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.

Your End-of-Year Financial Checklist

The holiday season is always busy, but it is important to set aside some time at the end of each year to straighten out your personal finances. With that in mind, here is a list of tasks to tackle before 2017:

1. Max out your IRA contributions. Returns generated through IRA accounts compound without taxes for life. The more money you can put in now, the more money you get when it’s time for retirement. We encourage everybody to max out their contribution limit each year if it is financially possible.

2. Balance your portfolio. Diversification is a fundamental way to minimize investment risks. Now is a good time to go through all of your portfolios and make sure you are not becoming too weighted towards one asset; even if it has performed well recently.

3. Donate to charity. Donating to charity is a great way to minimize taxable income, all while helping those in need. December 31st is the deadline for all tax-deductible charitable contributions.

4. Use up money in your flexible spending account. If you have leftover money in your flexible spending account (FSA) for health care expenses, schedule a last-minute eye exam or dental cleaning. If you don’t use it, you lose it!

5. Double-check your beneficiaries. Events such as divorce or death could impact your beneficiaries, so it is a good idea to double-check them at least once per year.

6. Budget for 2017. Review your 2016 spending. What changes (either to your income or your expenses) do you foresee occurring within the next year? Use this information to draft a rough budget for 2017.

7. Schedule a meeting with your financial planner. This is the best time of the year to schedule a check-up appointment with your financial advisor. Not only can they help you wrap up these (and other) end-of-year tasks, they can also help you prepare for the year ahead.

Don’t have a financial planner? Now is the perfect time to schedule an initial consultation! American Investment Planners offers professional financial advisement services to individuals and families across the country. Don’t trust anybody else to help you achieve your short- and long-term financial goals.

Call (516) 932-5130 today to schedule your appointment, or email info@americaninvestmentplanners.com.

How to Holiday Shop on a Budget

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

‘Tis the season to spread holiday cheer – more times than not in the form of gifts. Contrary to popular belief, it is possible to cross everybody off your shopping list without breaking the bank. Just follow these smart shopping tips from your friends at American Investment Planners, LLC:

• Start saving early. Many banks offer holiday savings accounts that allow you to deposit money year-round specifically for holiday shopping. It may be too late to take advantage of this holiday season, but it is never too early to plan ahead for future years.

• Make a list, and check it twice. The best way to stay on budget is by making a detailed list for all of your gift recipients. Your list should include a strict spending limit for each family member and friend. Keep a running log of your expenses to make sure you stay within your budget.

• Take advantage of all the deals. There is no shortage of savings during this time of the year. From Black Friday doorbusters to Cyber Monday markdowns, make sure you are taking advantage of the best deals available.

• Shop online. Save time, effort, and gas by doing your holiday shopping online. Many retailers even offer free shipping during this time of the year, allowing you to be as cost-efficient as possible.

• Don’t fall for store credit cards. Many retailers offer their own credit cards, and entice consumers to sign up by offering 10% off their initial purchase. While this may seem like a good deal, resist the urge. These perceived savings will quickly disappear if you do not pay your balance in full each month.

• Do it yourself. Tap into your inner creativity and take the DIY approach to your gifts. They may take a little more time, but they will save you money and are sure to be appreciated more than a store-bought product.

American Investment Planners, LLC helps families all over the country better manage their finances. From college savings, to estate planning, to retirement planning, and more, we can help you meet your short- and long-term financial goals.

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

Why is Diversification Important?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Investing is a financial strategy that many people choose to help them achieve their short and long term goals, and the people who experience great success with doing so don't just become pros over night - there's a lot of research to be done and a lot to understand about the process, especially when it comes to risk.

Put simply, nearly every investment out there has some kind of risk associated with it - this is only natural, as the stock market rises and falls all the time. With that said, regardless of what you decide to invest in, you have to consider what kinds of risks are associated with that investment in particular.

This is where diversification comes in. In order to be a successful investor, you must be able to manage your risk while also maintaining your potential to experience returns. To do so, one thing that is often recommended is to diversify.

Ultimately, diversification is an investment strategy that is geared towards managing risk by spreading your money across various investments, such as stocks, bonds, real estate and cash alternatives. By having a diverse portfolio, you aren't putting all of your eggs in one basket, which helps in situations where you experience loss in a particular investment.

So why is diversification important?

Overall, diversification really helps to offset any negative experiences you have with any one investment. For example, if you have one investment that decreases really quickly but another that increases at the same rate, you'll likely have much more peace of mind and you may not even be too impacted by the decrease if another investment improves significantly. Additionally, having a diverse portfolio really helps in riding out market fluctuations, and can provide you with a more steady performance regardless of the current economic conditions.

With all that said, no matter where or how you choose to invest your money, we think it's important that you always keep diversification in mind - at the very least, it will probably make you feel much more comfortable with your efforts!

Here at American Investment Planners LLC, we are staffed with some of the top investing professionals and would love to work with you on your portfolio to ensure it's designed to meet your financial goals. To set up an appointment with an advisor, please call (516) 932-5130 or email info@americaninvestmentplanners.com today.

Above information courtesy of Emerald Connect.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not ensure against market risk.

The Key to Having a Great Credit Score

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Having a great credit score is certainly something you want to accomplish for your own peace of mind and success, but truth is, you need a great credit score for a lot more reasons than that - one of the biggest reasons is to get the best offers when shopping for a mortgage. Now, while building credit does take time and requires hard work and patience, there is one strategy in particular to focus on immediately (according to time.com's Money, 3 out of 4 people with excellent credit do this). And what is that strategy? Paying your balance in full.

Despite the fact that many people believe you should carry a balance from month to month, research suggests that when you pay your balance in full instead, you're likely to see better results - data explains that 73% of consumers that boast a FICO credit score of 800 do, in fact, pay off their credit cards in full each month. 

So why is paying your balance in full the best approach?

Well, the amount of money that you owe plays a pretty significant role in determining your FICO credit score - in fact, 30% of your score comes from this. When coming up with that aspect of your score your credit utilization ratio is looked at, which would be the percentage of credit that you're using - keep in mind that the key is to really have access to open credit, rather than actually using that credit. Tip: try not use more than 30% of your available credit, as your credit score will typically drop when you go above this threshold.

If you're looking for ways to improve your credit score and are someone that usually carries a balance each month, now is the time to start paying things in full. However, since we know this can be difficult, here are two easy tips you can follow as you begin:

1. Stop using that credit card. It would be pretty hard to get your balance to be $0 if you continue to charge things each month, so while you work on paying down your debts, avoid using that card in its entirety.
2. Re-evaluate your budget. When was the last time you really analyzed your spending habits? If it's been a while, chances are you can find a ton of places where you can cut back on spending, which would give you extra money to use towards your debts.

Have more questions about achieving a great credit score? As a trusted financial planning firm, we can assist you with various aspects of financial planning, as well as answer any other questions you may have on financial topics.

To speak with one of our advisors, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com.

Why Should Young Adults Have a Financial Planner?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Some people are under the impression that financial planners are only needed as you get older or if you have a lot of wealth to preserve and protect, but as a team of professionals in this field, we know that this simply isn't true.

Truth is, everyone can benefit from working with a financial planner regardless of age or current assets, and in fact, we think it's important that people get started with one early. Below, take a look at the reasons why young adults especially should have a financial planner.

They can help start off retirement planning on the right foot.
It's not unusual for young adults to be a bit unfamiliar with retirement and retirement planning, but in order to set yourself up for success, you must start saving early. That said, young adults should work with a financial planner as soon as they start their first full-time job so that they set up their retirement plans, such as a 401(k) plan, correctly - this will ensure that none of their efforts go to waste.

They can help them create smart short and long term goals.
So you want to get rich? While everyone has dreams of being so financially stable that they never have to worry about money again, sometimes the goals we set for ourselves are just a bit unrealistic. This is where a financial planner comes in! Financial planners know what it takes to be successful with money, and thus can help young adults create smart short and long term goals for themselves. Not to mention, they can also help them create strategies to achieve them!

They can prepare them for the future.
Retirement isn't the only thing that we have to prepare for - what about situations where young adults are required to take care of aging parents? Financial planners can help young adults and their families with topics such as estate planning and elder care, which can certainly help alleviate a lot of stress. 

Ultimately, financial planners are an invaluable source of information that all young adults need, especially when they are about to experience "firsts" in life - their first job, their first house, marriage, and more.

If you're a young adult who has yet to meet with a financial planner, or if you have a young adult in your life that needs one, our team would love to work with you! We are staffed with experienced professionals and are 110% confident that we can deliver the solutions needed to experience financial success moving forward.

For more information about the services we offer or to set up an appointment with us, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com today.

Meet Sarah McCarthy: Reception Manager

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 one of our professionals individually.

Today, we would like to introduce you to the newest member of our team, Sarah McCarthy, our reception manager!

Sarah's first financial position was as a telemarketer for Chemical Bank when she was in college. Although this started out as a position that simply fit her schedule and met her financial needs (she was pursuing her BA in English at SUNY Stony Brook), it eventually led her to a full-fledged financial career upon graduation in 1995 - she spent 19 years in banking, working for Chase, Wachovia and Webster Bank! 

After having her son, Sarah spent some time working part time at a chiropractic office as a receptionist and office manager. Then, in September, we were very fortunate enough to have Sarah make her way to our firm! Thanks to her many years of professional experience Sarah has the financial background to understand what our clients need, and she also has a wonderful demeanor and personality that we know clients will truly appreciate when calling or visiting the office.

When asked what her most memorable experience has been professionally thus far, she explained that it was when she won a leadership award in 2000, which included a week-long trip to Naples, Florida. A few days after her return she was to be relocated to Rockland County to pursue a branch manager position, and although she was a bit apprehensive about all of the changes happening at once, the trip is one she is truly grateful for as she got to spend time with existing coworkers and future coworkers all at once!

Outside of the office, Sarah spends a lot of her time with her six year old son - typical activities include Legos, drawing and reading!

Sarah - we are so grateful to have you on our team and look forward to many wonderful years with you! We appreciate the hard work and dedication you have shown to us and our clients already, and we are very excited about our future together!

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.

Financial Habits of Very Successful People

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

In a recent blog post, we discussed six characteristics that people who are debt-free tend to have in common. Today, we'd like to build upon that and get into some of the financial habits that people who are very successful tend to have. Let's take a look:

They save.
And when we say they save, we don't mean they just save a few dollars each month - rather, they save more than 10% of their paychecks. And in addition to saving for future milestones such as retirement, these people are also focused on saving for emergencies and other situations that require extra money to be spent so that they never feel like they're struggling.

They set it and check it, not forget it.
Automatic bill pay and banking can be very useful, and successful people realize how much easier it can make many financial processes. However, rather than just setting up automatic payments and money transfers and forgetting about it, they continue to check in regularly to make sure they know exactly where they stand financially. Having a strong sense of awareness about your finances is key!

They focus on giving.
What goes around, comes around, right? While some may say that being a go-getter is the best way to receive a financial benefit, very successful people have said that being a "go-giver" also produces great results. That said, these people will often look for ways that they can go the extra mile (and not just with money, but perhaps also with time, etc), as giving generously has proven to bring them positive results - the more you give, the more you get back.

Let's go back to point number one for just a moment - very successful people understand the importance of saving, and they're good at it! One of the best things you can do for yourself in order to experience success not just now, but also in the future, is to be ready and willing to save. Even if that means the amount you take home is a bit lower every month, what's important here is that you are preparing yourself to live comfortably several years from now, such as when you retire and no longer receive a paycheck.

If you want to set yourself up for financial success, set up an appointment with one of our financial advisors. The team here at American Investment Planners LLC has all of the tools and resources needed to help you meet your short and long-term financial goals, and we would love to develop a strategy with you.

To set up a meeting, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com today.

Let American Investment Planners LLC Be Your Family's Financial Planner!

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Financial planners aren't just for those who have a variety of investments to manage or a lot of wealth to protect - financial planners are there to help everybody regardless of their current financial situation and future financial goals. Here at American Investment Planners LLC, our mission is to help our clients achieve financial security and create a legacy that can be passed on, which is why we so strongly believe in working with their entire family. 

Our financial planning firm is available to assist with all of life's milestones, from as early as birth all the way to retirement and beyond. That said, we cannot stress enough how important it is for YOU to get started with a financial planner early if you haven't already, and when you do sit down with one, make it a priority to introduce your whole family too - your children, your grandchildren, etc.

Especially if you have adult children who are beginning to become financially responsible by preparing for new milestones such as starting a new or first full-time job; we can help them as they start tackling major tasks such as setting up their 401(k) or an IRA. Additionally, what about those adult children who are getting ready to purchase their first home or get married? Our advisors have all of the resources needed to help them start off the next phase of their life on the right foot financially, and can be a reliable source when it comes time for them to make complex financial-related decisions!

At American Investment Planners LLC we pride ourselves on being able to offer a wide variety of financial planning services that can can benefit your entire family - these services include:

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

We believe that part of the ultimate test of a financial plan is the legacy you can pass on to your family, so why not get your family involved from the beginning?

To set up an appointment for you and your family with one of our advisors, please give us a call at (516) 932-5130 or email us at info@americaninvestmentplanners.com.

How to Help Your Children Create Their Own Budget

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Being a parent comes with a lot of responsibilities, and one of those responsibilities is teaching children about money. This we know can be tough, but fortunately we have a few tips that can help!

If you have children at home who are at the point where they are starting to become financially responsible for themselves, the first step is to help them create a budget - here's what you can do:

1. Help them calculate their income. First thing's first - your children should have a clear understanding of what their income looks like. Before you do anything, outline all potential sources of income your child will have on a regular basis, such as a part-time or full-time job, depending on their age and current situation. Then, consider all other sources of income, such as if they have a babysitting job on the side or other part-time responsibilities.
2. Discuss their spending. What financial obligations do your children have? Are they at the point where they have bills of their own? Or, are they just required to use their own money when eating out, shopping and taking part in other activities with their friends? Here you'll want to clearly define what expenses your children have each month so that you/they can then determine how much of their income they'll have left over for other purposes.
3. Create a savings plan. It's important for everyone to start saving at a young age, so after you know how much money your children will have to use for entertainment purposes, you'll want to work with them to dedicate a portion of that to their savings. Although it may limit what they are able to do each month, they will most certainly be thankful that they have money stashed away when it comes time to do things like buy their first car or purchase their first home.

Once you've worked through a budget with your children on your own, the next step is to introduce them to a professional financial planner who can help them with more complex financial solutions such as how to save for retirement, how to set up a portfolio and so much more.

Here at American Investment Planners LLC, we want to be your whole family's financial planner - yours, your children's, your grandchildren's, you get the idea! If you're looking for an advisor, please give us a call at (516) 932-5130 or email us at info@americaninvestmentplanners.com to learn how we can get started with your family today.