Every October, the College Board releases its Trends in College Pricing report that highlights college cost increases for the current academic year and trends in the world of higher education. While costs can vary significantly by region and individual college, the College Board publishes average cost figures, which are based on its survey of 3,500 colleges across the country.

To read the Trends in College Pricing 2011 report, visit www.collegeboard.com/trends.

Note that the “total average cost” figure includes tuition and fees, room and board, books and supplies, transportation, and a small amount for miscellaneous expenses. This figure is often referred to as the “cost of attendance.”

Public colleges (in-state students)

• Tuition and fees increased an average of 8.3% from last year to $8,244
• Room-and-board costs increased an average of 4.0% to $8,887
• Total average cost for 2011/2012 is $21,447

Public colleges (out-of-state students)

• Tuition and fees increased an average of 5.7% from last year to $20,770
• Room-and-board costs increased an average 4.0% to $8,887
• Total average cost for 2011/2012 is $33,973

Private colleges

• Tuition and fees increased an average of 4.5% from last year to $28,500
• Room-and-board costs increased an average of 3.9% to $10,089
• Total average cost for the 2011/2012 year is $42,224

Student Aid Trends

The College Board also publishes an accompanying report every October called Trends in Student Aid that examines financial aid in more detail. To read the report, visit www.collegeboard.com/trends.

The College Board noted that last year, approximately 46% of all grant aid came from the federal government, 36% came from colleges, 9% came from state governments, and about 9% came from employers and other private sources. Grant aid is the most desirable type of financial aid because it doesn’t need to be paid back.

Source Broadridge Forefield. Compliance tracking number 2011-007935

Here are highlights from its latest report:

• At four-year public colleges for in-state students, tuition and fees increased an average of 7.9% from last year to $7,605, and room and board costs increased an average of 4.6% to $8,535. Total average cost for 2010/2011 is $20,339.
• At four-year public colleges for out-of-state students, tuition and fees increased an average of 6.0% from last year to $19,595, and room and board costs increased an average 4.6% to $8,535. Total average cost for 2010/2011 is $32,329.
• At four-year private colleges, tuition and fees increased an average of 4.5% from last year to $27,293, and room and board costs increased an average of 3.9% to $9,700. Total average cost for the 2010/2011 year is $40,476.

“Total average cost” includes tuition and fees, room and board, books and supplies, transportation, and a small amount for miscellaneous expenses.

To read the Trends in College Pricing report, visit www.trends-collegeboard.com.

Student aid trends
The College Board notes that the average cost figure is not necessarily representative of what most college students pay. That’s because approximately two-thirds of undergraduate students receive grants that reduce the actual price of college. The largest provider of grant aid is individual colleges, followed by the federal government, private sources and employers, and state governments. Some students and their parents also benefit from federal education tax benefits.

The College Board estimates that for the 2010/2011 academic year, students at public colleges will receive an average of $6,100 in grant aid from all sources and federal tax benefits, while students at private colleges will receive an average of $16,000 in grant aid from all sources and federal tax benefits. Federal tax benefits include the American Opportunity tax credit (formerly called the Hope credit), the Lifetime Learning tax credit, and the deduction for qualified higher education expenses.

Every year, the College Board releases a sister report to Trends in College Pricing, called Trends in Student Aid, that examines student financial aid in more detail. To read this report, visit www.trends-collegeboard.com.

Source: Forefield Inc.
© Copyright 2006 – 2010 Forefield Inc. All rights reserved.  AD #: 09-05991

There has been a lot of talk lately in the media about Roth Conversions due to the limits for such conversions being lifted for 2010.  Although the limits have been lifted it still does not mean that converting your IRA to a Roth IRA is the right thing to do. 

Previously those individuals whose modified adjusted gross income was more than $177,000 for married couples and $120,000 for singles were not able to contribute to a Roth IRA.  However, in 2010 individuals whose income is higher than these levels  are able to convert their traditional IRA’s to a Roth IRA. This does not mean that you can contribute to a Roth IRA this year if your income is above these limits.  It only means that you can covert existing IRA’s to Roth IRA’s.    With this conversion, however, comes a hefty tax implication as taxes for that year are owed on the full amount that is converted.  Therefore, although it may be a great opportunity for those who have previously not been able to participate in this investment tool it may not be the best choice for everyone.  Our opinion is that converting your IRA to a Roth IRA is only worth it if you have money set aside outside the IRA now to pay the taxes on the conversion. 

 If you would like to discuss your personal situation with us please feel free to call our office at 801-295-7373 to determine if this conversion would be beneficial for you. 

AD #: C10-19734

In our last issue we gave you some information on the psychology of scams.  In this issue we will cover some tips to help you feel in control.

Simple Tips to Help You Take Control of Your Financial Security

1. Don’t be a courteous victim- You are under no obligation to be polite to someone who is asking for your money or trying to get you to do something you don’t want to do. If you feel uncomfortable and don’t want to continue the conversation hang up, simply state you are finished and leave. They will try to get you to stay. They are highly trained in overcoming objections, but stand your ground and keep moving! Don’t talk, just walk!
2. Don’t get rushed- One sign of a scam is the immediacy factor. They pressure you into making a decision (and a bad one at that) by telling you the offer is only good if you act now. Any truly worth while investment will be there tomorrow or the next day so do your homework on the investment.   
3. Stay in charge of your money- Beware of someone who says they are a professional and can handle everything. Even if you are in a discretionary agreement with your advisor, you should be working as a team with your money. You should both have a clear idea of the goal, what you as the client are comfortable with, and always know exactly what is being done with your money.
4. Don’t judge a person’s integrity by how they look/sound- An incredible amount of investors have been completely taken by people who they later described as having “looked or sounded so professional.” It is so easy to look the part, even talk the part, but creates no basis for trustworthiness. Do your research!
5. Don’t be dinner- Successful con artists will prey on your fears. As much as you want to think you are a unique individual you are undeniably like everyone else. There is something you are afraid of and it isn’t hard for con artists to find out what that is and use it against you.  Again, if their offer feels like your saving grace, your “would be broker” is taking no mercy when taking all you’ve got. When asking a con artist to describe their perfect victim you are likely to hear, “elderly widow or widower” because they often relied on their spouse to handle the money and now they don’t know what to do. Those who have received a windfall of insurance in the wake of a death of a spouse are prime targets for con artist. Always seek advice from family members and other professionals before deciding what to do with your money. You should know and trust your advisor. If you were referred by someone you know or if you know your advisor in a different setting these are good signs you are in good hands.
6. Never pay money directly to your advisor- An advisor asking you to write a check directly to him should be a HUGE red flag. Payment should always be made to the investment firm or the fund itself. For example your checks should be made payable to the broker/dealer your advisor is associated with (i.e. Raymond James).   
7. Not so easy access?- If a stockbroker or financial planner tries to stall you when you want your money this should be a red flag. They might start talking about “rolling over your profits.” There is a wide variety of legitimate roll- over plans out there and they are structured so that you will completely understand and see what is happening with your money and your access to your money does not change. There may be tax penalties, but you can still withdrawal.
8. Don’t be shy- Unfortunately, just like in physical abuse cases, those who have been victimized monetarily often don’t report it because they feel ashamed that they did not see it coming or they are afraid their families won’t trust them with their money anymore. This is not the case. It is vital that you speak up and early because it increases your chances of recovering your losses as well as helping protect others from the scam.

 If you would like to send this article in its entirety to those you love please call Sandy at 801-295-7373 and we will send it for you! 

Information shared in this series was derived from information found on: www.dfi.wa.gov/consumers/invest_scam_avoid.htm, www.finra.org/Investors/ProtectYourself/AvoidInvestmentFraud/FraudFighting101, www.goodfinancialcents.com. 

AD #C10-19734.