<p>longprime notes,"The problem with 529’s and like programs, is that it is a “use it or be taxed”. "</p>
<p>Response: Yes and no. If you use the funds for non-qualfied items then the income will be taxable. However, you can use this for any family member including grandchildren, brothers, sisters, probably nieces and nephews etc.</p>
<p>There also seems to be a lot of advice against asset allocation. First, I have net seen single premium life policies,whose cash value is exempt from EFC calcuation, suffer too much in surrender charges. Usually the commission is a one time 2% unless this has changed in recent years.</p>
<p>Secondly, what is wrong with paying down debts that you owe anyway? Yes, it does leave less liquid fund,but on a home that has equity, you should be able to refinance if you need the money,which will simply put you back where you were otherwise ( fi things don’t go as planned) less some minor closing costs.</p>
<p>Also, when refinancing, I almost never pay points especially if I might refinance again.</p>
<p>Finally, someone noted that some insurance products make you keep the cash in the product for 5-8 years in order to avoid all surrender charges. However, my response is , so what? IF, and this is the “IF,” I can get some need based, grant aid or very subsidized loans, this would greatly add to my return on investment on what I will be making on the insurance products. </p>
<p>However, I do think that there is more to the equation then just asset allocation. Checking with an expert/professional in this area before any of asset shifting is utilized is always a good idea.</p>