Tips For First Time Investors

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

While putting $20 in an envelope every week can help you save, investing is one approach that can really benefit us all financially. Yes, the markets swing here and there and can cause a bit of a stir, but when you look at the bigger picture, the benefits of investing might outweigh the negatives you may experience.

Let's not get too ahead of ourselves, though - investing is not something we can master overnight. As financial planning professionals with years of experience with various types of investments, we know that the process of investing can seem quite confusing at first. That's why today, we're here to provide some helpful tips for new investors and those investors who may not be familiar with how it all works. They are:

Have a long-term goal.

It would be nice to see our money double in just 24 hours, but that just isn't how it works. That said, all investors should have a long-term goal or two that they're trying to reach. While it's not a bad thing to have a short-term goal that you'd like to reach too, for investment purposes, it is more beneficial to focus on the future.

Don't believe everything you hear.

Your second cousin has had incredible success with investing, so you should do exactly the same thing, right? Wrong! Of course it's always recommended that you seek advice about the investments you choose, but unless that advice has come from a professional, it may not work out in your favor. If you're thinking about trying some strategies that your friends or family members have suggested, consult with a financial planner to see if that strategy is really right for you.

Take the time to research.

If investing is a topic you've never given much thought too before, it's extremely important that you do some research and learn some background information before making any major decisions. A good place to start is by learning the definitions of terms that you're going to hear a lot in conversation, such as what "stock" really is.

Prepare for market swings.

It can be scary to look at your investments and see them take a turn in the wrong direction, but you must know that this is normal. Just like you should be focusing on long-term goals, also focus on long-term results. It isn't unusual for investments to change drastically in a short period of time, and if you're constantly monitoring your total balance, it'll drive you crazy to see things going back and forth! But if you do insist on checking in regularly, avoid changing your investments just because you don't like the way things look right now.

Seek professional guidance.

Going into investing alone can be difficult - not to mention, you may not be doing the best that you can for yourself financially. If you want to make sure that you're taking the best approach to investing for your personal financial goals, sit down with a financial planner who can show you all of your options and really walk you through the why behind each strategy.

At American Investment Planners LLC, we've worked with investors of all ages and have all of the tools and resources needed to help YOU next. If you're ready to plan for the future and want to plan right, contact us at (516) 932-5130 or email info@americaninvestmentplanners.com to set up an appointment with one of our advisors today.

Weathering the Brexit Storm

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

On Friday, June 24, the global economy reacted to Britain’s unprecedented decision to exit (“Brexit”) from the European Union (EU) with disbelief and a feeling of uncertainty not experienced for decades. 

Initially sparking a rise in market volatility, the Brexit decision has also sparked concern for many American investors who are understandably unsure of how the change will affect their portfolios. Many are even considering hasty actions that may drive results in the short-term, but may not benefit them in the long-term. 

During this unclear time, it’s important to remember that your portfolio is globally diversified to get through times like these. We caution against reacting to what is likely to be short-term volatility. Our clients investing and saving for retirement and other long-term objectives should view the turbulence with an understanding that it is a short-term market disruption, not the state of the market for years to come. 

A market selloff is typically a buying opportunity or a reason to do nothing. At the end of the day, please remember that this is just the beginning of what will be a long process for the EU. The U.K. will gradually negotiate the terms of its exit over a period of two years and in the interim, will stay in the EU’s free-trade zone. Corporations doing business in the U.K. and the euro area will remain focused on revenues and profits.

Please give us a call at 1-866-932-5130 if you’d like to discuss the Brexit decision in greater detail.

5 Financial Tasks All Graduates Must Complete

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Attention all college graduates! Once the graduation parties are complete and the whirlwind that follows receiving your diploma starts to settle down, it's time to start thinking on a serious note. Especially for those of you that have student loans coming for you, one of the most important things you can do when you have some down time is think about your finances and how things are going to start to change at this point in your life. After you're done with that, start working on these 5 financial tasks:

1. Create a budget. Before you even think about spending money that you received as a graduation gift or from your first paycheck at your new full-time job, you need to sit down and create a budget. The days of aimlessly spending allowances and birthday money are long over, so it's time to get more strategic with your spending and saving.
2. Review your student loans. Ah, the dreaded student loans. If you feel overwhelmed just thinking about them, you most certainly need to set aside some time to review your account balances, interest rates, and repayment plan. You likely have a grace period following graduation where you don't have to make any payments just yet, so if you want to be in good shape when your first payment is due, you'll use this time wisely to really get a hold on things.
3. Start an emergency fund. You know what they say...always expect the unexpected. Knowing that life can take you in any direction at any moment, you'll want to have some money set aside so that if needed, you don't have to take money out of the savings you have for things like a down payment on a house one day.
4. Ask your employer about a 401(k). If you already have a job lined up, set up a meeting with your employer to ask about their retirement savings plan. On the other hand, if you're spending the next few months looking for your first full-time job, make asking about a 401(k) one of the things you do before the end of your interview.
5. Set up a Roth IRA. Roth IRA accounts are another type of retirement savings plan that all young investors should consider. The benefit of setting up one of these accounts is that although you pay taxes on the money you contribute, your future withdrawals are completely tax free.

Bonus task: Once you've gotten through tasks 1-5, your next step is to sit down with a financial planner to go over things like your retirement savings account(s), tax planing, estate planning and so much more. 

Not sure who to set up an appointment with? Choose American Investment Planners LLC! Although we are headquartered in New York, we have offices in Texas and Florida, and work with clients all over the country.

To start working with us, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

5 Ways To Avoid Debt While You're Young

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Until you become financially independent, it can be easy to spend or ask for money without thinking - if you don't have any bills to pay, your money is yours to do what you please, right? Maybe so, but unless you start adopting good financial habits early, getting used to this mindset can easily send you in the wrong direction, the direction that leads you to debt.

If you recently started college, graduated college, started a first job or moved into your own home or apartment, now's the time to really buckle down and make sure your finances won't wind up in the negative zone - here are a five ways to start doing so:

1. Avoid credit cards until you're really ready. Credit cards are important in the sense that they can help you build your credit and provide a safety net for emergencies, but they also make it tempting for you to go out and spend money that you don't have. Unless you feel like you can avoid this type of temptation, hold off on getting your first credit card until you feel like you are truly financially responsible.
2. Keep track of your spending. Knowing how much money is coming in and out is one of the easiest ways to keep yourself from going into debt - this is where creating a budget comes in. If you don't know how much money you owe in expenses each month (we're talking student loans, car payments, rent, etc), it can be very easy to spend too much recreationally and leave yourself with less than is needed to cover your bills. Bonus tip: when creating your budget, it doesn't hurt to overestimate your expenses and underestimate your income; in fact, it can really help.
3. Make yourself a schedule. If all of your monthly expenses aren't due on the same date, create a schedule that outlines exactly when all payments must be made. By being organized, you can prevent yourself from missing payments - remember that missing just one payment is all you need for things to spiral out of control.
4. Have an emergency savings fund. As soon as you can start putting some money aside for emergencies, do it. Even if it's as little as $5.00 a week or $25.00 per paycheck, having cash set aside for real emergencies can help you stay on track when you need to the most.
5. Talk to a professional. Financial planners are not just for those who have a ton of money to protect. If you want to really do everything that you can to avoid debt while you're young, you'll want to meet with a financial planner so that you can develop a strategy for how you'll pay down outstanding debts and save for the future responsibly.

If you don't already have a financial planner, contact the team here at American Investment Planners LLC! We pride ourselves on our ability to create strategies for any and all short and long term financial goals, and would love to be able to help you next.

To set up an appointment or to learn more, please call (516) 932-5130 or email info@americaninvestmentplanners.com today.

How To Pay Back Student Loans Quickly

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

It's one of the most common questions asked about the topic, and it's certainly one we've considered ourselves in our own personal experiences - what is the quickest way to pay back student loan debt, and how can you get started? 

If you recently graduated from college or will be graduating in the near future, student loans are probably something you're talking about, and today, we'd like to join in on the conversation by offering some tips on how to pay down your debts faster:

Tip #1: Make larger payments.
You'll have a monthly payment that is dependent on how many years you've allocated to paying back your loan, but that doesn't mean you can't pay more. If you can afford it, paying more than the minimum payment will help cut down your principal balance, which will ultimately help lessen the amount of time it takes to pay your debts back in full.

Tip #2: Create a plan.
Even if you have 10 years to pay back your student loans, that doesn't mean you can't create a short term plan for yourself - say three to five years. In fact, having a goal that seems more within reach time wise can actually make sticking to it a lot easier and more motivating. While you may need more than three to five years to pay back your loans in full, at least create a plan for how much you'd like to have paid back within that timeframe and go from there.

Tip #3: Start making payments early.
If you're still in school and can afford it, start making payments before you graduate. If that's too soon, try to start making payments right after graduation rather than wait until your first official due date. Even if you aren't sending much, the earlier you can start making payments, the more comfortable you'll feel once your grace period is over.

Tip #4: Pay more often.
Just because your payment is due once a month doesn't mean you can't send a payment once a week or bi-weekly. If it works with your budget, consider making a payment each time you receive a paycheck - this could even help knock down interest, since you're reducing the amount of time your loans have to accumulate interest in between payments.

Tip #5: Don't get trapped.
You'll probably receive a ton of offers in the mail about consolidating loans and other repayment options, but never let yourself get trapped into committing to something unless it really makes financial sense for you. For example, consolidating your loans may seem like a good plan, but what if the interest rate is actually higher than what you're already paying? Before making any final decisions, make sure you read through the fine print on any paperwork you receive, and speak with a professional financial planner about what strategy is right for you.

Speaking of meeting with a financial planner, the time after you graduate college is the perfect time to do so since you'll likely be ready to start thinking about things such as buying a house, buying a car, and even retirement. 

If it's time for you to map out your financial future, contact American Investment Planners LLC. Our team is made up of qualified financial planning professionals who have all of the tools and resources needed to help you create a plan that will benefit you down the line.

To get started, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

7 Myths About Your Student Loans

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Pay this loan first, pay that loan last, and don't worry about XYZ - what have you been told about your student loans through word of mouth that seems pretty believable? While a lot of what you've been told by reputable sources such as your college's financial aid office is likely true, between the internet and what your friends say, we bet you've probably heard a lot of things regarding your student loans that aren't true.

Since student loan debt isn't something you want to mess with, we're debunking 7 myths that might be sending you down the wrong path.

Myth #1: Student loans don't matter while you're in school.
Completely false! Although you aren't necessarily paying them back at the time, you need to be thinking about how you'll pay them back in the future. For example, some students might choose to get a part-time job so that they can save for their first few payments. Additionally, you should also be researching ways that you can minimize how much debt you take on each year, whether that be through scholarships or other forms of financial aid that you may be eligible for.

Myth #2: There is no one to help with student loans.
Truth is, there are plenty of resources you can use to help you with your student loans! One of the most valuable will be the lender - as they are the ones who lent you the money, they will likely have some of the best insight and answers to any questions or concerns you have. Next, there's your college - your financial aid office can be a great resource, especially while you're still in school and have questions about the loans you're taking out. Last but not least, there are professional financial advisors who have been trained in topics like this so that they can help you better understand your loans as well as create a strategy to pay them back.

Myth #3: You have to pay what the lender says each month.
While yes, you'll need to meet the minimum payment, that doesn't mean you can't work with your loan provider to reduce that payment or pay more than is required. Many lenders offer different repayment programs that can be adjusted based on how much you can afford, and in most cases, you can certainly pay a little extra to reduce how long it takes for your debts to be fully paid off. 

Myth #4: Declaring bankruptcy will get rid of your student loans for good.
Even if you declare bankruptcy, you'll still need to pay back your student loans eventually (with very, very few exceptions as a result of undue financial hardship). You don't want to declare bankruptcy if you don't have to anyway, since it could negatively impact your credit.

Myth #5: Extending the repayment period will make your loans cost less.
On a month to month basis, maybe yes as your minimum payment will likely go down. However, by taking on a longer repayment period, you subject yourself to more interest, which ultimately causes your loans to cost you more.

Myth #6: You should always consolidate your loans.
Student loan consolidation may make sense if it's going to lower your interest rate, but it isn't the right approach for everyone. Unless you read the fine print and know for sure, consolidating may actually wind up costing you more, especially if the interest rate is higher than what your current loan provider applies.

Myth #7: It's going to take forever to pay back your loans in full.
It may feel this way when you first see your account balance, but between the various repayment plans and help you can receive from your loan provider, you will be able to pay back your loans in a timeframe that works for you. The goal here is to be confident in your ability to pay back your debt - when you get into the right mindset, anything is possible.

Here at American Investment Planners LLC, we know that facing student loan debt can be hard to do, but we also know that with the right advice and guidance, it won't be so bad! If you have questions or concerns about your loans, contact us at (516) 932-5130 or email info@americaninvestmentplanners.com to set up an appointment with one of our advisors today.

How To Manage Your Student Loan Debt

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

It's not unusual for college students to push their student loans to the back of their minds during their years in the classroom. However, once graduation day comes and the months following start to fly by, the need to start paying back those loans becomes more and more real. 

As financial planning professionals who have gone through a similar experience ourselves (not to mention, we've watched many young adults go through the same thing, including our own children), we know that student loan debt can be pretty intimidating to face. The good news, though, is that managing student loan debt doesn't have to be as difficult as it seems, and that's regardless of how much you owe.

Five Tips For Managing Student Loan Debt

1. Know your loans. You would be surprised at how many students come out of college not knowing how many loans have been taken out in their name over the years. Don't make the same mistake - in the months leading up to graduation or right after, familiarize yourself with your account balance so that you know what you'll be facing once your grace period is over.
2. Choose an appropriate repayment option. The time you have to pay back your student loans may automatically be set up by your loan provider, however, the time that they suggest may not be the most realistic for you. To ensure that you aren't living out of your means, research the different repayment plans offered and, if need be, change yours to something that makes you feel more comfortable. 
3. Start with the highest interest rates. When creating a strategy for how you'll pay off your debt, start by looking at the loans with the highest interest rates. Especially if high interest rates are applied to loans with high balances, you'll want to pay them down as quickly as possible so that they don't cost you any more than necessary.
4. But don't forget about the principal. If you want to reduce how much interest you pay over the life of your loans, a common strategy is to focus on paying more in principal. This is because interest is determined by the principal amount, so the lower that is, the less interest you'll be charged.
5. Be open to communicating. Have questions about your loans or need help figuring out how to go about paying them back? If so, don't hesitate to reach out to your loan provider or other financial professional. Utilizing your resources and being open and willing to communicate can be the difference between paying your debt back on time (maybe even early) or making late payments.

Are you at the time in your life where student loans are about to become a monthly expense?  To figure out a financial strategy that will benefit you the most, email info@americaninvestmentplanners.com to set up an appointment with one of our advisors! 

5 Mistakes To Avoid With Your First 401(k)

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

There is certainly a lot that comes with starting a new job - adjusting to a new work schedule, meeting new people, traveling to a new place, and learning new skills. But aside from the obvious things you'll do and learn about in your first few days in the office, there's one topic that all new employees (especially millennials who are new to the workforce) need to inquire about - the company's retirement plan.

If you recently started a job where you'll be contributing to a 401(k) plan for the first time, below are a few mistakes you'll want to avoid in order to get the most out of your efforts.

1. Not contributing enough for an employer match.
Some companies are generous enough to offer an employer match, meaning that they'll contribute a certain amount of money to your retirement account so long as you do. If that's the case, absolutely take advantage of it - it's almost like getting free money if you really think about it! Since you'll likely have to contribute a certain amount to be eligible for a match, make sure you ask about the specifics before you submit your contributions.

2. Not knowing how long you need to be employed to receive the full benefit.
Just because your employer is contributing to your plan doesn't mean you're eligible to keep that money right away - there's usually a specific amount of time that you must be employed in order to become fully vested in the plan. That said, if you know you won't be at your current job forever, at least make it a priority to stay there until the time where all of your savings officially become yours.

3. Changing investments too frequently.
The market is going to change and your savings are going to fluctuate. And since this is so, you're better off not checking your account every time you get paid - if you do, you may be disappointed with short-term results and be encouraged to change your investments when you really shouldn't. Instead, make a schedule for when you'll check your account balance and stick to it - maybe once a quarter, once every six months, or perhaps even just once a year.

4. Failing to ask questions.
As a first time full-timer, you may not know too much about investments and that's absolutely okay. However, you shouldn't let a lack of knowledge sabotage your retirement savings efforts. If you aren't sure about the different investments offered by your plan and/or don't know how to allocate your contributions, seek the advice of a financial planning professional.

5. Cashing out before your time is up.
Unless you qualify for a hardship withdrawal, there's no reason why you should be taking money out of your 401(k) plan before you reach full retirement age. Even if you're leaving a job, there are ways that you can have your savings follow you and roll over into a new plan - all you have to do is ask about your options. When you cash out before you're truly eligible to, you'll subject yourself to various tax penalties and ultimately, lose earnings.

All that said, do you still have questions about how to approach a 401(k) plan for the first time? For access to advisors that have all of the answers you need, contact us at (516) 932-5130 or email info@americaninvestmentplanners.com to set up an appointment with the team at American Investment Planners LLC.

What To Do When You Receive Your First Paycheck

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Receiving your first paycheck from your first full-time job is probably one of the best feelings you'll experience once you enter the working world. However, all too often new employees are a bit too quick to go out and make rather large purchases because it appears that they can now afford them. Aside from encouraging you to not make this same mistake, though, there are two other things we'd like to make sure you do do once this day arrives - they are:

1. Review your pay rate. Your company's HR and Payroll team are only human, which means there is the potential for a mistake to be made when they enter your pay rate into the system. So, whether you cash your check yourself or have direct deposit set up, review the pay stub to ensure that the salary you were offered is an exact match to what you were paid.
2. Look over your deductions. From tax deductions to retirement deductions and any other deductions you may be subject to during a specific pay period, don't just assume that the money has been taken out correctly. Although everything is probably right, it doesn't hurt to look things over to double check - for example, if you contribute 5% to an employer sponsored retirement plan, make sure that it was 5% that was deducted for this purpose.

After you've gone over the specifics of your paycheck, it's time to figure out what you'll do with your new income. Like we said earlier, try not to do too much splurging unless it's really feasible for you - instead, try this:

1. Put money into savings. The age where you first take on a full-time job is likely the age where you're also going to start really figuring out your long-term goals, such as when and where you plan to buy a house one day. In order to achieve those goals, though, you'll need to have savings, so make sure you're setting at least some of each paycheck aside to help grow your bank account for things like a down payment.
2. Pay down debts. Especially if you're a recent college graduate, you're no stranger to debts such as student loans. Where it may have been difficult to pay them back before, use your new source of income to help yourself get ahead - if you can send just a little bit more than the minimum payment to your lenders, you can start to cut down the amount of time it will take for your debts to be fully paid off.

Finally, once you have a salary to start managing, it's always recommended that you set up an appointment with a financial planner as they can help you determine exactly how much of your paycheck you should be saving and how much you should be using for other purposes. Not sure who to call? Contact American Investment Planners LLC! Our team has faced many of the challenges you face and has gotten through them successfully, which makes us the perfect candidates to help you do the same.

To connect with our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com today.

Tips For Landing Your First Post-College Job

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

You've written papers, presented research findings and studied for hours, all for one very important day - graduation. With a degree in hand, you are now ready to showcase your knowledge and your talents in the field of your choice as you embark on the journey of starting your career. But first, there's the task of finding a job that will start that journey for you.

Since we know that searching for, and ultimately finding, your first post-college job can be an overwhelming task, we're here to make things easier for you - read on to learn our top tips for recent graduates on the search:

Understand the power of networking.
Although your skills and ability to complete a job are deciding factors in whether or not you're offered a position, the idea "it's about who you know" holds some truth as well. Start by creating professional relationships with those who have helped you during your college career - professors, advisors, even students - then begin creating a presence for yourself on networks such as LinkedIn so that you can connect with leaders in your field.

Participate in career fairs.
If you're having trouble finding potential jobs in your online search, don't forget how helpful career fairs can be. After all, career fairs are filled with potential employers looking for new talent like you, so it would be silly not to take advantage of them! Finding one in your area can be as simple as doing an online search, but if results aren't popping up, your college's career center may have a list of upcoming events for you.

Use social media responsibly.
Everyone knows what a big role social media plays in our lives today, and you can bet that it will follow you into your career. As you prepare to go on interviews, make sure that your social media profiles are an accurate reflection of you and also your professional goals - first impressions are everything, even when they happen online.

Remember to follow up.
Once you've found the job that you'd like to pursue, always remember to keep the lines of communication open. If you've been called to an interview, don't forget follow up afterwords with a thank you. If you've only submitted an application, consider following up with the person you've submitted it to to ensure that they got it. The more open and willing you are to communicate, the better off you'll be.

Still have questions about your first post-college job or other firsts that take place, such as your first post-college budget or maybe even how to prepare for your first apartment or home? Connect with us on social media to access all of our tips, or feel free to email info@americaninvestmentplanners.com to connect with one of our financial planners. You can find us on: Facebook - Twitter - Google+ - LinkedIn

Tips For Creating Your First Budget

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

As children and young adults, we're often guided by our parents and others that we look up to when it comes to money related matters. Take a weekly allowance, for example - while the money was technically yours, chances are you had your parents help in deciding whether it would be spent or saved. 

But now let's fast forward a few years into the future where it's time to start addressing financial matters on your own - even if you aren't responsible for rent or a mortgage, bills will start to come in for car payments, student loans and credit cards eventually. Are you reaching that point right about now?

If it's time to take things into your own hands, your first step should be to create a budget - here's how to get started:

1. Know your income. We're sure you're very clear on what your salary is, but you can't base your budget on your gross pay - rather, you need to focus on your net income. So, start by clearly defining how much your take-home pay actually is from all sources of income that you have.
2. List your monthly expenses. Once you know how much cash is coming in every month, make a list of all the expenses that will require you to send money out. During this step, you'll want to create two columns - one for fixed expenses (meaning they stay the same each month), and one for variable expenses (meaning they typically change). 
3. Add it up. Step three is to add up how much of your income will be used to pay bills so that you can figure out what you have left for savings or recreational purposes. If the numbers come up short and you find that your monthly expenses exceed your total income, see where you can reduce your spending (your variable expenses would be a good place to start). 
4. Pick your budgeting tool. Last but not least, you'll need to decide which budgeting tool works best for you. For example, will you use cash and create different envelopes for each expense? Or, will you use a software program specifically designed to help you better manage your money? This decision is completely up to you, but if you have trouble deciding, your financial planner can help you figure out what works best for your current situation and financial goals.

As a team of experienced financial planning professionals, we want you to remember just how powerful a budget can be - it's an extremely effective way to stay on top of your money and set yourself up for a successful financial future!

If you're in a place where it's time to create your first budget for yourself and need some assistance, we would be happy to help! To set up an appointment with us, call (516) 932-5130 or email info@americaninvestmentplanners.com today.