With August only days away, the new school year is on the horizon. Despite losing some of their own investments, grandparents still want to help their grandchildren with college expenses. According to Money Magazine, 65% of grandparents plan to do just that. It’s important to choose the best ways to give. Otherwise, it could hurt a student’s chance of financial aid.

Cutting a Check

Be careful when simply giving money by check to the grandchild. This money would be considered part of the student’s income and must be reported on the Free Application for Federal Student Aid (FAFSA). The same can be said for any checks sent directly to the school or college. A possible way to avoid this is by giving the check to the child’s parents. That way it would be considered a parental asset.

Tip: Avoid taxes by keeping yearly contributions under the gift-tax exclusion of $13,000.

529 Accounts
Grandparents have two options with a 529 college savings plan. They can add up to $13,000 yearly or a lump sum of $65,000 per child using a special five-year election. Unlike a check, 529 accounts don’t count against federal aid. Depending on the state, a possible benefit for grandparents lies in a state tax write-off.

Tip: Distributions from 529 plans are considered income, so don’t use the funds until a student’s senior year.

After College Gifts

Some grandparents offer to pay for a grandchild’s student loans after graduation. This option won’t affect aid eligibility and will hopefully encourage a student to finish college. A possible negative is if the grandparent passes away before graduation. The student will then be responsible for repaying the loans.

Tip: Remember that $13,000 limit? Try to keep the yearly payoff of loans at $13,000 or below to avoid owing the IRS.

 
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The certified college planners at Marca Life Planning can provide further advice for your college planning. Contact us at 800-489-3933. 

Summer is the popular time for vacations. Despite the myth that “seniors don’t want to leave their homes,” families often travel with their elderly relatives. A few extra considerations will ensure a smooth and enjoyable trip. Include the tips below in your vacation planning this summer or anytime you travel.

1) Before leaving, consult with the doctor in charge of your senior's health. Certain medical conditions rule out air travel as an option.

2) When traveling by plane,
a. Elderly passengers will be allowed to pre-board. Take the time to get your senior settled before taking your seat.
b. Keep important medications on hand, and use the original bottles for easy identification by security officials.
c. If traveling with liquid medication, ask your pharmacist if a 3 ounce version is available.
d. If your elderly relative uses oxygen, arrangements must be made with the airline at least 72 hours in advance.

3) Keep a list of medications along with the prescribing doctor's information.

4) Be aware of your surroundings as criminals may think an elderly traveler is an easy mark.

5) Pack extra batteries for hearing aids and other medical equipment.

6) Carry snacks like nuts or trail mix for a quick pick-me-up. For those with diabetes or hypoglycemia, this is especially important.

7) If security documents (e.g. driver’s license or passport) are needed, make sure they are valid and not expired.

8) If your senior traveler wears glasses, bring the prescription with you in case they are broken or misplaced.

9) Wear medic alert jewelry.

10) Layer clothing for the many changes in temperature while traveling.

America turns 234 years old on Independence Day this Sunday. While being over 200 years old is young for a country, the population of aging Americans is increasing daily. Someone turns 50 years of age every six seconds, and those over 50 account for 43 percent of all U.S. households.

Most surprising about today’s senior population is the broad range of ages and lifestyles it encompasses. Ages range from 50 to over 100. The people of this age range have seen America through the Great Depression, the civil rights movement, and the current digital age. Both parents and children are now part of the senior population.

As evidenced by the statistics below, the senior population shows no signs of slowing down.

• The over-85 age group is the fasting-growing segment of the population.
• 1 baby boomer retires every 7.4 seconds.
• By 2014, the youngest baby boomers will be 50 years of age and the oldest will be 68.
• By 2020,
  • One of six Americans will be 65 or older.
  • The senior population will account for 115 million Americans.
  • 12 million senior Americans will need long-term care.
• By 2021, the oldest baby boomers will turn 75.
• Currently, 55 million people in the U.S. are over age 55 and 34 million are over age 65. That figure will double by 2030.

The U.S. veteran population is also seeing the impact of aging. 

• We are losing World War II veterans at the rate of approximately 1,000 per day.
• 39.9% of veterans are 65 years or older.
• Veterans of Vietnam and the Korean Conflict will reach ages 65 to 84 between 2010 and 2015.

The diversity of the aging U.S. population is beyond definition. Their lives were shaped by the past 80+ years of America’s history. As the Fourth of July approaches, we reflect on the incredible history of the United States and the courage of brave soldiers and American citizens. The aging population’s influence on the future of America is unparalleled and will impact future generations for years to come.

Happy 4^th of July!

(Sources: HonorFlight.org, Boomeronline.com, The Center for Mature Consumer Studies, and The Roper Organization for Modern Maturity Magazine)

A positive life review process has therapeutic benefits for aging adults. Reminiscence therapy is used by professionals and non-professionals. It can be found in hospitals, senior centers, hospices, and other settings. Formal techniques are often used in hospices. With participation from loved ones and patients, the process can bring about closure through communication and the creation of a permanent historical record.

Capturing an entire life story and knowing where to start can be a challenge. You can begin by answering pre-written questions about the stages of one’s life. We provided several questions* to get you started. 

The People Who Shaped You

• How would you describe your mother to someone who had never met her?
• What is a key lesson you learned from your father?

Your Memories

• Describe your childhood home, inside and outside.
• What did you want to be when you grew up?
• What were your most memorable experiences from high school?

The Real World

• Have you found true love? Describe what true love means to you.
• What is the hardest part of being a parent?
• What is the greatest invention that has come along in your lifetime so far? Why was this invention important to you?

Bringing It All Together

• What does it take to succeed in life?
• What was the best time of your life? Why?
• It’s been said that, “The best things in life are free.” Is this true?

*Questions from LifeBio.com

Modern life moves fast. Families are becoming smaller and fragmented. People need to feel connected to others and the world around them. For older adults, a life review or autobiography can aid in avoiding that feeling of isolation and help fully understand their past and present. According to Telling the Stories of Life Through Guided Autobiography Groups, a life review helps those who want to leave a legacy and history, facilitate life transitions, enhance personal growth, and enjoy self-discovery.

What are the best ways to tell your story? Capturing your life story can be overwhelming, but resources exist to make the process easier and more enjoyable.

5 tips for writing a life review on your own:

1)  Write down stories in notebooks or in formal recording workbooks.

2)  Create an audiotape or videotape to capture an oral history.

3)  Make use of family tree programs or software like Ancestry.

4)  LifeBio provides ways to create an online autobiography or scrapbook by using their online templates.

5)  Use Shutterfly or Flickr to compile old and current photographs using digital photo albums. These sites provide editing tools and the ability to enter short captions on your photos. Most importantly, they allow you to share your photo albums at any point along your process.

Coming up next…Capturing Your Life Story…with a Little Help