Financial Focus Fall 2006
The following article summaries are from the Financial Focus Fall 2006, published by the Alliance of Cambridge Advisors Inc, http://www.cambridgeadvisors.com
Maximizing Financial Aid
for College
Article by Patricia A
Konetzny, CFP, EA
There are strategies to help prepare for college finances that
should be done before January of the year that your child will start
college, and annually every year thereafter. Even if you were not
planning to apply for financial aid, it is better to be prepared for
unexpected financial challenges like medical bills or job loss.
Financial Aid is frequently in the form of loans that must be
repaid, but award packages may also be available as grants and
scholarships that do not need to be repaid. It is worthwhile to
investigate these options, as there are many lesser known grants and
scholarships that are unclaimed or unused every year.
Start by visiting www.collegeboard.com and completing the Free Application for Federal Student Aid (FAFSA) forms to determine eligibility. Parent's income and assets, the number of family members enrolled in college and the student's income and assets are most important.
Get your taxes done as early as possible in January and file a FAFSA form with the final numbers. Loan and grant offers are passed out until they run out, so those who file the FAFSA early have a better chance of receiving financial aid.
Avoid taking money out of your IRA or cashing saving bonds to pay for college. These capital gains are treated as income, just like your salary, and reduce your eligibility for financial aid. On the other hand, contributing for both the current year (2006) and next year (2007) Roth IRA's will decrease your assets and thereby increase eligibility for financial aid. In addition, Roth assets can be withdrawn without penalty to pay for college. In other words, put your money into a Roth retirement account where it won't be counted toward your Expected Family Contribution (EFC) income, and then withdraw the money penalty-free to pay for college!
To read this full article, please go to http://www.ExecutiveBlueprints.com/tips/20060906_finclfocus.pdf
The Ultimate Parenting Map to Money Smart Kids
Reviewed by Terry Gustafson,
CFP
"The Ultimate Parenting Map to Money Smart Kids", by Linda Leitz,
provides useful examples, ideas and anecdotes for parents to educate
young children about the real world of finances. The author draws
from her own experience, trials and tribulations from teaching her
own children.
The book addresses household responsibilities to earn allowances and the balance between work and entitlement. There is a concentration on the relative value of spending and the trade-offs involved. The book also contains sample spreadsheets designed for parents and their children. It is never too early for children to learn the relative value of money and personal finances. If you are interested in Linda's book, visit www.brightleitz.com
The full review and Promotional Discount Code with free shipping for "The Ultimate Parenting Map to Money Smart Kids" are available at http://www.ExecutiveBlueprints.com/tips/20060906_finclfocus.pdf
Rebalancing Your Investment Portfolio
Article by Stewart Farnell,
Ph.D., CFP
Every year your financial planning should include a review of your
investment portfolio. A recent study published by Vanguard's
Investment Counseling & Research Group demonstrated that rebalancing
annually produces similar results to doing the same activity
frequently. What matter most is that the portfolio is rebalanced
regularly and systematically.
To read this full article, please go to http://www.ExecutiveBlueprints.com/tips/20060906_finclfocus.pdf
Financial Focus contributed by:
Tu (Tony)
Bui, PFP
BUI Financial
Advisory LLC
2102 Business Center Dr.
Irvine, CA 92612
Phone (949) 253-4601
tonybui@buiadvisory.com
"Fee Only Planning. The advantage of unbiased advice."
For more information on the Alliance of Cambridge Advisors, please visit http://www.cambridgeadvisors.com, or call toll-free (888) 834-6333
______________________________________________________
Words of Wisdom
"An investment in knowledge always pays the best interest."
- Benjamin Franklin
"Familiarity breeds contempt - and children."
- Mark Twain
"The easiest way for your children to learn about money is for you not to
have any."
- Katherine Whitehorn
______________________________________________________
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About the Author:
John Mehrmann is a freelance writer and President of
Executive Blueprints Inc., an organization devoted to improving
business practices and developing human capital.
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