(MONEY Magazine) – Q. We have children ages 15 and 17 who plan to attend the University of Georgia at Athens, but we have no savings set aside for college. Their annual tuition cost should be about $7,500, though 1996 and '97 will be double whammies with both kids in school at once. We now have $15,000 in a cash emergency fund, roughly $80,000 of equity in our house, and $118,000 in two employer-sponsored retirement plans to which we contribute $9,600 yearly. Our joint earnings are in the high five figures, and we are both 43 years old. Our kids may qualify for scholarships or loans, of course. But if we wind up footing the bill ourselves, what is the best way to do so? Linda Leathers Tucker, Ga. A. One possible solution, of course, would be to stop saving for retirement and put that money into a college fund instead -- invested in something safe, like bank certificates of deposit or a money-market mutual fund. But according ^ to calculations by Enright Financial Advisers of River Vale, N.J., making the switch wouldn't provide all the college money you will need. Even if you devote your entire $15,000 in cash and your future retirement savings to the cause, you would still come up -- eek! -- more than $7,000 short. Moreover, you would lose the benefits of tax-deferred savings (unlike your retirement accounts, your college fund would be taxed annually) and wipe out your cash reserve, leaving you vulnerable in the event of a setback such as a job loss. So here's what I advise: Open your college fund with $10,000 from your emergency cash, leaving the other $5,000 alone. Then divert $3,500 of your $9,600 annual retirement savings into the college kitty, and add to that another $4,000 a year in new savings drawn from your current income (on your salaries, you should be able to do that without resorting to the all-noodle diet). Finally, take out a home-equity line of credit (recent average interest rate: 7.5%) to cover the remaining $26,000 you'll need. Once your kids are out of college, the $7,500 a year you had been saving can go for loan payments; at that rate, you will retire the loan by the time you are both 55. The loan interest will probably be tax deductible. And since you will still be putting aside $6,100 a year toward retirement, you will reach those later years with enough money to go out to a restaurant when your kids' spouses refuse to invite you for dinner.

Q. I have been told that there are two, and only two, ways to invest the profits from a home sale to escape taxes -- either into another house or into stocks, bonds and mutual funds. Aren't there any other ways to get tax relief? Joel W. Hunt Everett, Wash. A. Guess what? There's only one way to defer (not escape) tax on the gains from your principal residence -- using the money to buy another home costing as much as or more than your current dwelling. Moreover, you have only two years in which to do so, or else you must pay the tax. The sole exception: If you are 55 or over, the law gives you a one-time option to exclude as much as $125,000 in home-sale profits from capital-gains tax. Nevertheless, since you can use this option only once in your life (married couples get a single exclusion between them, not two), consider carefully before taking it.

Q. My elderly father has both Series E and Series EE U.S. Savings Bonds that he bought -- with my mother as co-owner -- between 1975 and 1988. What happens to the bonds when my parents die? Pedro J. David Hatillo, Puerto Rico A. Your parents' wills would determine the disposition of the bonds. In the absence of any wills, though, here's what happens: If one parent dies, the surviving spouse becomes sole owner. Under Puerto Rican law, the children normally get a share of an estate at this point, but since savings bonds are governed by federal regulations, local law doesn't apply. When the second parent dies, or if both die more or less simultaneously, the bonds become part of the estate of the spouse judged to have died last and are usually divided among the surviving children.

Q. Under my health insurance at work, I pay 20% of the cost of services outside of a medical network designated by the company. The insurance company picks up the other 80%. I have been told, though, that when doctors and hospitals bill an insurer, they often charge less than the full "retail" price. So on a $100 medical bill, I might get billed for $20 while my insurer pays the health-care provider only $60. That doesn't look like an 80-20 split to me! Am I right in thinking this would be a deception? David A. Williams West Bloomfield, Mich. A. I should say so! Many insurers have contracts with hospitals and medical groups that let them buy health care at a discount. But if your insurer gets a price break, says Bob Eicher of the national employee-benefits firm Foster Higgins, you are legally entitled to the same percentage reduction on your portion of the bill. However, a lot of mistakes are being made because of the complexity of the new types of medical networks. So sometimes insurance companies fail to pass on the discounts. There is a way, though, to make sure you are getting a fair shake: Ask the medical service provider to bill you for the full amount and forward the bill to your insurance company for payment of its share. The insurer will send you a confirmation showing exactly how much it paid and how much you owe.

Q. I have a baseball that was signed by 21 of the 1950 Brooklyn Dodgers, including Jackie Robinson, Gil Hodges, Pee Wee Reese and Carl Furillo. How much is it worth, and how can I sell it? Mary L. Rogers Brooklyn A. That is some ball. Even I, a sports ignoramus, have heard of these guys. You don't have to be a Brooklynite to get misty-eyed reminiscing about Dem Bums back in the days before the team moved to Los Angeles. Most collectors told us that a ball with this many signatures -- a so-called team baseball -- would be worth between $550 and $700. There are two ways to sell it. You could offer the ball directly to a dealer (in New York City, you can find plenty in the Old Yaller Pages under "Collectibles"), though he will try to talk you down to a wholesale price of $400 or less. Or you could ask the dealer or an auction house to sell it for you on consignment, and pay a commission of 10% to 20%. To keep from getting -- cough, cough -- lowballed, double-check the ball's value by looking at prices of similar items in auction catalogues, which you can find at most sports-card stores, or in Team Baseball: A Comprehensive Guide to Team Baseballs by Mark Allen Baker (Krause Publications, $19.95; it values your ball at $700). The best quote we heard, by the way, came from Mike Heffner, purchasing manager at Leland's Auction House (245 Fifth Ave., Suite 902, New York, N.Y. 10016) -- only a short, uncomfortable subway hop from your home. If the item is in good condition, he would price it at $1,000. Wow! Next time you go, take me out to the ball game.