By the end of this session, financial advisors will be able to:
• Understand why affluent families require a tailored approach to college planning.
• Apply the MAGIC Method to navigate financial and academic considerations from grades 9–12.
• Guide clients through a multi-year planning runway that integrates with their overall wealth strategy.
• Address common myths affluent families believe and coach them toward realistic, ROI-based planning decisions.
• Develop strategic cash flow, asset allocation, and financing models using Beth’s College Cash, Credit, and Collateral system.
Important Concepts
• Overview of the MAGIC Framework and why affluent families need a tailored approach Stages of college financial planning (Freshman to Senior Year): A strategic 3–4 year runway
• Applying the MAGIC Method: Money, Academics, Gifts, Integration, Confidence
• Understanding the College Funding Lifecycle (grades 9–12)
• How college planning intersects with multigenerational wealth strategy
• Reconciling parent expectations with admission realities (selectivity vs. affordability)
• Coaching clients to treat college planning like a project with ROI
• Addressing 5 myths affluent families believe (e.g., “We won’t qualify, so planning is useless”)
• Differences between client perception and institutional admission metrics
• Project planning mindset: 100+ hours and 3-year lead time
Part 1B: Strategic Cash Flow, Asset & Financing Plans for College
• The 3-part funding model: College Cash, College Credit, College Collateral
• How to blend income, loan capacity, and assets (taxable vs. retirement)
• Projecting cost across multiple children
• Why pre-qualifying clients like a mortgage underwriter reduces anxiety and overspending
• Framing the affordability conversation: default vs. design
FAFSA Simplification Act + OBBBA Updates
• Student Aid Index (SAI): Replaces Expected Family Contribution (EFC), changing need analysis by:
o Eliminating the “sibling discount” under the FAFSA (though still used by the CSS Profile).
o Excluding small business assets and family farms from calculations in more cases.
o No longer penalizing cash support from grandparents, including 529 distributions from non-parent owners (e.g., grandparent 529s no longer reduce aid eligibility).
o Streamlining application with data direct import from IRS (replacing manual tax entry).
• New Household Dynamics: FAFSA now defines the "parent of record" strictly as the parent providing the most financial support, not necessarily the custodial parent—reshaping planning strategies for divorced/separated families.
• Number in College: FAFSA no longer reduces the SAI when more than one child is in college at the same time—impacting multi-student families who previously relied on the discount to unlock aid.
Federal Student Loan Reforms (2025–26 Academic Year)
Significant updates to Direct Loan policies create both opportunities and challenges for families:
• Increased Undergraduate Loan Limits:
o Dependent undergraduates can now borrow up to $8,000/year for upperclassmen, up from $7,500.
o Lifetime limit increased to $33,000 (previously $31,000), providing greater access to low-interest federal debt.
• Graduate & Parent PLUS Loan Changes:
o PLUS loans now include improved upfront disclosures, but still carry higher interest rates and no cap on borrowing—advisors should help clients model long-term cost implications.
o Income-driven repayment (IDR) options remain, but eligibility rules have shifted for certain professional degrees.
• Interest Subsidy Adjustments:
o Subsidized interest no longer accrues during authorized deferments (e.g., while in school) for certain income tiers—helping reduce long-term debt accumulation for lower and middle-income borrowers.
• Loan Origination Fee Transparency:
o New disclosures aim to clarify hidden origination fees and help families better compare federal vs. private loan offers.
Learning Objectives:
• Identify the core features of 529 plans and how they differ across states.
• Understand how plan ownership affects financial aid, control, and estate planning.
• Evaluate investment menu options, glide paths, and fee structures.
• Recognize how 529 distributions impact tax credits, FAFSA, and other aid formulas.
Key Topics Covered:
• Tax-free growth and qualified distribution rules
• State tax deductions and in-state vs. out-of-state plan comparisons
• Ownership considerations: parent, grandparent, trust, or entity-owned accounts
• Investment strategies: age-based vs. static portfolios
• Coordination with education tax credits (AOTC, LLC)
• Planning for unused 529 funds: rollover options and beneficiary changes
Learning Objectives:
• Use validated assessments, to include Birkman, to guide students toward meaningful major and
career paths.
• Reduce the risk of costly transfers or fifth-year enrollment through early discovery.
• Integrate coaching strategies into the college planning process to align family values and goals.
• Help parents understand the long-term financial and emotional value of purposeful college planning.
• Benchmark students’ competitiveness using the Academic FICO® score framework.
• Build strategic college lists based on top-quartile admission potential and aid likelihood.
• Integrate academic positioning with the financial strategy to align cost and value.
• Understand timelines, application components, and how to manage the process like a project.
Important Concepts
• Identifying student aptitudes using validated assessments (e.g., YouScience, Highlands)
• Why major selection = cost containment strategy
• Reducing transfers and fifth-year risk through intentional planning
• Incorporating executive function coaching and career matching
• Selling the value of early discovery to skeptical parents
• The Academic FICO® score: benchmarking admissions competitiveness
• Understanding rigor vs. GPA and test-optional implications
• Using educational consultants: when and how to bring in professionals
• Creating a “target list” of colleges where clients are top-quartile admits
• Timeline for testing, essays, and recommendation curation
Integration & Application Execution
• Online portfolio readiness: essays, recommendation letters, transcripts, test scores
• Project management mindset: deadlines, application platforms, deliverables
• Demonstrated interest and digital footprint management
• Advisors’ role in ensuring financial forms and award letters align with strategy
By the end of this webinar, attendees will be able to:
1. Explain the core principles of Dynasty 529 Planning, including the strategic use of long-term
compounding and multigenerational beneficiary designations.
2. Evaluate the impact of SECURE Act 2.0 provisions, such as the Roth IRA rollover opportunity
for unused 529 funds, and how these changes affect long-term planning.
3. Identify estate and gift tax strategies using 529 plans, including the use of superfunding and
leveraging annual exclusion gifts.
4. Analyze practical case studies involving large family education trusts and the coordination between
529s, trusts, and grantor strategies.
5. Apply compliance and risk management best practices, including how to document beneficiary
changes and properly allocate assets among multiple children or grandchildren.
Important Concepts
• Dynasty 529 Planning: How to structure 529 plans to support multigenerational education goals
while preserving family wealth across decades.
• Tax-Free Growth & Strategic Gifting: Leveraging the tax advantages of 529 plans and
"superfunding" techniques to efficiently reduce the taxable estate.
• SECURE Act 2.0 Enhancements
Understanding the new Roth IRA rollover rules for unused 529 funds and how they add long-term
flexibility.
• Multi-Beneficiary Planning & Trust Integration
Coordinating 529 plans with educational trusts and other estate planning vehicles to serve multiple
generations.
• Compliance & Documentation Best Practices
Tips on tracking beneficiary changes, managing contributions, and avoiding audit risks while
maximizing client outcomes.