www.vuefolio.com www.vuefolio.com SAVING SMART FOR COLLEGE Intuit, Mountain View November 30, 2015 Oindrila Ray [email protected] Vuefolio is a SEC Registered Investment Adviser Do not distribute without permission
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SAVING SMART FOR COLLEGE
Intuit, Mountain ViewNovember 30, 2015
Oindrila Ray
Vuefolio is a SEC Registered Investment Adviser
Do not distribute without permission
www.vuefolio.com
Disclaimers
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• 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.
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Content
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• Cost of Attending College
• Financial Aid
• Saving for College
• 529 Plans
• Smart Planning for College
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College Desirability, Aspiration and Expense
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College Rankings
Acceptance Rates
Financial Aid
Elite Private
Private Colleges
Public Colleges/Community College
Flagship
Public
Colleges
Alumni Network
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Cost of
Attending College
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Average Cost of Attending College
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Excludes books/supplies/transportation costs.
Includes room and board.Data: College Board and Dept. of Education
Analysis: Vuefolio
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Cost of Attending College at UC
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Source: Data from UCOP
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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
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UCs $34,000
Cal States $22,000
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NET PRICE
“personalized prices”
Families pay
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Your Price Tag for College
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Family Income# of kids attending college
Non Retirement Assets
Financial Aid available
Your “Actual Cost of College” or NET PRICE depends on:
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Paying for College
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Source: Sallie Mae “How America pays for College 2014
Parents
Student Loans
Financial Aid
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FINANCIAL AID
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Financial Aid
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Need based Aid
Merit Aid
Athletic Scholarships
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Financial Aid
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Federal Grants:
Pell Grants
State Grants:
Cal GrantsInstitutional Aid
Federal Student Loans
Sources of Need based Aid
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Ex: Harvard vs. UC Berkeley estimated 2014-15 cost
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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
$70,000E
sti
mate
d C
ost/
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.
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Financial Aid
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Source: Sallie Mae “How America pays for College 2014
Merit Aid from
Universities
External Scholarships
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Financial Aid
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“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”
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Financial Aid
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Student Profile
Family Income
College Brand Name
Enrollment
Rates
Tuition
Group
Public
vs.
Private
Merit Aid:
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Financial Aid
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Merit Aid:< 1%
students
10-40% students
70% of students
Out of Pocket Cost
for Parents
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Financial Aid
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Impact of External Scholarships
Does not reduce parental contribution
Unless parent is covering 100% of costs.
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Financial Aid
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Grant AidStudent Loans
Impact of External Scholarships
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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
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SAVE
for
COLLEGE
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SAVING FOR COLLEGE:
LONG TERM
IMMEDIATE
PAYING FOR COLLEGE:
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The strategic way to pay for college
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Financial Aid Eligibility
Aid beyond first year
Tax efficient Investments
Sufficient Income
Student Loans
SiblingsRetirement
Savings status
Home Equity
Parental Loan Impact
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Saving for College
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529 Plans Investment/ Savings Accounts
Custodial Account Roth IRA
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Saving for College: 529 Plans
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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!
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529 Plan Portfolios
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Age Based
Preset Funds
Preset Glide Path
Most Popular
Individual
Flexibility
Self Managed
Maybe more expensive than age based
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529 State Plans: Metrics
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Fees/LoadsExpense Ratios
Asset Allocation
Diversification Glide PathsUnderlying
fund quality
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529 State Plans: A Primer
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Direct Sold 529 Plan
48 statesDirect
transaction
Advisor Sold 529 Plan
Only through an advisor
Rarely beats a good direct
sold plan
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529 State Plans: A Primer
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Fees/Loads
Asset Allocation
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529 State Plans: A Primer
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Fees/Loads
Glide Paths
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Late to the game?
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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
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Public University
Private Elite/Private University
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529 Plans
529 Plan Savings
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Hyper Local
Placements
REALITY CHECK: COLLEGE ACCEPTANCE RATES
SMART PLANNING FOR COLLEGE
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Smart Financial Planning for College
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Hyper Local
Placements
Family College
Savings
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Why HS placements matter
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Why HS placements matter
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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
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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
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UCs $34,000
Cal States $22,000
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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
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The best gameplan: Just do it!
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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.