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

[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.

CSS profile asked for make/model/year of all cars

[Anonymous]

Anonymous wrote:

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.

This is the answer. At heart the OP can’t readily afford the liberal arts college. Go somewhere affordable.

[Anonymous]

-How much $$ is in your retirement accounts?

-How much $$ equity in your home?

-How many properties do you own? What is the equity in them?

-What cars do you drive and what’s their current value?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

This is the answer. At heart the OP can’t readily afford the liberal arts college. Go somewhere affordable.

They CAN afford it with different lifestyle choices.

[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.

Okay, but that is $200k savings that other families don't even have! So why do you think you deserve financial aid more than others who have no savings? While you pay for whole life or pre-paid burials to hoard your cash! Sheesh.

[Anonymous]

Anonymous wrote:If you really want to do this, you can look into funding a Whole Life life insurance policy with somebody like Northwestern Mutual.

You have to pay the cost of insurance and we set some up back before we had children, but it now pays a ton of dividends to us (far in excess of any premiums).

Life insurance is never counted. The other thing you can do is pay down your mortgage, although I think most colleges look at home equity in their calculations (though there are some that don't).

Some ideas.

Absolutely not true.

FAFSA may not ask about it, but many private colleges use alternative questionnaires, and those ask about everything. Including the car you own.

OP, your plan doesn’t make much sense. For financial aid purposes, an asset is an asset (with some exceptions for retirement accounts and primary homes). You’ are losing the flexibility and ending up in the same place with that move.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you really want to do this, you can look into funding a Whole Life life insurance policy with somebody like Northwestern Mutual.

You have to pay the cost of insurance and we set some up back before we had children, but it now pays a ton of dividends to us (far in excess of any premiums).

Life insurance is never counted. The other thing you can do is pay down your mortgage, although I think most colleges look at home equity in their calculations (though there are some that don't).

Some ideas.

Absolutely not true.

FAFSA may not ask about it, but many private colleges use alternative questionnaires, and those ask about everything. Including the car you own.

OP, your plan doesn’t make much sense. For financial aid purposes, an asset is an asset (with some exceptions for retirement accounts and primary homes). You’ are losing the flexibility and ending up in the same place with that move.

If they don’t ask in the NPC, they don’t ask. None of the top 20 schools count life insurance in the calculation and none ask about your car.

I assume OP at least understands only the very top schools may provide even a nickel here.

[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.

Oh zip it. Your entitlement and wish to game the system is revolting.

[Anonymous]

Everyone wants to scold OP instead of answering the question 🙄

[Anonymous]

These "why am I not getting more financial aid" or "how can I get more financial aid" posts always turn my stomach and make me angry. I'm a single, disabled mom to a child who has been in various therapies since she was a preschooler because she has autism (which is very expensive), and I have more saved for college for her than you do, OP. (Plus an emergency fund plus a retirement account. But we live in a small condo and don't really take vacations.) You've made your choices. You don't get to recharacterize things and get free money now. Or at least you SHOULD'T.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you really want to do this, you can look into funding a Whole Life life insurance policy with somebody like Northwestern Mutual.

You have to pay the cost of insurance and we set some up back before we had children, but it now pays a ton of dividends to us (far in excess of any premiums).

Life insurance is never counted. The other thing you can do is pay down your mortgage, although I think most colleges look at home equity in their calculations (though there are some that don't).

Some ideas.

Absolutely not true.

FAFSA may not ask about it, but many private colleges use alternative questionnaires, and those ask about everything. Including the car you own.

OP, your plan doesn’t make much sense. For financial aid purposes, an asset is an asset (with some exceptions for retirement accounts and primary homes). You’ are losing the flexibility and ending up in the same place with that move.

If they don’t ask in the NPC, they don’t ask. None of the top 20 schools count life insurance in the calculation and none ask about your car.

I assume OP at least understands only the very top schools may provide even a nickel here.

That's not true about vehicles. Harvard, Northwestern, and UVA ask.

[Anonymous]

Be smart. Do community college for 2 years then be full pay at your SLAC. They will love that dough.

[Anonymous]

Anonymous wrote:Everyone wants to scold OP instead of answering the question 🙄

Her questions didn't even make sense (dropping $200k in a retirement fund? Two seconds of googling could have answered that).

If she really knows that little about retirement and is so underfunded, no way should she pay $80k for college.

[Anonymous]

the NPC has about 15-25 questions. the css profile has over 200 questions. life insurance is on css

[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.

Please immediately start putting in the entire $23k/$30K allowable from your salary into an employer retirement instrument and then spend down some of the $200K from the lost paychecks to pay for bills. You have done a great job at saving for college - but it's very important that you have retirement funds. Every financial planner will tell you that your retirement savings should be prioritized over college expenses. I'm not going to give you a hard time over hoping for aid. But I really would not spend your savings or work on hiding it. Tell your kids what is affordable with what you have saved. Apply thoughtfully. Any loans should be on your kids' shoulders if they want more.