Remortgaging Your Home: What it Means and When to Do it

If you’re like most Americans, your mortgage is your biggest financial commitment. If you are stuck in a bad agreement, you could be overpaying by thousands of dollars each year. Luckily, homeowners may have the option to remortgage their home in order to secure a better deal.

In this article, the financial advisors at American Investment Planners, LLC discuss the purpose of remortgaging, when you should consider it, and what steps you need to take to finish the process…

What is remortgaging?

Remortgaging your home is simply the process of switching your mortgage deal – either with your current lender or a new one. There are four main reasons to do this:

• Reduce your interest rate
• Free up some of your property’s value for other spending
• Reduce monthly payments by extending the term
• Reduce the mortgage term

When you should (and shouldn’t) consider remortgaging

In some cases, remortgaging your home could save you thousands of dollars. In other cases, you may lose money by making the switch. Here are some factors to consider when making the decision…

You should remortgage if:

• Your current deal is about to end
• You have a high interest rate
• Your home’s value has significantly increased
• You are worried about rates going up
• You want more flexibility

You should NOT remortgage if:

• Your remaining mortgage debt is small
• Your home’s value has dropped
• You have little equity
• You already have a great interest rate
• You have credit problems

Still don’t know if remortgaging is the right choice? This interactive online calculator can quickly estimate the potential savings (or losses) of making the switch.

How to remortgage your home

If you want to remortgage your home, or are at least seriously considering the idea, here is what you will need to do:

1. Think about why you want to remortgage.
2. Get your paperwork together.
1. Calculate your current costs.
2. Research your current loan’s restrictions and fees.
3. Shop around for a new mortgage.
1. Calculate potential switching fees.
4. Speak with an independent financial advisor at American Investment Planners, LLC to see if remortgaging makes sense.
5. Ask your current lender to match your new deal or offer a better one.
6. If they decline, apply for the new deal.

American Investment Planners, LLC has helped families across the country manage their mortgages for decades. If you are considering remortgaging your home, let us help. Our consultants can answer any questions you may have, and formulate a plan to meet your needs.

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

The Best Mobile Apps for All Things Personal Finance

We use our smartphones to stay connected to friends and family, but did you know they can also help you stay connected to your finances? iPhone and Android users can access a nearly unlimited selection of personal finance apps, but these are some of our favorites…

For expense tracking: Mint

Mint is one of the most popular personal finance apps, and for good reason. It bolsters an easy-to-use interface, and a comprehensive set of features to match. Connect your bank accounts, credit cards, and retirement accounts, and Mint will do the rest. It can monitor your spending, automatically create budget reports, send you alerts, and offer personalized suggestions on how to save money.

For family budgeting: Home Budget with Sync

Home Budget with Sync provides everything you need in a budgeting and expense management app: you can create a budget, track your income and expenses, categorize your purchases, and display all of the data in easy-to-read charts and graphs. But the real selling point is the family sharing feature, which syncs your data across multiple devices, allowing you to easily coordinate spending with family members.

For financial news on the go: Bloomberg

Bloomberg is one of the leading sources of market news and analysis, and their mobile app is the preferred choice of many investors. Enjoy access to news articles, portfolio management, price tracking, Bloomberg Radio podcasts, and a whole lot more.

While these smartphone apps can certainly help you manage your finances, nothing compares to sitting down for a face-to-face meeting with a professional financial advisor. The consultants at American Investment Planners, LLC have decades of experience helping individuals and families plan for life’s biggest moments. Let us help you.

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

Estate Planning: What You Need to Know

Believe it or not, you have an estate. Virtually everybody does, no matter how extravagant or modest. Your estate is comprised of everything you own: your home, car, bank accounts, stocks and securities, personal possessions – everything.

When you pass away, you want to make sure that your estate is distributed to the people you care about most. That’s where estate planning comes in.

If you are new to the phrase estate planning, don’t worry. The financial professionals at American Investment Planners, LLC are here to tell you everything you need to know…

What is estate planning?

Estate planning is the process of legally arranging for the management and distribution of your assets upon death or disability.

Why do I need an estate plan?

Regardless of your age or the quality of your estate, you should have an estate plan for the following reasons:

• Know that your wishes will be carried out, and your assets will go your intended recipients.
• Maintain your privacy. If you do not have an estate plan, your assets can become public information in probate court.
• Protect yourself in the event of disability. If you do not choose who is in control of your care and assets, you may be appointed a legal guardian who might not act in your best interest.
• Minimize taxes. If you do not carefully plan, a significant portion of your money could be lost to state or federal estate taxes.

What is involved in an estate plan?

Preparing an estate plan is much more complex than listing out who gets what in the event of your death. Some of the major tasks of estate planning include:

• Creating a will.
• Naming an executor to oversee the terms of your will.
• Establishing a guardian for living dependents.
• Designating the beneficiaries on your various insurance and retirement plans.
• Limiting taxes by setting up trust accounts.
• Outline personal care instructions in the event of disability.
• Setting up funeral arrangements.

How can I start the estate planning process?

As you can tell, estate planning is a tall task. In order to ensure that everything is properly taken care of, it is recommended to draft your estate plan under the advisement of a professional estate planner.

Ready to sit down and start developing your estate plan? The professionals at American Investment Planners, LLC are here to help. To schedule an appointment with one of our estate planners, please call (516) 932-5130, or email info@americaninvestmentplanners.com.

How to Pay Off Debt – the Right Way

Are you up to your eyeballs in credit card debt? You’re not alone. According to Business Insider, the average American household with credit card debt owes upwards of $16,000.

Like anything else in life, the key to paying off your debt is having a plan. Most people blindly pay what they can on their bills, with little-to-no thought on how they are allocating their payments. This ultimately costs them time, frustration, and hundreds of dollars in interest.

Luckily for you, the professional financial planners at American Investment Planners, LLC are here to help. This proven four-step method will allow you to pay off your debts as quickly and efficiently as possible.

Step 1: Stop adding new debt.

If you are serious about paying off your debt, the first thing you need to do is stop adding to it. Leave your credit cards at home the next time you go shopping, or cancel, freeze, or cut them up if you need to.

Step 2: List each of your debts in order of interest rate.

Make a list of all of your debts, including car payments, student loans, credit cards, store cards, and anything else which isn’t a mortgage. Now rank all of these debts in order of interest rate, with the highest rate at the top of your list.

Step 3: Pay all of the monthly minimum payments.

When compiling the aforementioned list, be sure to include a column for minimum monthly payment. This is the amount you will pay every month towards all of your debts, except for the one at the top of your list…

Step 4: Put extra money towards the debt with the highest interest.

This is where that list of interest rates comes in handy. Once you have made the minimum payments on all of your debts, put your remaining money towards the debt with the highest interest rate. Most people pay off their debts in order of total amount owed, starting with the smallest sum. While this allows you to close small accounts quickly, paying off in order of interest rate guarantees you spend the least amount of money possible.

Bonus Tip: Lower your interest rates and consolidate your debt with balance transfers.

A balance transfer is the process of moving your credit card to another bank in exchange for a lower interest rate. When utilized correctly, balance transfers could save you hundreds (or even thousands) of dollars in interest fees. Shop around to get the lowest interest rate for the longest duration possible, and be sure to read all terms and conditions to avoid hefty fees.

American Investment Planners, LLC has been helping families across the country pay off their debts for more than 30 years. Our professional financial consultants will sit down, examine your current debts, and work together to construct a repayment plan that meets your needs and budget.

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

FAFSA FAQs

According to the College Board, the average price for one year of undergraduate studies can range from $24,610 for an in-state public school, to $49,320 for a private university.

There is some good news, however. Several different sources of financial aid are available for qualifying students, the largest of them being the federal government.

In order to qualify for federal grants, loans, and work-study eligibility, incoming students must complete the FAFSA form. FAFSA, or Free Application for Federal Student Aid, is used to determine a student’s eligibility for financial aid. In addition to federal funding, your FAFSA may also be used to determine financial aid from your state, and even your school.

With that said, you can see why it is important to submit your FAFSA on time every year, and make sure all of your information is correct. The FAFSA form can be tricky for parents and students alike, so we’re here to answer some of your most frequently asked questions.

How do I fill out the FAFSA?

You can submit your FAFSA form at https://fafsa.ed.gov/. You will need a Federal Student Aid ID and password. If you have previously submitted a FAFSA, your ID and password will be the same as last year. If you don’t have one yet, don’t worry. Just follow the instructions in this video.

When is the FAFSA deadline?

The federal deadline for the 2016-2017 school year is: June 30, 2017 by midnight CST.

The federal deadline for the 2017-2018 school year is: June 30, 2018 by midnight CST.

State deadlines may vary from state to state. You can view the deadlines in your state by clicking here.

You may notice that the deadline for this school year is not until the end of June. That’s because the loans you receive can be applied retroactively. However, it is best to submit your form as soon as possible, as aid is often distributed on a first come, first served basis.

Do I need to fill out the FAFSA each year?

Yes. It can be a pain, but your eligibility can change from year to year based on your family’s financial situation and other various factors.

Do I have to pay to submit my FAFSA?

No! After all, the first F stands for “free”. However, since it can be a time-consuming task, some services may charge you to complete your FAFSA for you – much like a tax return.

Even with financial aid, planning for college is tough. Let us help. American Investment Planners, LLC offers financial planning services for families across the country, including those trying to put their children through college.

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

The Power of Compound Interest

What are the two words that every investor loves to hear? Compound. Interest.

Unlike simple interest, which is calculated only on the principle (amount of money you put in), compound interest accrues on the principle and your previously-earned interest. To put it simply, compound interest allows you to gain interest on your interest, thus creating a “snowball” affect with your money.

Some retirement accounts, such as Roth IRAs, allow you to earn compound interest on your investments. This makes it absolutely vital to start investing as early as possible in order to maximize your nest egg. No matter what stage of life you are in, the best time to start saving for retirement is now.

You may think that you don’t earn enough money to make a significant impact, but you are wrong. The amount of capital you start with is not nearly as important as when you start. Every year you push off investing can really hurt you in the long run.

To illustrate the power of compound interest, let’s take a look at two different investors: Ashley and Bill:

• Ashley opens her retirement account at the age of 25, and saves $5,000 every year through age 35. Her total contributions equal $50,000.
• Bill waits until age 35 to open his retirement account, but contributes $5,000 annually until age 65. His total contributions equal $150,000.

Now, who do you think ends up with more money by the time they both reach age 65? Assuming both earn a steady 7% return rate, here is what they end up with:

• Ashley’s final balance is $602,070.
• Bill’s final balance is $540,741.

Despite investing three times as much money as Ashley, Bill still ends up with less money because he waited longer to get started. This simple example illustrates not just the power of compound interest, but also why it is so important to start saving early.

Don’t wait any longer – speak with a financial advisor today about retirement. The consultants at American Investment Planners, LLC offer professional retirement planning services to individuals of all ages. Please call (516) 932-5130 to schedule an appointment with one of our advisors, or email info@americaninvestmentplanners.com.

5 Critical Mistakes to Avoid on Your Tax Return

Got your mind on your money, and your money on your mind? If you want to get the most out of your tax return this year (and avoid the dreaded IRS audit), avoid making these critical mistakes:

Missing the deadline.

First things first: know your deadline! The IRS will begin accepting tax returns on Monday, January 23rd, 2017. The deadline (also known as National Tax Day) is Tuesday, April 18th. If you wish to apply for a six-month extension, you must do so by this day. However, any taxes you owe are still due on April 18th.

Math miscalculations.

This is the single most common mistake on tax returns each year. Whether you made an error in your calculations or while transferring your numbers, you can bet the IRS will quickly detect your mistake. Having your taxes prepared by a professional can help minimize this risk.

Misspelled names.

The IRS cares about numbers, but names are important too. If the name of the taxpayer, spouse, or dependents doesn’t match what the IRS has on file, your return could be significantly delayed.

Forgetting additional income.

You’ve included your wages from your full-time job, but you could be forgetting about these common sources of additional income:

• Part-time or side jobs
• Job that you only worked at the start of the year (if you worked just one day in 2016, it counts!)
• Savings and investment accounts
• Unemployment benefits
• Jury duty pay

Wrong bank account numbers.

Imagine this: you’ve double checked your numbers. Triple checked, even. Everything is right and you are ready to submit your form to the IRS. You opt for the direct deposit, and enter the wrong routing or bank account number. Don’t let this happen to you – make sure your return is going to the right place!

Having an experienced tax professional by your side will not only ease your stress and help you avoid making mistakes, they can find additional deductions and credits that you may not be aware of. Trust American Investment Planners, LLC to help you file your tax return this season.

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