mbamatric wrote:
2) Maxing out contributions to IRAs. Since IRA balances aren't factored into your net worth calculation, I'm thinking it would be beneficial to move cash to IRA's to lower cash and net worth balances. Also, my understanding is that you can take money out of the IRA at any time without an early withdrawal penalty if it's used to pay down educational expenses. So, it's not like I won't be able to access this money at any time.
Don't you have to include that in Section 4, Question 42 on the FAFSA worksheet?:
As of today, what is the net worth of your (and your spouse’s) investments, including real estate (not your home)?
mbamatric wrote:
3) I know this is a really shady tactic, but I've read (Montauk's book being one) that one may want to transfer cash to your parents for a couple years to have less funds tied to your name for FAFSA purposes. Now, I'm really unsure as to whether or not this is even legal, and wouldn't want to risk doing so if it isn't. But, not sure if many students do this or not and if schools really care....
Thoughts on any of these strategies?
Depends if you qualify as an independent. I've definitely heard of people doing it if they are in other situations where having a low net worth may be beneficial (aka about to get sued). Probably something not worth messing around with unless you think it will make a big, big difference.