Getting Money Off the College Radar
Q: Hi Jeff,
I am a widow with two daughters 18 &16. We are in the college process right now and I contacted a college counselor to help me with the CSS Profile and the Fafsa. She told me that I need to move some money off the radar and suggested first a Roth IRA but then suggested an annuity which turned out to be Allianz Master Dex.
We are not talking very much money at all. It is now in a CD. In two years I will have both girls in college. I want be able to know that money will be there when I get older. I am 53.
Apparently the colleges will go after this money when they look at financial aid so it needs to get off the radar.
I have a meeting with her next week where I am suppose to bring a check. I really do not know what to do. Please advise.
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posted by Jeffrey D. Voudrie @ 2:35 PM
3 comments
3 Comments:
Thanks for contacting me. I want to make sure that I am understanding this correctly.
When you say 'college counselor' are you referring to someone at the college or someone who serves as an advisor and isn't associated with the school?
The advisor is someone who was referred to me to help me fill out the financial aid forms for college. She is not associated with the school.
At first she suggested a Roth IRA to get some of my retirement (little as it is) off the radar. Then she said she thought of something else that would probably be better... an annuity. Not knowing anything about them I thought it sounded like a good solution.
When I started researching them yesterday I was horrified as to how they work. That's when I came across your web site and decided to ask you the question. I have been checking out the Roth IRA's at my local credit union and bank and I think that is the way I have to go. What I have been told is for 2007 I am able to put in 5,000 and for 2008 in Jan I am able to put in 6,000 I am over 50.
The first thing I would do, if I were you, is to take some time to research the financial aid requirements to verify that the information that you've been told is correct. There should be plenty of information about it on the web. From there you can determine if you need to shift assets or not.
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