should i put $$ into an IRA now?

[hansy]

I was wondering if anyone knew how the gov't and medical schools treat income set aside into non-liquid accounts for retirement, such as an IRA. I'm thinking I may want to put some money away this year before I go to med school, but I don't want to raise my 2002 EFC because of it. Will putting away a few thousand dollars raise my EFC, lower my EFC, or not affect it at all compared to if I don't put any money into such an account?

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[Blue Tooth]

Yes start an IRA now. In all honestly, while loans and everything hurt and you want as much "free/cheap" money as possible, you have to seperate that from your retirement. I've gone into it with the attitude that there will be no pension/social security, etc for me. I'm on my own and I think a lot of people our age will be as well. Every bit helps and the more you can start with the better. The IRA info does go down on your FAFSA but still put as much as you can into one now. I'd also reccomend getting some kind of automatic account builder so that you're forced to continuously add money every year. it's just a good habit to have.

 

[edmadison]

Yes, Yes a thousand times yes -- put that money away any time you have an income. $2000 at age 22 with be $64,000 at age 67 assuming a paltry 8 percent interest. Plus, with the Roth you get all that income free of taxes.

MMMMMMM Tax Free

Ed

 

[Fermi]

•••quote:•••Originally posted by hansy:
•Will putting away a few thousand dollars raise my EFC, lower my EFC, or not affect it at all compared to if I don't put any money into such an account?•••••One thing that hasn't been mentioned yet is that any money you put into a traditional IRA or 401(k) this year will be added back onto your "liquid" income on the FAFSA for the following year. Any money you've put in before this year will not be considered. Still, if you put some money away this year, it will subtract from your liquid assets, which can bring the EFC down a bit.