For the purposes of FAFSA, How do I determine the net worth of my timeshares?

[Jason245]

That's easy to say. But do you have any other viable ways of financing a college education?

I worked full time while going to school full time. President of honors society. Found an employer who offered a little bit of tuition reimbursement. Picked up every scholarship I could find and apply for (one acceptance out of 10 apps)

Wasn't fun.. but 5 years later walked out with a BS in accounting, master of tax and zero debt. Got a cpa, a job and a career. While in school the honors society had a convention in Hawaii so school paid for that too.

If you are comitted, ambitious, and willing to work hard it can happen.

Of course, I view university as an opportunity to get skills and a career, not an opportunity to get drunk and party or an extension of high school with less parental oversight . I paid my way and reep the benefits in every paycheck and my retirement account. I am putting money in a 529 for my kid. And that is all they are getting from me and if they want a degree in liberal arts.. they won't even get that.

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[FLDVCFamily]

I worked full time while going to school full time. President of honors society. Found an employer who offered a little bit of tuition reimbursement. Picked up every scholarship I could find and apply for (one acceptance out of 10 apps)

Wasn't fun.. but 5 years later walked out with a BS in accounting, master of tax and zero debt. Got a cpa, a job and a career. While in school the honors society had a convention in Hawaii so school paid for that too.

If you are comitted, ambitious, and willing to work hard it can happen.

Of course, I view university as an opportunity to get skills and a career, not an opportunity to get drunk and party or an extension of high school with less parental oversight . I paid my way and reep the benefits in every paycheck and my retirement account. I am putting money in a 529 for my kid. And that is all they are getting from me and if they want a degree in liberal arts.. they won't even get that.

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ITA!!! Awesome that you said that about liberal arts:rofl:

 

[DeniseM]

And that is all they are getting from me and if they want a degree in liberal arts.. they won't even get that.

So, you don't approve of them becoming elementary teachers, which requires a Liberal Arts degree?

 

[Jason245]

So, you don't approve of them becoming elementary teachers, which requires a Liberal Arts degree?

If they get a degree in early childhood development I will help out. But liberal arts is an indesisive degree which basically means that the person was unwilling to commit or make a decision. My wife got one.. then went back to school for an associates degree in electronics so she could get her current job.. her liberal arts degree was wasted money and time. For the most part though. .I will discourage any career in education outside of university professor or researcher.

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[DeniseM]

You cannot get an elementary teaching credential with a degree in Early Childhood Development - that is for teaching pre-school, which I actually don't recommend, because in most cases it pays FAR less than elementary - like 50-75%.

In most states, you have to get a Liberal Arts Degree, or the equivalent, to get an elementary teaching credential.

I agree that a Liberal Arts Degree would be an waste of time for a career in electronics.

 

[Jason245]

You cannot get an elementary teaching credential with a degree in Early Childhood Development - that is for teaching pre-school, which I actually don't recommend, because in most cases it pays FAR less than elementary - like 50-75%.

In most states, you have to get a Liberal Arts Degree, or the equivalent, to get an elementary teaching credential.

I agree that a Liberal Arts Degree would be an waste of time for a career in electronics.

To be honest. . I will discourage teaching and anything associated. .the whole liberal arts field isn't good at putting food on plates, roofs on heads or cars in driveway. . I want my kid to be middle class or higher and teaching in pre university level just won't cut it..

If they must do it.. I would tell them to specialize in special needs kids. .since that is where the money is(if any)..

As for early childhood development. . I would encourage them to use that to open a daycare, not work for one... daycares are cash cows. ..


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[DeniseM]

Jason - What state do you live in?

 

[Jason245]

Jason - What state do you live in?

Florida.

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[famy27]

To be honest. . I will discourage teaching and anything associated. .the whole liberal arts field isn't good at putting food on plates, roofs on heads or cars in driveway. . I want my kid to be middle class or higher and teaching in pre university level just won't cut it..

If they must do it.. I would tell them to specialize in special needs kids. .since that is where the money is(if any)..



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I wouldn't trade my liberal arts degree for anything. It's served me well in my career and in life.

 

[DeniseM]

Florida.

That makes a difference -

*Teacher's salaries vary widely from state to state, but in California, your statement is not accurate. In the district that I retired from, teachers started at about $40K per year, and can easily retire making over $100K per year.

*The average teacher in CA makes $70K per year.

*In most cases, Special Ed. teachers make about the same salary as teachers in other subject levels. But, generally, it is easier to find a job, because there is more demand than supply.

*Teachers working for a local school district have FAR more job security than teachers at the university level.

 

[Jason245]

I wouldn't trade my liberal arts degree for anything. It's served me well in my career and in life.

To be clear I am not putting the degree down.. there are many successful people in all degrees, that being said, I believe in probabilities. The simple fact is that a degree in accounting is more likely to give you a career with more financial compensation than a degree in liberal arts or archeology. That being said..the liberal arts is more fun..

Being the first college graduate in my family and not having the expectation of a large inheritance. .. I made a practical choice. I plan on instilling those values on my children so that they don't blow what I give them (and was not given to me).

One year before I graduated from a state school I received multiple job offers for after graduation paying around 50k..

I think now the number is closer to 60k..

I don't see many liberal arts majors earning that much in florida after 5 years of experience or more.. let alone right out of the gate.



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[Jason245]

That makes a difference -

*Teacher's salaries vary widely from state to state, but in California, your statement is not accurate. In the district that I retired from, teachers started at about $40K per year, and can easily retire making over $100K per year.

*The average teacher in CA makes $70K per year.

*In most cases, Special Ed. teachers make about the same salary as teachers in other subject levels. But, generally, it is easier to find a job, because there is more demand than supply.

*Teachers working for a local school district have FAR more job security than teachers at the university level.

70k in California is impossible to live on..especially in the big cities.

University educators arnt really educators they are researchers who also teach.. starting salary around 80k in fl. publish or perish. .do it for a few years get tenor and then you are pretty safe..do it well enough and get enough grants...

I know of one person who moved from fl to ca as a PhD professor and got like 150k.. that number has gone way up due to all the grants and publishing etc..of course that was computer science. .

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[DeniseM]

Not all of CA is urban. It is a huge state, and the vast majority of the state is not as expensive as LA and San Francisco.

In most of the state, it is certainly possible to live on $70K per year, especially if both spouses work - which is the norm here.

My daughter is a young teacher, teaching in a mid-size city in CA, and she just bought a 2 bdm. condo for less than $80K. She is doing well on her teacher's salary, and looking forward to her salary increasing as her years of experience increase.

 

[Jason245]

Not all of CA is urban. It is a huge state, and the vast majority of the state is not as expensive as LA and San Francisco.

In most of the state, it is certainly possible to live on $70K per year, especially if both spouses work - which is the norm here.

My daughter is a young teacher, teaching in a mid-size city in CA, and she just bought a 2 bdm. condo for less than $80K. She is doing well on her teacher's salary, and looking forward to her salary increasing as her years of experience increase.

That is great for her. I know people in San Diego, San Fran and LA who can hardly afford housing with a two income house earning around $150k/year...

On top of between state taxes, state sales tax, and federal tax, it was very hard for them... Heck even a 2 BR condo was outside of what they could almost ever dream of affording.

 

[DeniseM]

Where you live is a choice. Regardless of your profession, if you can't afford the cost of living - move! Unemployment is only about 5% these days - no one is "stuck" in a job.

 

[raygo123]

Where I live you better have a degree in education, with a specific major, and have started or completed your masters in Ed.

Now a degree in ancient history, philosophy, communications, etc, in my opinion, offer employers an accomplished candidate. It now falls to that individual to impress. There are quite a few companies that hire talent, not a degree.

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[Saintsfanfl]

Value the timeshares for the amount a bankruptcy court would get on a sale. Some units definitely have some value but most do not.

It is acceptable but not really correct or favorable to value a timeshare at the property tax value. The property tax is based on the total value of the entire property and then apportioned to the units. The property itself has a great deal of value and therefore must be taxed but the timeshare restrictions and uncontrollable fees cause most individual units to have no sales value to the owner.

 

[Luanne]

My kids went to community college, and then our local state college. No loans required. I realize that isn't as prestigious as going to a nationally known college, but in many careers, going to an expensive college does not help you get a job, or a high salary.

My cousin's daughter was accepted to Yale, and even though is was not within their means, they really wanted her to go, so they took out massive loans. Now she is a kindergarten teacher, with massive loans to pay off.

My older dd went to community college (in California) then to a state college in Washington. Younger dd went to a private 4 year school, but with the awards the school gave her tuition was the same as a state school in California.

They both have loans, but not as many as some of the people they went to school with.

 

[carl2591]

that is so true.. stay the hell out of NC.. The local legislators (republican) would rather cut taxes than fund schools and pay teachers.. NC is in the bottom of most most metrics in the US..

That makes a difference -

*Teacher's salaries vary widely from state to state, but in California, your statement is not accurate. In the district that I retired from, teachers started at about $40K per year, and can easily retire making over $100K per year.

*The average teacher in CA makes $70K per year.

*In most cases, Special Ed. teachers make about the same salary as teachers in other subject levels. But, generally, it is easier to find a job, because there is more demand than supply.

*Teachers working for a local school district have FAR more job security than teachers at the university level.

 

[SMHarman]

I do not make a lot of money... I'm a teacher, sole income earner for my household. I've managed money fairly well-- much like the timeshare game.

This is snarky and sarcastic, but I guess this comment from the article sums up my feelings right now:

Grizzy Feb 7, 2015
"The most important thing to remember is the more debt you have the greater the financial aid you will get. Buy the biggest home you can afford with the highest outstanding mortgage. Do not invest in 529 plans. Do not invest in stocks or other investments. Go on vacation to Europe, lease all your cars and stay in debt. College will be paid in full by the government. Those that are responsible and pay off their mortgages, cars and invest in their children's future will pay for your kid. That is the reality of FASFA!"

That's my plan.

Keep the Mortgage. Save it all in 401k. I can even do the mega Roth if I ever have enough money.

 

[Jason245]

That's my plan.

Keep the Mortgage. Save it all in 401k. I can even do the mega Roth if I ever have enough money.

You do realize the maximum grant from the government is like 5500 a year for 4 years I believe (pell). That is with a zero efc. ...

Everything else is loans (which can be got no matter the efc.. but maybe unsubsidized)..of course there is also the plus loans which can really screw you as parent..

If you earn any type of decent income, this whole nonsense with networth doesn't matter. Instead, disown your kid, send them to live with their grandparents (not part of fafsa) and stop supporting them or communicating with them...they will then have efc of near zero and be eligible (look at what it takes to get them declared independent).

All that being said.. this amount of effort for 5.5k a year for 4 years doesn't seem to be worth it..and I will discourage my kid from taking loans...

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[SMHarman]

You do realize the maximum grant from the government is like 5500 a year for 4 years I believe (pell). That is with a zero efc. ...

Everything else is loans (which can be got no matter the efc.. but maybe unsubsidized)..of course there is also the plus loans which can really screw you as parent..

If you earn any type of decent income, this whole nonsense with networth doesn't matter. Instead, disown your kid, send them to live with their grandparents (not part of fafsa) and stop supporting them or communicating with them...they will then have efc of near zero and be eligible (look at what it takes to get them declared independent).

All that being said.. this amount of effort for 5.5k a year for 4 years doesn't seem to be worth it..and I will discourage my kid from taking loans...

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Yes and plan B is to conVince my wife that 6 year's in England would not be so bad. Global warming may actually mean the weather is ok by then.

But seriously I fail to understand the benefiting of creating a college asset. IMNSO I think you are much better cramming your 401k And Roth and backdoor Roth and if your employer plan allows non tax deferred 401k keep going. Keep the Mortgage. It reduces the agi and interest is low. Max the HSA another non asset. Apply for but don't draw a HELOC.

Now come college fin aid you are eligible asset light on most all applications.

Instead of student loans for the parent use the HELOC or stop 401k contributions. You can even hardship withdraw the excess taxed contributions and recycle them in as untaxed to keep agi down.

No 401k cont is leas painful as you got ahead of yourself in the overfund years and compounding helps that even more.
Also using the 503... you can use it as a virtual pass through vehicle. The money needs to rest there 15 days before withdrawing for eligible expenses. Created a state tax break in the yeara the expenses are incurred.

 

[Jason245]

Yes and plan B is to conVince my wife that 6 year's in England would not be so bad. Global warming may actually mean the weather is ok by then.

But seriously I fail to understand the benefiting of creating a college asset. IMNSO I think you are much better cramming your 401k And Roth and backdoor Roth and if your employer plan allows non tax deferred 401k keep going. Keep the Mortgage. It reduces the agi and interest is low. Max the HSA another non asset. Apply for but don't draw a HELOC.

Now come college fin aid you are eligible asset light on most all applications.

Instead of student loans for the parent use the HELOC or stop 401k contributions. You can even hardship withdraw the excess taxed contributions and recycle them in as untaxed to keep agi down.

No 401k cont is leas painful as you got ahead of yourself in the overfund years and compounding helps that even more.
Also using the 503... you can use it as a virtual pass through vehicle. The money needs to rest there 15 days before withdrawing for eligible expenses. Created a state tax break in the yeara the expenses are incurred.

Plan B for me is to convince kid to go to school in Germany. Free to all students international and domestic.

As for your financial advice... IT IS TERRIBLE.

1. 401k contributions are for the most part creditor protected and generally you may get an employer match. MAX that stuff out so if you go BK you assets are shielded.

2. 529 plans allow you to save money and pay ZERO taxes on the earning. For a family that is not eligible to invest in a ROTH IRA, this is a great tax tool, especially when you factor in the ability to a) change the beneficiary at will, b) spend it on all types of educational expenses (housing, computers, etc). Theoretically, if I don't want to give the money to my kids, I could name myself as beneficiary, enroll in school, pull out the maximum allowance I can get (for housing and transportation costs) every year, FAIL my classes (or take nonsense classes), and save myself a small fortune of tax dollars on the earning. Maybe even figure out a way to take a class in interior design and use the money towards a "school" project to redecorate my house, or "study abroad" and use funds to pay for the transportation and lodging and "classes" for a few months in a nice local...

3. DO NOT TAKE OUT LOANS FOR YOUR KIDS OF ANY SECURED KIND (EG. HELOC) OR THAT CAN NOT BE DISOLVED IN BK (STUDENT LOANS (PLUS). When my children are college age I will be within 5-15 years of retirement (depending on how much I saved in retirement accounts and how I want to live). Their education expenses are theirs to deal with if they borrow money, I will not be on a fixed income trying to make "student loan payments" of any kind. If you must borrow for your kids, do it from an unsecured source that can be dissolved in bankruptcy (credit cards). If all your money is in retirement accounts, and your home (and you live in a state like florida where home is also bK protected), you walk away with all your money sheltered, and your kid gets their education. Hell, you can even do a planned strategy in a state like florida (where joint accounts can't be touched if debt is only on one persons name). Non working spouse takes out credit card debt for $50k to pay for kids school. Kid graduates, stop making minimum payments, go BK and watch creditors go nuts trying to find assets they can get it when in the end they get nothing because all assets are judgment proof and there is nothing securing debt.



4. NEVER TAKE MONEY OUT OF RETIREMENT ACCOUNTS OF ANY KIND (see comments in 1).

None of the above is legal or TAX advise, and a lot is dependent on state law, so consult a attorney/CPA before trying to use it. It should not be used to support a tax position that you take.

 

[SMHarman]

Plan B for me is to convince kid to go to school in Germany. Free to all students international and domestic.

As for your financial advice... IT IS TERRIBLE.

1. 401k contributions are for the most part creditor protected and generally you may get an employer match. MAX that stuff out so if you go BK you assets are shielded.

2. 529 plans allow you to save money and pay ZERO taxes on the earning. For a family that is not eligible to invest in a ROTH IRA, this is a great tax tool, especially when you factor in the ability to a) change the beneficiary at will, b) spend it on all types of educational expenses (housing, computers, etc). Theoretically, if I don't want to give the money to my kids, I could name myself as beneficiary, enroll in school, pull out the maximum allowance I can get (for housing and transportation costs) every year, FAIL my classes (or take nonsense classes), and save myself a small fortune of tax dollars on the earning. Maybe even figure out a way to take a class in interior design and use the money towards a "school" project to redecorate my house, or "study abroad" and use funds to pay for the transportation and lodging and "classes" for a few months in a nice local...

3. DO NOT TAKE OUT LOANS FOR YOUR KIDS OF ANY SECURED KIND (EG. HELOC) OR THAT CAN NOT BE DISOLVED IN BK (STUDENT LOANS (PLUS). When my children are college age I will be within 5-15 years of retirement (depending on how much I saved in retirement accounts and how I want to live). Their education expenses are theirs to deal with if they borrow money, I will not be on a fixed income trying to make "student loan payments" of any kind. If you must borrow for your kids, do it from an unsecured source that can be dissolved in bankruptcy (credit cards). If all your money is in retirement accounts, and your home (and you live in a state like florida where home is also bK protected), you walk away with all your money sheltered, and your kid gets their education. Hell, you can even do a planned strategy in a state like florida (where joint accounts can't be touched if debt is only on one persons name). Non working spouse takes out credit card debt for $50k to pay for kids school. Kid graduates, stop making minimum payments, go BK and watch creditors go nuts trying to find assets they can get it when in the end they get nothing because all assets are judgment proof and there is nothing securing debt.



4. NEVER TAKE MONEY OUT OF RETIREMENT ACCOUNTS OF ANY KIND (see comments in 1).

Are your kids learning German?

1)
Do you understand the backdoor Roth. Or the taxed 401k?

My firms 401k (and many with recent rule updates) allows me to contribute 85% of my pay up to $53,000 a year. Only the first $18500 year tax relief.

If in the future I pull out money that went in taxes there is not a tax penalty.

If I roll the difference between the 53 And 18.5 into a Roth. There is no taxable event.

2) 503 are state tax benefited. And you can get all those advantages by just resting the money in the account.

 

[Jason245]

Are your kids learning German?

1)
Do you understand the backdoor Roth. Or the taxed 401k?

My firms 401k (and many with recent rule updates) allows me to contribute 85% of my pay up to $53,000 a year. Only the first $18500 year tax relief.

If in the future I pull out money that went in taxes there is not a tax penalty.

If I roll the difference between the 53 And 18.5 into a Roth. There is no taxable event.

2) 503 are state tax benefited. And you can get all those advantages by just resting the money in the account.

1. Kids don't need to learn german. Classes can be in english. The Germans pick up the whole tab too..

2. Back door Roth is great if you are trying to shelter assets from future taxes.. the problem comes into play when you have an employer like mine that doesn't allow in plan recharacterizations and you have tens of thousands of old 401k sitting in rollover ira.. then you got a deal with the pro rata crap and when your tax rate is above 25 percent contributions to Roth becomes less appealing from the rollover stuff..

3. When you don't have state income tax, you don't care about state income tax benefits..

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