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Vuefolio seminar for Intuit November 2015
- 1. www.vuefolio.com www.vuefolio.com SAVING SMART FOR COLLEGE Intuit, Mountain View November 30, 2015 Oindrila Ray oindrila@vuefolio.com Vuefolio is a SEC Registered Investment Adviser Do not distribute without permission
- 2. www.vuefolio.com Disclaimers Do not distribute without permission • All materials, graphs and analysis are solely for educational purposes. • This is not a pitch for any investment product. • Please do not consider this as financial or investment advice. • We are not tax lawyers or accountants. • We do not represent nor endorse any college, educational institution or any funds that may be mentioned in the presentation.
- 3. www.vuefolio.com Content Do not distribute without permission • Cost of Attending College • Financial Aid • Saving for College • 529 Plans • Smart Planning for College
- 4. www.vuefolio.com College Desirability, Aspiration and Expense Do not distribute without permission College Rankings Acceptance Rates Financial Aid Elite Private Private Colleges Public Colleges/Community College Flagship Public Colleges Alumni Network
- 5. www.vuefolio.comDo not distribute without permission Cost of Attending College
- 6. www.vuefolio.com Average Cost of Attending College Do not distribute without permission Excludes books/supplies/transportation costs. Includes room and board. Data: College Board and Dept. of Education Analysis: Vuefolio
- 7. www.vuefolio.com Cost of Attending College at UC Do not distribute without permission Source: Data from UCOP
- 8. www.vuefolio.com Public Flagship Public Private Elite Private 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Out-of-State Range Current Annual Cost of Attendance Do not distribute without permission UCs $34,000 Cal States $22,000
- 9. www.vuefolio.comDo not distribute without permission NET PRICE “personalized prices” Families pay
- 10. www.vuefolio.com Your Price Tag for College Do not distribute without permission Family Income # of kids attending college Non Retirement Assets Financial Aid available Your “Actual Cost of College” or NET PRICE depends on:
- 11. www.vuefolio.com Paying for College Do not distribute without permission Source: Sallie Mae “How America pays for College 2014 Parents Student Loans Financial Aid
- 12. www.vuefolio.comDo not distribute without permission FINANCIAL AID
- 13. www.vuefolio.com Financial Aid Do not distribute without permission Need based Aid Merit Aid Athletic Scholarships
- 14. www.vuefolio.com Financial Aid Do not distribute without permission Federal Grants: Pell Grants State Grants: Cal Grants Institutional Aid Federal Student Loans Sources of Need based Aid
- 15. www.vuefolio.com Ex: Harvard vs. UC Berkeley estimated 2014-15 cost Do not distribute without permission Net Cost: Harvard Aid: Harvard Net Cost: UC Berkeley Aid: UC Berkeley $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000EstimatedCost/Aid Family Annual Income Typical California family with one child in college. Besides income, the cost of attendance will also depend upon the asset level of the family.
- 16. www.vuefolio.com Financial Aid Do not distribute without permission Source: Sallie Mae “How America pays for College 2014 Merit Aid from Universities External Scholarships
- 17. www.vuefolio.com Financial Aid Do not distribute without permission “Our scholarships are based entirely on need, not merit” “Our financial aid program is need-based, meaning that all aid eligibility is determined by your family’s financial circumstances.” “Families with incomes at higher levels (typically up to $200,000) may also qualify for assistance, especially if more than one family member is enrolled in college” “Financial aid is awarded based on need only”
- 18. www.vuefolio.com Financial Aid Do not distribute without permission Student Profile Family Income College Brand Name Enrollment Rates Tuition Group Public vs. Private Merit Aid:
- 19. www.vuefolio.com Financial Aid Do not distribute without permission Merit Aid: < 1% students 10-40% students 70% of students Out of Pocket Cost for Parents
- 20. www.vuefolio.com Financial Aid Do not distribute without permission Impact of External Scholarships Does not reduce parental contribution Unless parent is covering 100% of costs.
- 21. www.vuefolio.com Financial Aid Do not distribute without permission Grant Aid Student Loans Impact of External Scholarships
- 22. www.vuefolio.comDo not distribute without permission Source: Sallie Mae “How America pays for College 2014 High Income: 60 -100 % Middle Income: 25 – 50%Low Income: 0 - 20% Parent’s share of College Costs
- 23. www.vuefolio.comDo not distribute without permission SAVE for COLLEGE
- 24. www.vuefolio.comDo not distribute without permission SAVING FOR COLLEGE: LONG TERM IMMEDIATE PAYING FOR COLLEGE:
- 25. www.vuefolio.com The strategic way to pay for college Do not distribute without permission Financial Aid Eligibility Aid beyond first year Tax efficient Investments Sufficient Income Student Loans Siblings Retirement Savings status Home Equity Parental Loan Impact
- 26. www.vuefolio.com Saving for College Do not distribute without permission 529 Plans Investment/ Savings Accounts Custodial Account Roth IRA
- 27. www.vuefolio.com Saving for College: 529 Plans Do not distribute without permission Pros Earnings grow tax free Only 5.64% of assets are assessed towards aid Withdrawal does not affect next years aid Cons Non education withdrawals: 10% penalty and tax on earnings Not all plans are the same!
- 28. www.vuefolio.com 529 Plan Portfolios Do not distribute without permission Age Based Preset Funds Preset Glide Path Most Popular Individual Flexibility Self Managed Maybe more expensive than age based
- 29. www.vuefolio.com 529 State Plans: Metrics Do not distribute without permission Fees/Loads Expense Ratios Asset Allocation Diversification Glide Paths Underlying fund quality
- 30. www.vuefolio.com 529 State Plans: A Primer Do not distribute without permission Direct Sold 529 Plan 48 states Direct transaction Advisor Sold 529 Plan Only through an advisor Rarely beats a good direct sold plan
- 31. www.vuefolio.com 529 State Plans: A Primer Do not distribute without permission Fees/Loads Asset Allocation
- 32. www.vuefolio.com 529 State Plans: A Primer Do not distribute without permission Fees/Loads Glide Paths
- 33. www.vuefolio.com Late to the game? Do not distribute without permission How much college will cost you: NET PRICE/ FINANCIAL AID? Grade of your student 529 plan tax break or capital gains tax hit? Loans vs. Choice of College
- 34. www.vuefolio.com Public University Private Elite/Private University Do not distribute without permission 529 Plans 529 Plan Savings
- 35. www.vuefolio.comDo not distribute without permission Hyper Local Placements REALITY CHECK: COLLEGE ACCEPTANCE RATES SMART PLANNING FOR COLLEGE
- 36. www.vuefolio.com Smart Financial Planning for College Do not distribute without permission Hyper Local Placements Family College Savings
- 37. www.vuefolio.com Why HS placements matter Do not distribute without permission
- 38. www.vuefolio.com Why HS placements matter Do not distribute without permission College Metrics + Statistics Between 2007 and 2014, admission rates at UC’s for California residents fell significantly, dropping from 87 percent in 2007 to just 62 percent in 2014. Rates were even lower at the UC’s flagship campuses in Berkeley, Los Angeles and San Diego. http://www.sacbee.com/opinion/op-ed/soapbox/article19963500.html#storylink=cpy
- 39. www.vuefolio.com Public Flagship Public Private Elite Private 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Out-of-State Range Current Annual Cost of Attendance Do not distribute without permission UCs $34,000 Cal States $22,000
- 40. www.vuefolio.comDo not distribute without permission GAMEPLAN Pre-Elementary School Head Start/Stay on Track/Race Ahead Middle School Public-Private Price Differential & Funding/Stay on Track High School Reality Check on Finance & Aspirations, Pay for College
- 41. www.vuefolio.comDo not distribute without permission The best gameplan: Just do it!
- 42. www.vuefolio.comDo not distribute without permission Thank you for your time. To learn more, check out our website https://www.vuefolio.com/ Disclaimer: Vuefolio does not render legal, accounting, or tax advice. This presentation is solely for informational purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Vuefolio is not responsible for any college costs, financial aid, student or any other kinds of loans, investment performance of the 529 state plans. Any data quoted represents historical information. Any past performance quoted is no guarantee of future results. Vuefolio is a SEC registered Investment Adviser.