<p>IvyHope- my wish for you is that none of the dire things that could go wrong will go wrong. You seem like a great guy. I’m sure you are. I could point to at least 20 members of mine and H’s immediate family who are living a retirement which is an absolute nightmare due to poor financial planning when they were in their 40’s. It always seems like such a good idea at the time- people don’t work hard, only to watch some crazy catastrophe or illness or unexpected wrench in the plan mess everything up. And yet so many smart, rational people end up broke and living on Social Security, or broke and living with their kids, or not broke but still unable to afford in-home care required to take care of a partner with alzheimer’s or who has suffered a stroke.</p>
<p>Sorry to be an alarmist- but you are being very short-sighted if the sum total of your financial planning is to take your cash and cash equivalent and pay off the house in order to qualify for more financial aid. College last 4 years- your D has her entire working life ahead of her. You could live another 55 years, as could spouse. You’ve got 25 more years of income production, less if you get sick, hurt, or die. I understand that you’ve got your near term emergencies covered, and I understand that as long as you’re working, you’re ok. What happens between the day you retire and the next 30 years after that? Are you going to barter the furniture for groceries??? Do you have disability insurance? What happens to your wife if you get hit by a bus tomorrow and survive, but are permanently disabled?</p>
<p>Your cash cushion is a wonderful asset which you could be using to ensure your peace of mind and your financial future. How does more financial aid do that for you??? If you lose your job then get another, your EFC goes right back up…</p>