Play Poor For Grad

If you’re the parent of a high school senior bound for college next fall, now’s the time to play poor.

The reason: Your 1995 tax forms are the financial “snapshot” that colleges will rely on most heavily when assessing your kid’s need for financial aid.

To strike a pose on your tax forms, consider these tactics:

Minimize or defer your wages, income, commissions and bonuses.

Fully fund your 401(k), Individual Retirement Accounts and pretax retirement plans. Besides reducing your 1995 income, it will boost your retirement stash - which isn’t factored into most financial-aid formulas.

Postpone stock sales for capital gains. Accelerate investment losses.

Convert investments to hold down interest and dividend income. (It’s probably too late to make a significant dent for your high school senior, but plan ahead for future collegians.)

Reduce your cash in checking and savings accounts to pay down debt or build up home equity.