College Planning Question

[briko3]

I spoke with a potential client that was asking for ways to "shelter" assets in order to qualify for more financial aid. He said there was a "class" that was supposed to show him how to do it and that 529s weren't the way (even though that's what he has) I know annuities and LI is not included in the financial aid equations, but have any of your guys heard of something that sounds like what this guy is talking about?

Please explain if possible. My guess is that it's someone trying to use this as a way to sell LI or Annuities.

Thanks in advance for your help.
- Chris

 

[Mr. Bill]

You are correct in your assumptions - the Brian Kay/Tim Austins of the world are telling people to refinance their non-deductible debt (credit cards, cars, etc.) since debt is also not considered on the financial aid application, or take out a HELOC, and put investable assets (non-qualified accounts) into life insurance and/or annuities.

The details are always the problem...and this is only the asset side of the equation.

There are a number of "gurus" touting the use of college planning as a way to get clients. Most of them are making their money off selling systems. And last I saw an ad for Tim Austin, he was still making the $763k he made nearly 10 years ago...

 

[insuranceexec]

Mr. Bill is correct. As they always say "The devil is in the details."

Very good question