10 Financial Terms You Should Know For Next Year

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

A challenge that many people often face when it comes to their finances is that they don't understand some of the complex terms that tend to be used in certain conversations. And since not having the knowledge surrounding the language used in this industry can have adverse effects on your financial success, there is no better time than now to learn a few. Below, we hope to eliminate any confusion you might have by outlining 10 of the most important financial terms we think you should know.

Asset Allocation: Asset allocation refers to the process of re-positioning the assets in your portfolio to really maximize the potential return that comes with a certain level of risk. Although it does not guarantee there will be no loss, it is used to help manage your overall risk when it comes to each of your investments.

Diversification: Diversification means investing in different companies, asset classes or industries to minimize your overall risk. While this also does not guarantee against loss, it certainly helps to manage your investment risk.

Estate Tax: An estate tax is the tax placed on the value of the estate left by a deceased decendent. This tax is given by the federal and state governments, and there are usually some limitations involved.

Fixed Income: Fixed income is the income you receive from investments like CDs and pension benefits; it is income that is the same from month to month.

Gift Tax: Gift taxes are federal taxes that are imposed on property that is transferred as a gift. Usually paid by the donor, the first $14,000 gifted each year is considered to be exempt from this tax. For more information about gifting, please click here.

Inflation: Inflation is the increase in price of a product or service over time. In order to measure inflation, the government uses the Consumer Price Index.

Liquidity: Liquidity refers to how quickly and easily assets can be turned into cash.

Probate: When a decendent passes, probate is a process used by the court to handle their estate. Ultimately, it is the process in which the deceased's estate is settled and distributed.

Roth IRA: A Roth IRA is another account that can be used to save for retirement. This type of savings plan, which is a nondeductible IRA, permits tax-free withdrawals so long as certain conditions are met.

Volatility: Volatility is best defined as the range of price swings of a security or market over time.

Aside from these terms, are there others that you hear time and time again that you are unsure of? To learn the definitions for several other popular financial terms, be sure to check out our online glossary here. Of course, if you have any other specific questions, you can contact us at (516) 932-5130; our team would love to sit down with you and speak about several financial planning processes.

New Year's Resolutions To Help You Save Money In 2016

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Given the opportunity to start fresh in the New Year, like us, we know you may be starting to set goals for yourself that you'd like to see come to pass in 2016. But aside from the usual resolutions surrounding health and fitness, another important one is to become more comfortable when it comes to money.

If you're not sure where to start in this particular area, begin by making it a priority to save some - here are a few resolutions we have in mind:

Follow A Budget: Budgeting isn't just important during times of the year where heavy spending is involved (such as during the holidays). If you want to feel confident in your ability to keep track of your money and trust that you won't spend more than you can afford, you need to have a clear plan to follow.

Begin Investing: Placing some of your income in strategic investments can help you both now and down the line. Take retirement accounts for example - when you make contributions regularly, you're setting yourself up for success during a time of your life where your income may not be as steady.

Learn About Investments: If you're new to investing, you'll want to do your research before you make any final decisions about where you'll allocate your funds to. Even when you work with a financial planner like ourselves, it's important that you possess your own knowledge about each of your individual investments so that you know exactly where your money is going and how it all works. When you aren't familiar with this, there are much greater chances of you losing the money that you set out to save.

Eliminate Debt: Are you in the middle of helping your child pay back student loans or working on paying off your car? Should you have loans like these in your name, make it a priority to pay as much back this year as possible - the sooner you complete your payments, the less interest you'll get charged with.

Find A Financial Planner: One of the most important things you can do for yourself is schedule an appointment with an expert in the field, considering that they have all of the right tools and resources to help you develop a plan that can benefit you financially. At American Investment Planners LLC, we can help you do so through services such as retirement and estate planning!

Although it may seem overwhelming at first, saving money and becoming more financially stable can occur in a number of ways, and we want to help! For more information about our firm and how you can benefit from our guidance and advice, please give us a call at (516) 932-5130 today.

Retirement Tips For Millennials To Use Next Year

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

With a new year just a few days away, now is an ideal time for families to begin thinking about their financial planning strategies - by families, though, we certainly don't just mean the adults, we mean children too! Focusing on millennials, we simply can't stress enough how important it is to begin saving early, but unfortunately, we know that not all individuals in this age group have the right tools to help them get started. But that's what we're here for; below, we've listed a few tips that millennials can use in 2016 when it comes to saving for retirement.

Contribute To A 401(k): If an employer offers a 401(k) or similar retirement plan - use it. CNN Money recommends contributing at least 10% of your salary, but if that isn't feasible for your personal financial situation, just contribute as much as you can while still leaving yourself enough to cover your every day expenses.

Start Simple: Avoid spending too much time stressing over where you choose to invest - the specifics will come later. At first, focus more so on having a diverse portfolio. Still not sure what that entails? Contact us at (516) 932-5130 and allow us to help you figure it out!

Trust Yourself: It can be tempting to check your retirement account every week and see where your balance stands, but considering that the market fluctuates, you don't want to find yourself in a tizzy if you see your savings going up and down. After you've set up your retirement plan, let it be and only check in occasionally, unless you're meeting with your financial planner.

At American Investment Planners LLC, we believe that the ultimate test of a financial plan is the legacy you can pass on to your family and favorite charities, and getting a head start can help! If you or someone you know falls in the millennial generation, please give us a call to get started on a retirement savings plan today.

Tips For Teaching Your Children About Money

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

One of the most important skills a parent can teach their children is how to properly manage their money and how to effectively tackle any money related matters. And considering that money is a topic they will hear about throughout their entire life and something they will be responsible for, it's important to get them into good spending and saving habits from a young age. However, as your trusted financial planner, we know that talking to children about money can be a difficult feat, which is why we've put together the following tips for you to use when teaching them about it:

Let them make decisions: As a parent you may be inclined to stop your child from making a purchase that you see as unnecessary, however, allowing your child to make a mistake is one way to teach them the value of a dollar. If you give your child an allowance when they are young, let them make their own decisions on what they'll do with it, even if it's something you wouldn't recommend.

Have them tag along: Learning by seeing and doing can be an effective way to help your children get a good grasp on a lot of things. Specifically focusing on money, have your children tag along when you go shopping so that they can see first hand what you do with yours. For example, if you tend to seek out discounted or sale items, your children may be quicker to catch onto the value of doing so if they see you do it in person rather than just being told.

Set up a change jar: Whether you use a traditional piggy bank or empty jar that you have at home, give your children the opportunity to watch their money grow by saving. If they get an allowance, suggest that they put a certain portion in the jar each week. Similarly, if they do make their own purchase and have coins left over, suggest that they put it in the jar too! Over time, they'll have the chance to see their money increase (an exciting thing for people of all ages), which could encourage them to develop great saving habits.

Although we place much of our focus on financial topics such a retirement planning and estate planning, we understand just how important it is for children to set themselves up for financial success too. If you have questions about financial planning as it relates to your entire family, please give us a call at (516) 932-5130 to start speaking with one of our financial planners; additional information about our services can also be found on our website.

Three Major Money Mistakes You Don't Know You Make

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

We all want to know that we are financially stable both now and in our futures - that's a given. However, sometimes a financial struggle comes about as a result of our own wrong doing, even when it happens unintentionally or without us being aware of the cause. But since the mistakes that we make when it comes to our money could have negative long lasting impacts, we put together a list of three major ones to avoid below.

Not having a savings account: From your regular savings account at your bank to accounts such as a 401(k) or Roth IRA, you must have something in place that allows you to set some of your money aside for a later date. If you aren't contributing to a retirement account, you'll find that leaving the workplace is much more difficult than it needs to be. Similarly, if you don't have a savings account for emergency funds, you could put yourself at risk for not having enough to cover any unexpected costs.

Forgetting about hidden fees: Hidden fees are everywhere - at your bank, at your credit card company, even at your favorite local stores. When opening up any account where lending and borrowing is involved, such as a new credit card, don't ignore the information about interest rates and late fees. Furthermore, does your bank or 401(k) plan charge a monthly management fee for any of your accounts? If you aren't sure at the moment, you need to find out.

Leaving all your money in a checking account: To get the most from your money, it's important to take some of it and set it aside for investment purposes. But, when we keep it all in our checking account, we aren't giving it much opportunity to gain any interest or result in a financial benefit. Instead of leaving all of your money in a single checking account, ask your financial planner where you can put some that could lead to a monetary gain.

As a leading financial planner that offers a number of different services, the team at American Investment Planners LLC realizes just how much of an impact one small change can make when it comes to feeling financially secure. If you have any doubts about the approach you're currently taking when it comes to your money, give us a call at (516) 932-5130 to learn how we can help you develop a strategy that works in your favor. For more information, please visit us at www.americaninvestmentplanners.com.

Give The Gift Of Wealth This Holiday Season

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

With Hanukkah having just started and Christmas approaching, chances are you're thinking about all of the material items you need to run out and buy before it's too late. However, for those with an estate planning mindset and focus, there's another gift you may want to consider - a wealth transfer.

Did you know that you are permitted to gift up to $14,000 to any recipient of your choice without any tax consequence? To make things a bit clearer, this means that an individual can gift up to $14,000 to an unlimited amount of individuals over the course of the year as a means of distributing wealth from their estate. So long as you have enough income available for you to use for your own personal spending, this is one approach that allows you to give money away without the recipient accumulating much (if any) in taxes or fees.

But let's break it down a bit further. Below, we cover a few FAQs about wealth transfer and gift taxes:

Q: What is classified as a gift?

A: In this example, a gift is any transfer of money made to an individual where "full consideration is not received in return."

Q: Are gifts taxable?

A: Technically speaking, any gift can be considered a taxable one. But, there are several exceptions outlined by the IRS. For example, gifts that do not exceed the annual exclusion during any one calendar year or gifts that are made to your spouse are usually not viewed as taxable.

Q: If a gift is taxable, who pays it?

A: If the plan you've set up requires a gift tax, the donor is usually responsible for the payment. However, if the receiver agrees to taking care of the tax, adjustments may be made where the donor does not have to.

Q: Can gifts be deducted on tax returns?

A: For the most part, you cannot use the value of gifts as deductions on your tax return - the only circumstances where it can be done are if you are gifting money to charitable organizations.

For more information on this topic, please check out this article from the IRS.

At American Investment Planners LLC, our team of financial planners are extremely knowledgeable about estate planning and can help you develop a strategy that allows you to take advantage of gift giving in this way. To set up an appointment with us to get started and learn more, please call (516) 932-5130 today.

5 Financial Tasks To Complete Before The End Of The Year

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

With 2016 right around the corner, we know many of you may be coming up with your New Year's Resolutions. But before you can get into what you'd like to do next year, there are still a few things you need to take care of this year, especially where your finances are concerned. Below, we outline five financial tasks you need to complete before the clock strikes 12 on January 1st:

1. Speak to your financial advisor: Before you set any financial goals for next year, it's important to talk to your financial advisor to get their insight on what you should be working towards. You never know when new strategies may work in your favor, so make it a priority to sit down with them to learn if and how some of your financial plans may need to be changed.
2. Check your credit: Your credit could easily be affected by an error on your report, so you'll want to catch any before it's too late. If you haven't received a free copy of your credit report yet this year, make it a point to get it now so that you can check for any mistakes.
3. Make contributions: Have you made the maximum contributions to your IRA or 401(k)? In 2015, you are permitted to contribute $5,500 to your Roth IRA and Traditional IRA, and $18,000 to your 401(k). For additional contribution limits, such as catch-up limits and those specifically for the self-employed, click here. 
4. Analyze investments: What do your current asset allocations look like? Is there enough diversification in your portfolio? To set yourself up for the greatest benefit from your investments, you'll want to review your portfolio and see how your current choices are working out for you. If you realize that some aren't working in your favor, it's time to make some changes!
5. Review your taxes: Believe it or not, tax season is approaching rather quickly, which means it's time to start figuring out where you might be able to save. At this point, take a look at the income you received this year and review things like donations you may have made to learn what may qualify you for a tax break.

At the end of the day, it's extremely important to make sure that you always feel confident about where you are and where you're headed financially. If you went through 2015 without a financial advisor or team of financial planners working with you, make your number one task for 2016 to find one. Need a recommendation? Choose American Investment Planners LLC!

For more information about the financial planning services we offer, please visit our website or call (516) 932-5130 today.

How To Make More Room In Your Holiday Budget

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

It's no secret that the holiday season is one of the most expensive times of the year, and because of that, it's not unusual for people to do just about anything to make more room in their budget for gifts, travel and holiday activities. But while you may think you have to go completely out of your way to have some extra cash in your pocket at the end of each week, the truth is that you really only need to make some minor adjustments to a few of your habits - take a look below to see what we mean:

Make lunch: Whether it's for you to take to work or for your children to take to school, make lunch at home a few times a week rather than eat out. Even if your normal lunch routines aren't too costly, every dollar you save can be used to buy the number one item on someone's wish list.

Carpool: Whenever possible - carpool. Although gas prices have been a bit more affordable lately, the less you take your car out, the less you have to spend fueling up. If you have plans to attend a holiday party, see who you can catch a ride with. Or, if you have coworkers who live nearby, create a schedule that allows you to alternate driving responsibilities throughout the week.

Revisit home services: Do you get hundreds of movie channels but feel like there is never anything to watch? As we approach the New Year, you may want to revisit some of the services you receive and see if there's anything you can live without - if those movie channels just aren't cutting it and keeping you entertained, that's something you may want to part with!

Be energy efficient: It's easy to leave your cell phone or computer charger plugged in, but even though you may not be actually charging something at the time, electricity is still being used (ever hear of phantom power?). With most everyone having some type of device they can't live without these days - a cell phone, tablet, computer - this is something every member of the family can work on to reduce utility bills.

DIY: If you need some repairs done around your home before guests arrive, see what you can DIY before calling in an expensive contractor. While some types of work will certainly require a professional, if you can do some of the job yourself, you can save a lot more than you spend.

Aside from making more room in your holiday budget, are you interested in making more room in your weekly budget? Monthly budget? Yearly budget? If you have yet to meet with a financial planner about the best way for you to achieve financial success, it's time to do so.

For more information about the services offered here at American Investment Planners LLC, please give us a call at (516) 932-5130 or visit us on our website.

Frequently Asked Questions About The New Social Security Law

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

In the financial world, one of the largest pieces of news that broke last month was the new Social Security law. For those of you who are unfamiliar with the latest updates to Social Security claiming strategies, Congress recently eliminated file-and-suspend for married couples and the restricted application claiming tactic (a strategy that has been commonly used by divorcees). But since this topic can get pretty complex, we know that many of you may have questions regarding the new law and what this means for your future. That's why below, we're covering some FAQs about the changes; take a look:

Who is affected by the elimination of file-and-suspend?

Those individuals who have not reached 62 years of age by the end of this year (2015), or those who have not already started to file a claim will be affected by this change. If you will reach full retirement age within the next 6 months, you will have access to this benefit until Spring of 2016.

What is changing about restricted application?

Once the new law takes effect, only those individuals born on January 1, 1954 or earlier will be able to utilize the restricted application claiming strategy. If you are not 62 by the end of 2015, Social Security Timing says you will "automatically get the larger of the two benefits" (according to USA Today).

What is the next step for those who planned to use these strategies?

If you were banking on using file-and-suspend or the restricted application strategy, now is the time to speak with your financial planner about updating your retirement plan. Although these strategies may not be completely eliminated for you depending on your age, it's critical that you find out for sure before you assume that you will still be able to utilize them in the future. 

At American Investment Planners LLC, we understand just how much of an impact these changes may have on your plans for retirement. If you have additional questions about the new Social Security law or would like to speak with a financial planning expert about what changes must be made to your current retirement plan in order to receive the greatest benefit, please give us a call at (516) 932-5130 today. Also, don't forget to connect with us on social media, as we'll always share any new news we discover on this topic!