Advice: 18 year old about to start college

Current Portfolio

Coca-Cola [KO]: 392 shares ($20,000)
ExxonMobil [XOM]: 880 shares ($71,000)
IBM [IBM]: 308 shares ($40,000)
General Motors [GM]: 100 shares ($1,300)
~$20,000 divided evenly between 4 mutual funds, MPYMX, ICBMX, SPECX, and WWNPX
American Century Giftrust Fund [TWGTX]: 1003 shares ($29,000)
Cash in Vanguard Prime Money Market: $21,000
Cash in GMAC DemandNotes ($26,000)

Total Value: ~$230,000

Other Info
I am going to be spending around $26,000 a year on college for the next four years.

My cost bases in KO, XOM, and IBM are around $2 because the stocks have been in the family for decades.

So I was given the KO, XOM, and IBM when I was born and they seem to have served me quite well over the years, averaging over 25% return per year the past 18 years.

I was also given the TWGTX, which hasn't been too impressive all in all. I sold half of it at its peak a few months ago (it was worth around $60,000 then) and put $25,000 in GMAC DemandNotes, which is "an unsecured debt obligation of GMAC" that pays me 5% interest (much better than a money market) and works exactly like a checking account.

My questions are the following:

Most of my money is in 3 stocks, which have performed very well in the past, but some of which haven't been doing much lately. For example, should I be worried that my position in XOM was worth $80,000 a few days ago and is now worth $70,000? Should I sell out in this low market to "reduce risk?"
Is there any possibility that GMAC could go bankrupt? i.e. Is my $26,000 in DemandNotes just going to go poof?
Is it worth liquidating some of the stocks before I have to in order to diversify? Remember the bases are $2...
Any other advice?


Thank you so much.

$230k invested- what is the dividend payout?

My calculations:

KO 392*1.52 =$595.84
XOM 880*1.60 =$1408
IBM 308*2= $616
GM- no dividend/ $1300 value

MPYMX pays at least $1 per share ($5000/33.49)=$149
ICBMX pays at least $1 per share ($5000/12.28)=$407
SPECX pays at least $0.50 per share ($5000/9.87*.5)=$253
WWNPX pays at least $.10 per share ($5000/23.61*.1)=$21


TWGTX does not have a reliable dividend. $29,000 position.
Cash in Vanguard Prime Money Market: $21,000
Cash in GMAC DemandNotes ($26,000)

The dividends add up to almost $3500. One way to pay the bill is to borrow the $26000 tuition payment, take the dividends as cash each year, and use those to pay the debt.

The Math: $26k*4=104k. 104k/$3500=29 years to pay off.

The $230k is then allowed to grow intact for the same 29 years and provide you with an estimated growth of 7% per year and be worth $1.6 M when debt is paid off with dividends.

I don't suggest using that strategy, but I suggest considering a portion of it. At minimum spend the dividends on the tuition.

I would cash out of any stock you would not buy now. Maybe GM. If this is at a loss, then you can sell some of a stock you have a gain in to offset the loss. This might get you $2600 right now.

I would take the cash you have now and use it to pay for tuition. This is $47,000.

The 104k above just becaome 57k. During summers work to make about 10k per year. So summers 1 and 2 pay tuition in year 3 (and use the dividends to help with this payment too). Then borrow year 4 (26k) and use the $3500 dividends to pay this off in 7 years. If you can earn 10k in summer 3, the debt is 16k. and $3500 pays that off in 5 years.

This keeps most of the existing investments intact. I would not sell, unless you have a different thought on the purpose of the investments.