Moving $200,000 out of cash to improve chances for college financial aid?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, why do you think you shouldn't have to spend your savings for college?

Why do you think colleges should give you free money over needy families with much lower incomes?

Not OP but the colleges don’t even think you need to spend all your non-retirement savings. That’s why it’s only assessed at 5ish%. Why do you want to protect Harvard’s massive tax protected endowment over OP’s savings?

OP here. Thanks PP your point about Havard's massive endownment vs our "wealth" is exactly right.

Those numbers might seem high to some folks in this thread but we are really not super wealthy at all, we drive old cars, live in a small house and don't spend money frivolously at all. It's not like we had high incomes our whole lives, all you judgers have no idea what our financial history is. And also, our savings ARE retirement. Just because we stupidly kept them in a bank account doesn't mean we don't need them for retirement, which is sorely underfunded.

What is a small house to you? Ours is 1000 square feet we paid under $400K for. If you paid double that screaming you live in a small house is a joke as its the price not size.

[Anonymous]

Anonymous wrote:

Anonymous wrote:1. you cannot just put $200K in a retirement account; there's a limit to how much you can contribute
2. if you put it into a 529, when you withdraw it, it has to be for college expenses. If not, you will get taxed. Regardless, colleges will look at 529 amounts.

Yep
Our 529s count against us

This may be the most idiotic statement in the history of DCUM.

Yes, the money you have saved *specifically for college* does factor in to [checks notes] whether you need financial aid for college. In what rational universe would it not?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, why do you think you shouldn't have to spend your savings for college?

Why do you think colleges should give you free money over needy families with much lower incomes?

Not OP but the colleges don’t even think you need to spend all your non-retirement savings. That’s why it’s only assessed at 5ish%. Why do you want to protect Harvard’s massive tax protected endowment over OP’s savings?

OP here. Thanks PP your point about Havard's massive endownment vs our "wealth" is exactly right.

Those numbers might seem high to some folks in this thread but we are really not super wealthy at all, we drive old cars, live in a small house and don't spend money frivolously at all. It's not like we had high incomes our whole lives, all you judgers have no idea what our financial history is. And also, our savings ARE retirement. Just because we stupidly kept them in a bank account doesn't mean we don't need them for retirement, which is sorely underfunded.

Ah, so here it is. For purposes of financial aid, you would like to recharacterize your cash savings into retirement savings. You have belatedly realized that you didn't plan correctly. In essence, your post is, "We screwed up, and not we would like a mulligan. Please shield us from the consequences of our stupidity."

Sorry, no. Write the check to the college.

[Anonymous]

Anonymous wrote:OP, why do you think you shouldn't have to spend your savings for college?

Why do you think colleges should give you free money over needy families with much lower incomes?

Bingo. It’s called GREED. The wealthy think and EXPECT that the less fortunate should support their endeavors, so that the wealthy can preserve and continue building their wealth. They don’t want to spend down their wealth.

The whole premise of the OP is absolutely disgusting to me. Yuck.

[Anonymous]

realize that the EFC is per year, so 5.xx multiplied by 4 is almost 25% of assets and almost 50% if you have 2 kids. So if you are moderately wealthy, say $2 million in liquid assets, you will lose a nice chunk for college costs.

Anonymous wrote:

Anonymous wrote:OP, why do you think you shouldn't have to spend your savings for college?

Why do you think colleges should give you free money over needy families with much lower incomes?

Not OP but the colleges don’t even think you need to spend all your non-retirement savings. That’s why it’s only assessed at 5ish%. Why do you want to protect Harvard’s massive tax protected endowment over OP’s savings?

[Anonymous]

Did I miss something? Why is op planning on a $90,000 school? There are plenty of good schools that cost less than $90,000. Also, seems like op is trying to game the system to get financial aid from an Ivy. There is no guarantee your kid will be accepted - even with a fabulous application. Seems like your efforts would be better served encouraging your dc to apply a couple of tiers down to a school that offers merit and will go out of their way if your kid has Ivy stats.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, why do you think you shouldn't have to spend your savings for college?

Why do you think colleges should give you free money over needy families with much lower incomes?

Bingo. It’s called GREED. The wealthy think and EXPECT that the less fortunate should support their endeavors, so that the wealthy can preserve and continue building their wealth. They don’t want to spend down their wealth.

The whole premise of the OP is absolutely disgusting to me. Yuck.

You have this completely backwards. The poor aren’t subsidizing their financial aid. The truly wealthy would be. And you’re protecting the Uber wealthy. Why?

[Anonymous]

Anonymous wrote:Did I miss something? Why is op planning on a $90,000 school? There are plenty of good schools that cost less than $90,000. Also, seems like op is trying to game the system to get financial aid from an Ivy. There is no guarantee your kid will be accepted - even with a fabulous application. Seems like your efforts would be better served encouraging your dc to apply a couple of tiers down to a school that offers merit and will go out of their way if your kid has Ivy stats.

Agree that OP may be trying to game the system in order to receive financial aid, but this is not unreasonable for a middle income/upper middle income family with 2 in college at the same time for at least 3 of 4 years.

OP's younger child is focused on an LAC, not on an Ivy League school.

OP refuses to share relevant information so proffered advice is almost meaningless.

Without knowing major, career plans, & likelihood of grad/professional school it is tough to offer relevant advice.

While I understand that OP does not want to reveal identifying factors (especially as OP's child is focused on a small school), more information is needed or OP needs to seek counseling in private with one experienced in such matters.

[Anonymous]

Based on posts in this thread, the best advice offered was to stuff the money into a cash value life insurance policy up to the highest amount permitted under the tax laws which govern life insurance policies. Few understand the benefits of doing so, but there are several.

OP: Seek out a fee based financial planner with knowledge & experience in this area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Did I miss something? Why is op planning on a $90,000 school? There are plenty of good schools that cost less than $90,000. Also, seems like op is trying to game the system to get financial aid from an Ivy. There is no guarantee your kid will be accepted - even with a fabulous application. Seems like your efforts would be better served encouraging your dc to apply a couple of tiers down to a school that offers merit and will go out of their way if your kid has Ivy stats.

Agree that OP may be trying to game the system in order to receive financial aid, but this is not unreasonable for a middle income/upper middle income family with 2 in college at the same time for at least 3 of 4 years.

OP's younger child is focused on an LAC, not on an Ivy League school.

OP refuses to share relevant information so proffered advice is almost meaningless.

Without knowing major, career plans, & likelihood of grad/professional school it is tough to offer relevant advice.

While I understand that OP does not want to reveal identifying factors (especially as OP's child is focused on a small school), more information is needed or OP needs to seek counseling in private with one experienced in such matters.

OP didn’t ask for this unsolicited advice. They had a specific question you apparently can’t answer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Did I miss something? Why is op planning on a $90,000 school? There are plenty of good schools that cost less than $90,000. Also, seems like op is trying to game the system to get financial aid from an Ivy. There is no guarantee your kid will be accepted - even with a fabulous application. Seems like your efforts would be better served encouraging your dc to apply a couple of tiers down to a school that offers merit and will go out of their way if your kid has Ivy stats.

Agree that OP may be trying to game the system in order to receive financial aid, but this is not unreasonable for a middle income/upper middle income family with 2 in college at the same time for at least 3 of 4 years.

OP's younger child is focused on an LAC, not on an Ivy League school.

OP refuses to share relevant information so proffered advice is almost meaningless.

Without knowing major, career plans, & likelihood of grad/professional school it is tough to offer relevant advice.

While I understand that OP does not want to reveal identifying factors (especially as OP's child is focused on a small school), more information is needed or OP needs to seek counseling in private with one experienced in such matters.

OP didn’t ask for this unsolicited advice. They had a specific question you apparently can’t answer.

LOL !

Maybe OP needs to rethink how to present his/her situation so that the appropriate issues/questions may be addressed.

[Anonymous]

This is gross, OP.

[Anonymous]

Why are you driving old cars? If you want to shield your money buy a new car the cash.

If you have no retirement savings or very minimal then it’s plain dumb to be saving money for college. We are prioritizing our retirement. We have been up front with our kids that if they want private schools ir out of state public then they need to get merit scholarships. We will only pay for a public university in state. We make 200k. And that is only in the past 3 years. That’s not enough for us to consider pay for private college for two kids.

[Anonymous]

Anonymous wrote:realize that the EFC is per year, so 5.xx multiplied by 4 is almost 25% of assets and almost 50% if you have 2 kids. So if you are moderately wealthy, say $2 million in liquid assets, you will lose a nice chunk for college costs.

Anonymous wrote:

Anonymous wrote:OP, why do you think you shouldn't have to spend your savings for college?

Why do you think colleges should give you free money over needy families with much lower incomes?

Not OP but the colleges don’t even think you need to spend all your non-retirement savings. That’s why it’s only assessed at 5ish%. Why do you want to protect Harvard’s massive tax protected endowment over OP’s savings?

Or, your kids get merit aid or they go to state schools like the rest of ours. We don't even consider Harvard for our smart kids.

[Anonymous]

Anonymous wrote:Why are you driving old cars? If you want to shield your money buy a new car the cash.

If you have no retirement savings or very minimal then it’s plain dumb to be saving money for college. We are prioritizing our retirement. We have been up front with our kids that if they want private schools ir out of state public then they need to get merit scholarships. We will only pay for a public university in state. We make 200k. And that is only in the past 3 years. That’s not enough for us to consider pay for private college for two kids.

Its fine to tell your kids state schools, we do, but to tell they they aren't a priority when it comes to savings is bizzare.