Meet John L'Abbate: Director of Tax Planning

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. Being that our firm is built on a group effort, we invite you to become a part of that team by getting to know each of our experts individually. Today, we would like to feature John L'Abbate, CFP, our Director of Tax Planning!

Originally from Brooklyn, NY, John received a BS in Accounting from St. John's University in 1972. Prior to becoming a part of the American Investment Planners LLC team, he worked for several accounting firms, a non profit organization and a tax shelter syndicator, which provided him with an extensive background in our industry. It was in 1983 when John was first introduced to Lee Rosenberg, and soon thereafter he become a full time member of our firm.

When asked what his most memorable experience on the job was, John explains, "it was when I worked with a family with a terminally ill parent. I helped the parents put all of their financial affairs in order to provide for their children's future. Once the final meeting was over, the entire family was truly at peace with their decisions and we had a heartfelt cry." 

What a perfect example of what we are all about! As a financial planning firm that caters to the entire family, we heavily pride ourselves on our ability to work with each member to find the solutions that work best.

But back to John, let's get into some fun facts! When not devising the most strategic financial solutions, John enjoys traveling, fishing and playing with his grandchildren. 

Thank you, John, for all of your hard work and dedication to the American Investment Planners LLC family! You are a tremendous asset and we are so happy to have you!

For more information on John L'Abbate, check out his employee bio on our website!

Bonds Broken Down - Different Types Of Bonds

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Savings bonds, corporate bonds, municipal bonds - the list of available bonds goes on and on. But what do they all mean? Let's first take a step back and determine what a bond, plain and simple, is. By definition, bonds are evidence of a debt where the issuer promises to pay the bondholder a specific amount of interest and to repay the principal at maturity. Typically issued in multiples of $1,000, they are issued by federal, state and local governments and are available in three basic types. Here is where we'll get more specific:

Treasury Bonds
Issued by the U.S Department of the Treasury through the Bureau of Public Debt, treasuries are known to be the highest-quality securities out there. Available in the form of treasury bills, treasury notes, treasury bonds and treasury inflation-protected securities, these are traded on the secondary market and are used to fund the Federal government's operations. In terms of advantages, one of the most notable benefits of this type of bond is that any interest is exempt from state and local taxes.

Municipal Bonds
Municipal bonds are those bonds that are issued by state and local governments. Being that they come from the state level, their purpose is to fund the building of public municipalities such as schools, highways and sewer systems. As far as taxes are concerned, these bonds are often exempt from federal income taxes and occasionally from state and local taxes depending on where you live and how your location correlates to where the bond was issued.

Corporate Bonds
Last but not least, corporate bonds are issued by companies to fund business expansions or capital investments. Since companies have a higher risk of defaulting as compared to governments, they innately come with a higher level of risk themselves. However, these types of bonds are often associated with having higher yields.

When it comes to investing and financial planning, we at American Investment Planners LLC can determine which type of bond is most appropriate for your financial situation to generate the best long term results. For more information about the variety of bonds and how you can use them to your advantage, visit our online research center or contact us at (516) 932-5130 to set up an appointment with one of our financial planning experts today!

Information courtesy of Emerald Connect.

Dos and Don'ts of Investing

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

When it comes to investing, many people are often hesitant and avoid "putting their money in the market" because they realize that there is always a possibility of losing it. Although investing is a balance between risk and reward, you certainly shouldn't avoid the market all together just because you feel skeptical about it. On the other hand, you also shouldn't jump the gun too soon and invest immediately without doing your research - that's when the potential for losing money is higher. That being said, when you know how to invest (which you can learn by investing some of your time), you can make smarter decisions and potentially reduce some of that fear (and hopefully, your chances) of losing out in the future.

The following are a few dos and don'ts of investing that you can start with if you're thinking of getting into it:

Dos:

• Thoroughly research where you plan to put your money to ensure that the benefits are worth it. 
• Pursue a variety of investment options; your portfolio should include an array of investment types!
• Know the fees that are attached to each of your investments. You might feel that the year brought you multiple gains, however, by the time you pay your dues you might find that you wind up with less than you started with - this goes back to research!

Don'ts:

• Only invest in areas that you or others "say" will do well. Furthermore, you also should not invest solely in those stocks who you feel are "due" to win - you can't predict the market! 
• Rely on your emotions. Similar to the previous don't, your feeling shouldn't be the only driving force behind your choices.
• Wait. The sooner you start investing, the better. While you can make up for loses that you experience down the road, you can't make up for lost time.

Being that investing is a serious matter, it's important that you are familiar with exactly how to proceed before making any decisions. That's where we come in! Although your own research will guide you towards making better choices, sitting down with an expert financial planner allows you to receive the professional guidance you would otherwise miss out on. For more information about our investment services and how we can help, visit us at www.americaninvestmentplanners.com or contact us at (516) 932-5130 today.

American Investment Planners LLC: About Us

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Headquartered in Jericho, New York, we are a nationally known financial planning firm that assists generations of families with all of their financial needs. Spearheaded by Lee Rosenberg in 1984, our goal is and always has been to maintain the highest standards of integrity and professionalism with each client while offering the most valuable and current information, services and products to lead them to the financial security they are seeking.

Did you know?

We manage hundreds of millions of dollars in assets annually and work with clients all over the country! Although we are located in New York, Florida and Texas, we have made it a priority to assist families all throughout the U.S with their financial planning needs. From retirement planning to college savings, taxes, relocation and portfolio and asset management, we work with each client individually to help them prioritize their goals and develop a legacy that they can pass on to their children, their grandchildren and their grandchildren's children for years to come.

Being that we are an independent firm, we work with the products and technologies that we believe best suit the needs of our clients - we do not stick solely to proprietary offerings and developments. Therefore, by having the ability to use a variety of methods and approaches, we are able to find you the exact solutions you need, right when you need them.

For more information about us, our history, our services or our team, please visit us on our website or contact us at (516) 932-5130 today! We can also be reached via email at info@americaninvestmentplanners.com.

Meet Barbara Magor Deel: Vice President, Financial Planning

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. Being that our firm is built on a group effort, we invite you to become a part of that team by getting to know each of our experts individually. Today, we would like to feature Barbara Magor Deel - CFP, CHFC, MBA - our Vice President of Financial Planning!

Growing up in Brooklyn and Queens as the daughter of a stockbroker, Barbara's first training and job came from Wall Street. After watching her father study different topics related to the field and taking up an interest in his work, she knew she would later find herself in a similar environment, in a similar field.

Starting off in the mail room at Shearson at age 16, Barbara worked on several commodity desks on the floor and continued to do so while she obtained her BBA and MBA in Computers and Statistics at Baruch in Manhattan. Then, after transitioning to the World Trade Center, she worked as the Quantitative Analyst for a mutual fund until her four sons and family life inspired her to relocate to a position closer to home. And you guessed it, just like she followed in her father's footsteps, we have had the pleasure of working with her sons in our firm as interns!

Since joining our team 23 years ago, Barbara has grown with both our firm and each of her clients and is now our Vice President - we are so lucky to have her as a part of our team! Thank you, Barbara, for all of your hard work and dedication to the American Investment Planners LLC family!

For more information on Barbara Magor Deel, check out her employee bio on our website!

How To Save For Your Child's College Tuition

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

For any parent, college is a topic that is thought about for years and years prior to their child's actual participation. And as education costs continue to rise, it has become even more important for parents to start saving as early as they can.

Do you have a child who will be entering college in the near future? If you'd like to avoid the hassle and stress that comes with paying off excessive student loans for years following your child's graduation, consider the below money saving tips:

1. 529 Plans: 529 plans are state plans that are specifically dedicated to one area of savings; college tuition. These accounts are an excellent place to start since any money you put into it is automatically put aside for tuition costs and tuition costs only.

2. Coverdell Education Savings: Just like a 529 plan, this type of account is designed just for college saving purposes. However, it is important to realize that you are limited in how much you can put away every year, so you may need to use additional saving methods if you plan to put away thousands of dollars every 12 months.

3. UTMA/UGMA Accounts: UTMA and UGMA accounts are custodial accounts that work like trusts. That means if you have assets that you would like to wind up in your child's hands, you can put them here so that they can't be touched. But, keep in mind that colleges do look at these accounts when determining how much financial aid will be distributed, so having more in them could potentially hurt your child's ability to get additional help.

Lastly, although they are unlikely to want to put aside some of their allowance or income from their first job, it doesn't hurt to ask your child to contribute to a college savings account of their own; you and them both would be surprised at how quickly just a few dollars each week or month can add up!

If you are preparing to help your child with their college costs in part or in full but aren't sure which method of saving will benefit you the most, contact American Investment Planners LLC today! Our team will work with your family on an individual basis to determine which approach will work best in your favor. For more information, please contact us at (516) 932-5130 today.

Benefits Of Participating In A Spousal IRA

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

As a spouse who is not currently working or who is working but has little income, the opportunity to contribute to a 401(k) is likely not available. However, not contributing to a retirement savings plan could hinder you and your spouse's ability to live comfortably down the line. But just because you are not contributing at the moment doesn't mean your family has to suffer - spouses who are not working can take advantage of a Spousal IRA!

So what is a Spousal IRA? Spousal IRAs are retirement accounts that allow the working spouse to make a contribution on behalf of the non working spouse. Essentially, it is an IRA set up in the non working spouse's name, which receives its contributions from the working spouse. By creating one of these accounts, the non working spouse can start to grow a retirement fund of their own through the help of their partner while they are out of work.

The Benefits

The ultimate benefit of a Spousal IRA is that it offers your family another opportunity to save. Since the working spouse will be limited in the amount of money they can contribute to their own account, any extra that they planned to save can be placed into the non working spouse's account, which would otherwise have not existed. Furthermore, these IRA accounts also benefit the non working spouse on their own due to the fact that they now have assets in their name; although it is the working spouse who is contributing, the deposits made fall under the name of the non working spouse since it is technically their account.

Things To Keep In Mind

While the working spouse can contribute at any age, the non working spouse on the account must be under the age of 70 1/2 during the year when the contribution is made.

For more information about Spousal IRAs and how you and your family can benefit by participating in one, please contact the American Investment Planners LLC team at (516) 932-5130 today.

Mistakes To Avoid When Naming Beneficiaries

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

In terms of financial planning, choosing a beneficiary is one of the most important decisions you will have to make. Why? By definition, your beneficiary is the person who will receive some sort of financial benefit upon your passing. That means they will acquire any and all of what you leave behind.

Do you already have a beneficiary listed? Since you'll want to ensure that your assets land in the right hands down the line, we recommend steering clear of the following mistakes:

1. Generalizing: When naming a beneficiary, you'll want to be as specific as possible. That means, for example, if you have more than one child or a cousin whom you would like to receive your assets, you'll need to clearly define their names. If you don't, you never know who might come knocking trying to pass as someone who falls under your category of "children" or "cousins."

2. Leaving Out Contingent Beneficiaries: Regardless of your beneficiary's age, you mustn't forget to plan for what would happen if they pass before you. When you fail to list a secondary beneficiary, you run the risk of losing your assets and ultimately leave it up to legal professionals to decide how they are dispersed.

3. Ignoring Financial Status and Intentions: Since your beneficiary will receive the money in a variety of accounts, you must consider if they are ready to receive it and what their intentions may be. If you are concerned about how your money will be used, it might be in your best interest to consult a financial advisor and your attorney to discuss your final intentions and what options are in your best interest as well as the best interest of your loved ones.

At the end of the day, the biggest mistake you can make is not naming a beneficiary. When you fail to plan for your passing, all of what you worked so hard to earn could end up where you least expect it to.

Is it time for you to name your beneficiary? At American Investment Planners LLC, we recognize the importance of naming beneficiaries properly and work closely with each of our clients to ensure that their assets wind up where they belong. For more information about the financial planning services we offer to families throughout the nation, please visit us at www.americaninvestmentplanners.com or give us a call at (516) 932-5130 or toll free at (866) 932-5130.

Tips For First Time Tax Filers

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

For most, the beginning of the year is exciting because it offers an opportunity to start fresh and work towards new goals. For others, such as accountants or similar financial professionals, the beginning of the year requires focus on one thing and one thing only - taxes!

Throughout the first four months of the year (three and half if you want to get technical), talk of taxes is one that cannot be escaped. Did you file your taxes yet? What do I need to bring to my tax appointment? The tax deadline is almost here! And although it is only the first week of March, the truth of the matter is that the deadline really is almost here. If 2015 is the first year you'll be filing taxes, here are a few tips to help make the daunting task a bit less stressful:

1. Keep on top of your paperwork, stay organized.  Since the process requires you to reference financial documents and fill out a multitude of others, it's important to keep everything as neat and orderly as possible.
2. Don't wait until the last minute. Although you have a generous amount of time to complete your return, waiting until the very last second will only make the act of filing your taxes more complicated. Especially if you prefer to sit down with a professional rather than using Internet software.  Should you choose the professional route; you'll need to secure your appointment before all time slots are full.
3. Do your research. When it comes to your taxes, there are a variety of different deductions that you might be entitled to. Before you fill out any paperwork, make sure you are familiar with what you might be able to write off. And if you're not? Don't be hesitant to ask!

If you haven't already completed your tax return, we at American Investment Planners LLC have the resources you need to complete this year's with ease. When you click here, you can access the important IRS tax forms you need in order to get started. Furthermore, here are a few popular tax terms and their definitions that can help increase your knowledge and understanding of the process.

For more information about our financial planning services and how we can assist you with your taxes, please visit us at www.americaninvestmentplanners.com or contact us at (516) 932-5130 / (866) 932-5130 today.

Retirement and Long-Term Care

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Upon deciding that you are ready to retire, one of the first things you should do is meet with your financial advisor to ensure that all of your finances are where they need to be. While you may be convinced that you have enough money put away to relocate or embark on the dream vacations you have thought about for so many years prior, one aspect of retirement that is often overlooked is long-term care. Just imagine would happen to your retirement savings if you or your spouse needed additional care and support due to an unforeseen illness or disability! Although you may be prepared to cover the cost of things you dreamed about having once you officially entered the retirement phase, one mustn't forget to think about the things they may need.

In preparing for you and your spouse's future after retirement, we suggest sitting down with an experienced financial planner to learn the options you have to keep your savings from being wiped out due to a long term ailing illness.  Here are just a few options you may want to consider -

Combine Forces - Depending on your insurance carrier, you might be able to take advantage of permanent life insurance policies or annuities that come with long-term care riders; when all is said and done, either of these options could be more cost-effective than a standalone long-term care policy. This is because unlike other policies, the premiums for these types of plans are typically paid up front or in pre-determined payments, therefore eliminating the opportunity for your rate to increase. However, be mindful that your premiums must be up to date for fixed rates to be applicable. 

Permanent Life  - If a long-term care option with life insurance is your first choice, you must have a true need for life insurance. Furthermore, as you go through possible policies, they should primarily be evaluated based on the quality of its life insurance offerings. However, keep in mind that the cost and availability of life insurance considers factors like age, health, and the type/amount of insurance purchased, so be sure that you qualify for this type of coverage before pursuing it.

Annuity - By definition, annuities are insurance contracts that provide future payments at regular intervals in exchange for the current premiums. If any amount is withdrawn before age 59½, it may be subject to a 10% federal income tax penalty. Generally, the earnings portion of annuity withdrawals is taxed as ordinary income. Once acquired, this income can be used to cover the cost of life insurance or long term care premiums.

Regardless of which route you choose to take, you and your spouse can rest assured knowing that you will have the financial security you need to enjoy your years in retirement when you take the time to carefully plan for it. Are you ready to get started? To learn how American Investment Planners LLC can assist you with your retirement planning needs, please visit us at www.americaninvestmentplanners.com or contact us at (516) 932-5130 or toll free at (888) 932-5130 today.

Above Information Courtesy of Emerald Connect