I am searching for a new college advisor and actually met with him today. He wants me to take equity out of my house and purchase a private pension plan through an insurance company. He said that the private pension plan would escape being reported and that I would qualify for more money. He said that there are no fees involved, but he did say that the insurance company would pay him a commission. How can the insurance company pay him a commission without charging me any fees? My first college advisor wanted me to take the equity out of my house and buy an annuity through an insurance company. They sound quite similar. I think I will do my own college planning. Does anyone have any good books on this topic that they would recommend? Thanks
I don't see what either recommendation has to do with college planning. Equity in your house is generally not a reportable asset (some PROFILE schools may ask about it). I would report them to the BBB or Chamber of Commerce, as they are obviously just insurance salesmen masquerading as "College Planners". The first check you should make is whether a purported planner is a Certified College Planning Specialist (CCPS)[Visit http://www.niccp.com to find a CCPS in your area]. CCPS coupled with a CFP will at least assure that the individual knows the right information, though it won't guarantee that their recommendations are in your best interests. "College Financial Aid for Dummies" by Herm Davis is a good book that addresses all that most families need to know.
I think both advisors were likley 99.8783% motivated by own commission prospects and nothing about you.
Seriously much of this stuff is available on line or in decent easy to read handbooks and there are on line estimators of potentialneeds under vairous methodologies--and you can probably do better with no paid advice thanyou can withthat kind of advice.
Do some more homework nad post some more targeted questions and perhaps somebody here can give targeted suggestions.
Hey if you want bad advice--why bother to pay for it! For 99% of folks it probably no only makes no sense for them to take equity out of home but it poses risks as well as costs to do so. I'd be hardpressed to think of mainline examples of where it helps improve actual aid.
The bookcited is good--and finaid.org is pretty darn helpful site as well.
You really have bad luck with advisors. Where do you find them--on your state's insurance commissioner's disciplinary action list? Sounds like rogue advisor #2 is trying to sell you a life insurance policy--sure, there are no fees, just premiums from which he is paid.
If you still want an advisor, which could be a wise choice, ask a friend whom you respect as to who they use. There are good ones out there, but you just have to find one with some credibility from a trustworthy source.
#43464 - 06/05/0803:22 PMRe: New College Advisor - Same Old Song
[Re: Dopps]
X terminatorX terminator
Registered: 03/08/07
Posts: 59
Wow!..."Private Pension Plan"....terms like that are "outlawed" (insurance depts, NASD, Most BDs, and insurance companies frown on such use of words).
Its a disguise for buying life insurance. If you want to sell life insurance to someone...why not just say..."I WANT YOU TO BUY LIFE INSURANCE BECAUSE...."
rather than hide the fact of what you are selling or recommending with "misleading" terms?
I went to the NICCP website and found someone that is only about 10 miles away. I talked with him briefly about my situation and he agreed with what each of you have been saying. I plan on meeting with him next week. Thanks again for the advice.
