Hi, well you've done a lot of what CAN be done... weighting things more in the children's name than yours (as much as possible)
Another thing is to spend money on things for school, sooner rather than later, so that those assets don't show up at all
Excuse me .... I said that backwards .... the more in YOUR names the better
But again, usiong the 529 and Coverdell's have helped (that was the thought)
Not unrelated to that first corrected statement, Spend down the student's assets and income first.
Accelerate necessary expenses, to reduce available cash. For example, if you need a new car or computer, buy it before you file the FAFSA.
If your family's financial circumstances are unusual in any way, make an appointment with the financial aid officer at the school to go over your situation. Sometimes the school will be able to adjust your financial aid package to compensate using a process known as "PROFESSIONAL JUDGEMENT."
Having the financial aid folks on your side is huge
Minimize capital gains, they pick that up from the form and tax returns
OK just trying to list some gthings
Whatever you do DON'T withdraw money from your retirement plans to pay for school, because distributions from qualified plans count as ordinary taxable income, reducing next year's financial aid eligibility. If have to access that money, BORROW the money from the retirement plan, ... instead of getting that taxable distribution.
Minimize educational debt, as much as possible ... that's a direct offset to EFC (your Expected Family Contribution) ...raises it
If grandparents or others want to help, ask them to wait until the grandchild graduates before giving them money to help with their education.
Yes they pick up capital gains from your schedule D.... so if you can put off selling something fpr a gain until a later year do so (for THIS purpose)
Here's an idea, prepay your mortgage, take the ,money from cash an puts it into home equity, which isn't looked at
Don't know your children's situation, but the date to submit the FAFSA carefully, as assets and student marital status are specified as of the application date. So be aware of that "AS OF" date ... for all kinds of reasons, mostley because that's the date of the financial snapshot
The most obvious, however, if you have on starting next year, and havn't completed the FAFSA fo that child SPEND everything you were going to anyway now .... Car, computer, etc
Ok, yes, you have it the impact of the 529 is minimal
OIC I though maybe one wast starting right away
Do be aware and try not to manifest any gains that you can defer the year before starting
You sound knowledgeable, but here are some good articles: http://www.cbsnews.com/8301-505146_162-57381295/maximizing-next-years-financial-aid-for-college/
Very good thinking (ahead), I've see NOT being proactive hurt many
Yes, you do have this year, and as you know, in your name is XXXXX XXXXX
Another thought is an LLC, (IF it's a legitimate business), rental properties, etc just like home equity these are not considered
The business just has to have less than 100 employees to be exempt from listing
Probably also obvious, but the number of perple in the household and the number of people in college at one time also matter, as you start to do the FAFSAs
It's all SO relative, if you save it all, and don't have to use loans that've by far the highest net present value (when you include the whole family). .... but if your objective is to have then pay for some of it themselves (to take some ownership) the environment for that may be getting better_
There's something now called IBR (Income based repayment) for FEDERAL student loans, where they only have to pay at 15% of their discretionary income ... gives them lots of time to get on their feet
But no, moving it into your name BEFORE is a legitimate planning technique just don't falsify anything , and you'll be fine
I'm just saying, list things as they actually are,.... moving them into you name is XXXXX XXXXX just don't say something is in your name when it isn't ... that's all
It sounds like you understand the system quite well
There ya go
You'd want monty that's going to be used that quickly (within a year or two) in something that's interest bearing anyway
You migh even want to consider using the investment accounts inside the 529s (we've talking about investment management now, nothing about financial aid) that way
I understand :) I just always tell folks (probably stating the obvious) not to falsify anything ... because we're talking about federal law here .... but again don't let that scare you from doing the smart thing and moving it into your name while you can
nope . I've been in the investments business for 26 years and I've never seen custodians asked for receipts
The IRS guidance on that is that ou just have to honor the fact that is ``for the full use and benefit of the child.'' where 529 money is for qualified education expenses only
Good evening ... sounds like you have something (ones) to be proud of\
Can I help you with anything else?
If they're conservative .....
Thank you so much for the feedback and bonus...
By the way, on your parents, they might want to consider holding a portfolio of bonds (yes, rates are terrible, and I don't know enough about their income to know whether tax free municipal bonds may make sense).
But holding them to maturity take the interest rate risk (bonds go lower as rates go higher) off the table.
Then laddering them, holding bonds that mature anywhere from a few months from now to several years out can be a way to increase the rates (a little) and then have a bond coming due every six months or so, to reinvest at potentially higher rates going forward.
And finally, if the dollars are NOT going to be needed by them for retirement, but are likely to go to the next generation, then equities (especially the blue chip, higher dividend paying stocks) may have a place in the portfolio.