleck has never gotten his due at Hollywood awards before. He and Matt Damon jump-started their careers with 1997′s “Good Will Hunting,” for which they shared a screenplay Oscar.

___

AP Entertainment Writer Sandy Cohen contributed to this report.

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Concerns About A.D.H.D. Practices and Amphetamine Addiction

Before his addiction, Richard Fee was a popular college class president and aspiring medical student. "You keep giving Adderall to my son, you're going to kill him," said Rick Fee, Richard's father, to one of his son's doctors.

VIRGINIA BEACH — Every morning on her way to work, Kathy Fee holds her breath as she drives past the squat brick building that houses Dominion Psychiatric Associates.

Matt Eich for The New York Times

MENTAL HEALTH CLINIC Dominion Psychiatric Associates in Virginia Beach, where Richard Fee was treated by Dr. Waldo M. Ellison. After observing Richard and hearing his complaints about concentration, Dr. Ellison diagnosed attention deficit hyperactivity disorder and prescribed the stimulant Adderall.

It was there that her son, Richard, visited a doctor and received prescriptions for Adderall, an amphetamine-based medication for attention deficit hyperactivity disorder. It was in the parking lot that she insisted to Richard that he did not have A.D.H.D., not as a child and not now as a 24-year-old college graduate, and that he was getting dangerously addicted to the medication. It was inside the building that her husband, Rick, implored Richard’s doctor to stop prescribing him Adderall, warning, “You’re going to kill him.”

It was where, after becoming violently delusional and spending a week in a psychiatric hospital in 2011, Richard met with his doctor and received prescriptions for 90 more days of Adderall. He hanged himself in his bedroom closet two weeks after they expired.

The story of Richard Fee, an athletic, personable college class president and aspiring medical student, highlights widespread failings in the system through which five million Americans take medication for A.D.H.D., doctors and other experts said.

Medications like Adderall can markedly improve the lives of children and others with the disorder. But the tunnel-like focus the medicines provide has led growing numbers of teenagers and young adults to fake symptoms to obtain steady prescriptions for highly addictive medications that carry serious psychological dangers. These efforts are facilitated by a segment of doctors who skip established diagnostic procedures, renew prescriptions reflexively and spend too little time with patients to accurately monitor side effects.

Richard Fee’s experience included it all. Conversations with friends and family members and a review of detailed medical records depict an intelligent and articulate young man lying to doctor after doctor, physicians issuing hasty diagnoses, and psychiatrists continuing to prescribe medication — even increasing dosages — despite evidence of his growing addiction and psychiatric breakdown.

Very few people who misuse stimulants devolve into psychotic or suicidal addicts. But even one of Richard’s own physicians, Dr. Charles Parker, characterized his case as a virtual textbook for ways that A.D.H.D. practices can fail patients, particularly young adults. “We have a significant travesty being done in this country with how the diagnosis is being made and the meds are being administered,” said Dr. Parker, a psychiatrist in Virginia Beach. “I think it’s an abnegation of trust. The public needs to say this is totally unacceptable and walk out.”

Young adults are by far the fastest-growing segment of people taking A.D.H.D medications. Nearly 14 million monthly prescriptions for the condition were written for Americans ages 20 to 39 in 2011, two and a half times the 5.6 million just four years before, according to the data company I.M.S. Health. While this rise is generally attributed to the maturing of adolescents who have A.D.H.D. into young adults — combined with a greater recognition of adult A.D.H.D. in general — many experts caution that savvy college graduates, freed of parental oversight, can legally and easily obtain stimulant prescriptions from obliging doctors.

“Any step along the way, someone could have helped him — they were just handing out drugs,” said Richard’s father. Emphasizing that he had no intention of bringing legal action against any of the doctors involved, Mr. Fee said: “People have to know that kids are out there getting these drugs and getting addicted to them. And doctors are helping them do it.”

“...when he was in elementary school he fidgeted, daydreamed and got A’s. he has been an A-B student until mid college when he became scattered and he wandered while reading He never had to study. Presently without medication, his mind thinks most of the time, he procrastinated, he multitasks not finishing in a timely manner.”

Dr. Waldo M. Ellison

Richard Fee initial evaluation

Feb. 5, 2010

Richard began acting strangely soon after moving back home in late 2009, his parents said. He stayed up for days at a time, went from gregarious to grumpy and back, and scrawled compulsively in notebooks. His father, while trying to add Richard to his health insurance policy, learned that he was taking Vyvanse for A.D.H.D.

Richard explained to him that he had been having trouble concentrating while studying for medical school entrance exams the previous year and that he had seen a doctor and received a diagnosis. His father reacted with surprise. Richard had never shown any A.D.H.D. symptoms his entire life, from nursery school through high school, when he was awarded a full academic scholarship to Greensboro College in North Carolina. Mr. Fee also expressed concerns about the safety of his son’s taking daily amphetamines for a condition he might not have.

“The doctor wouldn’t give me anything that’s bad for me,” Mr. Fee recalled his son saying that day. “I’m not buying it on the street corner.”

This article has been revised to reflect the following correction:

Correction: February 3, 2013

An earlier version of a quote appearing with the home page presentation of this article misspelled the name of a medication. It is Adderall, not Aderall.

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Never too early to plan for college expenses

Look at your cute baby, and imagine the little tyke wearing a high school cap and gown about 17 years from now.

Picturing the child holding a diploma, when he or she can't even hold a rattle yet, is probably next to impossible. But that day will come. And if you are like most parents, as you watch junior walk across the stage to pick up a diploma, you will be vacillating between feelings of pride and utter fear. At that point, your child will be headed to college, and the price tag will be so shocking you'll be tossing and turning at night.

If college prices continue to climb as they have the past few years, by the time today's newborns go to college, the sticker price will be about $37,700 for one year of tuition, room and board at a state university and $98,200 at a private college, said Kalman Chany, a college financial aid consultant and author of "Paying for College Without Going Broke." For a four-year education, it will be about $161,500 at a university in your state or $426,400 at a private college, he estimates. To put that into perspective, many public colleges now run about $20,000 a year, and some private colleges are more than $55,000.

So maybe at this point you figure you will stick a bat or ball in the little tyke's hands the moment he or she can hold it in hopes they are on the road toward winning an athletic scholarship. But let's face it: That's a remote possibility. Should you despair? 

Remember, you don't need the entire sum saved for college the day junior moves into a dormitory room. And during the next 17 years, your salary probably will rise along with college costs, so the numbers won't look as shocking as they do today. In addition, low- and middle-income families don't have to pay the full sticker price if they are smart about college choices.

But if you want to make paying for college as painless as possible, you are going to have to start planning now. For the next 17 years, you will have to keep your eye on the calendar. Before children are old enough to get braces, some savvy parents start helping them build the type of resumes that will win scholarships.

Still, don't count on scholarships to do all the heavy lifting. No matter how polished your child turns out to be in high school, the chances are you will have to come up with a good sum of money yourself. So start now by saving as much as you can. Anything is better than nothing. If you start saving $100 a month for college and invest it in a balanced mutual fund that's roughly divided half and half in stocks and bonds, you should have about $40,000 by the time you pack up the car with junior's belongings and head to college.

But also make sure you have your priorities right. Too many parents — especially those laden with their own college loans — want to spare their children college debt. So they plop money into a college savings account for their children, while neglecting to save for their own retirement. This is upside-down planning.

I've heard from many parents who can't retire because they put their child's education ahead of their own savings, and their child ends up finished with college, enjoying a Wall Street or a law firm salary, and is debt-free.

The rule of thumb for saving enough money for retirement is: Start saving 10 percent of pay in a 401(k), IRA or both, beginning in your 20s. If you wait until your 30s, it's 12 to 15 percent. If you happen to have an employer that offers the typical 3 percent matching money for a 401(k), you can stash away 7 percent of your own pay and — with the free money from your employer — you will hit the 10 percent mark.

For college savings, you can make investing easy and the most profitable if you keep Uncle Sam away from taxing your savings. Plop either the $2,000 limit a year into a Coverdell college savings account, or if you can manage to save more, skip the Coverdell and use a 529 college savings plan offered by a state government. Anything you save in these accounts will be tax-free for you and your child if it goes to pay for college. Tell grandparents and other relatives about the child's 529 plan, so they can send birthday and other gifts into the college fund.

Elementary school

Maybe you've been saving diligently since you helped the little tyke blow out the candle on that first birthday cake. If you were making life easy on yourself, you evaluated 529 plans, chose one with low fees and solid performance, and you've been letting the investment experts at the plan invest your money in the manner that typically is appropriate for your child's age.

Are you satisfied with the 529 plan you chose, and the investments you've chosen within the plan? You are allowed to make changes once a year — selecting a plan in another state if you want, or different investments in the plan. Remember, you don't have to stick with the plan in your state, although many states give you an extra tax break if you do. And you can save money if you go to a state 529 plan directly rather than using a financial adviser. According to Morningstar, the average cost if you do this on your own is about 0.60 percent, but with an adviser it's 1.5 percent — a much higher amount that will detract from the amount you amass.

Say your child received $2,000 from grandma at birth. In the cheap 0.60 fund, the savings would become about $6,680 by college if the investments earned 8 percent. The same investments in the 1.50 fund would be $5,720. Try this calculator: tinyurl.com/seccalc.

To identify funds Morningstar thinks are best, go to tinyurl.com/bestfunds. Also check out savingforcollege.com.

As you evaluate the investments, keep in mind what "age-based" means. With that approach, the plan typically invests for you based on the child's age. Up to 4 years old, the money was probably invested about 80 percent in stocks and 20 percent in bonds. Between 5 and 10, it was probably 65 percent in stocks and 35 percent in bonds. The idea is to increase the money as much as possible when the child is young by using a significant amount of stocks. Then the closer the child gets to college, the more conservative the investing becomes so there's less chance of a loss when the first tuition bill rolls around.

You can lose money in 529 plan investments when the stock market goes down, but if investments turn more conservative along the way, you generally have time to recover by college. Many plans offer conservative investments if you can't stomach stocks. But remember the trade-offs. If you select a money market fund or CDs paying 2 percent interest, your $100 in savings a month would total less than $25,000 by the time a newborn makes it to college.

If you have been getting raises every year, consider increasing your contributions to the 529 plan — maybe setting up your account to move money automatically each payday. Also make sure you tell grandma and grandpa not to open any UGMA or UTMA account in the child's name. If your child is going to qualify for financial aid when he or she goes to college, a UGMA or UTMA will poison his chances.

Want to know if you are likely to get financial aid? For a ballpark idea, try the "estimated family contribution" calculator at the college you think your child might attend or: tinyurl.com/finaidest.

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