Smart Uses for Your Holiday Bonus

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

If you're one of the lucky ones whose company hands out holiday bonuses, we know just how tempting it can be to want to use it towards all of your holiday gifts. However, while it can certainly help you cover the cost of the holidays, as your trusted financial planner, we don't want you to spend all of your earnings at once - instead, we suggest you do this:

Build your emergency fund.
If you've ever needed cash on the spot for something unexpected, then you know just how valuable some emergency savings can be. Now, you don't have to dedicate your entire bonus to this, but it's certainly a good idea to donate a portion of your bonus to your emergency savings to help you prepare for the future.

Donate to your favorite charity.
It is the season of giving after all! If you have a charity that's close to your heart, one of the most beautiful gifts you can give this holiday season is a donation - no matter how much, your contribution will be so, so appreciated by the charity and who it helps.

Get ahead with your mortgage.
Wouldn't it be awesome to lessen the amount of time it takes for you to pay back your mortgage? If you can send more than one payment a month (or just more than your minimum payment), you can start to cut back on how long it will take for you to finally pay down your debt - we can't see why any homeowner wouldn't consider doing this!

Learn something new.
Is there a class you've been dying to take or something new you've been wanting to try? If so, consider using part of your holiday bonus towards it! It's always a good day to improve upon your skills, especially if you're looking to learn something for your career - and who knows, maybe next year's holiday bonus will be even bigger as a result!

Save it for retirement.
Whether retirement is three years away or 30 years away, you can never put too much towards your savings account. The more you contribute early on the more chances you have of watching your money grow, so if you have an account all set up that you contribute to, a portion of your holiday bonus belongs in it.

Again, while this isn't to say that you can't use your holiday bonus for recreational purposes or holiday shopping, we just hope you'll keep in mind how important it is to act super smart with any additional money you get your hands on!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.

3 Surprising Expenses You May Be Able to Negotiate

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Ever hear the saying, "if you never ask, the answer is always no?" If so, have you ever actually tried to ask for something even when you already thought the answer was no? Especially when it comes to money, many people are hesitant to try and negotiate things for their own benefit, but you'd be surprised at how many things you can be successful with just by taking a leap of faith and asking.

Below, let's take a look at some things you've probably never tried to negotiate before, but can:

Groceries. 
Even if you're already spending hours clipping coupons and searching for all of the "buy one get one free" deals on the shelves, you may be able to negotiate your groceries even more. One way you can try to do this is with your meats - if you see something that is nearing its expiration date, it's worth asking for a discount since the store is going to lose money on them anyway once they're no longer good to sell! 

Interest rates.
You just applied for a credit card and they send you back all of the card's details, including interest rates - you have to accept what it is, right? Not all the time! If you have a great credit score and an excellent history of paying back your debts, its always worth contacting the credit card company (or other lender) to see if they'll work with you (hint: try saying that you're shopping around so that they know they have to work to earn your business). 

Major appliances and electronics.
With the holiday season right around the corner you can bet that major appliances such as washers and dryers, as well as major electronics such as TVs, are going to be on sale. But what if you miss those sales? The first place to start is with asking about the floor models, any returns and potential overstocks - purchasing these could work in your favor when it comes to price! Additionally, if you know you'll be buying more than one expensive item from the same seller, it's worth asking if they can do anything for you price wise.

Remember, the only way to find out if you can actually negotiate is by asking, so the next time you're in the market for something (with the holidays coming now is the perfect time!), don't hesitate to ask - the worst anyone can say is no.

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered can be found by visiting www.americaninvestmentplanners.com. 

The Key to Having a Great Credit Score

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

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

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

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

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

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

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

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

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

5 Places You Must Consider Living if You're Planning to Retire

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

There's certainly a lot of factors that go into planning for retirement, but in our eyes one of the biggest is figuring out where you're going to live - after all, the cost of living differs in certain neighborhoods, towns, cities and states, so your decision will greatly impact what your retirement budget needs to account for.

If you're planning to retire in the near future, here are some of the best places to consider:

Bethlehem, Pennsylvania
Bethlehem, Pennsylvania is full of history, and the average property tax was recorded at $4,082. With 31% of the population being over the age of 55, this area is quickly proving popular for individuals looking towards retirement, and with a median home price of just $153,000, it proves rather affordable compared to many other places too. Not to mention, there is no state tax on Social Security benefits or retirement accounts of any kind, which is a huge, huge benefit!

Nashua, New Hampshire
There's a lot that makes Nashua, New Hampshire so appealing, but most importantly for retirees, it has low taxes and affordable housing. Additionally, there is no Social Security or pension tax, which would certainly be appreciated by anyone claiming retirement benefits. Situated near the White Mountains, the Atlantic Coast, and the ever-popular Boston, this is a great destination for retirees who have plans to travel and explore as well.

Hollywood, Florida
Florida has proven to be a major destination for many retirees, and we're not surprised. Specifically focusing on Hollywood, Florida, it's proven to be very affordable for many, and what you save in taxes will amaze you! And though this is the area where it's suggested you live, you're close by to Fort Lauderdale and Miami, so there's tons to do.

Sugar Land, Texas
Finding a place to live that offers a great quality of life is so important for retirees, and Sugar Land offers just that - not to mention, it also offers a pretty low cost of living too! Furthermore, there is no income tax here, and if you're a homeowner aged 65 or older, you get an additional $10,000 above the typical $12,000 homestead exemption.

Spokane, Washington
Heading all the way over to the west coast, a recommendation is to check out Spokane, Washington. Housing is extremely affordable here, with the median price being recorded around $150,000, and there is no state income or inheritance tax (though taxes are applied to any estates that are worth more than $2 million). And another huge benefit? Access to health care.

Something that we at American Investment Planners LLC can help you prepare for is relocation, so if you have plans to pack up and move elsewhere once you retire, we encourage you to sit down and speak with one of our advisors first.

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

10 Financial Terms and Definitions That Everyone Should Be Familiar With

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

As a team of professional financial planners that works with clients each and every day, we know that there are a lot of industry terms that people aren't familiar with. Even terms that you hear often such as "stocks" and "bonds," we also know that getting their definitions down can be tricky.

Today, we want to change that. Keep reading for some simple definitions to financial terms that we think everyone should know!

Asset: An asset is anything that you own that has monetary value.

Bond: Bonds are evidence of debt where the issuer promises to pay the bondholders a specific amount of interest, as well as repay the principal at maturity. Most of the time, bonds will be issued in multiples of $1,000.

Cash alternatives: Cash alternatives are short-term investments, such as certificates of deposit, money market fund shares and U.S. Treasury securities, that can be converted into cash quickly.

Compound interest: Compound interest refers to interest that is computed on both the principal and the accrued interest. It can be computed either continuously, daily, monthly, quarterly, semiannual or annually.

Inflation: Inflation is the increase in price of a product and/or service over time. To measure inflation, the government uses the Consumer Price Index.

Liquidity: Liquidity is how easily or quickly a particular asset or security can be turned into cash.

Portfolio: Portfolios are all of the investments that an individual or a mutual fund holds.

Security: Securities are evidence of an investment that are either in direct ownership, indirect ownership or creditorship.

Tax deferred: When something is tax deferred (such as interest, dividends or capital gains) it means that it grows untaxed in a certain account or plan until it is withdrawn.

Volatility: Volatility is the range of price swings seen in a security or market over time.

Know of other terms that you'd like the definition for? We likely have them in our glossary! Just head on over to our website and scroll down or search by letter/word to find what you're looking for.

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available by calling (516) 932-5130 or emailing info@americaninvestmentplanners.com.

Why Should Young Adults Have a Financial Planner?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

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

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

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

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

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

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

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

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

Four Pieces of Financial Advice All Millennials Need to Hear

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Although there are some states that require students to participate in a personal finance class once they reach high school, many still don't nor do they tend to require testing on it - not to mention, children generally aren't taught about money in school during their younger years, which are some of the most important for learning.

Since there is so much to learn though, even if you were taught when you were younger, it never hurts to get a refresher on some of the most important topics. That said, below are four pieces of financial advice we think all millennials especially need to hear:

1. Start planning for retirement at your first job.
Even if you feel that retirement is light-years away, you need to start planning for it as soon as you get your first full-time job. In fact, before you even accept your first full-time job, you should inquire with the employer what type of retirement options they offer. If the company offers a 401(k) plan, make sure you're taking advantage of it, even if you don't contribute too much at first. And if they offer a pension? Well, that's even better.

2. Monitor your credit card use.
Having a credit card in hand can make you feel like you have the power to purchase just about anything, and though you can "swipe now and pay later," getting into poor credit card habits can damage your finances really quickly. If you have credit cards at your disposal, treat them like cash and make sure you're only purchasing things with them that you can truly afford to pay for.

3. Prepare yourself for the unexpected.
Unexpected situations and emergencies can happen to anyone, so regardless of how old you are, you should always have some cash tucked away should something pop up. Whether you do this through automatic contributions to a savings account or just stash away some money in an envelope each week, having savings that you can fall back on will really come in handy and can give you peace of mind.

4. Work with a financial planner.
Despite how much you already know about money and how well you think you're doing, you can always benefit from getting professional help. Professional financial planners have extensive experience in areas such as taxes, retirement planning, portfolio and asset management and more, and their knowledge and guidance will only help you in the long run.

If you're on the search for a financial planner that can help you effectively manage your finances and develop strategies to help you meet your short and long term goals, turn to American Investment Planners LLC! We work with generations of families all over the country, and we're confident that we have the tools and resources needed to work with and help you next.

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

3 Good Reasons Why You Should Increase Your 401(k) Contributions

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

While there is no rule that says you have to contribute a certain amount to your 401(k) to be successful in preparing yourself for retirement, there is a general rule of thumb that you can follow if you want to get the most out of your efforts, and that's to increase your contributions when you can.

Whether you start contributing just 2% and work your way up or start at 10% and work your way up, any time that you feel comfortable financially and feel you can contribute just a little bit more, you should - here's why:

1. It may make you eligible for an employer match. 
If you are not yet contributing the amount required for your employer to contribute on your behalf as well, this is a hugely important reason why you should up your percentage. You can essentially look at employer contributions as free money, so although it may be taking a little bit more out of your paycheck, you'll be getting even more in return!

2. You'll receive greater tax benefits.
401(k) plans are typically contributed to on a pre-tax basis, so the more you contribute, the greater tax benefit you'll receive. In addition to your taxable income being less in your paycheck, you may even be moved into a tax bracket that is more favorable for your personal financial situation.

3. It leaves you with less to spend.
While this may seem like a downfall, if you look at it from a different perspective, it could actually help you. That's because the less money you take home right now, the less money you have to spend on unnecessary purchases! Not only can this help you become more financially responsible, but it could also help you get better at sticking to a budget (and you'll be saving more while you're at it!).

Now, this isn't to say that you should immediately increase your contributions even if you're struggling financially, but what it does mean is that when you are feeling comfortable, you should at least give it a try and see if you can swing it - the benefits now and later will be well worth it!

Here at American Investment Planners LLC, we have financial advisors who specialize in retirement planning, so if you have questions about your 401(k) contributions, we would be more than happy to help! To schedule an appointment, please call (516) 932-5130 or email info@americaninvestmentplanners.com today.

Words of Wisdom From the World's Billionaires

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Getting good at something certainly requires practice, but what also helps is receiving some advice from people who have already succeeded! Where finances are concerned, of course the help from a professional financial planner is always recommended, but another source of advice that we think you'd benefit from is people who have proven successful themselves - here, we're talking about some of the world's billionaires.

Check out our favorite quotes from a few of them below:

"The single best piece of advice: constantly think about how you could be doing things better and questioning yourself." - Elon Musk

"The biggest risk is not taking any risk. In a world that's changing really quickly, the only strategy that is guaranteed to fail is not taking risks." - Mark Zuckerberg

"Be thankful for what you have, you'll end up having more. If you concentrate on what you don't have, you will never, ever have enough." - Oprah Winfrey

"To win big, you sometimes need to take big risks." - Bill Gates

"Never depend on single income. Make investments to create a second source." - Warren Buffett

"It doesn't matter how you live. It doesn't matter what car you drive. It doesn't matter what kind of clothes you wear. The more you stress over bills, the more difficult it is to focus on your goals. The cheaper you can live, the greater your options." - Mark Cuban

Do you have financial goals that you're working towards? Whether long or short term, we at American Investment Planners LLC have the tools and resources needed to help you develop a strategy that will put you on the right path to achieving them. 

For more information about our financial planning services and how we can help, please give us a call at (516) 932-5130 or send an email to info@americaninvestmentplanners.com.