One of the more interesting, overlooked, differences highlighted by the Obama vs. Romney presidential election of 2012 was related to income taxes. But not how you think.
President Obama, a brilliant, well-educated man, paid income taxes of 20% on income of $3 Million.
Candidate Romney, also brilliant and well-educated, paid 14% on income of $21 Million. Even though he out-earned President Obama by 7-to-1, Romney paid a lower tax rate than his opponent.
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Many were angry that Romney paid so little. President Obama didn’t think that Romney paid his “fair share,” although he didn’t suggest that Romney did anything illegal (did he?).
I thought the “fair share” stuff was the wrong thing to focus on. Instead, the question that should have been addressed was, “How did Ol’ Mitt do that?”
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How did Mitt pay only 14% on his income while President Obama paid 20%?
It’s a one word answer:
“Specialist.”
Mitt got himself great (expensive) tax and legal experts to advise him on how to cut his taxes. I’m sure his legal and accounting bills were in the hundreds of thousands.
But that “expensive” advice saved him millions. Not so expensive when you consider his return on investment, is it?
I am an expert in another field, college financial planning. My advice contains specialized knowledge that, if implemented, can save you thousands, even tens of thousands of dollars.
It's not atypical for a client of a college financial planner to see a return on investment in the 5:1 range, meaning that if they invest $1,500-$6,000 to retain an expert, they see a payoff (grants, scholarships) equal to a multiple of the retainer.
Here's an example: if they've saved money in the "wrong" places (such as popular child college savings accounts), and they're shown how to shelter those funds, it's commonplace to increase eligibility by $10,000, $15,000, even $20,000.
Per year.
This is not a commercial, and there's nothing to buy here. And I’m not writing this to brag (why would anyone care, seriously?).
I'm writing because I want you to pay attention to what I have to say.
College is expensive.
But NOT consulting a specialist can be even more costly.
If you’re interested in learning how to arrange your finances to maximize your eligibility for financial aid, your best bet is to attend on of our upcoming free workshops on Financial Aid “Secrets.”
They're free, and free-quent. :)
Bring a friend or five, they’ll love you forever!
Disclaimer: I may not save you Romney-esque numbers, but you'll feel like you made a small fortune once you learn the inside info I have to share!
- Andy Lockwood
Publisher, The Pay "Wholesale" for College Success Bulletin
Be a college hero! Forward this link to your friends/family members/loved ones/co-workers/people who live under a bridge, and recommend that they subscribe to The "Wholesale" for College Success Bulletin Newsletter, gratis. They'll thank you!
Andrew Lockwood, J.D.
Lockwood College Consulting
497 South Oyster Bay Road
Plainview, New York 11803
Disclaimer (to prove that I went to law school): None of the ideas or strategies in this or any communication should be construed as specific, personal advice. The ideas expressed herein are general in nature, not specific to the reader's situation. Some of the strategies or tactics may not work as well as the examples referenced herein. Others may work better than what was described. Please seek an independent tax or other adviser's opinion.
About Andy - Andy is an attorney-turned-"late stage" college finance and admissions consultant. Because of his own horrible experiences with student debt ($100,000 plus between Wesleyan University and St. John's University Law School, where he was trained to write disclaimers like these!), he dedicated his career to helping other children - and parents, avoid needlessly relying on loans and otherwise overpaying for college. See his websites for more information.
