10 Financial Terms You Should Know For Next Year

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

A challenge that many people often face when it comes to their finances is that they don't understand some of the complex terms that tend to be used in certain conversations. And since not having the knowledge surrounding the language used in this industry can have adverse effects on your financial success, there is no better time than now to learn a few. Below, we hope to eliminate any confusion you might have by outlining 10 of the most important financial terms we think you should know.

Asset Allocation: Asset allocation refers to the process of re-positioning the assets in your portfolio to really maximize the potential return that comes with a certain level of risk. Although it does not guarantee there will be no loss, it is used to help manage your overall risk when it comes to each of your investments.

Diversification: Diversification means investing in different companies, asset classes or industries to minimize your overall risk. While this also does not guarantee against loss, it certainly helps to manage your investment risk.

Estate Tax: An estate tax is the tax placed on the value of the estate left by a deceased decendent. This tax is given by the federal and state governments, and there are usually some limitations involved.

Fixed Income: Fixed income is the income you receive from investments like CDs and pension benefits; it is income that is the same from month to month.

Gift Tax: Gift taxes are federal taxes that are imposed on property that is transferred as a gift. Usually paid by the donor, the first $14,000 gifted each year is considered to be exempt from this tax. For more information about gifting, please click here.

Inflation: Inflation is the increase in price of a product or service over time. In order to measure inflation, the government uses the Consumer Price Index.

Liquidity: Liquidity refers to how quickly and easily assets can be turned into cash.

Probate: When a decendent passes, probate is a process used by the court to handle their estate. Ultimately, it is the process in which the deceased's estate is settled and distributed.

Roth IRA: A Roth IRA is another account that can be used to save for retirement. This type of savings plan, which is a nondeductible IRA, permits tax-free withdrawals so long as certain conditions are met.

Volatility: Volatility is best defined as the range of price swings of a security or market over time.

Aside from these terms, are there others that you hear time and time again that you are unsure of? To learn the definitions for several other popular financial terms, be sure to check out our online glossary here. Of course, if you have any other specific questions, you can contact us at (516) 932-5130; our team would love to sit down with you and speak about several financial planning processes.

New Year's Resolutions To Help You Save Money In 2016

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Given the opportunity to start fresh in the New Year, like us, we know you may be starting to set goals for yourself that you'd like to see come to pass in 2016. But aside from the usual resolutions surrounding health and fitness, another important one is to become more comfortable when it comes to money.

If you're not sure where to start in this particular area, begin by making it a priority to save some - here are a few resolutions we have in mind:

Follow A Budget: Budgeting isn't just important during times of the year where heavy spending is involved (such as during the holidays). If you want to feel confident in your ability to keep track of your money and trust that you won't spend more than you can afford, you need to have a clear plan to follow.

Begin Investing: Placing some of your income in strategic investments can help you both now and down the line. Take retirement accounts for example - when you make contributions regularly, you're setting yourself up for success during a time of your life where your income may not be as steady.

Learn About Investments: If you're new to investing, you'll want to do your research before you make any final decisions about where you'll allocate your funds to. Even when you work with a financial planner like ourselves, it's important that you possess your own knowledge about each of your individual investments so that you know exactly where your money is going and how it all works. When you aren't familiar with this, there are much greater chances of you losing the money that you set out to save.

Eliminate Debt: Are you in the middle of helping your child pay back student loans or working on paying off your car? Should you have loans like these in your name, make it a priority to pay as much back this year as possible - the sooner you complete your payments, the less interest you'll get charged with.

Find A Financial Planner: One of the most important things you can do for yourself is schedule an appointment with an expert in the field, considering that they have all of the right tools and resources to help you develop a plan that can benefit you financially. At American Investment Planners LLC, we can help you do so through services such as retirement and estate planning!

Although it may seem overwhelming at first, saving money and becoming more financially stable can occur in a number of ways, and we want to help! For more information about our firm and how you can benefit from our guidance and advice, please give us a call at (516) 932-5130 today.

Retirement Tips For Millennials To Use Next Year

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

With a new year just a few days away, now is an ideal time for families to begin thinking about their financial planning strategies - by families, though, we certainly don't just mean the adults, we mean children too! Focusing on millennials, we simply can't stress enough how important it is to begin saving early, but unfortunately, we know that not all individuals in this age group have the right tools to help them get started. But that's what we're here for; below, we've listed a few tips that millennials can use in 2016 when it comes to saving for retirement.

Contribute To A 401(k): If an employer offers a 401(k) or similar retirement plan - use it. CNN Money recommends contributing at least 10% of your salary, but if that isn't feasible for your personal financial situation, just contribute as much as you can while still leaving yourself enough to cover your every day expenses.

Start Simple: Avoid spending too much time stressing over where you choose to invest - the specifics will come later. At first, focus more so on having a diverse portfolio. Still not sure what that entails? Contact us at (516) 932-5130 and allow us to help you figure it out!

Trust Yourself: It can be tempting to check your retirement account every week and see where your balance stands, but considering that the market fluctuates, you don't want to find yourself in a tizzy if you see your savings going up and down. After you've set up your retirement plan, let it be and only check in occasionally, unless you're meeting with your financial planner.

At American Investment Planners LLC, we believe that the ultimate test of a financial plan is the legacy you can pass on to your family and favorite charities, and getting a head start can help! If you or someone you know falls in the millennial generation, please give us a call to get started on a retirement savings plan today.

Tips For Teaching Your Children About Money

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

One of the most important skills a parent can teach their children is how to properly manage their money and how to effectively tackle any money related matters. And considering that money is a topic they will hear about throughout their entire life and something they will be responsible for, it's important to get them into good spending and saving habits from a young age. However, as your trusted financial planner, we know that talking to children about money can be a difficult feat, which is why we've put together the following tips for you to use when teaching them about it:

Let them make decisions: As a parent you may be inclined to stop your child from making a purchase that you see as unnecessary, however, allowing your child to make a mistake is one way to teach them the value of a dollar. If you give your child an allowance when they are young, let them make their own decisions on what they'll do with it, even if it's something you wouldn't recommend.

Have them tag along: Learning by seeing and doing can be an effective way to help your children get a good grasp on a lot of things. Specifically focusing on money, have your children tag along when you go shopping so that they can see first hand what you do with yours. For example, if you tend to seek out discounted or sale items, your children may be quicker to catch onto the value of doing so if they see you do it in person rather than just being told.

Set up a change jar: Whether you use a traditional piggy bank or empty jar that you have at home, give your children the opportunity to watch their money grow by saving. If they get an allowance, suggest that they put a certain portion in the jar each week. Similarly, if they do make their own purchase and have coins left over, suggest that they put it in the jar too! Over time, they'll have the chance to see their money increase (an exciting thing for people of all ages), which could encourage them to develop great saving habits.

Although we place much of our focus on financial topics such a retirement planning and estate planning, we understand just how important it is for children to set themselves up for financial success too. If you have questions about financial planning as it relates to your entire family, please give us a call at (516) 932-5130 to start speaking with one of our financial planners; additional information about our services can also be found on our website.

Three Major Money Mistakes You Don't Know You Make

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

We all want to know that we are financially stable both now and in our futures - that's a given. However, sometimes a financial struggle comes about as a result of our own wrong doing, even when it happens unintentionally or without us being aware of the cause. But since the mistakes that we make when it comes to our money could have negative long lasting impacts, we put together a list of three major ones to avoid below.

Not having a savings account: From your regular savings account at your bank to accounts such as a 401(k) or Roth IRA, you must have something in place that allows you to set some of your money aside for a later date. If you aren't contributing to a retirement account, you'll find that leaving the workplace is much more difficult than it needs to be. Similarly, if you don't have a savings account for emergency funds, you could put yourself at risk for not having enough to cover any unexpected costs.

Forgetting about hidden fees: Hidden fees are everywhere - at your bank, at your credit card company, even at your favorite local stores. When opening up any account where lending and borrowing is involved, such as a new credit card, don't ignore the information about interest rates and late fees. Furthermore, does your bank or 401(k) plan charge a monthly management fee for any of your accounts? If you aren't sure at the moment, you need to find out.

Leaving all your money in a checking account: To get the most from your money, it's important to take some of it and set it aside for investment purposes. But, when we keep it all in our checking account, we aren't giving it much opportunity to gain any interest or result in a financial benefit. Instead of leaving all of your money in a single checking account, ask your financial planner where you can put some that could lead to a monetary gain.

As a leading financial planner that offers a number of different services, the team at American Investment Planners LLC realizes just how much of an impact one small change can make when it comes to feeling financially secure. If you have any doubts about the approach you're currently taking when it comes to your money, give us a call at (516) 932-5130 to learn how we can help you develop a strategy that works in your favor. For more information, please visit us at www.americaninvestmentplanners.com.

Give The Gift Of Wealth This Holiday Season

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

With Hanukkah having just started and Christmas approaching, chances are you're thinking about all of the material items you need to run out and buy before it's too late. However, for those with an estate planning mindset and focus, there's another gift you may want to consider - a wealth transfer.

Did you know that you are permitted to gift up to $14,000 to any recipient of your choice without any tax consequence? To make things a bit clearer, this means that an individual can gift up to $14,000 to an unlimited amount of individuals over the course of the year as a means of distributing wealth from their estate. So long as you have enough income available for you to use for your own personal spending, this is one approach that allows you to give money away without the recipient accumulating much (if any) in taxes or fees.

But let's break it down a bit further. Below, we cover a few FAQs about wealth transfer and gift taxes:

Q: What is classified as a gift?

A: In this example, a gift is any transfer of money made to an individual where "full consideration is not received in return."

Q: Are gifts taxable?

A: Technically speaking, any gift can be considered a taxable one. But, there are several exceptions outlined by the IRS. For example, gifts that do not exceed the annual exclusion during any one calendar year or gifts that are made to your spouse are usually not viewed as taxable.

Q: If a gift is taxable, who pays it?

A: If the plan you've set up requires a gift tax, the donor is usually responsible for the payment. However, if the receiver agrees to taking care of the tax, adjustments may be made where the donor does not have to.

Q: Can gifts be deducted on tax returns?

A: For the most part, you cannot use the value of gifts as deductions on your tax return - the only circumstances where it can be done are if you are gifting money to charitable organizations.

For more information on this topic, please check out this article from the IRS.

At American Investment Planners LLC, our team of financial planners are extremely knowledgeable about estate planning and can help you develop a strategy that allows you to take advantage of gift giving in this way. To set up an appointment with us to get started and learn more, please call (516) 932-5130 today.

5 Financial Tasks To Complete Before The End Of The Year

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

With 2016 right around the corner, we know many of you may be coming up with your New Year's Resolutions. But before you can get into what you'd like to do next year, there are still a few things you need to take care of this year, especially where your finances are concerned. Below, we outline five financial tasks you need to complete before the clock strikes 12 on January 1st:

1. Speak to your financial advisor: Before you set any financial goals for next year, it's important to talk to your financial advisor to get their insight on what you should be working towards. You never know when new strategies may work in your favor, so make it a priority to sit down with them to learn if and how some of your financial plans may need to be changed.
2. Check your credit: Your credit could easily be affected by an error on your report, so you'll want to catch any before it's too late. If you haven't received a free copy of your credit report yet this year, make it a point to get it now so that you can check for any mistakes.
3. Make contributions: Have you made the maximum contributions to your IRA or 401(k)? In 2015, you are permitted to contribute $5,500 to your Roth IRA and Traditional IRA, and $18,000 to your 401(k). For additional contribution limits, such as catch-up limits and those specifically for the self-employed, click here. 
4. Analyze investments: What do your current asset allocations look like? Is there enough diversification in your portfolio? To set yourself up for the greatest benefit from your investments, you'll want to review your portfolio and see how your current choices are working out for you. If you realize that some aren't working in your favor, it's time to make some changes!
5. Review your taxes: Believe it or not, tax season is approaching rather quickly, which means it's time to start figuring out where you might be able to save. At this point, take a look at the income you received this year and review things like donations you may have made to learn what may qualify you for a tax break.

At the end of the day, it's extremely important to make sure that you always feel confident about where you are and where you're headed financially. If you went through 2015 without a financial advisor or team of financial planners working with you, make your number one task for 2016 to find one. Need a recommendation? Choose American Investment Planners LLC!

For more information about the financial planning services we offer, please visit our website or call (516) 932-5130 today.

How To Make More Room In Your Holiday Budget

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

It's no secret that the holiday season is one of the most expensive times of the year, and because of that, it's not unusual for people to do just about anything to make more room in their budget for gifts, travel and holiday activities. But while you may think you have to go completely out of your way to have some extra cash in your pocket at the end of each week, the truth is that you really only need to make some minor adjustments to a few of your habits - take a look below to see what we mean:

Make lunch: Whether it's for you to take to work or for your children to take to school, make lunch at home a few times a week rather than eat out. Even if your normal lunch routines aren't too costly, every dollar you save can be used to buy the number one item on someone's wish list.

Carpool: Whenever possible - carpool. Although gas prices have been a bit more affordable lately, the less you take your car out, the less you have to spend fueling up. If you have plans to attend a holiday party, see who you can catch a ride with. Or, if you have coworkers who live nearby, create a schedule that allows you to alternate driving responsibilities throughout the week.

Revisit home services: Do you get hundreds of movie channels but feel like there is never anything to watch? As we approach the New Year, you may want to revisit some of the services you receive and see if there's anything you can live without - if those movie channels just aren't cutting it and keeping you entertained, that's something you may want to part with!

Be energy efficient: It's easy to leave your cell phone or computer charger plugged in, but even though you may not be actually charging something at the time, electricity is still being used (ever hear of phantom power?). With most everyone having some type of device they can't live without these days - a cell phone, tablet, computer - this is something every member of the family can work on to reduce utility bills.

DIY: If you need some repairs done around your home before guests arrive, see what you can DIY before calling in an expensive contractor. While some types of work will certainly require a professional, if you can do some of the job yourself, you can save a lot more than you spend.

Aside from making more room in your holiday budget, are you interested in making more room in your weekly budget? Monthly budget? Yearly budget? If you have yet to meet with a financial planner about the best way for you to achieve financial success, it's time to do so.

For more information about the services offered here at American Investment Planners LLC, please give us a call at (516) 932-5130 or visit us on our website.

Frequently Asked Questions About The New Social Security Law

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

In the financial world, one of the largest pieces of news that broke last month was the new Social Security law. For those of you who are unfamiliar with the latest updates to Social Security claiming strategies, Congress recently eliminated file-and-suspend for married couples and the restricted application claiming tactic (a strategy that has been commonly used by divorcees). But since this topic can get pretty complex, we know that many of you may have questions regarding the new law and what this means for your future. That's why below, we're covering some FAQs about the changes; take a look:

Who is affected by the elimination of file-and-suspend?

Those individuals who have not reached 62 years of age by the end of this year (2015), or those who have not already started to file a claim will be affected by this change. If you will reach full retirement age within the next 6 months, you will have access to this benefit until Spring of 2016.

What is changing about restricted application?

Once the new law takes effect, only those individuals born on January 1, 1954 or earlier will be able to utilize the restricted application claiming strategy. If you are not 62 by the end of 2015, Social Security Timing says you will "automatically get the larger of the two benefits" (according to USA Today).

What is the next step for those who planned to use these strategies?

If you were banking on using file-and-suspend or the restricted application strategy, now is the time to speak with your financial planner about updating your retirement plan. Although these strategies may not be completely eliminated for you depending on your age, it's critical that you find out for sure before you assume that you will still be able to utilize them in the future. 

At American Investment Planners LLC, we understand just how much of an impact these changes may have on your plans for retirement. If you have additional questions about the new Social Security law or would like to speak with a financial planning expert about what changes must be made to your current retirement plan in order to receive the greatest benefit, please give us a call at (516) 932-5130 today. Also, don't forget to connect with us on social media, as we'll always share any new news we discover on this topic!

Tips For Saving Money During The Holiday Season

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Though you may have been thinking about the holidays for quite some time already, now that Thanksgiving has passed, it is officially time to begin your holiday shopping. If you've been following our blog, then you should already have a pretty good idea of how to holiday shop on a budget and how to avoid holiday debt, but today, we're going over something new - how to save money during the holiday season. See below for some of our best tips:

Donate your time: A great gift doesn't have to cost you hundreds of dollars - dedicating your time is just as meaningful and valuable to any recipient! Whether you volunteer in your community or help out a family member or neighbor with tasks such as grocery shopping or general housework, simply giving up a part of your day to help others without expecting anything in return can be the best gift of all.

Cut back where you can: Saving a few dollars here and there can really make a difference when it comes to how much money you have leftover for holiday spending purposes. For example, if your family favors going out to eat, order water instead of soda or skip out on dessert. By cutting back on your spending in even the smallest of ways, you can save up enough to feel comfortable buying the gifts on your friends' and family's wish-lists.

Be creative: Channel your inner creativity and take on some DIY projects! Say a scarf is on your list of presents to buy - if you're feeling up to it, you can create a handmade one by following some basic instructions from any local craft store! Or, if you were thinking of buying some home goods such as picture frames, you can create your own and even stick a special photo in it prior to wrapping things up! Like we said under "donate your time," a great gift doesn't have to cost you hundreds of dollars, and a do-it-yourself present is a great way to minimize your costs!

Considering that the holiday season can certainly be one that has you and your wallet feeling overwhelmed, we know how important it is for you to feel comfortable financially - one thing's for sure, these tips are a great place to start!

For additional tips when it comes to the holiday season, be sure to check back to our blog regularly and connect with us on social media. Then, for more information about our financial planning services and how we can help you once the new year rolls around, please give us a call at (516) 932-5130 or visit us on our website!

Meet Nicole Nugent: Assistant Financial Representative and Office Manager

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

At American Investment Planners LLC, we work as a cohesive unit to develop and deliver the most beneficial solutions to each of our clients. We pride ourselves on the fact that our firm is built on a group effort, and since it is so, we invite you to become a part of our team by getting to know each of our experts individually. Today, we would like to feature Nicole Nugent, our Assistant Financial Representative and Office Manager!

Originally from North Babylon, New York, Nicole has always been interested in a career where she could work with numbers. That said, it's not surprising that she was a natural at math during her academic career! After her first job as a bank teller, she eventually landed a role as a new accounts representative, which then led to her being a mortgage loan officer. While working, she began taking college classes at night and realized that the financial industry was where she wanted to stay.

Upon receiving her Accounting Degree from Hofstra University here on Long Island, Nicole accepted a job on a bond desk and later decided to take the Series 7 exam. Today, she has 26 years of experience as a professional in the financial industry, and has been a member of the American Investment Planners LLC team for just about 8 years. When she first began with us in 2009 she assisted in managing our accounting needs, and since then she has also expanded within the firm to be our Office Manager.

When asked about her most memorable experience on the job, Nicole doesn't point to just one instance. Rather, she views each opportunity to help a client as one for the record books. And when she isn't sure of the answer to their question(s)? One thing's for sure - Nicole stops at nothing and will always take the time to research and find a solution.

Outside of work, some of Nicole's hobbies include shopping, cooking, gardening and fashion. Additionally, she also enjoys traveling, fitness, the beach, and spending time with family and friends!

Here at American Investment Planners LLC, we are extremely thankful to have Nicole as a part of our team. Her dedication to our clients and willingness to always go above and beyond is something we truly value!

For more information about Nicole, please check out her employee bio on our website!

Tips For Financial Success on Black Friday and Cyber Monday

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

For those of you who prefer to be proactive and get a head start on your holiday shopping, two of what are probably your favorite days of the year are almost here - Black Friday and Cyber Monday. Regardless of whether you prefer to shop online or physically in the stores, these two days following your Thanksgiving celebration are the perfect opportunity to snag the best deals on those gifts you plan on giving. And even though it's already a day that sets you up for financial success, here are a few more tips to really help you get the most for your money:

Be aware of hidden fees: The item that is 50% off when bought online sure will seem appealing, but does that include shipping, handling and taxes? By the time you're done checking out, you may just find that the 50% sale online winds up costing you more than the 40% sale in store. Therefore, you must look into what these sales actually include before deciding that one is the best deal for you.

Avoid window shopping: On Black Friday especially you can bet that stores will have their deals heavily advertised right where you can see them in an effort to lure you in. But, if you weren't planning on going to that store in the first place, this could cost you. Before you head to the mall or your local shopping center, create a list of the stores you need to hit and make a promise to yourself that those are the only stores you will visit.

Devise a plan: You may find that some stores advertise different deals throughout the day, so depending on what items you're looking to find you may need to visit one store at a very particular time. Before you head out, do some research to see if this applies to any of the stores you're planning to shop at, and if it does, put together an itinerary for yourself so that you don't miss out on any spectacular deals.

Whether you're a routine Black Friday and Cyber Monday shopper or have decided to make this your first year participating in the craze, know that these tips can help guide you towards financial success! Are you ready to get out there?

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.

How To Holiday Shop On A Budget

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If you haven't already started thinking about it, we bet holiday shopping will pop into your mind after Thanksgiving dinner is done. After all, Black Friday ultimately kicks off the season, and if you want to get ahead you're probably at least considering getting started in the next week or so. But just because days like Black Friday and Cyber Monday exist where you can find killer sales for the most sought out items on this year's wish-lists, we know not everyone has the leisure of swiping their credit card without a care - that's why we've prepared these tips on how to find the perfect gifts on a budget:

Create categories: Start by making a list of all those you plan to buy gifts for, then divide them into categories - for example, family, friends, work and school. After this is set, decide how much of your budget you'd like to allocate to each group. Since chances are you probably want to spend more on family than your coworkers, setting a budget for each category can help you avoid overspending on certain individuals.

No new credit cards: A common question that you'll likely be asked every time you shop at a new store is if you'd like to open a store card. Although they may offer exciting incentives such as a certain percent off of your purchase, saying yes could dig you into a hole since you may be inclined to spend more as a result. 

Avoid last minute trips: If you're looking to get the best bang for your buck, you don't want to be out shopping the day before it's time to exchange gifts. Why? At this point, you won't have enough time to look for coupons or compare prices at other stores. To feel confident that you found the best price in town, you should have your shopping done well before the holidays actually arrive.

Considering that the holidays are supposed to be an exciting time of year, we certainly don't want you to feel like you can't enjoy them because you have a strict budget to follow - that's where these three tips come into play. And the best part is, they're all pretty simple to follow!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.

Money Myths That Are Costing You To Believe

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Let's face it, any time there is an opportunity to save money, most of us would jump right on it - it's only natural! But what if the opportunities you thought were great actually turned out to be costing you more? If you're a firm believer in everything you hear, you may be losing more than you save - money myths are everywhere! Don't worry, though, we're here to debunk them for you and provide you with the truth:

Myth #1: The cheaper option is always the better option.

Yes, purchasing the cheaper option can help you financially at the time, but in some cases this will require you to spend more later on. Take home appliances for instance. You may feel like you're shopping smart by purchasing the cheaper of two washing machines, but down the line the cheaper product may cost you more in repairs or worse, complete replacement. When it comes to deciding between options, you really need to weigh the pros and cons rather than automatically reach for the lower price tag.

Myth #2: Always head to the clearance rack.

Of course buying items off of clearance racks will be cheaper than those that are not, but sometimes seeing a "great deal" may encourage you to buy things that you don't really need. Even if the item is inexpensive, it's still extra money coming out of your pocket. If, however, the clearance rack is your favorite place to shop, only look for the items you set out for and, if they aren't there, head elsewhere.

Myth #3: Cash always wins.

There is definitely truth to the idea that if you leave your credit cards at home you won't be tempted to spend more than you can afford, but don't forget to think about your banking and how you keep track of your money. With cash, it can be easy to lose sight of certain purchases and ultimately make banking harder - this could also lead you to spend more than you realize. If you prefer cash over credit, make sure you're organized financially so that you don't stray too far off course. 

For a list of additional myths that are costing you to believe, check out this article from U.S News and World Report.

As a leading financial planning firm, we at American Investment Planners LLC want you to feel confident in your financial situation and seek advice that only works in your favor. Rather than believe everything you read about topics such as retirement planning, estate planning and tax planning, turn to our trusted advisors - we'll always provide you with the most accurate information and answers!

To speak with a member of our team, please call (516) 932-5130 today.

Why Follow American Investment Planners LLC On Social Media?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If you've met with our team in person, then you certainly know the benefit of working with us and what we're all about. But aside from being available face-to-face, did you know that our team is also active on social media? From Facebook to Twitter, LinkedIn and Google+, you can find us all across the web.

So now the question is why - why should you connect with us on social media? Whether you are a current client of ours, past client of ours, prospective client of ours, or are simply looking for some more information about financial planning, here are three of the benefits of following our profiles:

Retirement Tips: Retirement planning is a huge part of financial planning, and it may just be one of the most important. After all, although you may spend more years working, retirement is a huge portion of your life! On each of our social media profiles, including our blog, you can find tons of tips about retirement that can help you be better prepared for when this time comes.

Current events: Want to know what's happening in the stock market or what industry leaders are saying about financial matters? We've got all of that and more on our social media profiles! Each month, we share articles pertaining to current events from some of the top publications, so you'll never feel out of the loop!

Employee Bios: One thing we pride ourselves on is that we develop close relationships with each of our clients - meaning, we go to great lengths to learn all about their lives, even those areas that don't necessarily relate to financial planning. But in order for the relationship to work, we need our clients to feel comfortable with us, which is one reason why we highlight one of our employees every month! Before you even walk in our door, you can get to know all about the individuals you may be working with on your financial plan.

Considering that social media plays a big role in all of our lives, we certainly hope that you'll take some time to connect with us now that you know the benefits doing so can bring!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.

How To Avoid Holiday Debt

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If there's a time of the year where your wallet cries for help the most, it is most definitely the holiday season. Between gifts, parties, decorations and travel if necessary, you probably shell out more cash during the last two months or so of the year than you do the other 10 (give or take). Unfortunately, if you aren't careful, this could also cause you to struggle financially once January rolls around.

Rather than have debt haunt you after the holidays are over, utilize these tips to avoid it from the start:

Create a plan: Start by making a list of all of your holiday expenses (then check it twice!). By having a clear outline of all of the purchases you have to make, it will be much easier for you to stay within your budget. If you already know the exact gifts you'll be buying, get specific and list them as well to avoid spending more on any one person than you planned to.

Make it meaningful: It's the thought that counts! Rather than set out for the most expensive gadgets, jewelry and accessories for family and friends, look for something more meaningful instead. For example, while your sister may really love that designer handbag, consider putting together a collage of all of your favorite memories and have it framed. Even though they may be smaller and not nearly as pricey, gifts that come from the heart are always a win-win.

Set credit cards aside: Your credit card practically screams "use me" when it's just sitting in your wallet or in your purse. Therefore, you may find it's best to just keep it at home. Though you won't have as much money at your disposal to use during your holiday shopping spree, relying only on cash can prevent you from spending more than you can afford.

Shop smart: While searching for coupons and comparing deals at different stores can be time consuming, it will be time well spent. Especially when you're looking for items that are costly, you'll want to be sure you're getting the best bang for your buck, even if it's just a few dollars here and there.

Put your wants aside: It can be easy to add items you want to your shopping cart as you buy for family and friends, but remember that even small gifts for yourself add up. Before you head out, make a promise to yourself that you'll only buy what you set out for, not all of those little extras that are hard to resist.

Although it is considered one of happiest times of the year, we know that the holiday season can be stressful when money comes into play. However, by following the five tips we listed above, you can be on your way to a debt-free holiday!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.

The End of File and Suspend for Married Couples: A Great Claiming Strategy To Try and Optimize Social Security Benefits Disappears

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Congress just changed the Social Security benefit rules. On October 30, Capitol Hill lawmakers
approved a two-year federal budget deal. As part of that agreement, they authorized the most
significant change to Social Security policy seen in this century, disallowing two popular strategies people have used to try and maximize retirement benefits.1

The file-and-suspend claiming strategy will soon be eliminated for married couples. It will be phased out within six months after the budget bill is signed into law by President Obama. The restricted application claiming tactic that has been so useful for divorcees will also sunset.2

This is aggravating news for people who have structured their retirement plans – and the very timing of their retirements – around these strategies.

Until the phase-out period ends, couples can still file and suspend. The bottom line here is simply stated: if you have reached full retirement age (FRA) or will reach FRA in the next six months, your chance to file and suspend for full spousal benefits disappears in Spring of 2016.3

Spouses and children who currently get Social Security benefits based on the work record of a husband, wife, or parent who filed-and-suspended will still be able to receive those benefits.3

How exactly did the new federal budget deal get rid of these two claiming strategies? It made substantial revisions to Social Security’s rulebook.

One, “deemed filing” will only be allowed after an individual’s full retirement age. Previously, it only applied before a person reached FRA. That effectively removes the restricted application claiming strategy, in which an individual could file for spousal benefits only at FRA while their own retirement benefit kept increasing.2

The restricted application claiming strategy will not disappear for everyone, however, because the language of the budget bill allows some seniors grandfather rights. Individuals who will be 62 or older as of December 31, 2015 will still have the option to file a restricted application for spousal benefits when they reach Full Retirement Age (FRA) during the next four years.2

Widows and widowers can breathe a sigh of relief here, because deemed filing has no bearing on Social Security survivor benefits. A widowed person may still file a restricted application for survivor benefits while their own benefit accumulates delayed retirement credits.2

Two, the file-and-suspend option will soon only apply for individuals. A person will still be allowed to file for Social Security benefits and voluntarily suspend them to amass delayed retirement credits until age 70. This was actually the original definition of file-and-suspend.2

Married couples commonly use the file-and-suspend approach like so: the higher-earning spouse files for Social Security benefits at FRA, then suspends them, allowing the lower-earning spouse to take spousal benefits at his or her FRA while the higher-earning spouse stays in the workforce until 70. When the higher-earning spouse turns 70, he/she claims Social Security benefits made larger by delayed retirement credits while the other spouse trades spousal benefits for his/her own retirement benefits.4

No more. The new law says that beginning six months from now, no one may receive benefits based on anyone else’s work history while their own benefits are suspended. In addition, no one may “unsuspend” their suspended Social Security benefits to get a lump sum payment.2

To some lawmakers, file-and-suspend amounted to exploiting a loophole. Retirees disagreed, and a kind of cottage industry evolved around the strategy with articles, books, and seminars showing seniors how to generate larger retirement benefits. It was too good to last, perhaps. The White House has wanted to end the file-and-suspend option since 2014, when even Alicia Munnell, the director of the Center for Retirement Research at Boston College, wrote that “eliminating this option is an easy call ... when to claim Social Security shouldn’t be a question of gamesmanship for those with the resources to figure out clever claiming strategies.”4

Gamesmanship or not, the employment of those strategies could make a significant financial difference for spouses. Lawrence Kotlikoff, the economist and PBS NewsHour columnist who has been a huge advocate of file-and-suspend, estimates that their absence could cause a middle-class retired couple to leave as much as $70,000 in Social Security income on the table.3

What should you do now? If you have been counting on using file-and-suspend or a restricted application strategy, it is time to review and maybe even reassess your retirement plan. Talk with a financial professional to discern how this affects your retirement planning picture.

American Investment Planners may be reached at 516-932-5130 or email us at info@americaninvestmentplanners.com. www.americaninvestmentplanners.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance particular investment.

Citations.
1 - thehill.com/blogs/floor-action/senate/258629-senate-approves-budget-deal-in-overnight-vote [10/30/15]
2 - marketwatch.com/story/key-social-security-strategies-hit-by-budget-deal-2015-10-30 [11/2/15] 
3 - pbs.org/newshour/making-sense/column-congress-pulling-rug-peoples-retirement-decisions/ [11/1/15]
4 - slate.com/articles/double_x/doublex/2015/10/budget_deal_closed_social_security_loophole_known_as_file_and_suspend.html [10/30/15]

Tips For Hosting Thanksgiving On A Budget

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Whether you have a large family or small, chances are you have plans to get together for Thanksgiving - after all, it is a totally family friendly holiday. But with that comes someone needing to be the holiday host. Are you volunteering this year?

Between the food, the place settings, potentially even decorations like centerpieces, we know it can get pretty costly for the family in charge of Thanksgiving dinner. That's why below, we've put together a few tips that can be used for your night to be a success even if you're on a tight budget.

Have a menu in mind: Before heading to the grocery store to pick up your appetizers, side dishes, desserts, and of course, the turkey, put together a menu that lists all of the food you'd like to have. If you don't, chances are you'll wind up bringing more home than you actually need, because, let's face it, all holiday food just looks too good. To avoid buying more than necessary, make sure to enter the grocery store with a list in hand.

Ask guests for help: It's only natural for guests to bring something with them to Thanksgiving dinner, so don't be afraid to suggest a dessert or side dish. Not only will this make things easier on your wallet, but it will also help eliminate some of your holiday stress since you won't need to do all of the work!

Be aware of sales: As we get closer to the holidays you can bet that stores are going to start having sales. That means it's your job to be on the lookout! This also goes for coupons - if you usually throw out coupon books or toss newspapers to the side, you need to start spending more time paying attention to the special offers they contain.

Plan ahead: Nothing's worse than leaving all of your holiday shopping until the last minute, especially when a budget is involved. While there are some food items that may need to be purchased closer to the day of, there are tons of others that can be bought in advance so that you don't find yourself scrambling. If you wait too long, you can bet all of the items on sale will be gone!

Think about leftovers: If you have to spend more than you wanted to on food, remember that you can always save leftovers for a few days after the festivities are over. In this case, you may be able to reallocate some of your funds since you won't need to spend money after the holiday if you don't have to worry about dinner for the nights following! 

Although the holiday season can be an expensive time of year, don't stress about how you'll cover costs as the host or hostess - there are always plenty of opportunities to save, you just need to know how to find them!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.

Medicare Changes and Open Enrollment for 2015/2016

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Health insurance is one of the most important aspects of financial planning, especially as you begin to get older. And if you haven't already heard, Medicare has been making some changes, with two new types of coverage being added since it first became a law in 1965. With some open enrollment periods already open and others just around the corner, you'll want to know about the following to see if your current coverage is worth changing.

Medicare Changes

Along with Part A hospital insurance and Part B medical insurance (what is now called Original Medicare), two new parts - C and D - have been added to coverage through Medicare plans. Part C, which is also known as Medicare Advantage, is said to replace Original Medicare - most of the time, it will include prescription drug coverage and several other benefits as well. Part D on the other hand, which is specifically for Prescription Drug Coverage, can be chosen alongside Original Medicare or Medicare Advantage Plans that do not include such drug benefits at the time.

Open Enrollment Periods:

There are three open enrollment periods that you should be aware of if you participate in a Medicare plan; they are:

1. October 15 to December 7: This open enrollment period is for those who currently have Original Medicare, Medicare Advantage and Medicare Prescription Drug plans. During this time Medicare beneficiaries can change between plans, join a Part D plan or drop their prescription coverage completely. Changes made will be effective as of January 1 of next year.
2. January 1 to February 14: The open enrollment period beginning January 1 is specifically for those with Medicare Advantage Plans - this is the time where they can switch to an Original Medicare plan. If this is a change that you choose, your deadline to enroll in a Part D Prescription Drug Plan is February 14.
3. December 8 to November 30: Also called the "Five-Star Special Enrollment Period," this time allows for Medicare beneficiaries to make the switch to a "5-star" Medicare Advantage Plan, Prescription Drug Plan or Medicare Cost Plan. 

Should you have additional questions about Medicare, its latest changes and open enrollment periods, please click here. 

Like we said earlier, we know how important insurance is when it comes to financial planning, which is why we at American Investment Planners LLC can assist with long-term care and life insurance policies. To learn more about how we can help with this particular topic, please visit our website or call (516) 932-5130 - you can even request a quote for certain types of insurances directly through our site. 

Above information courtesy of Emerald Connect.