vuefolio seminar for intuit november 2015
TRANSCRIPT
![Page 1: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/1.jpg)
www.vuefolio.com
www.vuefolio.com
SAVING SMART FOR COLLEGE
Intuit, Mountain ViewNovember 30, 2015
Oindrila Ray
Vuefolio is a SEC Registered Investment Adviser
Do not distribute without permission
![Page 2: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/2.jpg)
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.
![Page 3: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/3.jpg)
www.vuefolio.com
Content
Do not distribute without permission
• Cost of Attending College
• Financial Aid
• Saving for College
• 529 Plans
• Smart Planning for College
![Page 4: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/4.jpg)
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
![Page 5: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/5.jpg)
www.vuefolio.comDo not distribute without permission
Cost of
Attending College
![Page 6: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/6.jpg)
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
![Page 7: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/7.jpg)
www.vuefolio.com
Cost of Attending College at UC
Do not distribute without permission
Source: Data from UCOP
![Page 8: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/8.jpg)
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
![Page 9: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/9.jpg)
www.vuefolio.comDo not distribute without permission
NET PRICE
“personalized prices”
Families pay
![Page 10: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/10.jpg)
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:
![Page 11: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/11.jpg)
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
![Page 12: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/12.jpg)
www.vuefolio.comDo not distribute without permission
FINANCIAL AID
![Page 13: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/13.jpg)
www.vuefolio.com
Financial Aid
Do not distribute without permission
Need based Aid
Merit Aid
Athletic Scholarships
![Page 14: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/14.jpg)
www.vuefolio.com
Financial Aid
Do not distribute without permission
Federal Grants:
Pell Grants
State Grants:
Cal GrantsInstitutional Aid
Federal Student Loans
Sources of Need based Aid
![Page 15: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/15.jpg)
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
$70,000E
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.
![Page 16: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/16.jpg)
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
![Page 17: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/17.jpg)
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”
![Page 18: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/18.jpg)
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:
![Page 19: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/19.jpg)
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
![Page 20: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/20.jpg)
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.
![Page 21: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/21.jpg)
www.vuefolio.com
Financial Aid
Do not distribute without permission
Grant AidStudent Loans
Impact of External Scholarships
![Page 22: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/22.jpg)
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
![Page 23: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/23.jpg)
www.vuefolio.comDo not distribute without permission
SAVE
for
COLLEGE
![Page 24: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/24.jpg)
www.vuefolio.comDo not distribute without permission
SAVING FOR COLLEGE:
LONG TERM
IMMEDIATE
PAYING FOR COLLEGE:
![Page 25: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/25.jpg)
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
SiblingsRetirement
Savings status
Home Equity
Parental Loan Impact
![Page 26: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/26.jpg)
www.vuefolio.com
Saving for College
Do not distribute without permission
529 Plans Investment/ Savings Accounts
Custodial Account Roth IRA
![Page 27: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/27.jpg)
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!
![Page 28: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/28.jpg)
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
![Page 29: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/29.jpg)
www.vuefolio.com
529 State Plans: Metrics
Do not distribute without permission
Fees/LoadsExpense Ratios
Asset Allocation
Diversification Glide PathsUnderlying
fund quality
![Page 30: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/30.jpg)
www.vuefolio.com
529 State Plans: A Primer
Do not distribute without permission
Direct Sold 529 Plan
48 statesDirect
transaction
Advisor Sold 529 Plan
Only through an advisor
Rarely beats a good direct
sold plan
![Page 31: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/31.jpg)
www.vuefolio.com
529 State Plans: A Primer
Do not distribute without permission
Fees/Loads
Asset Allocation
![Page 32: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/32.jpg)
www.vuefolio.com
529 State Plans: A Primer
Do not distribute without permission
Fees/Loads
Glide Paths
![Page 33: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/33.jpg)
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
![Page 34: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/34.jpg)
www.vuefolio.com
Public University
Private Elite/Private University
Do not distribute without permission
529 Plans
529 Plan Savings
![Page 35: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/35.jpg)
www.vuefolio.comDo not distribute without permission
Hyper Local
Placements
REALITY CHECK: COLLEGE ACCEPTANCE RATES
SMART PLANNING FOR COLLEGE
![Page 36: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/36.jpg)
www.vuefolio.com
Smart Financial Planning for College
Do not distribute without permission
Hyper Local
Placements
Family College
Savings
![Page 37: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/37.jpg)
www.vuefolio.com
Why HS placements matter
Do not distribute without permission
![Page 38: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/38.jpg)
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
![Page 39: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/39.jpg)
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
![Page 40: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/40.jpg)
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
![Page 41: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/41.jpg)
www.vuefolio.comDo not distribute without permission
The best gameplan: Just do it!
![Page 42: Vuefolio seminar for Intuit November 2015](https://reader033.vdocuments.mx/reader033/viewer/2022042908/58f205e21a28abde1e8b461b/html5/thumbnails/42.jpg)
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.