<p>Oldinjersey, your post #114 made me chuckle. $300,000 in savings with better uses for it = cc and state U. Yes, there are many folks who think this way and try to devise schemes to wring a few extra dollars of finaid out of the FAFSA fromulae.</p>
<p>As with any standardized formulae one size does not fit all and those with valid situations can always prostrate themselves at the feet of the finaid office.</p>
<p>And yes, I should probably not be so sarcastic because I have done well enough to make FAFSA/CSS irrelevant. But I equate my investing philosophy to those trying to maneuver a few addition finaid bucks their way. I always looked at the big long term picture and paid no attention to short term issues like tax consequences. So what if I had to pay a few more sheckels in taxes to Uncle Sam. That pesky fact would only get in the way of my long term goals.</p>
<p>Now a family has ever right to make choices which will result in fairly minimizing their FAFSA efc. And rule one would be to minimize money saved in the student’s name and maximizing savings in retirement accounts. But beyond that, any legal manuvering seems to be more trouble than it is worth. And illegally hiding assets or transferring assets is just wrong. I know a family who allowed their son to buy a $5000 car in order to reduce college savings in his name. But in 4 years the value of that depreciating asset would be what, $2000? And now they have $5000 less in college savings. Our son paid $1800 for his 1996 Dodge Neon in 2003, the ultimate chick repeller, its still ticking, has lost maybe $900 in depreciated value but has $3200 left over to pay for college expenses.</p>
<p>My advice is to play smart and play fair. The big picture is your child’s education and the life lessons you teach by your actions.</p>