<p>ripemango -</p>
<p>Your parents can remove a certain amount of this money from the view of FAFSA, by putting it into retirement accounts. Each of them can establish an IRA, and if their workplaces offer 401(k) or 403(b) plans they can pay into those as well. If they are self-employed options include KEOUGH, SIMPLE, and SEP IRAs.</p>
<p>For example, a person who is 50 years old can put USD 6000 into a personal IRA, and USD 22,000 into a 401(k) or 403(b). A person who is less than 50, can deposit USD 5000 into the IRA and USD 16,500 into the 401(k) or 403(b). If both of your parents are working, and each is at least 50 years old, they can conceivably move a total of USD 56,000 from that huge stash of cash into retirement funds each year. There are many investment options, and if the money is put into Roth retirement accounts it is not taxed when it is taken out in the future.</p>
<p>They also have the option of putting some of the money into retirement annuities. Again, this will make it invisible to FAFSA in future years. However annuities are tricky investments, and it is much more difficult to cash out of them in the case of an emergency. Before they make that kind of investment, they need to research their options and get professional advice.</p>