Tax Mistakes You Need To Avoid

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Considering that tax season is in full swing and is something we are heavily involved in, we'd like to share as many tips and as much information as we can to help you get through April 18th without any major hiccups - that includes sharing some common tax mistakes. Below, take a look at some tax no-nos that many of us are guilty of doing, then make a commitment to avoid them yourself:

Procrastinating: We all lead busy lives, and we know that finding time to make an appointment with your accountant can sometimes seem impossible with everything else you have going on. But procrastinating is not the answer when it comes to your taxes. If you wait too long, you could risk missing the deadline and therefore face some hefty penalties.

Assuming: Although it would make things much less complicated, it isn't safe to assume that deductions, exemptions or any other number from your tax return last year will stay the same. Even if for the most part this year's numbers are an accurate reflection of last year, you'll want to make sure you look over everything first since any changes or updates could have a substantial impact on your return.

Forgetting documents: We're sure you've heard that your W-2 form from your employer is one of the most important documents you need, but keep in mind that it may not be the only document you need. For example, if you receive an income from additional sources, you may need to report it on a 1099 form. If you aren't sure which forms you need, take a look at our tax library or contact us for more information.

Failing to check things twice: Whether you're filing your taxes yourself or are working with a professional, always be sure to check over everything more than once. Minor math mistakes or errors in your name (if you recently got married, for instance) can make big differences, so don't just assume that everything is correct without checking.

Not making updates: Changes to your household status such as children moving out or in must be reported - not making these updates could cause you to over or under pay in taxes, neither of which you want to have to deal with. If you have a unique living situation or are unsure if you can still claim your child as a dependent, be sure to contact a financial planner like ourselves.

So what's the secret to a successful tax filing process? Don't go through it alone! By working with a tax planner like those here at American Investment Planners LLC, you don't have to worry about all of the intricate details - we'll take care of everything for you, which means you can also rest assured that everything will be done right the first time.

To learn more about our tax planning services and how we can help you get through tax season this year, please give us a call at (516) 932-5130.

Tax Tips For Newlyweds

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

If you said "I do" last year, then we'd first like to start off by offering our congratulations! Marriage is an incredible journey for you and your loved one, and we are confident that you will make a lifetime full of memories as you embark on it together. But along with all of the good that comes with tying the knot, there are a few other very serious matters that need to be addressed, starting with how your taxes may be affected. Below, let's take a look at some of the most important things you need to keep in mind where your taxes are concerned at this point of your life:

Update Your Name and Address: Any names and Social Security numbers on your tax return must be an exact match to the Social Security Administration's records, so if you've changed your name and have yet to let them know, do so now. To access the appropriate forms for filing a name change with the SSA, be sure to visit ssa.gov. For address changes, let the IRS know of your update by filling out IRS Form 8822 or visiting the post office. For additional questions or concerns regarding name and address changes, don't hesitate to contact a tax planner like ourselves!

Know Your Filing Status: If as of December 31st you were married, even if it has only been for a short period of time, you are looked at as being married for the whole year when it comes to your taxes. That said, you and your spouse will need to decide if you are going to file your federal income tax returns jointly or separately. If you aren't sure which approach will result in the best benefit for you, speak with an experienced tax planner.

Edit Your Tax Withholding: To change your withholding, you'll need to submit a new W-4 form to your employer. Although now having a combined income from you and your spouse could catapult you into a higher tax bracket, you may find that filing together will lessen your tax liability, making this a better option for you. Again, to determine what will work in your favor, sit down with your financial planner so that you can weigh all of your options.

Since many of life's greatest events, such as marriage, can result in a few financial changes needing to be made, it's important that you have a team of people that you can trust to inform you of what needs to be done and help you make educated decisions when needed. If you're currently without a financial planner, it's time to give American Investment Planners LLC a call - especially considering that tax season is here.

For more information about our tax planning and other financial planning services, please contact us at (516) 932-5130 today.

Above information courtesy of Emerald Connect.

Financial Mistakes To Avoid At Different Ages

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

As we go through life, we are bound to come across different situations and circumstances that require us to make some financial decisions. However, considering that our age influences those situations and therefore the decisions that we make, it is important for us to be aware of how what we choose to do and how we choose to act can impact us at different stages of our lives. Below, we break down some financial mistakes that you should avoid during different decades of your life.

Your 20s

This is likely the time in your life where you'll begin working your first full-time job, and therefore receive your first full-time paycheck. With this new kind of income, it can be pretty tempting to feel like you're on top of the world and spend more than you can actually afford. So, avoid living out of your means so that you don't wind up with debt at an early age.

At the same time, it's also crucial that you begin saving for retirement because not saving will only set you back. The earlier you get started, the better off you'll be.

Your 30s

At this stage, you might be considering marriage if you haven't already, meaning you and your soon-to-be spouse might also be looking into buying a house. Especially when it comes to your first house, don't buy something that you can't afford, even if it's only slightly over budget. If you get into a habit of assuming that things will just "work themselves out," you could wind up in trouble financially down the road.

While you're in your 30s, it's also crucial that you don't forget about insuring yourself. We all like to think that we're in the clear when it comes to unexpected circumstances, but life can throw a ton of twists and turns at us so we need to be prepared - that means, start looking into life and disability insurance.

Your 40s

By now you might have children that are getting ready to think about college, and we all know that tuition isn't cheap. But as much as you want to help your children cover the cost, don't forget about what you need to do for yourself financially, such as continue to save for retirement.

In your 40s it's also easy to get wrapped up in what others around you have - your neighbors, your children's friend's parents - but don't try to keep up with everyone. Always remember to be your own person, and again, live within your means.

Your 50s/60s

Retirement is almost here, so you'll need to keep this in mind when making any decision that requires your finances. For example, if your child asks you to co-sign for something, don't do so without really thinking about if they can afford the payments. Why? Because if they can't, you'll wind up responsible, which could cause you to dip into your retirement savings.

Lastly, also don't forget to calculate your retirement income. You absolutely should know how much income you'll have each month, both from your own savings and outside sources, so that you can figure out a living situation that works best for you and your family.

Here at American Investment Planners LLC, we know that your life is going to be full of decision making where your finances are concerned, and we want to help you make sure you're making the right ones. For more information about our financial planning services, which include, but are not limited to, retirement planning, estate planning and tax planning, please give us a call at (516) 932-5130.

Above information courtesy of Emerald Connect.

Consequences Of Not Filing Taxes On Time

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Though we have many responsibilities in life that need to be tended to in a timely manner, one that stands out to us the most is filing your taxes. As citizens, it is our duty to ensure that we abide by Uncle Sam by April 15th (or April 18th in this year's case), and even though you have several months to complete your tax returns, surprisingly enough there are always a few who come close to missing the deadline. But it's not that big of a deal, right? Wrong! Here are a few of the major consequences you'll experience if you don't file on time:

Late fees: Many of us look forward to receiving some type of refund after filing taxes, but those who don't meet the deadline will wind up costing themselves more. Not to mention, for those who owe the government money, that amount will only increase the longer things are put off. In fact, for every month you don't file your tax return, the penalty is usually 5% of the unpaid taxes you owe.

Delayed payment: If you're expecting a refund, we bet you'd like to see that money deposited into your bank account as soon as possible. But, if you delay your job of filing on time, the government will delay their job of getting your refund to you.

Legal action: Failing to file or send the required payment to the government on time results in more than just warnings, it could even lead to legal actions being taken on your behalf. Depending on how much is owed, you may find that your wages are garnished or that certain assets are taken from you - you may even see a representative from the IRS come knocking on your door.

Although these are just three consequences of failing to file on time, they are three that you certainly want to avoid, which is why it's time to make an appointment with a certified financial planner to go over your taxes! To learn how we can help you get through tax season smoothly, or for more information about the certified financial planners we have on staff, please visit us on our website or give us a call at (516) 932-5130.

How To Organize Yourself For Tax Season

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Although the tax deadline is a few days later than usual this year, it's still important that you get yourself prepared to file early on. By getting organized ahead of time, you can reduce the chances that you'll feel frazzled and overwhelmed the day before you meet with an accountant to submit all of your paperwork, and you can prevent yourself from having to deal with harsh penalties that are applied to late returns.

So what's the best way to get ready? Below, we describe a few strategies that you can use to put yourself in a good place:

Review last year's information: The best place to start is by looking at last year's tax return and/or files that you used to determine which documents are going to be of importance. Chances are anything that came in handy last year will do the same this year, so instead of having to dig through paperwork a mile high at random, figure out which exact documents might come into play so that you can begin looking for those first.

Set deadlines: Even though there is a universal tax deadline in place, set some other deadlines for yourself to help you stay on track. For example, set a deadline for when you need to make an appointment with an accountant (if this is the method you choose to file), then set another for when you need to have all of your paperwork in order. 

Choose hard copy or digital: While some people prefer to have everything written out by hand and stashed away in physical folders, others have taken to the digital realm and prefer to keep copies of documents and the like on their computer. So, decide which works best for you and then begin setting things up. If you prefer to be hands on, consider getting a filing cabinet where you can neatly organize receipts, bank statements, paychecks and other similar items. On the other hand, if you prefer to work in front of a screen, set up some digital folders or a spreadsheet to help you keep track of expenses and financial documents.

Find a work space: Regardless of whether you like to look at hard copies or digital copies of documents, you need to have a clear space to work in when it comes to getting things ready. With that said, find a space in your home that is relatively free of distractions and clutter so that you can concentrate when working. When you sit yourself down in a high-traffic area such as your dining room, it can be pretty easy for physical copies to get lost with the mail or other general paperwork, and it can certainly get noisy.

Considering that missing the tax deadline is something you want to avoid, it's extremely important that you begin getting organized now! Which of the above strategies will you use to do so?

Here at American Investment Planners LLC, we understand that tax season can be a pretty tricky one, which is why we want to help you get everything sorted out on time! For detailed information about our tax related services, please call (516) 932-5130 or email info@americaninvestplanners.com.

How To Handle Your 401(k) When You Change Jobs

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Although some people are fortunate enough to find a job that they can excel and grow in at the start of their career, many others experience a job change at least once during their time in the workforce. But when the position being left had offered a 401(k), what is one to do with the money that has been invested and saved? Below, we offer some advice on how to handle your 401(k) as you begin a new journey in a new job:

Leave your money where it is: Even if you will no longer be a contributing employee, some employers may allow you to keep your money in their 401(k) plan. However, if this is the option you choose to use, ask your previous employer for all of the rules, regulations and policies regarding the plan, as you may be subjected to some new management fees or have different withdrawal opportunities.

Roll your money over: Should your new employer allow you to roll over previous 401(k) funds, this may be the right option for you as it will allow you to keep all of your retirement savings in the same place - past and future. But, like we said in our previous tip, there may be different rules that apply to rolling over savings, so speak with your new employer to learn which do and do not apply to you if this is the approach you choose.

Open an IRA: If you don't have the opportunity to roll your savings into a new 401(k) plan yet, or if your new employer doesn't offer a 401(k) plan at all, consider opening up an IRA account and place your previous savings in there. Just like in a 401(k), your money can grow on a tax-deferred basis in an IRA, and you may even find that more investment opportunities are presented to you.

Avoid cashing out: As you work out the details on how you'll continue to save for retirement, the one thing you shouldn't do in the meantime is take out what you've already saved. Not only will doing so put you back to square one in your retirement saving efforts, but unless you've reached retirement age, you'll have penalties to deal with.

As you weigh your options, your best bet is to meet with your financial planner, since they know your financial goals and can therefore determine which solution is best for you depending on the opportunities available. Here at American Investment Planners LLC, our financial planners are dedicated to learning all about your investment philosophy and financial needs, so we can create a retirement planning strategy that brings you success even when you accept a new offer of employment.

For more information about our retirement planning services, please call (516) 932-5130 today.

What To Do If Your Company Does Not Offer A 401(k)

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

After the initial interview is done, one of the most important questions prospective employees seek an answer to is whether or not a company offers a retirement savings plan such as a 401(k). For those that do, you're in good shape, and there is no good reason why you shouldn't take advantage of it. But for those that don't, what's your next step? Are you to just turn down the job and look elsewhere? Not necessarily, there are plenty of other ways that you can start saving for retirement, and here's how:

Contribute to a Roth IRA: Roth IRAs are similar to traditional IRAs in the sense that they have the same contribution limits; however, they are taxed differently. The funds that you contribute to Roth IRAs are after-tax dollars, but when you withdraw any amount during retirement, it is done on a tax-free basis.

Use direct deposit: A huge benefit of a 401(k) account is that you don't even really see the money you contribute until it's time to take it out - your contributions are automatically deducted from your paycheck before it's handed to you. Therefore, the effort on your part to save is pretty minimal. The good news? You can mimic this on your own by setting up a savings account (such as an IRA) where a portion of your paycheck can be deposited through direct deposit. Just like with a 401(k), you won't have anything to miss because you won't have to actually transfer funds yourself.

Open a myRA: A myRA is a new type of Roth retirement account that was established back in 2014. In these accounts, the money you save is invested in government securities that will not lose their value. The maximum account balance for this type of plan is $15,000, and you may contribute up to $5,500 each year if you earn less than $129,000 (for individuals) or $191,000 (for married couples).

Have a savings account: Although this will require you to do some money transfers on your own, a savings account is a great way to get started with planning for retirement. Each pay period, determine how much of your paycheck you can live without and transfer it from your checking to your savings account - just make a promise to yourself not to touch it! Since you can withdraw from this type of account at any time it may be tempting, but with a little will power, you'll see things start to add up.

All that said, our best piece of advice if your company does not offer a 401(k) is to meet with a financial planner who can provide you with a strategy that works best for your current financial situation. While a savings account may work for some, a Roth IRA might work better for others, and a financial planner can help you figure out what's right for you.

To learn about the retirement planning services we offer here at American Investment Planners LLC, please give us a call at (516) 932-5130.

How To Prepare Financially For The Birth Of A New Child

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Whether you're a first time parent or a grandparent to-be, there's nothing like planning for a baby's birth - you get to pick out a name, clothes, furniture, and of course, the stuffed animal they'll carry around with them for the next several years of their life. But aside from all of the fun stuff that comes with preparing for your baby's birthday, there are also some pretty serious topics that need to be addressed, starting with money - according to an article from MarketWatch, recent findings suggest that the average cost of raising a child is over $245,000, and that's without college tuition or considering a child's needs after age 18.

Knowing that a child can be pretty costly, we are providing a few tips to help you prepare financially:

Find The Right Health Insurance: The cost of being pregnant alone is something that mustn't be overlooked - medical bills that result from multiple doctor appointments and the birth of your child itself will certainly add up before or right after your baby arrives. With that said, you need to do some serious thinking when it comes to the health insurance you currently have, and if it isn't going to help much with the costs, consider looking into any other plans you have available to you.

Talk To Your Employer: Even if your company offers maternity/paternity leave, you have to remember that this won't last forever, and there may be circumstances where you need some additional time off. Unless you have additional sick or personal days that you can use to spend time with your new baby, it would be in your best interest for you and your spouse to talk to your employers to learn if there are any other parental leave policies in place.

Re-evaluate Your Budget: The budget that you and your spouse once followed is likely going to have to change, but the time to figure that out is not after the baby is born - you need to start implementing new spending and saving habits well before then. With baby food and baby supplies about to be on your shopping list, you may find that you need to cut back in other areas or add more to your savings accounts while you still can.

Start Thinking About Opening Accounts: To ensure that your child has the funds they need as they get older (for college, for instance), you may want to consider opening a savings account or two in their name right after they're born. Some possible accounts include a 529 plan, a UGMA or a UTMA. Saving from a young age is extremely important, and since your baby won't be able to do so on their own just yet, it's helpful for you to give them a head start by opening an account like these as soon as you can.

Welcoming a new baby is certain to be one of the most exciting times in a parent's life, but it can also be overwhelming if the proper planning isn't done. But we want to help! Here at American Investment Planners LLC, we help families plan for all of life's greatest events and milestones, and we would love to be a part of your pre-baby planning experience.

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

Meet Steven Hoffman: Vice President of Investment Services

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 of our experts individually. Today, we would like to feature Steven Hoffman, CFP, our Vice President of Investment Services!

Joining the American Investment Planners LLC team over 15 years ago, Steven has worked alongside Lee Rosenberg, CFP in both our Long Island and Florida offices. With a resume that includes over 35 years of experience working in securities, annuities, insurance, retirement and estate planning, he contributes more than we could have ever asked for to our firm and has helped us grow and become the financial planning team we always aspired to be. In 2007 and 2009, he was named one of America's top 100 independent advisors by Registered Representative magazine, and currently manages portfolios for both individual investors and business owners.

Throughout his career, Steven has worked to help each of his clients face a number of financial challenges while striving to provide them with the financial stability they are looking for. Part of his strategy includes reviewing his client's portfolios on a quarterly basis and scheduling conferences when needed to address any questions or concerns they have regarding their financial future. 

When asked about his role and experience with American Investment Planners LLC, Steven notes that something he values most about our firm is that we are dedicated to maintaining personal connections and relationships with each client. As a financial planner for families, all of our staff works day in and day out to make sure we know everyone's name, circumstances, investment philosophy and more so that we can create a plan specifically tailored to their needs.

Although working to provide his clients with the best strategies and financial plans possible is a priority for Steven, when he isn't busy in the office, you can find him golfing or spending time with his wife Bonnie and his grandchildren. 

Steven - we are so grateful to have you as our Vice President of Investment Services. You are such a valuable asset to our team and have done so much to help us continue to provide the best financial planning services possible.

For more information about Steven, please check out his employee bio on our website!