Life lessons: Jerry Jude faces the challenge of raising a special-needs child on his own.

DARRIUS JUDE MAY BE ONLY 7 YEARS old, but he's a teacher. And he's taught his dad, Jerry, a valuable lesson in patience. "Dealing with my son has shown me that you can do anything you put your mind to," says Jerry. His son has symptoms of attention deficit hyperactivity disorder, and exhibits "delays in speech, behavior, and in his mental and physical abilities." But Darrius continues to make progress. "I believe that with continued efforts, Darrius will be able to attend college and live a productive life," says Jerry. "That's why I am saving for his college education."

The past 18 months have been particularly promising. Darrius, who is in first grade, has received speech and physical therapy through his public elementary school, as well as outside psychological counseling. "He has come a long way," says Jerry, 33, with relief in his voice. Things are looking up for father and son, who enjoyed their first seven-day Disney cruise last year. The $2,500 sticker price was not in his budget, but Jerry says it was worth it. That trip contributed to a credit card balance of nearly $10,000 that he says crept up on him as he used it to "bridge the gap with groceries, clothes, and the unexpected."

Now, fun and games will have to take a back seat as Jerry continues to focus on paying off the credit card debt, which currently stands at $6,200. He also has $1,500 in student loans, a $7,900 loan for his Yamaha motorcycle, and a $105,888 mortgage on the two-bedroom Harlem co-op that he calls home.

Once Jerry is able to get his debt out of the way, he wants to increase his savings. Jerry has $18,300 in a 401(k), $1,500 in a Roth IRA, $2,000 in a CD, and more than $2,500 in checking and money market accounts. He also recently opened a New York State 529 college savings plan for Darrius in which he's accumulated $1,000. However, the big prize he's eyeing is investing in rental property, preferably in Charlotte, where he attended the University of North Carolina. After all, he's seen how good an investment in real estate can be. His co-op jumped from a value of $115,000 in 2004 to a current market value of $320,000.

Jerry is pursuing a bachelor's degree in business management at City College in New York, taking a full course load of four evening classes. He admittedly has a lot on his plate. And to complicate matters even more, next year Darrius won't have access to special-education services at his current school; the school doesn't provide such services for second graders. Jerry says he is working with the New York City Board of Education to sort out his options. However, it's a real dilemma: private schooling would be expensive, and because he brings home $45,000 annually as a circulation analyst for The Walt Disney Co., Jerry makes too much to qualify for many free social services. Darrius' mother lives in Tennessee and is able to make only a small monthly contribution.

"I say my prayers and go to sleep. What will be, will be," Jerry says. I may not nave $1,000 to just blow today, but there is enough food in the house."

THE ADVICE

To help Jerry develop an action plan, BLACK ENTERPRISE asked Mehul Mistry to evaluate his situation. Mistry is a certified financial planner with Secure Planning Strategies in Southfield, Michigan, which works with families of special-needs children and adults.

* Focus on debt. Jerry should consider a home equity line of credit to pay off all of his debts. The interest rate will likely be lower than the double-digit rates currently on the credit cards. Given Jerry's current payment pattern, Mistry says that he would easily be able to make payments on the line of credit. "If he is able to make the same payment to clear away consolidated debt, that leaves the freedom to utilize excess cash to create assets for the future," says Mistry.

* Fine-tune estate plan. Jerry has taken steps to create a revocable living trust, but has yet to fund the trust. "The trust should be named as the beneficiary of his life insurance policies as well as retirement plans, as Darrius is still a minor," advises Mistry. Jerry also needs to create a separate special-needs trust for Darrius to protect his son's eligibility for future government benefits. The special-needs trust should be coordinated with the legal documents of other family members so that Darrius doesn't inadvertently receive (e.g., through a will) any funds that should go to the trust, as this could jeopardize his eligibility.

Mistry recommends that Jerry choose an attorney who is well versed in special-needs planning to draft the trust. He suggested a few good Websites for finding legal help, such as The Arc, a grassroots organization for individuals with developmental and intellectual disabilities (www.thearc.org), the Special Needs Alliance, a network of lawyers dedicated to disability and public benefits law (www.specialneedsalliance.com), and the National Academy of Elder Law Attorneys (www.naela.com).

* Explore a variety of services. Investigate the offerings of various support groups such as YAI/National Institute for People with Disabilities Network (www.yai.org), which provides services, education, and training in the field of developmental and learning disabilities. Other helpful sites include www.thinkcollege.net, which offers information about post-secondary education programs that support youth with intellectual disabilities, and www.yellowpagesforkids.com, which lists resources such as educational consultants, psychologists, and healthcare specialists for children with disabilities.

Financial Snapshot:
Jerry Jude
New York, NY

HOUSEHOLD INCOME

Gross Income                $45,000

ASSETS

Co-op                      $320,000
401(k) account               18,300
Yamaha Motorcycle *           3,915
Certificate of Deposit        2,000
Money Market account          1,680
Roth IRA                      1,500
Checking account              1,000
529 College Savings Plan      1,000
Total                      $349,395

LIABILITIES

Mortgage                   $105,888
Credit Cards                  6,200
Motorcycle loan               7,900
Student loans                 1,500
Total                      $121,488

NET WORTH                  $227,907

* ACCORDING TO KELLEY BLUE BOOK