Dear Marketplace Money,

We are getting a reasonably sized tax refund this year and are deciding what to do with that money. Our inclination is to put a significant portion of that money in our Roth IRAs and our one-year old's 529 college savings plan because of the low stock prices now. The main alternative would be paying down our mortgage or adding to our rainy day money market account which would currently last us for 1.5 months before we would have to tap into investments (it is very unlikely that I would lose my job). Would you would agree that the stock market is the best destination for that money or do you think that it is too volatile now or whether you think that there's a decent enough chance that the market might be flat for the next 10+ years.

Chris - my son is a senior and has been applying to many colleges and universities. He's been accepted to two private colleges - one in Arizona and another in Washington State. It occurred to me as he has been applying it doesn't seem to be a part of college planning websites, checklists, etc. to check on a college or university's financial health. In this economic downturn, public financing, endowments, etc., are way down and must be affecting the finances of all higher ed institutions. I've considered avoiding public schools in the most hard hit states of Michigan, California, and Florida. But to be honest, I have no earthly idea how to check on the financial health of these institutions and whether they are strapped financially and how that might be affecting the academics and school environment, i.e., teacher-student ratio, infrastructure, cultural activities, security, etc. Not to mention whether once he attends, how much per year the school may raise its tuition.

Has anyone else raised this issue to you and do you have any idea how one might check out these institutions and whether they are managing their finances in a way that still provides an excellent education and environment for prospective and current students?

Thanks much. Liz Renninger