Steve Stanganelli, CFP®

Save ON the Cost of College … Not Just FOR College

The More You Plan, The Less You Pay … for College

A Brief Introduction

Steve Stanganelli, CFP® CERTIFIED FINANCIAL PLANNER™ Professional Registered Financial Advisor (NAPFA) Advanced Training as College Advisor

Principal, Clear View Wealth Advisors, LLC & College Cash Pro

Assisting Local Families since 1999

www.CollegeCashPro.com / 978-388-0020

Professional Credentials & Memberships

Awards

Tested 529 Pro

Educational Background

BA – Economics & Government

MS – Finance (Financial Planning Concentration)

Team Stang – Now

Little Miss No, Magic Zack and Bam-Bam (aka Mr. Wiggles)

What is college planning and why do you need me?

Road Map for College. College Financial Planning provides personalized funding strategies to balance paying for college with retirement

We help identify college savings tools, scholarships and strategies to lower costs – including school selection.

Value of a College Financial PlanInformed Buyers of a College

Education Pay Less

Action Plan for Middle-America:Financial Aid Client

$100,000+ in free-money and tax savings including:

•Contribute $3,000/year to Cafeteria 125 plan for tax benefits: worth $1,000/year•Converting UGMA to 529 Plan: worth $1,500/year•Liquidate and Transfer under-performing stock to 529 plan: worth $1,000/year•Reallocate $90k savings into non-assessable assets: worth $5,000+/year•SAT Test Prep increases score and secures scholarship: worth $7,000/year•Reallocate $500/month college savings to 401k: worth $2,000/year•Grandparent $10,000/yr gifting strategy: worth $7,000+/year•Education tax credits: worth $2,500/year •College Care Center Premier Service: Other College Leverage Tips: Scholarship & loan strategies, college search, appeals: $3,000+/year

BEFORE•Single Mom,

• Self-employed, • Divorced, • One-child (HS

Sophomore)• Hampshire College

(estimated cost $60,200)• Expected Family

Contribution = $27,000

Sample Case

AFTER

•Identified 4 merit-based scholarships

•Identified Income and Asset Strategies

•Lowered EFC to $19,000

BEFORE•Grandparents

• Guardians of grand-daughter in HS

• Concerned about costs and impact on retirement

• UVA, Northwestern, UNC – Chapel Hill (estimated cost $17,000 to $70,000)

• Expected Family Contribution = ????

Sample Case

AFTER

•Identified private scholarships

•Completed preliminary FAFSA and CS/Profile

•Automatic ZERO EFC

•Increased 401(k) retirement savings

BEFORE•Hi-Tech CEO

• Daughter attending college and 2nd daughter in HS

• Concerned about costs and impact on retirement

• Emory University (cost $60,000+)

• Expected Family Contribution = > $40,000

Sample Case

AFTER

•Identified scholarships

•Assisted with PLUS loan

•Implemented PLUS Strategy to defer payments 10 years until company ‘liquidity event’

BEFORE•Raytheon Engineer + Self-employed spouse

• 2 Kids – one starting HS and one in elementary

• Concerned about costs and impact on retirement

• UMass – Amherst one option (cost $27,000+)

• Expected Family Contribution = > $62,000

Sample Case

AFTER

•Identified scholarships

•Income Shifting

•Asset Positioning

•“Tax Scholarships” for business owner

•Projected EFC = $17,000

BEFORE•Self-Employed Business Owner with comm. Property:

• 1 son starting college after daughter finished law school

• Concerned about costs and impact on retirement

• Colby (cost $54,000+)• Expected Family

Contribution = > $64,000

Sample Case

AFTER•Identified scholarships

•“Tax Scholarships” for business owner

• Hire son: Income Shifting

• Set up FLP• Start solo 401k

•Asset Positioning•Home refi to 529•Kiddie Condo

Value of a College Financial Plan

Return on Investment > Fee<$1 per day – FAFSA

$1.40 per day - Consult

$4 per day – Gold$9 per day – Premier Service

Who Do I Work With?

Grandparents

Growing Families•Category 1: Financial Aid Likely•Category 2: Stuck-in-the-Middle•Category 3: No Needs Based Aid

No Geographic Limitation but Generally Newburyport to Burlington

Who Do I Work With?

Medical Professionals: Doctors, Dentists, Nurses, Chiropractors

Business Owners, Managers, Directors in Hi Tech, Software, Manufacturing, Consulting

Investment Property Owners

Identifying My Ideal Client or Referral Source:

Memory Joggers:Who do you know who … • Works in Company Located Along 495 / 95 • May be going through a Divorce• Owns Rental Property and Has Kids (> Age 5)• Has kids attending High School, Junior High or Elementary School (ideal if at least 3 years until college)

Phrases to Listen For Individual Services:“College is so expensive. How will we pay for it?”“My kid’s thinking of attending XXX College.”

Ideal Sponsors for Workshops

• Guidance Counselors – Private Schools• PTA/PTO Groups• Service Groups – Kiwanis, Rotary, Lions• Youth Sports • Churches, Synagogues, Temples • HR Departments

Opportunity for Fundraiser for Group

Referral Tips• Linked In

– Introduction to Contacts• Facebook

– Like “College Cash Pro” – Share posts through your Timeline

Q&A

• #1 Consideration for College Bound Students?– Too Many to List– Focus on Grades– Line Up References / Network– Do Self-Assessment to Match College Major with

School

Q&A

• Pros & Cons of 529 Savings Plans?– Con: Limited Investment Choices– Pro: Tax-Free Accumulation & Distribution– Impact is only 5.64% of Parent Contribution– Better to Own in Name of Grandparent and

Disburse AFTER last FAFSA Filed

Q&A

• Best Options to Refinance or Consolidate Student Loans?– Default is 10-Year Repayment– Options depend on TYPE of loans and STATUS– Government Loans More Flexible– Check www.NSLDS.ED.gov for status– http://loanconsolidation.ed.gov/ – Income-based and Pay As You Earn options (federal

only)

Q&A

• Annuities vs Insurance? – Depends– Everyone NEEDS insurance– Not a countable asset– Consider costs and time

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