The EFC is being effectively replaced with the new Student Aid Index, and a long-standing discount to families with two children in college at the same time is being eliminated with this revision.
However, if one is under age 59 ½, and they are taking distributions from their own IRA, they could be subject to the IRS 10% penalty rule. By leaving the account in the deceased name, the 10% penalty is waived if you need to access this money early.
We have several observations. With housing we think that prices will stop rising and possibly fall in some markets. Homebuyers will also be forced to rent or live with family members for much longer than before. This may allow them to save up enough for a large down payment that keeps their monthly mortgage payment low or at least within their budget.
Social Security is not based on one’s highest three years of salary like some pensions but rather Social Security looks at the last 35 years of earnings and does a calculation based on that. If you worked less than 35 years, they credit you with zero earnings until they get to 35 years.
If your child recently graduated college, they're likely hearing from everyone to sock away all that they can at paying down student loans after graduation. But, is that always the best strategy?
Some of you know that my son, Kendall, graduated from Natick High School on June 3rd. He’s our #3 child by birth order but each one is, of course, special to us in their own way.