Your Guide To Stock Market Volatility

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

People enter the stock market with the hopes that they'll see a positive return and make some money, so it's only natural for investors to want to get rid of stocks that are performing poorly. However, considering that investing is a long-term strategy, it's important to understand that stocks probably aren't going to perform the same week after week, month after month, and/or year after year. Not to mention, there's no way to truly predict performance either!

Despite the facts, though, we know that new investors may be especially tempted to completely re-do their portfolio when the stock market is volatile. But since this isn't recommended, here are some tips that can help get one through an economic event like this:

Understand what you're getting into.

The best thing you can do for yourself before you begin investing is to be prepared for unexpected market swings. It is not one bit unusual for a stock to go down one day and then skyrocket up the next, or vice versa - if you're prepared for this, it won't seem so bad.

Remember your goals.

There's no reason to not have short-term financial goals, but keep in mind that investing is really ideal for those who have long-term goals they're hoping to achieve. Just because a stock starts performing poorly in your twenties, certainly doesn't mean that it won't become a desirable stock by the time you hit your thirties - everything has its ups and downs!

Make changes only when necessary.

Again, just because a stock performs poorly one day does not mean you need to immediately make changes to your strategy. However, that also doesn't mean that you shouldn't make any changes at all. For example, if you have new financial goals for yourself or your tolerance for risk begins to change, it's okay to adjust your investment strategy to accommodate that.

Have a financial advisor.

Investing can definitely be tricky, which is why you should always work with a professional to determine how you should approach things. Not only can a financial advisor help you best figure out which investments you should put your money into from the start, but they can also provide you with informed updates about the stock market as time goes on and help you understand what's happening and what to expect/do next.

If you are currently without a financial advisor and would like to begin investing, make it your first priority to get in touch with one. We'll make it easy for you - just give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com! We are staffed with highly experienced financial advisors and have worked with generations of families all throughout the country on their financial plans.

To learn more about our specific services, please visit us at www.americaninvestmentplanners.com today.

Understanding Down Payments On Your First Home

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Although we wish it were, saving up to buy a house isn't as easy as working towards having enough money to just pay the mortgage each month - there are various other upfront costs that need to be saved for too, such as the down payment. 

What is your down payment?

Unlike closing costs that are separate fees, your down payment is a percentage of the total cost of the home - that means that what you put down directly effects how much money you wind up borrowing from the lender. As you may have guessed, the more you put down the less you borrow, which likely means a lower mortgage payment for you.

So how much should you save?

Typically you'll need at least 3%, so whatever you expect your budget to be, use 3% of that number as a good starting point. For FHA loans, expect to put at least 3.5% down. However, although these are pretty standard, a lot weighs on your credit - your minimum down payment could be 5%, 10%, or even more than 20%, depending.

What is PMI?

As you start talking with lenders and sellers, a term you'll hear is PMI, which stands for private mortgage insurance. This is an additional cost that is added and results from putting down less than 20% of the home's purchase price. That said, if you want your monthly mortgage payment to be as low as possible, you should aim for having 20% of your budget saved up for a down payment to avoid this extra monthly expense. 

Bonus tip: Although PMI is normally paid each month, some insurers will give you the option to pay an upfront premium when the loan starts. So, if you plan to put less than 20% down, see if you can save a little extra to cover the PMI cost at the beginning.

Does my down payment influence my interest rate?

The amount of money you put down could have an impact on the interest rate you're given for a loan - for example, a higher down payment could result in a lower interest rate. However, like many things in the financial world, this too could vary depending on who you work with and other factors such as your credit.

Are you thinking of purchasing your first home soon? If you're hoping to become a homeowner but haven't gone through the process of buying before, it's important to understand as much as you can about down payments, closing costs and more before you jump into making any decisions. 

To learn more about topics like these, or if you have specific questions that you'd like answered, please contact the American Investment Planners LLC team at (516) 932-5130. Our advisors are not only trained to help, but they've also gone through similar experiences, so they are the perfect resource!

Connect With American Investment Planners LLC On Social Media!

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Are you just about to start your first post-college job and have questions about your salary and what you should be doing to start saving for retirement? Or, are you at an age where you're comfortable with your finances and would like to start investing? Maybe you're even at the point where retirement is closer than it seems and need to figure out how things are going to change in just a few years.

No matter your current financial situation, and regardless of what goals you're starting to set for yourself, the team here at American Investment Planners LLC has the knowledge needed to put you on a path to success. We take great pride in our ability to work with generations of families and provide them with the individual attention they deserve, along with the investment products and services they need.

In addition to working with our clients in person on their investment portfolios, estate plans, retirement strategies and more, we also feel it's important to share our knowledge on popular topics in our industry with anyone who needs it. That's why we're so active on social media! Between our blog and our other social media profiles, we're constantly sharing financial planning tips and information for people of all ages - you can find us here:

Facebook

Twitter

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LinkedIn

If you haven't already connected with us on any of the above, or if this is the first you're hearing of our blog, we encourage you to make note of where you can find us online right now! By following us on our social media profiles and checking our blog regularly, you'll have access to all of the financial information you need.

Ready to get started? Click on the links above to be taken to each of our profiles - we hope to connect with you soon!

American Investment Planners LLC offers various financial planning services to help clients prioritize their goals and achieve financial security. Services include, but are not limited to, portfolio and asset management, estate planning, retirement planning, and taxes and accounting. For more information, call (516) 932-5130 or email info@americaninvestmentplanners.com.

3 Reasons Why Good Credit Is So Important

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

From the moment we enter school as young children we're taught that numbers are important, especially when it comes to our grades - final exams, SATs, mandated state exams, and then finally our college GPA. But what people often fail to stress the importance of is how numbers affect your life after school, and specifically, how they impact you financially.

This is where credit comes in. We all have a credit score (which is determined by factors such as payment history, the amount of debts owed and the length of credit history), and in order to achieve certain things and make certain purchases, the number associated with our name needs to be one that indicates that we are financially responsible. Below, we're breaking down some of the specific reasons why having the right credit score is so important:

1. It affects interest rates. Hoping to become a homeowner? Not only does a poor credit score hurt your chances of being issued a mortgage, but it also makes it more likely that you'll have a higher interest rate if you're approved. Essentially, that means you put yourself at risk for having a higher monthly payment.
2. It can affect your employment. Depending on the field you are trying to enter, some employers may complete a credit check during the hiring process. Similarly, if you are being considered for a raise or a high-level promotion, some may choose to check your credit score to see just how financially responsible you are.
3. It affects homeowner expenses. Believe it or not, companies that provide service to homeowners and/or renters (such as cable companies and electric companies) often check your credit to learn about your financial history. Although these companies aren't lending you money directly, some see it as lending you a service each month, which makes it important for them to be able to trust that you will pay for what was provided.

While there are ways to bounce back from having a poor credit score, it's also important to realize that your history will follow you - that's why you need to work on establishing good credit as soon as possible!

Have questions about how to do so? Contact the advisors here at American Investment Planners LLC, and connect with us on social media/review our blog regularly - we update our profiles with financial tips like these as often as we can!

How To Start Building Your Credit

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

If you've ever sat with someone as they applied for a credit card or loan or you've tried to do so yourself, then you likely have a good understanding about how important credit is. Ultimately, in order for a lender to determine whether or not you're a dependable borrower, they're going to look at your credit report and score to learn about your payment history, your outstanding debts, and so much more.

Now, for those who are just taking on their own financial responsibilities for the first time, a common question is how can you get your credit score where it needs to be? This certainly makes sense, considering that without any credit history lenders may be more hesitant to hand out a loan - and that, as you may know, turns into one big vicious cycle of trying to establish credit in the first place.

We have good news for you today, though - there are plenty of approaches that you can take to begin building your credit and get it to where it needs to be in order to qualify for car loans, mortgages and more; some include:

1. Apply for a secured credit card: since secured credit cards require the borrower to put down a cash deposit, these can be much easier to get when you have no credit history to prove your dependability.
2. Apply for a student credit card: lenders know how important it is for young adults to start building credit, which is why many will offer credit cards specifically for this age group.
3. Ask to be an authorized user: if mom or dad feels comfortable, having your name listed as an authorized user on their credit card can help establish some credibility for yourself.
4. Make your payments on time: once you're approved for a credit card or have other debts in your name (such as student loans), make sure you're sending payments in on time, 100% of the time.
5. Keep credit card debts low: just because you're approved for a credit card doesn't mean you should max out your spending limits. In fact, it's recommended that you keep your balance at or under 30% of your credit limit.

Like we said earlier, having good credit is extremely important in order to take on larger financial responsibilities in the future, so if you have yet to do anything to build yours, start today!

Still have questions on how to do so? Contact our team by calling (516) 932-5130 or email us at info@americaninvestmentplanners.com. 

The Truth Behind Stock Market Myths

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Like it would for any subject, word-of-mouth can have a large impact on whether or not people decide to get involved with the stock market - "this can happen, that can happen, and you'll definitely want to stay away from that." But while some of the widely accepted beliefs have some truth to them, there are also a lot of beliefs that turn people away when they simply don't have to.

Thanks to NASDAQ, today, we're here to clear up some confusion and share the real truth behind a few of the most common stock market myths - take a look below.

Myth: Investing is the same as gambling.
Fact: Having a share of stock means to have ownership in a company - at the end of the day, it allows the share holder to have a "claim on assets as well as a fraction of the profits that the company generates." With stocks, there is value created each and every day. On the other hand, NASDAQ refers to gambling as being a zero-sum game, where there isn't ever any value created. Essentially, gambling results in money being taken away from one person and handed over to another. When you really assess the difference between the two, it is easier to understand that the value that can be provided through investing does not compare to the chances you take when gambling.

Myth: Only brokers and the very wealthy make money through the stock market.
Fact: It doesn't matter what class you fall into or how much experience you have, the stock market provides opportunity for everyone. Especially since the Internet was developed and more people started to gain access to information about investing and the stock market, it has become much easier for people to view the data they need and access the resources they're looking for to help them understand how it all works. In fact, NASDAQ explains that individuals may even have an advantage over institutional investors since they can more-so afford to focus on long-term goals. Thus, no, the stock market is not just for certain groups of people.

Myth: What goes up, must come down.
Fact: This may be true in terms of gravity and physics, but you cannot carry this same principle over to the stock market. Ultimately, the reason that a stock does good or bad has to do with the company - if the company is run well, why wouldn't stock continue to go up? While this isn't to stay that a stock that goes up will never come back down, you would be doing yourself a disservice to assume that a negative turn of events will always follow a positive one.

As professionals in the financial planning industry, we know that there is a lot to understand about the stock market and investing, and we know that it can be quite confusing unless you've studied it all for a long time. That's why we want to help!

Whether you're just about to get your feet wet in stocks or have been investing for years, allow us to work with you on developing a strategy that can provide you with a financial benefit in the long run.

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

Investing involves risk, including the possible loss of principal. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.

Why Does The Stock Market Fluctuate?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

You don't have to be a seasoned investor to know that stocks go up and down - just listen to the news or walk through Times Square in New York City and view the board with all of the stock market updates. But despite the fact that this is normal and something all investors should expect, a common question surrounding the topic is why? Why is it that stocks continue to go up and down every day, each week, and so on and so forth?

Truth is, one of the main reasons that the stock market fluctuates is because of an idea that you're probably familiar with - supply and demand. Essentially, when there is more demand for a stock and more people want to buy it than sell it, the price will naturally go up. On the other hand, if more people are trying to sell a stock than buy it, the price would be expected to fall.

Now we know your next question - what makes people want to buy or sell a particular stock? Ultimately, investors look at a company and try to determine its worth before deciding if it's the right company to invest in - for example, they may consider if there has been positive news or negative news surrounding the company lately. In this case, one of the main things that investors consider is a company's earnings. Companies that go public must report their earnings once each quarter, which is how investors can get their information about whether or not a company is on a good path or a bad path.

Although these ideas are some of the top contributing factors to why the stock market fluctuates, keep in mind that no one can really say for sure why stocks change and at the frequency that they do.

If you're new to investing, we know that the cause behind stock market fluctuation can be confusing despite the amount of research you do on the subject. That said, we want to help clear up any questions you may have about the stock market, as well as work with you to figure out an investment strategy that will work in your favor!

To get started with an advisor here at American Investment Planners LLC, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com - we'd love to hear from you!

Things To Consider Before Buying Your First Home

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Growing up, most, if not all, of us go through a stage where we play "house" and pretend that we have our own home to manage and take care of. And though it may seem like just a game to us when we're younger, it quickly becomes reality once we reach adulthood and start to seriously start looking into purchasing a home of our own.

Let's cut right to the chase - buying a home is a huge decision that certainly requires a lot of careful consideration. That said, if you're at the point where you're starting to think about becoming a homeowner, make sure you go over these things before you do anything:

Your income vs. your debts.
Even if your salary is high, that doesn't mean you can go out and purchase the most expensive house on the block. To figure out how much house you can truly afford, you need to take your monthly debts into consideration - how much of that high salary is going to things like student loans, credit cards, and car payments? Once you subtract these expenses from your monthly income, you'll have a much more realistic idea of how much you can put towards a mortgage each month.

Your five year plan.
Or maybe your two or ten year plan - whatever you're currently thinking about at the moment. While you may be financially ready to purchase a home, you also need to consider how your life may change in the future. For example, if you're thinking about finding a new job, you'll have to factor in the chance that your salary may change. Or, if you have plans to go back to school or buy a new car, you'll need to have enough room in the budget for these new expenses.

Your ability to qualify for a loan. 
While you may feel like you can afford a certain home, a lot of the power lies in the hands of lenders. Before they approve your application, they'll look at things like your pay stubs, your tax returns, and of course, your credit history. Knowing this, it's a good idea to look into things like your credit report before you apply to get an idea of where you're at.

Whether you're thinking of purchasing a home here on Long Island where we're headquartered or somewhere else in the country, the team at American Investment Planners LLC would be happy to help you figure out if you're ready and answer all of those financial questions we're sure you have.

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

5 Questions To Ask Before Contributing To A 401(k)

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Starting a new job is always exciting - it's a chance to meet new people, learn a new skill, and ultimately it's a stepping stone in your journey towards achieving your career goals. What makes it even more exciting, though, is when you find out that your new employer offers a 401(k) plan.

Before you do anything, however, it's important to sit down with both your employer and your financial planner so that you can address any questions and get all of the information you need to ensure that you approach saving for retirement correctly. Below, we've listed out five of the most important questions we think you should ask.

1. When am I able to start contributing?
Depending on the job, you may automatically have been enrolled in a 401(k) plan or you may have to enroll yourself after a certain amount of time has passed. Since you don't want to miss out on valuable savings opportunities, you'll need to know exactly when your contributions will start kicking in. If you are required to wait until you've been employed for a few months or maybe even a year, consider other retirement plans such as IRAs and Roth IRAs in the meantime.

2. How much am I able to contribute each year?
This one is extremely important, as all too often people don't save enough simply because they didn't know how much they were allowed to contribute. In 2016, the maximum contribution limits for employees under 50 years of age is $18,000. For employees that are 50 or older, the contribution limit is $24,000, which includes a $6,000 catch-up contribution that is permitted.

3. Does the company offer a 401(k) match?
A lot of times, companies will offer a 401(k) match and contribute what some like to say is "free money" to your plan in addition to what you're already contributing. However, for some plans, you will be required to contribute a certain amount before you become eligible to receive a supplemental contribution from your employer. To ensure that you aren't missing out on any of this "free money," ask your employer how much you are required to save in order for them to do the same on your behalf.

4. When do I become 100% vested?
While the money that you contribute to your 401(k) plan is always yours and available for you to take if you should leave your job, sometimes the money that your employer contributes does not become fully yours until you've been employed for a certain amount of time. That said, if you don't think that the job you're at is going to be your forever job, it's worth it to try and stick it out until you are fully vested so that you will receive, in full, what your account balance reflects.

5. Are there account management fees?
Last but not least, you should always be familiar with any fees that are applied to your investments and/or for the management of your account. This is normal, but if your account fees are high and you're unaware, it can be pretty disheartening when you check in on your account balance for the first time and see a ton of money taken out. At the very least, you'll at least want to be prepared!

As a team of financial planners that has worked with many clients on their retirement plans, we know exactly what questions you should be asking and what you should be doing as far as investments to ensure that you set yourself up for a successful financial future. 

To sit down with one of our financial advisors and talk about your 401(k) plan, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com today.

Brexit and The U.S Economy

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

On June 23, 2016, citizens of the United Kingdom gathered to vote on whether or not the UK should leave the European Union; the results were as follows - 52% voted in favor of leaving, while 48% voted in favor of staying.

Since then, "Brexit," which has become the popular abbreviation for "British exit," has attracted worldwide attention, especially in terms of how this will effect the economy. Naturally, one may expect that the markets are in for a rather bumpy ride - it's no surprise that markets hate uncertainty, and the Brexit decision has certainly left a lot of us feeling uncertain about what to expect next. However, although U.S stocks lost $1.4 trillion of market value on the first two trading days after the decision to leave the EU was made, new doors may be opened for investors.

Brexit and The U.S Economy
While it may be tempting to rearrange your portfolio as soon as possible, the best thing to do right now is stay calm and don't panic - especially if you have long-term goals that you're working towards. In fact, recent news explains that the U.S markets actually had somewhat of a rebound at the end of last week, and some sources suggest that the impact we feel from Brexit won't be too substantial - did you know that the UK accounts for less than 4% of global GDP? The Financial Times explains that our exports of goods and services to the UK account for less than 0.7% - yes, just 0.7% - of our country's GDP, so even if economic turmoil is felt in Britain, serious effects for us should be minimal.

What To Do Now
Despite any feelings you have about your current investments, the best thing to do may be to just wait. Especially since the process of making the leave official can be a quite lengthy one, a lot could still happen between now and next week, next month, even next year. 

Here at American Investment Planners LLC, we realize that sudden and drastic changes in the market can be distressing. That's why it's so important to have a financial planner that can help walk you through times like these! In addition to being able to answer your questions, a financial planner can also review your portfolio with you to ensure that the goals you have for yourself are in line with your current strategy.

To learn more about the financial planning services we offer, or if you have additional questions or concerns about Brexit, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com.