Procrastination is the art of putting off or deferring an action to a later time. We are all guilty of it from time to time. 

A further definition of procrastination should include an additional component: what we do when we are not sure how to proceed. 

The end of every year is the busiest time in my business. Many people wait until they have no option except to make an investment decision. Typically, because it’s near the end of the year, these decisions are tax related so they do not have to pay as much.

Examples of investments that reduce immediate tax obligations would include the Natural Gas LPs that I have written about in the past or an IRA contribution.  

Just as I encourage diversification of investments for my clients, I do the same for my business. This summer, I added training for College Financial Aid Planning to my business diversification. This decision started off mostly because I am the parent of a college-bound daughter.

I did not think college financial planning had any crossover with the yachting side of my business. I do these workshops at high schools and only when the parents come in to see me do I learn what they do for a living. 

Last week, I met two yacht brokers who have children graduating high school this year. We have to make several changes to their portfolios before Jan. 1. This is the first possible time student FASFA forms are due so graduating seniors can qualify for student aid or loans for college. 

FASFA is the Free Application for Student Financial Aid. The form is much like the 1040 tax forms that we all fill out. Just as you should sit down with your accountant and financial adviser to discuss legal strategies to minimize your tax liability, these yacht brokers are going through the same thing in trying to qualify for free money for college. 

By waiting until the last minute, the options are fewer. In other words, if you start this process in your child’s freshman or sophomore year of high school, you have many more options.

Frequently, you can make subtle changes to your financial portfolio to qualify for more aid, not only from the government but from specific colleges a student is qualified to attend. Some parents have already gone through this application process with an older sibling. They learned that there was much more that they did not know. They learned that there where things that they should have done.

Bottom line: They could have saved money with some financial adjustments and a better choice of college. 

One option is a career test that students can take to narrow down their major and minor. By doing this, the added expense of paying for classes they don’t need if they change their major is minimized. Adding another year of college costs is expensive. It’s important to take the extra effort to pinpoint an education direction. 

Another point is paying for college. It’s hard for some parents to accept, especially ones who have already put money in 529 plans or prepaid college programs. I tell them to explain to their child that there is not enough money for college and that the student will need to help by applying for scholarships. 

There are scholarships that do not get awarded because no one even applied for them. The next year, only one student wrote the essay, and guess what they won? The scholarship. If students think they will have to pay for college, they will spend a more time looking for scholarships. They will also be more conscious about taking unnecessary classes and participating in the party scene.

The graduation gift you give them, of course, is a “paid for” education. At graduation, when the student feels stuck with the burden of a student loan, you take that payment book and tell them that you will take care of it. A win-win. They got a free education and you get it for less than you would have if it was known that you were paying the full ride from the beginning.

You also are building their credit position by making the payments on their student loan. 

So where are you on the procrastination of your finances?  

Information in this column is not intended to be specific advice for anyone. You should use the information to help you work with a professional regarding your specific financial goals.