More Information from Monday

In talking to the financial planner Monday evening, he also gave me some welcome information about what the kids can expect for financial aid when they start college in a little over 3 years. (yikes! didn't they start preschool last month???) First of all, financial aid will be based on my income, not mine and their dad's combined. I'm the custodial parent and claim both kids on my taxes, so their dad's income will not come into the picture (as long as the rules don't change before then). (This is another financial blessing that comes from that long-ago decision to request to take both kids on my taxes and not split them between me and their dad. Thank you, Father!) This was a question I had had for a while because if aid is based on both incomes, the kids would not qualify for much need-based aid, and I do not expect their dad to contribute to their college expenses. If I can get him to continue to carry them on his insurance during those 4 years, that will be a major victory! Anyhoo, based on my income alone and the fact that I will have 2 children in college at the same time, they should qualify for a ton of need-based grants. That's good news. (Well, kinda. I hate to be considered as low-income, but it is what it is, and we might as well take advantage of what's available.)

Second, I can continue to claim the kids as dependents until they are out of college and on their own or until the age of 24. This is also a huge blessing as I was looking at taking a major hit in income between the loss of child support and losing their deductions on my income tax. Hopefully by phasing in my loss of income over a few years, I will be better able to adjust and not have to worry so much about finding a 2nd job as soon as they graduate high school.

He also asked if they were going to private or public schools. My son hasn't expressed a preference, but my daughter wants to attend a Wesleyan school, and they all have a per-year tuition that is more than my annual income! She is working very hard on her grades to be eligible for as many academic scholarships as she can, and we have a small amount in the Ohio Tuitition Trust, but that will only be a drop in the bucket if she goes to her first choice, especially since she is dead set against taking out loans. The planner said, though, that with grants and scholarships, private school can actually be more affordable for the low income student than a public school. I guess we will find that out over the next 1-2 years.

So, it was a very informative meeting with all I learned about my retirement funds and college aid. I try to hold to God's promises that He will provide, but it's hard not to worry. He's taken care of us so far, and I need to remember that He is the same yesterday, today and tomorrow, so why wouldn't He continue to do so? The meeting Monday was just another step of reassurance in God's faithfullness.

CVS Trip

I love it when CVS shopping goes better than expected! :-) I'm not usually one of thos people who buy things they don't need to get the ECBs (Extra Care Bucks), unless I know I'll be giving it to someone who can use it, so I limit my deals to what we need and can use. This leads me to pass up some deals and occasionally even "burn" my ECBs - that is, use them on items that don't give me ECBs in return. But last night was a good night. I not only got things we'll use but got paid to shop! Here's what I did:

Carefree liners - on sale for $1 (used $1 coupon) free!
Lindor truffle candy bars - on sale 2/$4 (used $1/2 coupons) $3
Crest ProHealth toothpaste - on sale for $3.50 (used 75-cent coupon) $2.75
Kotex U tampons - on sale for 4.99 (used $1 coupons ) $3.99

I rolled over an ECB for $4.49, and after tax I paid $5.87. In return, I got ECBs for $4.99 (Kotex), $3.50 (Crest) and $1 (Lindor), for a total of $9.49 ECBs remaining! So in essence, I got paid $3.62 to shop last night. That makes couponing worth it!

Retirement is How Far Away?

I like dealing with money. I like helping people come up with ways to cut their budget and save and spend wisely. I like balancing the checkbook, and I like seeing my savings grow and my debt decrease. In fact, back in high school, I thought I'd someday get a job in a bank, although that never happened. What I don't like is dealing with investments. I understand the basics - what mutual funds are, bonds, conservative versus aggressive investments, etc. - but I don't understand enough to make really intelligent decisions about where to invest my retirement savings, and I don't find it fascinating enough to do a whole lot of study about it. So I've kind of played it safe, so I thought, with my retirement funds. I have a rollover from a previous job and a current 401(k) for which I'm responsible. Not that there's much in there, but right now with the state of Social Security, it's all I got.

I've not been happy with either one, really, for a while. The 401(k) from work only gets a 1% match, but hey, every little bit helps, right? After a few years of not doing well (like everyone else), I'm finally seeing a little growth. The rollover I had invested in an IRA in a local bank and then invested it with a group that was represented by some folks from my church. The folks from church I trusted; turns out it was their superiors that I shouldn't have. In the first year, I lost nearly 50% of my money. I understand that this is during the time that the stock market was not doing well; what I didn't know is that the fellow at the main office responsible for the actual investing was a thief. Whether that contributed to my losses, I'll never know. Anyhow, my representative moved, and for the last 1-1/2 years, I've had no one to contact regarding my account.

So it's time to take charge. This evening I met with a Dave Ramsey ELP (endorsed local provider) to get my money (and my future!) in a more secure place. Hopefully there won't be any problems with the rollover transfer, and I've already made the suggested changes to my 401(k). This is a little more aggressive approach than I was doing on my own, but I'm comfortable with it, and I now have a local financial planner to contact. Now if only the stock market will cooperate! haha