How will your investments affect your child's financial aid prospects?

Even though it’s only February, college financial aid officers are already gathering documents, crunching numbers and otherwise working to determine grants for the school year that starts this coming fall. If you have children you plan on sending to college, how will your own savings and investments affect their chances of getting financial aid?

The answer depends not only on how much money you have, but also where you keep it. Most colleges base their aid calculations on the Free Application for Federal Student Aid (FAFSA), which currently counts up to 5.64 percent of certain parent-owned ass...