Fleishel Financial News
These days, a lot of parents are doing all they can to help their kids get into college - no matter what the financial cost is. Private tutors, test prep courses, music, voice, or foreign language lessons do not come cheap. But it wasn’t always this way.
Anyone who has ever taken out a student loan knows what a huge impact they have on your finances after graduation and well into your working life. Student loans are one of the largest sources of consumer debt which is an overwhelming thought for someone considering borrowing money for themselves or their college-bound children.
In the life events of a parent, sending your kid off to college is a momentous and prideful occasion. Everything you had worked for up to this point in keeping them focused on grades and good behavior through all the years while still having some fun culminates in the big life step of getting them established in college. There was also the big decision of what schools and scholarships to apply for especially if you’re hoping they drank the Kool-Aid of your alma matter after brain washing them sufficiently on their football program or favorite college team sport. When we adopted our son Marcus and daughter Vika from Russia, they were 3 and 1. It only took about 3 months when Marcus barely spoke any English to get him doing the fist pump with, Gooo Dawgs! (and “Jackets bad”, referring to my wife Becky’s Georgia Tech Yellowjackets).
In December 2017, the Tax Cuts and Jobs Act, a sweeping $1.5 trillion tax-cut package, became law. College students and their parents dodged a major bullet with the legislation, as initial drafts of the bill included the elimination of Coverdell Education Savings Accounts, the Lifetime Learning Credit, and the student loan interest deduction. Also on the table in early drafts of the bill was the taxation of tuition waivers, which are used primarily by graduate students and employees of higher-education institutions. In the end, none of these provisions made it into the final legislation. What did make the final cut was the expanded use of 529 plans.
Many of our parents and grandparent clients are hoping financial aid will be available to defray the ever rising cost of tuition for college. Yet, it is often confusing which type of assets influence their qualification for financial aid. The following is a quick summary of the assets guardians must disclose when completing the two top financial aid documents.
Everyone wants to retire comfortably when the time comes. Most also want to help their child go to college. So how do you juggle the two? The truth is, saving for your retirement and your child's education at the same time can be a challenge. But take heart—you may be able to reach both goals if you make some smart choices now.
The first step is to determine what your needs are for each goal.
Fleishel Financial Associates is an Independent Registered Investment Advisor.
Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. and Fleishel Financial Associates, Inc. Fleishel Financial Associates, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® and CFP® in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.