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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]My mother passed away two years ago and left me a Designated Beneficiary Account worth about $500K. This is not a marital asset but is intended to partially fund DH’s and my retirement. Our HHI is $225K and our retirement savings are behind schedule due to graduate school loans, periods of unemployment, medical expenses, etc. We’re both 56.

We’ve saved enough in a brokerage account for an instate public college education for senior DD - $130K. I was reluctant to open a 529 years ago because we’re hoping DD will get a talent scholarship (this may happen) and she’s an only child. Of course, we’re not counting on a scholarship but wanted flexibility to use the funds for retirement or help her with a house downpayment someday if we can.

Now that we’re about to fill out financial aid forms, and considering a few OOS options, I’m wondering if we should do something smarter with this designated beneficiary account and brokerage account that will afford flexibility and minimize the negative impact this will have on college financial aid.

Should we open a 529 now? Would that make a difference in financial aid calculations? Or should we wait to find out where DD lands since we’ve waited this long to preserve flexibility?[/quote]

This is precisely why we have so much wealth disparity in this country. This couples daughter I don't care how smart she is, she shouldn't get a "talent" scholarship because her parents clearly have enough saved.[/quote]

Look at it this way: kid is an excellent flutist. School 1 needs an incoming freshman excellent flutist. Kid is accepted to School 1 (her dream school) and School 2 (which is affordable). If School 1 offers money to entice a student needed to round out and diversify their student body, of course offering talent, merit, sports money makes sense.[/quote]

+1. This is OP. DD has a desireable talent (not a made up one as implied by the quotation marks up thread). She intends to pursue her passion in college and beyond while adding a second degree. She’s only applying to schools that value her art and offer generous scholarships. She’s been encouraged to apply by the schools themselves, but that is of course no guarantee.

And for those who say it was “dumb” not to start a 529, maybe. But we were only in a position to do so in the past 10 years while maxing our retirement for the first time. We can second guess our choices to pursue graduate degrees to work in nonprofits another time. This newfound wealth is a recent development and we’re still learning how it changes our financial outlook. Plus, my brother is sitting on $300k in his kids’ 529 because one kid got an athletic scholarship and the other chose a trade instead of college. Neither want kids. We have an only.

Clearly this decision is bigger than college financial aid, which is why I posted in this forum instead of the College one. But I appreciate the subject line and my OP missed the forest for the trees. It seems we need a financial advisor stat and to focus on retirement. And we need to come to terms with the fact that we have money now, when we didn’t before, and it’s time to learn how to manage it moving forward.

I appreciate those who offered advice instead of judgement.[/quote]

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