The Motley Fool Discussion Boards
Financial Planning / Inheritance Strategies
|Subject: Re: Help For A Friend||Date: 7/14/2005 2:32 PM|
|Author: wsmckenz||Number: 4309 of 5741|
it will hurt her kid's chance of getting scholarships or student loans
I wouldn't say 'hurt'. Her kids can get loans (lots of people whose parents have assets of 750K get student loans); it shouldn't affect them for merit-based scholarships; and obviously it will reduce their chances of getting need-based scholarships, since they no longer 'need' them.
Is there a way she can invest this money without it being shown as an asset in the eyes of student loans and scholarships?
The direct answer to her question is "probably not without lying or breaking the law in some way".
I would say that what your friend could use most is some education on exactly what this money means to her. Perhaps she doesn't realize that, properly invested, the money from her father's estate IS the scholarship her kids need to get though college. Maybe she doesn't understand that she can have her cake and eat it. That if she manages the money (and the kids) wisely she can still have the 750K AFTER putting her kids through school.
There's a whole lot we don't know here, such as her current income, available local and state colleges, kids ages, grades, ambitions, etc., but off-hand I'd suggest that she spend a little time with Matthew Emmert's newsletter and work on creating an income portfolio that will support her and the kids through these next crucial years.
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