It’s Tax Identity Theft Awareness Week!

‘Tis the season for tax returns, rebate checks, and unfortunately… identity theft. This is a common time of the year for scammers to steal the identity of innocent consumers, using it to file fraudulent tax returns and take rebate checks.

In order to help protect consumers and bring this problem into the spotlight, the United States Federal Trade Commission hosts their annual Tax Identity Theft Awareness Week. This year, the observation will run from Monday, January 30th through Friday, February 3rd.

To help the cause, the financial consultants at American Investment Planners, LLC have put together this short list of tips to help you keep your identity safe:

• Get an Identity Protection PIN from the IRS.
• Check your financial statements every month – keep an eye out for unfamiliar charges.
• Monitor your credit reports on a regular basis.
• Don’t release any information to callers claiming to be with the IRS.
• Know the warning signs of identity theft.
• If you suspect you have been a victim of identity theft, file a report with the FTC.

Want to learn more about Tax Identity Theft Awareness Week? All week long, the FTC, IRS, Department of Veterans Affairs, AARP Fraud Watch Network, and others will go online to discuss tax identity theft, IRS impostor scams, cybersecurity, and identity theft recovery. Here is a schedule of their events:

• Monday, January 30th: Identity theft for tax professionals webinar at 2 P.M.
• Tuesday, January 31st: General tax identity theft Twitter chat at 3 P.M.
• Wednesday, February 1st: Tax identity theft for service members and veterans Twitter chat at 11 A.M.
• Wednesday, February 1st: Tax identity theft for services members and veterans webinar at 1 P.M.
• Wednesday, February 1st: Protecting sensitive business and customer information webinar at 4 P.M.
• Thursday, February 2nd: Tax identity theft recovery steps webinar at 2 P.M.

American Investment Planners, LLC offers professional financial planning services to individuals and families across the country. Whether you need help filing your taxes or deciding how to spend your rebate, our financial advisors are here to help.

To schedule an appointment with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

5 Ways to Maximize Your 2016 Tax Refund

Tax season is upon us, and many Americans are looking forward to receiving their refund check. If you felt like you were shortchanged by Uncle Sam last year, here are five tips to help you maximize your return for 2016:

1. Start early. The best time to start filing your tax return was yesterday. The second-best time is today. Procrastinating leads to pressure as Tax Day draws near, and it is more likely you will make a mistake. Starting early allows you to take your time and be as thorough as possible.

2. Rethink your filing status. One of the first decisions you make when completing your tax return is your filing status. There are five statuses to choose from: single; married filing jointly; married filing separately; head of household; and qualifying widow(er) with a dependent child. 9 out of every 10 married couples file jointly, however, filing separately may yield a higher return depending on your circumstances.

3. Itemize your deductions. The standard tax deduction is $6,300 for singles and $12,600 for married couples filing jointly. These standard deductions can help lower your taxes, but taking the time to gather your receipts and make an itemized list may lower your taxes even further.

4. Claim credits. Credits are much more effective than deductions at reducing your tax bill and maximizing your refund. This is because credits are netted directly against the amount of money you owe, as opposed to merely reducing your taxable income. Available credits include the earned income tax credit, the child and dependent care credit, and education tax credits.

5. Max out IRA contributions. This tried and true strategy allows you to reduce your taxable income while simultaneously building your nest egg. 401(k)s and Traditional IRAs both offer dollar-for-dollar income reduction and can even qualify you for the $1,000 saver’s credit.

Bonus Tip: Seek professional help. Having an experienced tax professional by your side will not only ease your stress, they can help you find deductions and credits that you were not aware of. Trust American Investment Planners, LLC to help you file your tax return this season.

To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Financial Goals for Every Decade of Life: 40s, 50s, 60s, and Beyond

No matter how you spin it, managing your money is an important part of life. Unfortunately, it doesn’t get any easier with age. The market is always changing, and so should your financial strategies as you progress through various stages of life.

To help make things easier, the financial advisors at American Investment Planners, LLC have put together a list of financial goals you should strive to accomplish during each decade of your life.

This article focuses on your 40s, 50s, 60s, and beyond. To view a list of financial goals for your 20s and 30s, please click here.

Financial goals for your 40s

As you enter your forties, it is important to start honing in on retirement, while also thinking about your spouse, children, and other dependents:

• Max out retirement contributions each year. If you are a little behind on your retirement savings, now is the time to catch up. With no more debt to pay off, you should be able to make the maximum annual contributions to your 401(k) and Roth IRA.
• Look into life insurance. Your life insurance policy should be enough to provide for your family in the event of your death.
• Create/update your estate plan. At the very least, you should have a legally-valid will that clearly states the distribution of your assets and the care of your dependents.

Financial goals for your 50s

If all is going according to plan, retirement is close. Your fifties are a good time to minimize expenses and fine-tune your retirement plan:

• Pay off your mortgage. The sooner you can pay off your mortgage, the easier it is to pay for everything else.
• Rebalance your retirement portfolio. With retirement drawing near, now is a good time to sit down with your financial advisor and make sure your investments carry minimal risk.
• Begin budgeting your retirement. Know what your post-retirement income and expenses will look like, and plan accordingly.

Financial goals for your 60s and beyond

You’ve spent your entire life saving for this moment, you don’t want to run out of money too quickly. Here is how to make the most out of your retirement:

• Downsize. A smaller home can reduce your property taxes and other expenses. Consider moving to a retirement community, which can also offer social benefits.
• Sell unneeded assets. Have a vacation home, RV, or other assets you no longer need? Sell them off and put that money towards your retirement.
• Review your investments. Does your current nest egg allow for the post-retirement lifestyle you envision?

No matter which stage of life you are at, the financial advisors at American Investment Planners, LLC can help you achieve your goals.  To schedule an appointment with one of our professional consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Financial Goals for Every Decade of Life: 20s & 30s

No matter how you spin it, managing your money is an important part of life. Unfortunately, it doesn’t get any easier with age. The market is always changing, and so should your financial strategies as you progress through various stages of life.

To help make things easier, the financial advisors at American Investment Planners, LLC have put together a list of financial goals you should strive to accomplish during each decade of your life.

In today’s article, we will be focusing on your 20s and 30s…

Financial goals for your 20s

You may legally become an adult at age 18, but your adult life really starts in your twenties. This is the decade that you finish up school and begin your career. It is also the decade in which you should focus on establishing good financial habits:

• Become financially independent. Find a job that can pay for your daily expenses and allows you to stop relying on relatives for financial support.
• Make a budget. This is a good lifelong habit that can help you spend less and save more.
• Improve your credit score. Pay your bills in full and on time every month. A high credit score will be important for purchases later in life.
• Start paying off debt. Focus on paying off your high-interest debt (credit cards) first, while still paying the minimum on your low-interest debt (student loans).
• Build your savings. Make it a habit to deposit 10-20% of every paycheck into a savings account.
• Open a retirement account. You are never too young to save for retirement. Ideally, you should open a 401(k) and a Roth IRA before turning 30.

Financial goals for your 30s

For many people, the thirties are a time for growth; both in your career and within your family. Here’s how to make sure your finances can accommodate your changing lifestyle:

• Allocate money to family matters. Wedding payments, mortgage payments, college tuition for the kids – these are all things you need to plan for at this point in your life.
• Designate your beneficiaries. This is a basic financial task you should revisit after major events, such as marriage or having a child.
• Pay off your debt. By your 40th birthday, you should be free from student loan payments, credit card debt, and all other debts except your mortgage.
• Save six months’ worth of income. Emergencies happen; you want to make sure you can afford an unexpected auto repair, medical bill, or the loss of a job.

No matter which stage of life you are at, the financial advisors at American Investment Planners, LLC can help you achieve your goals.  To schedule an appointment with one of our professional consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

How is My Credit Score Calculated?

When it comes to getting approved for a loan, nothing is more important than your credit score; a number which indicates how likely you are to pay back your debts. A good credit score will generate more loan opportunities (at better interest rates) than a poor credit score will.

How is your credit score calculated?

The most common credit score, FICO, is calculated by the Fair Isaac Corporation. It can range from 300 to 850, with higher numbers indicating a better score. Generally, anything over 740 is considered “excellent”.

Your credit score is calculated based on five major components of your credit history, each weighted with varying importance:

Payment History – 35%

Your payment history is the most important factor of your credit score. Paying all of your bills on time, and in full, is the best way to keep this number high.

Amount Owed – 30%

Also known as your utilization ratio, this number looks at how much of your total available credit you are actually using. For best results, never borrow more than 30% of your maximum credit limit.

Length of Credit History – 15%

Determined by the average age of your credit accounts, as well as the amount of time since the account’s most recent transaction.

New Credit – 10%

Opening several new credit accounts in a short period of time signifies financial trouble, and could scare away potential lenders.

Credit Mix – 10%

This considers the different types of credit in your account: such as credit cards, student loans, car payments, mortgages, etc. Research shows that borrowers with a good mix of credit are more trustworthy to lenders.

Have questions about improving your credit score? The financial advisors at American Investment Planners, LLC are happy to assist. To schedule an appointment with one of our professional consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

How to Shop Smart for Your Next Car

Besides your home, your automobile is likely the biggest purchase you will make in your lifetime. Like anything else in life, there is a right way to shop for a new car, and a wrong way.

Follow these tips from American Investment Planners, LLC to shop the smart way, and save thousands of dollars doing it:

• Determine your budget. Before you embark on your car shopping journey, you need to figure out how much you can afford to pay. Our online car affordability calculator is an easy-to-use, interactive tool that can help determine your ideal price point in just a few seconds.

• Explore your options. Don’t mentally commit yourself to anything too early in the buying process. Get the most out of your money by exploring your options. Compare different car makes and models, dealerships in your area, new vs. pre-owned, etc.

• Secure the loan before the car. The dealership isn’t the only option you have for a loan. In fact, many times it is the worst option. Shop around various banks, credit unions, and other financial institutions and get pre-approved for a car loan before heading to the dealership. Bring this information to the salesperson and see if they can match (or exceed) your other financing offers.

• Know the final price tag, and what it includes. One of the trickiest parts of car shopping is the extra charges and fees added throughout the process. What looks to be an affordable car can quickly exceed your budget after taxes, dealership fees, and the like. It is important to know not only the final price, but what the price includes. Some dealers will include perks such as an extended warranty, roadside assistance, or free oil changes for a year.

• Strike while the sales are hot. If you can afford to wait, don’t shop until the end of the model year – which typically starts around September. Dealerships need to make space for their incoming inventory, which translates into big time savings for the buyer. The holiday season (Black Friday through New Year’s) is also a good time to shop.

Budgeting for a new car can be difficult, but it’s not impossible. The financial consultants at American Investment Planners, LLC have decades of experience helping individuals and families just like you plan for life’s biggest expenses.

To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Why Millennials Will Need to Save More Than Their Parents Did

You know it’s important to save money for your future, but if you’re a millennial, we’ve got a bit of bad news: you’re probably going to need to save even more than you originally thought.

How much more? According to Dan Kadlec from Time.com, up to twice as much as the baby boomer generation.

Why is this? Ever since the internet bubble popped at the turn of the century, we have been living in a low-return economic environment. People planning for retirement can no longer depend on the market to do the heavy lifting for them.

Since 1978, the average annual return on a portfolio consisting of 60% stocks and 40% bonds has been 6.3% – a very robust number. Going forward, it is estimated that this return will be closer to 2.9%. It may not sound like much of a difference, but over a 40-year time period, it translates to a 60% smaller retirement fund.

The old rule of thumb was to set aside 10% to 15% of every paycheck. Unfortunately, that will no longer allow you to live comfortably. If you want the same result as baby boomers, you will need to save about 25% of your paycheck for 40 years.

That’s a lot, especially for millennials. Between outsized housing costs and student loan debt, Time estimates that young workers are only saving about 6% of their current pay – about 76% less than recommended.

If you are saving closer to the 6% mark, don’t panic. The 25% number is not set in stone, and is an overly-aggressive estimate based on the assumption that Social Security will no longer be available (which may not be the case). Still, the point remains. Young adults will need to save significantly more money to produce the same results as past generations.

Are you worried about saving for retirement? Having a professional advisor by your side can help ease your stress. The financial consultants at American Investment Planners, LLC have decades of experience helping people just like you plan for retirement.

To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.