<p>For where the savings and investments part, what IF we took out all the money have have in the bank right before we filed(and kept it for like 5 months), would that help or work at all? I am just wondering because it seems like you can do that, but I am not sure what the consequences could be. For investments, my parents invested in the stock market. How would we put that down? Is it what we invested to start with, or how much we lost/gained? I mean I do not believe stocks are part of filing for taxes, but they ask for it.</p>
<p>Also, for the schools, does it matter what order you put them in? I don't want one school to be like "well you didn't put us first so we won't give you max aid."</p>
<p>easy question -- it does not matter which school you put first, it just allows them access to the information</p>
<p>as far as stocks -- these are assets (which is why they want to know how much you have) and you need to list the value as of the date you file,</p>
<p>As far as withdrawing money -- cash is also an asset and needs to be counted. your best bet if you have significant cash on hand is to use it to make any necessary large purchases (car, computer, plane tickets) or use it to pay down debt. otherwise it needs to be counted in the asset allocation. If you withdraw the money and then put it back in, you could get yourself in serious trouble -- it would be fraud.</p>
<p>OK because my parents want to take out 6000 of the 9000 they have saved. They do not plan to put it back though, and will use it to purchase items. So I hope that won't get us in trouble.</p>
<p>I'd just keep reciepts if it's school related stuff. We don't have much put away for our son, but I think we are going to let him get a new PC and use the rest for books.</p>
<p>It souldn't be a problem-- so long as on the day you file the FAFSA, the money is spent and not sitting in a shoebox somewhere. It doesn't have to be spent on school (assuming here that this is your parent's money, not something in your name).</p>
<p>If you have assets in your name, these will count more heavily against you in the formula than your parent's assets. So, as hsmom suggested, if you have any large purchases to make, make them now, before you submit the FAFSA.</p>
<p>Don't forget that the parent's have an asset protection allowance. Depending upon how much money and investments they have outside of retirement, their assets may not be counted at all.</p>
<p>Withdraing 6000 of the 9000 they have in savings may very well be a moot point.</p>
<p>That's a good point about the asset allowance. Under the Federal Methodology (FAFSA) a two-parent family, with the older parent between 50 and 54 years old, will have an asset protection allowance of about $50K. About half that for for single parents, and a bit less if the older parent is younger than 50.</p>
<p>After subtracting the asset allowance, the remaining assets are assessed on a sliding scale depending on income; the max is about 6%.</p>
<p>BUT-- the student has no asset protection allowance, and the student's assets will be assessed at 35% each year (ouch!).</p>
<p>The Profile also calculates an asset protection allowance (a bit smaller, and called an 'emergency reserve').</p>