Tips For Bouncing Back After A Financial Crisis

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Have you ever found yourself in a bind over your finances? Though it is not ideal, we understand that the loss of a job or a sudden upset in the family can cause one to lose track of their money or find themselves with limited funds for a few days, weeks, maybe even months. However, straying off course doesn't necessarily mean you can't get back on track and feel financially stable once again.

If you should fall behind due to unexpected circumstances, we want you to feel confident in your approach to regaining the strength you once had when it comes to money related matters. That's why we've compiled the following list of tips to help you bounce back:

Get organized: The first step to recovering from a financial crisis is to get organized - what expenses do you have? What bills are due when? How much needs to be set aside for spending money? When you have a clear outline of what you need to allocate money to, it can become easier for you to set a budget and stick to it.

Use your resources: For the time being, don't focus on what you don't have - instead, place your attention on what you do have (and we don't necessarily mean material things)! For example, do you have a passion for pets? If you've got neighbors with several to take care of, suggest lending a helping hand by starting a pet-related business on the side. Or, maybe there are tons of little kids on the block that need to be cared for after school! If you have children of your own, this is a great way to bring everyone together and even bring in some more income.

Be attentive: In times of crisis it can be easy to jump at the first opportunity you see that may result in some extra cash. However, you must be aware of what you are getting into in order to prevent yourself from becoming a victim of fraud. For instance, if you are looking into refinancing options, be sure that you are choosing a company or lender that is reputable.

Most importantly, the best thing you can do to bounce back after a crisis is to meet with a professional. With years of experience under their belt, a professional can best guide you towards the strategies needed in order to rebuild after your finances take a turn for the worst. Additionally, even if everything is going well in terms of your money, it's a good idea to meet with a professional as well so that you can develop ways to save in case a negative situation should arise.

For more information about how we at American Investment Planners LLC can assist you and your family with a variety of financial topics, such as retirement planning and estate planning, please visit us on our website or give us a call at (516) 932-5130 today.

Cash or Credit?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

When you head to the register, which method of payment do you usually reach for - cash or credit? While some people prefer to hand over a physical bill, others choose to pull out the trusted piece of plastic that can so easily be swiped time and time again. But when it all comes down to it, which of the two is preferred? Is one more valuable than the other? Safer to use? Truth be told, both have their own set of pros and cons, so it truly comes down to which one you, the buyer, feels is most appropriate for your current financial situation. Still not sure though? Below are a few of the benefits of each to help you decide:

Cash

• By paying with cash, you can be a bit more mindful of your spending and prevent yourself from purchasing more than you can actually afford.
• Retailers are less likely to ask you for personal information (such as your zip code or email address) when handing over cold hard cash - that means less time at the register and fewer unwanted emails!
• In a way, you may find that cash leaves you with less responsibility since you don't have to worry about paying any bills at the end of the month - once you hand it over, your purchase is taken care of!

Credit

• Most importantly, using a credit card requires you to make payments by a certain date, and by doing so, you begin to build your credit (which you absolutely need for future financial endeavors such as buying a home).
• Depending on the lender, you may be eligible to receive cash back for some of your purchases. Essentially, that means you can begin to acquire money that you didn't have!
• Rewards points are often offered for every dollar spent. Every time you swipe, you can be one step closer to that dream vacation you've always wanted or find yourself one step ahead when it comes to covering the cost of holiday shopping at the end of the year.

The next time you struggle with deciding if you should pay with cash or credit, be sure to keep the above benefits of each in mind - knowing the impact they can have is the first step to deciding which method is right for you!

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 and Millennials

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Millennials, also referred to as Gen Y or Generation Me, is a term that encompasses the population of people born after the year 1980. And although we may be well past the Great Depression, this particular group of individuals still faces an uncertain economic future, which means now more than ever it is essential that they begin to fall into strategic savings habits in order to prepare for the years to come.

According to a study done by Fidelity Investments, approximately 39% of Millennials already find themselves worrying about money once a week. In terms of what their financial goals are, results show that Millennials are primarily concerned with preparing for retirement, being able to pay off credit card debt, and, of course, paying off those hefty student loans - with all of these topics and more hanging over their heads, it's no surprise that money is already becoming a concern for them on a weekly basis.

That being said, where do Millennials turn for financial guidance? Who influences their overall thoughts and feelings towards money to begin with?  Bank of America explains that "8 in 10 Millennials believe their attitudes towards money were influenced 'a lot' or 'some' by their parents." In fact, they go on to explain that their research proves that parents are the strongest influence when it comes to money related matters, which is why it is so important for them to encourage their children to start saving early. 

So what can be done to help Millennials feel financially stable as they continue to move towards their future? One particular strategy that US News & World Report MONEY suggests is being more vocal about money - 76% of Millennials say that it isn't difficult for them to discuss savings strategies with their parents, according to the Fidelity findings. Being that this number is already so high, it's important for Millennials to continue using this strategy and openly discuss money with their parents regularly. Additionally, it may be worth it for Millennials to use apps or other digital platforms to aid with the management of their money. But of course, when it all comes down to it, one of the best things anybody can do is to meet with an experienced financial planner to learn more about savings opportunities and the various approaches one can take to prepare for their future.

At American Investment Planners LLC, we strive to help individuals of all ages with their financial future. Specializing in areas such as retirement planning, estate planning and tax planning investment management, we have the tools and resources necessary to guide our clients towards the strategies and plans they need to best suit their financial goals.

For more information about our services and how we can help, please visit www.americaninvestmentplanners.com or call (516) 932-5130.

Meet Christine Whiteman: Client Communications

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 Christine Whiteman, who is in charge of Client Communications!

A native of Garden City, New York, Christine attended Trinity College in Washington DC (now known as Trinity University) to receive her degree in Economics - she doubled minored in Marketing and Business Management. Upon graduating college, Christine's journey brought her to Dean Witter in NY, where she began working with the office manager and then moved on to be the assistant office manager. And although she excelled here, in 1995 she left the industry she was in and became the operations manager of a Fulfillment house in Melville, NY. 

In 1999, however, Christine left the workforce to raise her first born child. But by 2004, she began looking for a part time office job, which is where she connected with our very own Lee Rosenberg. Beginning as a part time receptionist, Christine quickly began to assist clients with account questions and eventually took on more responsibilities within the firm. Today, she works on our company's marketing campaigns, assists with client services when needed and coordinates and manages all client events/seminars.

So what drove her to enter the world of financial planning? Christine explains that although she is not an advisor, she has always been interested in the market and truly enjoys working in the industry. "There is always something new happening and going on. One day is so different from the next - clients needs and requests vary daily - and assisting them with new milestones in their lives is so gratifying," explains Christine.

In her spare time, Christine enjoys sitting on her porch and relaxing with her husband. And when she isn't doing that, she can likely be found on the lacrosse field cheering on her children! 

Christine, we so appreciate all of the time and hard work you put in for our company! Your dedication to our clients is valued by all of us and we are so thankful to have you on our team!

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

Can You Withdraw From Your 401(K) Early?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

In times of financial hardship, it's only natural to seek income from outside sources. Maybe you have family members who have the ability to lend you a hand in your time of need. Or, perhaps you are able to refinance some of your current loans to lessen your payments, leaving you with some money left over to take care of your current concerns. Though both are valid approaches, another route many often consider is to borrow from their 401(K), even when they are far off from retirement age.

That brings us to today's question - can you withdraw from your 401(K) early? 

Although your 401(K) is designed to help you save for the point in your life where you no longer receive a steady pay check, the truth is that you can borrow from it ahead of time. However, doing so will cost you in penalties, which can vary depending on the situation.

The following are three types of withdrawals you can make before you reach retirement age:

Hardship Withdrawal

While your plan may define a hardship differently than another, common examples of hardships include sudden disability, the loss of a loved one where you are responsible for burial or funeral costs and the need to cover medical expenses. Although you will likely still face the early withdrawal penalty and owe taxes, it doesn't hurt to inquire about whether or not your hardship qualifies you to receive money penalty-free.

Loan

Many companies offer their employees the opportunity to borrow from their 401(K) in the form of a loan where they pay themselves back through interest. Though this type of withdrawal can be used for any circumstance, there are often restrictions about how much you can take out so you'll need to borrow wisely. 

72(t) Withdrawal

Under the IRS rule 72(t), you are permitted to withdraw a fixed amount of money based on your life expectancy. As explained by CNN Money, this rule explains that "you must take withdrawals for at least 5 years or until you reach age 59 1/2, whichever is longer." For this type of withdrawal, keep in mind that although there isn't a penalty for borrowing early, you are still required to pay taxes on what you take out.

Still have questions about withdrawing from your 401(K) before you become eligible to retire? Contact American Investment Planners LLC! We specialize in retirement planning and are well versed on various aspects of the retirement planning process, including 401(K) plans and how borrowing from them works. To speak with a member of our team, please give us a call at (516) 932-5130. 

Savings Strategies To Reduce Health Care Costs

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

It's no surprise that health care costs are one of the biggest budget busters - between co-pays for doctor's visits and prescription costs (not to mention the cost of health insurance alone), medical expenses can add up fast and take a toll on the wallets of all parties involved.

However, since health care costs are essentially unavoidable, the best approach for those looking to cut back is to find ways to save on the services they are already receiving/need to receive, even if very subtly. Below, thanks to Healthline, we've outlined a few different strategies that can assist with this process:

Inquire about generics: When a drug is prescribed, don't leave without asking your doctor if there is a generic version you can substitute as an alternative. Although the brand name may be available, these drugs often require a higher co-pay, making them the more expensive of the two. Since generic drugs are identical to the brand name drug in terms of dosage, safety and strength, for example, you can rest assured knowing that you'd be receiving the same services, just at a lower cost.

Research different pharmacies: Even if you have been going to the same pharmacy for years, that doesn't necessarily mean they are the most cost effective option. Before you find one to fill your prescriptions, research others around you to see what they are charging for the same drug - you might just find that a neighboring pharmacy offers the services you need at a much lower price!

Take your doctor's advice: All too often, patients fail to fill the prescriptions their doctors write for them; according to Healthline, around 20% of people are guilty of this! Unfortunately, though, not filling a prescription can actually lead to more health care costs since it could put you right back in your doctor's office for additional services. Therefore, if your doctor advises you to follow through with a treatment, take their word for it!

That all being said, it's extremely important to look at different options when it comes to treatments and pharmacies, and it's even more important to listen to your doctor the first time if you're looking to save a little on health care costs each day, month, even year! Now we'd like to know, which of these tips will you put into action first? Do you have another cost saving strategy that benefits you in terms of medical expenses? Be sure to visit us on Facebook, Twitter, LinkedIn or Google+ to share your thoughts with us!

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.

Hard vs. Soft: The Difference Between Types Of Credit Checks

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Whether you are looking to buy a house, lease a car, open a new credit card - essentially anything that requires a loan in some shape or form - lenders will check your credit to determine where you stand as a candidate for their services. When it all comes down to it, that means you need to have excellent credit! However, even if you have a proven track record of paying back the money you've been lent in the past, that doesn't guarantee that your credit score will be through the roof - did you know that credit checks impact your score, and potentially negatively?

In the financial world, there are two types of credit checks - hard and soft. But what's the difference? Below, we cover the basics of each to help you become more familiar with both:

Hard Inquiries

Hard inquiries are credit checks that occur when a potential lender runs and views your credit report to figure out whether or not they will lend to you. According to Credit Karma, these types of inquiries may remain on your credit report for two years. Though they have shown to lower credit scores, over time, the damage that has been done usually repairs itself, allowing your credit score to rise once again. Prior to checking your report in a way that results in a hard inquiry, lenders must let you know they will be doing so - if permission is not granted, you should call your creditor to inform them that the check wasn't authorized. Examples of hard inquiries include:

• Applying for a credit card
• Applying for a mortgage
• Applying for a car loan

Soft Inquiries

Soft inquiries are credit checks that occur when a person or company checks your credit report - think of it as a background check, for example. Unlike hard inquiries, these take place without your permission, but that shouldn't be a concern since they do not affect your overall credit score. Examples of soft inquiries include:

• Checking your own credit score
• Getting pre-approved for a credit card
• Employer background checks

Of course there are some circumstances where what you think is a soft inquiry turns out to be a hard inquiry, which is why it is recommended to always ask the lender to advise you on what type of credit check will be taking place. And remember, since hard inquiries do affect your score, you must be mindful of how often you are opening up new credit cards and applying for new loans - especially if they are done on a whim!

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.

Three Things You Should Know About The Retirement Earnings Test

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Did you know? If you fall under the normal retirement age (often abbreviated as NRA), Social Security typically withholds the benefits you would receive if your earnings exceed a certain amount - this is called a Retirement Earnings Test exempt amount. But let's take a step back for just a moment and answer the question we bet you're asking yourself right now - what is the Retirement Earnings Test (RET)? Ultimately, the RET is a provision that is applied to individuals under the NRA to determine what type of benefits they will receive until they officially reach retirement age.

So what do you need to know?

Say you have already filed for Social Security and then an incredible job opportunity presents itself - should you avoid taking that job? No way! But if you do accept, here are three things you should know before saying yes:

1. If for the entire year that you work you are under retirement age, $1 in benefits will be taken out for every $2 in income that is earned above the annual limit. For 2015, the limit is $15,720.
2. During the year that you reach retirement age, your benefits will be reduced by $1 for every $3 earned above a greater annual limit. For 2015, the limit for this circumstance is $41,880.
3. As soon as the Social Security Administration sees that you are on track to exceed the annual limit permitted, they will likely start to withhold benefits immediately.

Now we know what you're thinking - where do these deductions go? Although you don't receive them at the time, your earnings aren't totally lost; once you reach full retirement age, your Social Security benefit amount will be recalculated. This way, you will likely receive a higher benefit as the years go on.

For more information about the Retirement Earnings Test and how it can affect you, be sure to connect with a member of the American Investment Planners LLC team! We specialize in retirement planning, which means we have all of the information needed to prepare you for collecting benefits whether before, during or after retirement age. 

To speak with one of our team members, please give us a call at (516) 932-5130 today.

Above information courtesy of Emerald Connect

Financial Tips For Individuals Going Through A Divorce

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Going through a divorce can be a difficult time for many - the partners involved, immediate family members, even extended family members. That being said, just knowing the nature of the situation, we also understand how stressful it can be to make important decisions in the middle of it all.

Here at American Investment Planners LLC, we have advisors who have experienced the divorce process first hand, which has allowed us to increase our knowledge about the field and further grasp the challenges that individuals in this situation face. And since the process of going through a divorce can be quite expensive in itself in addition to impacting individual financial situations, we have made it our business to help clients going through this life change in addition to the other financial planning services we offer.

Below, you'll find a few financial tips for individuals who are going through a divorce:

1. Adjust your banking situation so that there are no longer any joint accounts open - same goes for credit cards that may have been shared between both parties. If, however, money is owed on a joint account that cannot be fully payed off at the time of the divorce, speak with your lender to ensure that future charges won't be accepted so that you can just focus on paying off final debts. Additionally, don't forget about brokerage accounts where joint ownership has been granted. Since any joint owner can make a call to have the account liquidated, it's critical that you meet with your financial advisor to review ownership rights on investment accounts - especially for those accounts not held at a bank.
2. Find time to change the beneficiaries on any of your accounts. If you are not sure who you should put in place of your ex-spouse, seek the advice of a trusted financial advisor like American Investment Planners LLC. Since the individuals you list will receive your assets once you pass, it's important to make sure that you are satisfied with those you have designated in both the primary and contingent categories.
3. Check your credit score to see how your financial status has changed, if at all. If there are issues that need to be addressed, make sure to do so immediately so that they do not infringe on your ability to take out new loans or insurance, for example.
4. If children are involved, make sure that all matters related to child support are taken care of in depth and understood by both partners. And don't forget about college tuition! Should loans be taken out to cover the cost, it's important to determine whose name they will be in and how both parents may be contributing. Lastly, you must also figure out if you are entitled to alimony and find out how long it will continue for. 
5. Take a look at your investments and really spend some time going over them. If your spouse was primarily in charge of investments, you may need to adjust some of the decisions previously made to find new investments that are a better fit for your latest financial situation. Of course if you are unsure about current investments and if they should be changed, you can always contact American Investment Planners LLC for help.

Last but not least, it is extremely important to set a new budget for yourself and create a new plan to help you save for the future. By being aware of how your finances have or will change, you can develop a new strategy for feeling financially secure for years down the line.

Here at American Investment Planners LLC, we are well aware of the challenges that come with a divorce, which is why we have also dedicated part of our services to helping individuals with these needs. For more information about how we can help, please give us a call at (516) 932-5130. 

Connect With 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

At American Investment Planners LLC, we are dedicated to providing our clients with the most strategic solutions designed to help them achieve financial security and also make it a priority to guide them towards making smart investment decisions. In doing so, we work to educate our clients about our industry and consistently provide them with the most up to date information about a variety of financial topics.

So how do we do it? While we share news and tips when meeting with each of our clients, we also share insight into our industry by updating our social media pages regularly! We are currently LIVE on a variety of different platforms and love to connect with current clients, future clients and more to spread a wealth of knowledge to all looking for information about topics such as retirement, investing, taxes and insurance. See below for a list of platforms on which you can find us:

1. Facebook

2. Twitter

3. Google+

4. LinkedIn

By connecting with us on each of our social media profiles, and by checking back to our blog regularly, you will have access to all of the information and answers you need regarding your most pressing financial questions. That being said, we encourage you to take a few minutes now to get connected with American Investment Planners LLC!

For more information about our business and the services we offer to families all throughout the United States, please visit us at www.americaninvestmentplanners.com or give us a call at (516) 932-5130 to speak with a member of our team today!