The Asset Allocator: From Free Enterprise And Free Trade To Just 'Free' (Podcast)

by: SA For FAs
Summary

An investigation by ProPublica Illinois has found that that dozens of students are qualifying for federal, state and university needs-based aid, despite not being needy, through a sneaky maneuver.

This abuse is reminiscent of Medicaid scamsters who managed to transfer their assets to heirs until they looked poor on paper to qualify for costly nursing home care.

In a way, last week’s rate cut appears to fit in the category of the wealthy getting the public to subsidize their luxury goods, in this case stocks.

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An investigation by ProPublica Illinois has found that that dozens of students are qualifying for federal, state and university needs-based aid, despite not being needy, through a sneaky maneuver.

This podcast (5:46) suggests that this abuse is reminiscent of folks who transfer assets to heirs in order to qualify for Medicaid. In a way, last week’s Fed rate cut has the feel of making an expensive item, stocks, more affordable to the already rich. From these musings come two takeaways for advisors.