In This Chapter

Kitchen sink financial planning—that’s what I call it when people begin throwing every asset they have at a problem. They start liquidating all their investments, withdrawing money from retirement plans, tapping the equity in their homes, and selling their baseball card collections.

Unfortunately, liquidating every asset in sight, and doing it in no particular order, can wreak as much havoc on your finances as good. It’s crucial to know which assets need to be the first to go toward paying tuition, which should be saved as long as possible, and which should not be touched at all. It’s also crucial to think through your asset liquidation strategy now because there is a good chance you’ll have to dig into some of your assets (if you have any) before some of the financial aid comes rolling in.