Hi everyone, got a FAFSA question for someone. I've got about 10,000 in investments from my old job. Should I sell them so I don't have to report them and get more aid? Do you think that's enough to change my potential aid, or does it not matter. Thanks for any help.
FAFSA question, sell assets?
- Thread starter dcesnc
- Start date
if you sell them you will then have cash - liquid assets - which is even more likely to be included in FA. How would you not report this? Keep $10,000 under the mattress? I would just keep them as investments if I were you, but really the best way to know is to thoroughly understand your particular schools policies as it does vary considerably.
One idea is to open a Roth and/or traditional IRA.
IRAs are not included in your "assets". And should be protected from the evil men and women at financial aid. If you had an income, you can deposit your entire taxable wages up to $3000 a year. You can make a deposit for 2003 before april 15 (tax is due) and make a second deposit the same day for 2004 if your wages will be 3000 this year.
Traditional IRAs are tax deferred accounts, thus you can reduce your taxable income by the amount you place into the account. The interest generated in the account is taxable and when you remove the money, after retirement or whatnot, you will be taxed on distributions at your marginal tax rate.
Roths are post-tax donations to an account, they generate interest tax free, and when you withdraw it, the distributions are tax free.
Good luck,
CCW
IRAs are not included in your "assets". And should be protected from the evil men and women at financial aid. If you had an income, you can deposit your entire taxable wages up to $3000 a year. You can make a deposit for 2003 before april 15 (tax is due) and make a second deposit the same day for 2004 if your wages will be 3000 this year.
Traditional IRAs are tax deferred accounts, thus you can reduce your taxable income by the amount you place into the account. The interest generated in the account is taxable and when you remove the money, after retirement or whatnot, you will be taxed on distributions at your marginal tax rate.
Roths are post-tax donations to an account, they generate interest tax free, and when you withdraw it, the distributions are tax free.
Good luck,
CCW
Hello,
Please remember that any financial action should take place BEFORE you put a date on your FAFSA application. Otherwise it will take an effect only for the next year application.
There is an excellent web site www.finaid.org/calculators/scripts/estimate.cgi where you can calculate an Expencted Family Contribution, etc. Do not forget to change the Methodology field to "Institutional Methodology" .
Also they have an article "Maximizing Your Aid Eligibility" www.finaid.org/fafsa/maximize.phtml. Read it, it contains a lot of useful information (16 pages that were written very well).
Good luck.
Please remember that any financial action should take place BEFORE you put a date on your FAFSA application. Otherwise it will take an effect only for the next year application.
There is an excellent web site www.finaid.org/calculators/scripts/estimate.cgi where you can calculate an Expencted Family Contribution, etc. Do not forget to change the Methodology field to "Institutional Methodology" .
Also they have an article "Maximizing Your Aid Eligibility" www.finaid.org/fafsa/maximize.phtml. Read it, it contains a lot of useful information (16 pages that were written very well).
Good luck.