The Inside Press

Magazines serving the communities of Northern Westchester

FAM

Back to College

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By Scott M. Kahan CFP®

It’s that time of year when summer draws to a close and your children are going back to or starting college for the first time. Often, families have figured out how to pay for the current year and put off planning how to pay for the next year. Well, if you are like most families you probably have not saved enough to afford that $65,000 per year price tag that comes along with a private school education. Now is the time to get a jump start on planning how to pay for the next few years’ college tuition for your child.

When thinking about funding sources for your children’s college education, you may assume your family earns too much to qualify for Federal grants, loans, and work-study job assistance. However, families with higher incomes are frequently eligible to receive some form of financial aid from the Federal government.

Start with the FAFSA

For most financial aid and loan programs, it is required for you to complete the Free Application for Federal Student Aid (FAFSA) as the initial part of the process. In addition to determining your family’s eligibility for Federal assistance, the FAFSA is the primary qualifying form used by many college, state, local, and private financial assistance programs. The first step in applying for financial aid is filling out the FAFSA. The simplest way to complete the FAFSA is by applying online at fafsa.ed.gov.

The start date to file is October 1st and there is no reason to delay the filing. When completing the FAFSA, you will use your financial information from 2016. This is called prior-prior year since you are filing forms for funds for the 2018-2019 school year.

There are numerous programs available to assist you in paying for college. Stafford Loans, which are student loans and PLUS Loans, which are in the name of the parents are a few of the most popular loan programs offered. Pell Grants, unlike loans, do not have to be repaid.

It can be confusing, but the sooner you get started in planning and preparing, the easier it will be!

Scott M. Kahan, is a Certified Financial Planner® professional and President of Financial Asset Management Corporation, a fee-only wealth management firm located at 26 South Greeley Avenue in Chappaqua. Call Scott Kahan at 914-238-8900.

Top 10 Financial Tidbits

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BY SCOTT M. KAHAN CFP®

  1. Join your company’s retirement plan and try to contribute as much as you can. Make sure you are contributing enough funds to get the maximum matching contribution from your employer.
  2. One of the greatest gifts you can give is to help pay the education costs for your grandchildren. Any gifts, regardless of how large, made to anyone for the purpose of funding education, do not incur gift taxes as long as the payment is made directly to the educational institution.
  3. Update your estate planning documents. Protect your health and your wealth with a health care proxy and durable power of attorney. Make sure your will and trusts leave money to the correct people.
  4. Maximize your tax deductions. Donate items you don’t need to charity. If you expect a large income tax refund, change your withholding tax so you get more per month in your paycheck and less of a refund.
  5. Buying low and selling high is a lot easier said than done. Have a solid rebalancing strategy in place that helps take the emotions out of investing.
  6. A shorter mortgage isn’t always better. Consider taking a long-term mortgage, and then make additional payments when you can. If things become financially “tight,” you can stop making additional payments.
  7. Protect tangible assets with the right amount of homeowners, automobile and liability insurance for liability and disasters.
  8. Withdrawing retirement plan assets before age 59½ may lead to a 10% penalty; not withdrawing enough after age 70½ may lead to a 50% penalty. Moral of the story? Know when to make withdrawals.
  9. Pay yourself first. As you set your budget each month, set aside money for savings and fixed expenses first. What’s left over can be used for other purposes.
  10. Like regular checkups with your physician, regular reviews with a Certified Financial Planner professional are important to your financial “health.”

Scott M. Kahan, is a Certified Financial Planner® professional and President of Financial Asset Management Corporation, a fee-only wealth management firm located at 26 South Greeley Avenue in Chappaqua. Call Scott Kahan at 914-238-8900.

Taking the Stress out of Money Management

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Scott M. Kahan, CFP®, hard at work. Photo by Matt Smith
Scott M. Kahan, CFP®, hard at work.
Photo by Matt Smith

As the average layperson might attest, financial planning can be quite the daunting task. You may feel so overwhelmed with all the other business associated with your child going to college, or facing that impending retirement, that perhaps you may simply forget the financial aspect until it’s too late. Maybe you fall into that group of people who are so confused by the jargon that they put it off altogether in fear of it being too complicated to handle. Or, you may be one of a few who think they’ve got it all covered with their basic number crunching and investment portfolios, but who doesn’t yet realize there’s so much more to do. Whatever your reason, financial management expert Scott M. Kahan, CFP®, wants you to rest assured that he and his staff at Financial Asset Management Corporation know exactly how to help!

Since 1986, Kahan, founder and President of FAM, has been serving the good people of Chappaqua (and some in Manhattan, where also has an office) with the time-tested belief of putting his clients’ needs first.

“Being a small firm, we get very involved with our clients’ lives [and] we take things very seriously,” he says, of FAM’s approach. “It’s a personalized service that allows us to fully understand our client’s goals and objectives. We’re here to work for the client…With us, what you see is what you get.”

And to that end, “what you see” is quite extensive. The firm offers comprehensive wealth management, including both financial planning (cash flow, saving for college, tax planning, retirement planning, and insurance review) and investment management, all with that same emphasis of valuing clients’ needs above all else. “We’re a fee-only firm [meaning we don’t generate commission; our compensation comes solely from our clients], and we act solely as fiduciaries.” Acknowledging “money can cause a lot of stress,” he adds that “our goal and role is to alleviate that stress through conversation.”

The first introductory meeting at FAM is completely free, allowing potential clients and advisors alike to gauge how they can help each other. “We describe financial planning as a road map,” Kahan explains. “If you want to [drive] from New York to California, you have to plan out your trip.” Similarly, that initial meeting with a financial advisor “will address where [a client] wants to go, what the obstacles are, and how they can successfully [evade them].”

Indeed, it’s quite the lengthy process, but that’d be the case anywhere…and there’s no question clients appreciate the one-on-one, ethical approach. “[Clients] know that if they come and work with us, they’re going to get honest answers,” Kahan continues. “We will give [them] the education they need, and provide as many resources as they need until they feel comfortable.”

For Kahan, a belief in “doing what’s in the client’s best interest” isn’t limited to his work professionally; it also holds great significance in his personal relationships with people throughout the community. “For me, it’s about also giving back,” Kahan continues. “As a Chappaqua resident for the last 22 years, [with] two kids that went through the school system and graduated from Greeley, I take a lot of pride in this community…I think it’s important to get involved and give back.”

And give back he has. In addition to his professional offerings at FAM, he previously served as Treasurer on the Board for the Horace Greeley Scholarship Fund for two terms, spanned over 11 years. (“It’s a great organization that helps make up the difference for Greeley graduates to pay for college.”) With the help of a local college financial director, Kahan also presents an annual seminar at Horace Greeley High School as part of their Financial Aid Night to help parents prepare and plan to pay for college, noting, “Besides retirement, [paying for college] is probably the biggest financial concern parents have.”

In addition to his local work, Kahan is also currently a Trustee for the Foundation for Financial Planning, a national organization which provides funding for the military and other underserved groups to receive pro bono financial planning.

Whomever he is advising, Kahan maintains that when done properly and correctly, financial planning can really work. Judging by his approach, it’s easy to see why his clients agree: “They just feel relieved, getting up and walking out knowing that a) they have someone to talk to about their financial issues and b) they know someone is going to provide objective advice and help them reach their goals.” And knowing he’s played a part in making it happen, Kahan simply couldn’t be happier.

Financial Asset Management Corporation is located at 26 S. Greeley Avenue in Chappaqua. For more information, call 914-238-8900 or visit www.famcorporation.com.

Matt Smith is a writer and regular contributor to The Inside Press. For further information or inquiry, please visit www.mattsmiththeatre.com.