College Savings Plans You Can Set Up For Your Kids

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Before their child is even born, many parents are already starting to think about college and what they'll need to do over the next several years to prepare financially - and with good reason (the average cost of just one year's worth of college tuition and fees PLUS room and board for an in-state student at a public university is over $19,000, with private schools recording an average of about $44,000). 

Although this may seem overwhelming, there's some good news - there are a few different types of college savings plans that parents can set up for their children so that when it's time to enroll, they already have some of the funds needed to cover the cost. Here are a few of the most popular accounts:

529 College Savings Plans
Think of a 529 plan as something similar to a 401(k) or IRA - they are designed for parents to save for their child's education on a tax-free basis. Although you contribute after-tax dollars, the money in the account itself grows tax free, AND there are no taxes on the distribution of funds so long as it is used for education expenses that qualify (tuition, books, fees, room and board, and school supplies). 

Something else that may seem appealing to parents here is that the funds belong to the parent, not the child, even though the money will likely be used by the child. In the event that the child decides they aren't going to pursue a college education, the parent is able to change the beneficiary on the account so that they can be sure the money is eventually used for educational purposes.

Coverdell Education Savings Accounts
Similar to a 529 plan, after-tax dollars are used initially, but the money within the account grows on a tax-free basis. Additionally, so long as the money is used for educational expenses, no taxes are applied when it is taken out. This type of account offers very flexible investment choices, and unlike a 529 plan where investments can only be changed twice per year, with a Coverdell savings account, changes can be made as often as needed/wanted. 

One thing to note about this type of plan is that once the child turns 18, they officially take control. That said, there is a chance that the money won't necessarily go to college expenses should that be what they decide.

UGMA and UTMA Accounts
UGMA is short for the Uniform Gift to Minors Act, and UTMA is short for Uniform Transfer to Minors Act. Although the funds in these accounts can be used by the child in any way (so not just for college, though that is certainly an option), some people prefer these accounts since they know that the money is at least going to directly benefit the child somehow. If, as a parent, you want to be sure that the money you save does go directly to education expenses, then you may want to choose a more controlled option, such as a 529 plan.

Note: something to keep in mind with these accounts is that since the assets are in the child's name, it could impact their ability to receive financial aid.

Like anything else, deciding on a college savings plan for your child in particular will all depend on your current financial situation and future goals. The best way to figure out which type of account is best to pursue is to speak with a financial planner who understands your circumstances, investment philosophy and long and short term goals! If you are currently without one, turn to us for help.

For more information about how we at American Investment Planners LLC can help you and your family prepare for your child's college, give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com.

American Investment Planners LLC: How We Help

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Headquartered in Jericho, New York, but with additional offices operating in San Antonio, Texas and Boca Raton, Florida, our goal at American Investment Planners LLC is to help clients all over the country create strategic solutions to help them meet both their short and long term financial goals. We pride ourselves on being able to give individual attention to each of our clients, while still offering a wide range of investment products and services that one might get from a large financial institution - with us, you get the best of both worlds!

When you work with one of our advisors, you'll have access to the following services:

• Portfolio and asset management
• Estate planning
• Retirement planning
• Health-related financial planning
• College savings
• Taxes and accounting
• Insurance
• Elder care
• Relocation
• Surviving the loss of a spouse

Essentially, here's how our process works:

Step 1: We listen and then we plan.

Before we begin planning, we like to learn everything we can about you, from your personal circumstances to your investment philosophy. At this time, we'll ask about things such as your goals, your risk tolerance and your values. Once we have a better understanding, we dive right into creating strategies for you.

Step 2: We design a portfolio.

We believe in building portfolios that include investments based on your financial goals - your portfolio will be completely unique to you! After we have an initial portfolio set up, we monitor each of your investments to ensure that they are the right ones for you, and if changes are needed, we'll address them to make sure that your investments are working in your favor.

Regardless of where you're at in life - whether you're planning for a new baby, getting ready to send a child off to college, or preparing for your own retirement - we're here to help.

To learn more about all that we have to offer, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com. You can also find a wealth of information about our services on our website!

Reasons Why Americans Are Working Past Retirement Age

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Most of us can't wait until the day that we become eligible to retire, but unlike our parents' and grandparents' generations, retirement age may not come so soon anymore. While 65 has been accepted as retirement age for quite some time, the percentage of Americans that are 65 years of age or older and STILL working has risen to just about 20%, and that's the greatest percentage of people since before Medicare was first established in the 1960s.

Now onto the question everyone is asking - why are so many older Americans still working? Aside from the fact that there are job opportunities out there that people of this age can handle, here are some of the major reasons why people are not choosing to leave their jobs:

Paychecks are still needed.
Most employers today use retirement plans such as 401(k)s, which are primarily funded by the employees themselves. For those who have not saved enough in their 401(k) to retire comfortably, a job at this age is still a necessity since the paychecks are needed to help them cover even the most basic of expenses. Even for those who do have enough saved to retire at 65, many elect to keep working so that they can create a financial safety net for themselves when they eventually decide to leave the workforce.

People are living longer.
Did you know that the life expectancy for a man who turns 65 today is 5.5 years longer than it was for a man who turned 65 years old in 1970? The life expectancy for females has increased too! That said, those who feel like they have a little more oomph left in them may choose to stay at their job longer since longer life expectancies means more time to enjoy retirement.

Social Security benefits could increase.
A large majority of people claim Social Security benefits as soon as they stop working, however, to become eligible for full benefits, you'll need to be 66 or 67, depending on when you were born. If you choose to delay your claiming of benefits, though, you could see your benefit grow by approximately 8% each year until you turn 70 - that's a lot more money in your pocket!

Although more people are working past retirement age, everyone is different and will have their own time that is right to leave the workforce - in a previous blog, we covered five signs that suggest you're ready for retirement.

If you know that you'll be retiring in the near future, now is the time to work with a financial planner and make sure that all of your finances are in order - let us help! We are staffed with several financial planning professionals that specialize in retirement planning, so we can work with you to make sure you are on the right path for a successful retirement.

To speak with an advisor, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Information above courtesy of Emerald Connect.

How to Financially Prepare for a New Baby

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Nothing compares to the joy that is finding out you're going to be a parent, but after a few weeks of feeling like you're on cloud 9, it's time to buckle down and start preparing. When we say prepare, we're not just talking about designing the baby's room, shopping for clothes and reading baby books - we're also talking about money (babies are expensive!).

Below, take a look at some of the top tips on how to prepare for a new baby:

Start an emergency fund. 
Even if you already have a savings account for emergencies, start another one that is 110% dedicated to your future child. From pre-baby doctor visits to post-baby doctor visits and everything in between, you'll feel a lot more comfortable knowing you have some cash tucked away if you get hit with a bill that was larger than expected.

Review your budget.
It shouldn't come as a shock that raising a child is expensive - The Wall Street Journal reports that the cost of raising a child (until they turn 18) that was born in 2013 is $245,340. That said, it's only obvious that you're going to have to rearrange your budget to account for the added costs you'll have on a weekly, monthly and yearly basis once the baby arrives - you won't just be preparing meals for two anymore or buying clothes for just yourself!

Speak with your employer.
What are your employer's maternity and/or paternity leave policies like? This is extremely important for you to know, as it could certainly impact how much income you take home the year your baby is born - especially if something unexpected comes up and you are required to stay home for a longer period of time.

Find the right doctor.
Medical bills are probably going to be one of your biggest expenses before and after the baby arrives, so take the time to research doctors in your area to ensure that you're finding one within your insurance network. Speaking of insurance, you'll also want to review your policies to see what costs (prenatal care, delivery, etc) are covered, and you'll want to find out how much your premiums will change once you add the baby.

If you're in the process of planning for a new baby, first we'd like to say congratulations and wish you and your family all the best! Then, we'd like to offer a bonus tip:

Find a Financial Planner
In addition to going through your budget with you and discussing strategies to keep your own finances in check, a financial planner can also help you start to plan a secure financial future for your child - did you know that there are certain savings accounts available to help parents save money for their children? Take a 529 Plan that helps you save for their college, for example! There are a ton of opportunities out there, and a financial planner can help you figure out what's best for you and your growing family.

That said, are you looking for a financial planner to help you prepare? Look no further - we at American Investment Planners LLC have you covered!

To learn about the services we offer and how we can help you during this time, please give us a call at (516) 932-5130 or send an email to info@americaninvestmentplanners.com.

Types of Mortgage Loans New Homeowners Should Know

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Purchasing a home requires you to do a lot more than just shop around for the perfect location and the perfect property - you also have to shop around to find the loan that works best for you. 

Now, while you may think that you know which type of home loan you'd like to apply for, since there are a few different kinds, it's best to know your options before you start speaking with lenders. Below, take a look at some of the most common mortgage programs homeowners choose from:

Fixed-Rate Mortgages
This is likely the one you've heard over and over if you've started house hunting - fixed-rate mortgages can last for 10 years, 15 years, 20 years or more, with 30 year loans usually proving to be the most popular. With fixed-rate mortgages, the interest rate remains the same from your first payment to your last.

Adjustable-Rate Mortgages
With an adjustable-rate mortgage, the interest applied to the loan can ultimately change at any moment. In some loans you'll see the interest rate remain fixed for a few years before it changes, while in others, the interest rate may change on a monthly basis or a yearly basis.

Interest-Only Mortgages
Interest-only loans allow the borrower to make interest-only payments if they wish, however, this opportunity does not last for the entire life of the loan. These loans are typically designed like adjustable-rate mortgages, with the interest-only period lasting for a number of years, after which the rate adjusts on a regular basis.

FHA Loans
FHA loans are relatively popular with those who are buying their first home, mostly because they don't require a large down payment. Normally the government insures these through mortgage insurance, which is included within the loan.

VA Loans
These loans are specifically for veterans who have served in the United States Armed Services, and they may also be extended to spouses of deceased veterans in certain situations as well. VA loans are particularly desirable if you meet the eligibility requirements since they do not require a down payment on the home.

Let's rewind for a moment - before you can start thinking about purchasing a home, you need to get your finances in order and know how much you'll need to save in order to have the home of your dreams.

Here at American Investment Planners LLC, we can help with all kinds of financial planning matters, and can work with you to develop a strategy that helps you meet both your short and long term financial goals. To learn more about our services or to meet with an advisor, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Financial Tasks for Newlyweds

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

You've had your pre-marriage money talks, sorted through each other's finances, and now you're sitting down for the first time as husband and wife - what comes next? Once the honeymoon is over and it's time to get back to work and resume your daily responsibilities, there are a few more tasks to complete where money and your finances are concerned. Take a look below to learn what they are.

Update your beneficiaries.
Any account that you hold that has a place to list a beneficiary should be updated to include your spouse. Although you can list your new husband or wife as the person who should receive your assets in a will, having them listed as your beneficiary for specific accounts can make the process of transitioning assets much smoother.

Create or update your will.
If you and/or your spouse does not have a will already, now is the perfect time to set one up. Even if you're fairly young, it's always a good idea to have a will set up in case something unexpected should happen. If, by chance, you already do have a will, now would also be the time to update it to include your spouse's information, similar to what we suggested with your beneficiaries.

Review and adjust your insurance.
You probably both have your own insurance for things such as your vehicles, but now that you're married, you may want to consider a joint policy - that could lead to savings on your insurance premiums! Additionally, if you were not living together before but are now, you'll also need to update your homeowners or renters insurance to only have what is applicable to your current situation. Lastly, it's time to look at your health coverage - depending on your careers, it may make more sense to hold one policy for both of you, depending on cost.

Discuss your financial goals.
While this is something you should have done before you got married, it is always important to revisit your financial goals regularly. Now that the wedding has passed and you have already figured out, or taken care of, wedding related expenses, you can really dive into your future and discuss your next steps.

Determine who will handle your finances.
One of you may be better at managing money than the other, and that's perfectly okay! What's important here is that you at least talk about it - will you both be involved with managing the budget? Will you use a software that helps with budgeting? Whatever the case may be, you should at least know who will primarily be handling bills as they come in so that you never have to worry about missed payments due to a miscommunication.

If you didn't have a financial planner before you got married, this is also the time to start working with one. Financial planners are extremely important for families of all sizes, as they can help develop strategies that allow you to keep your finances in check.

Here at American Investment Planners LLC, we have worked with clients all over the country and would love to be your family's financial planner. To learn about the services we offer or to set up an appointment with one of our advisors, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com.

Financial Conversations to Have Before Getting Married

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

As you have probably heard before, communication is one of the most important parts of a healthy relationship. That said, communicating about money is something you and your partner absolutely must do, especially if you are planning on tying the knot anytime soon. Although finances can be a sensitive topic, you'll likely find that it's very difficult to make important decisions such as where you'll live unless you've had a chance to sit down and talk about where you both stand - here's what you need to discuss:

Your current debts.
What debts are you both currently working on paying back, and how much are your balances for each? For example, do one or both of you still have student loans in your name? Or, do you have credit card bills you're paying down? Understanding each other's debts and financial obligations (such as if there are children in the picture already) is extremely important in order to create a budget that works best for both of you.

Your credit report.
If you haven't already purchased a home together but have plans to in the near future, you'll need to know your credit scores to help you figure out what type of loans and mortgages you could be approved for. So, take the time to look at your credit reports together and make sure that everything is accurate - remember that even the smallest of errors can negatively effect your score, so you'll want to catch these as soon as possible.

Your retirement savings.
Taking into consideration how much you both have saved already, you'll need to figure out how much of your future income you'll be putting away for this purpose, as this will directly effect how much disposable income you will have for your house, cars and recreational activities. 

Your thoughts on a prenuptial agreement.
Prenuptial agreements are legal arrangements that explain how your assets would be divided should your marriage end. Even if you think you already know whether or not you want one, it's best to revisit the conversation to see if your views have changed.

Your future plans.
Where do you see yourself in 10 years from now, and where does your partner see themselves? Are you more interested in buying your dream home whereas your partner is more interested in saving for the vacation of a lifetime? These are all things you must figure out so that you can set up a strategy that will help you both meet your goals.

Marriage is meant to be one of the most exciting times of our lives, and we know that sometimes discussing money can make things a bit stressful - that's why we're here to help.

At American Investment Planners LLC, we'll work with you to understand both you and your partner's financial philosophy and help you develop a plan that will work in both of your favors.

For more information or to set up an appointment with an advisor, please call (516) 932-5130 or email info@americaninvestmentplanners.com today.

How to Figure Out How Much Money You Need to Retire

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

It doesn't matter if you've been at your job for two years or 20 years, you should always be concerned with making sure you have enough money in your savings account to retire when the time comes. However, we know that this certainly isn't as easy as it seems - there's a lot that goes into planning for the future.

One of the questions we bet you'll ask yourself as you start saving is "how much do I need." While we wish we could give you an exact number, the truth of the matter is that it is going to vary for every person depending on a number of factors. What we can give you, though, is what those factors are so that you can start planning accordingly - check them out below.

Your Cost of Living

This is especially important for those of you who plan to move to a new city or state after retiring - you'll need to understand exactly what your cost of living will be in a different place. For example, how much do homes typically cost or how much is rent? Even if you aren't moving, you'll also need to figure this out too - will your home be paid off by then? Will you still have a car payment? Having a good grasp on your monthly expenses is one of the best places to start.

Your Recreational Plans

Retirement gives you a ton of time to do the things you've always wanted to do, such as travel. However, these activities cost money too! That said, once you figure out your main expenses such as how much a home will cost, and a car, and basic things like utilities, you can then begin to think about all of the activities you want to pursue.

Your Projected Income

Aside from the income you'll have from savings accounts each month, you also need to take into consideration sources of income such as pensions and Social Security. When you know how much you can expect from sources like these, you can then figure out how much of your monthly expenses that will cover - whatever it doesn't cover should give you an idea of how much you'll need to take from savings accounts.

As we said earlier, there truly is no one answer for how much money you need to have saved by the time you're ready to retire. However, if you can approximate your expenses and estimate your projected income, you're halfway there! 

At American Investment Planners LLC, we understand how crucial it is for people to feel comfortable financially during retirement, which is why we want to help you with your retirement planning strategy. 

To learn how we can work with you on your portfolio and savings accounts such as a 401(k), please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com today.

How to Teach Your Children About Money at Home

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Understanding money and being smart with money are two of the most important things people should strive to do. However, trying to get on top of this as you get older can be a lot more challenging than if you begin to get a good grasp on things while you're younger. 

Although children will learn about math as they go through the education system (in fact, they'll probably even get a dose of economics at some point too), some state standards don't necessarily translate into class offerings or individual requirements - that said, it's important for parents to take on the role of teaching their children about money at home. Here are a few things that can be done:

Work together on budgeting. 

You'll need to create a budget for yourself in order to keep your family in good financial standings anyway, so why not let your children sit in on the process? After they watch you tackle your budget, it's a great idea to work with them on their own budget, especially if they have an allowance or if they've just started their first part-time job.

Encourage savings.

The sooner children start saving and understanding the importance of saving, the better. The best place to start is by opening up a savings account so that you can stash away money they receive from certain milestones such as graduations or major birthdays - from there, you can further encourage them to save a portion of their allowance or a percentage of their paycheck if they have a job.

Show examples of interest.

Once children are introduced to topics such as percents and fractions, it's time to apply it to money by teaching them about interest. Since it may be confusing just to talk about, you'll want to come up with some examples, such as having your children borrow something of yours and then have them give that same item plus something else back to you.

Be willing to talk about it.

Children are going to have a ton of questions about money - especially as they get older and start to become responsible for things such as buying their own clothes or using their own money to go out to dinner with friends. So, you need to be prepared to answer them, and most importantly, be willing to offer advice and insight before they even approach you.

As financial planning professionals who have been in this field for quite some time, we truly understand the importance of getting your children familiar with money and the best financial practices as soon as they are able to understand them. That's why at American Investment Planners LLC, we help the entire family with their financial planning efforts.

To learn more about our services and how we can help your family next, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com.

Above information courtesy of Emerald Connect, LLC.

Life Hacks To Help You Make The Most Of Your Money

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

If you currently are, or ever have, lived paycheck to paycheck, then you know how long those weeks in between pay days can feel - sometimes it can feel like years before your next direct deposit hits! And although it may seem impossible to stretch your last 20, 50 or 100 dollars until it does, today we're here to get you thinking otherwise by offering a few life hacks that can help you make the most of what you have:

Hack #1: Don't hesitate to use coupons.
If you know that you have to make a purchase or two before your next paycheck arrives, dedicate some time to researching coupons that can be applied at the counter. You can look for these in magazines, newspapers, or online, and if you can, try to find a store that's already offering a sale too to double up on savings.

Hack #2: Start meal planning.
Are groceries one of your biggest monthly expenses? If you have a lot of mouths to feed, we bet it adds up! To lengthen the amount of time in between trips to the supermarket, start meal planning on Sunday nights and decide what you'll have for breakfast, lunch and dinner for the rest of the week using what you already have.

Hack #3: Conserve gas.
Despite the fact that gas prices have been the lowest we've seen in a while over recent months, too many trips to the pump can certainly take a toll on your wallet. That said, try to avoid unnecessary trips and only use your car when you absolutely have to, such as to get to and from work. If you can, it may be beneficial to set up a carpool with friends, neighbors or co-workers who take similar trips as you throughout the week.

Hack #4: Start with the minimum payment.
Yes, you should try to make more than the minimum payment each month on debts such as credit cards, but if it's going to push you over budget, start with the minimum payment until your next paycheck comes - at that point, you can reassess how much you have left over and determine if you can send extra money.

Hack #5: Choose entertainment wisely.
You'd be surprised at how many free events you can find in your community - especially for those of you on Long Island. From concerts in the park to street fairs and more, we bet you can fill your entire weekend with plans without going over budget - all you have to do is a little bit of research!

By making smart financial decisions, you'd be amazed at how far you can stretch your budget! Need a few tips on budgeting as well? Here are some that we've shared in the past.

American Investment Planners LLC offers comprehensive financial planning services to individuals of all ages. Services include, but are not limited to, retirement planning, estate planning, portfolio and asset management, and taxes and accounting. For more information, call (516) 932-5130 or email info@americaninvestmentplanners.com.