It's Tax Identity Theft Awareness Week!

Most of the time, when you think of identity theft, you probably imagine someone stealing

a credit card and racking up thousands of dollars in random purchases. But tax identity

theft exists too — and it’s more common than you may think. Tax identity theft occurs

when someone uses your social security number to get a tax refund or a job, and you often

don’t find out until you get a letter from the IRS informing you that you have more than one

tax return filed or your return shows income from a job you never held.

Since there are serious consequences of this kind of identity theft, the Federal Trade

Commission partners with a number of organizations to hold a series of webinars and

Twitter chats as a part of Tax Identity Theft Awareness Week. Here’s the schedule so

you can join in on the sessions.

Tuesday

2:30 p.m. EST: The FTC and several partners will be hosting a webinar on tax identity theft

and IRS imposter scams that will explain how these scams happen, how to avoid being a

victim of them, and how to recover from one.

Wednesday

11:00 a.m. EST: The FTC and the Department of Veterans Affairs are hosting a

Twitter Chat for service members, veterans, and their families about reducing the risk of

having your tax identity stolen and what to do if you’re a victim. You can keep up and join

the conversation at #VeteranIDTheft.

1:00 p.m. EST: This is a closed webinar for Veterans Administration employees, contractors,

and patients about lowering your risk of becoming a victim of tax identity theft.

Thursday

1:00 p.m. EST: The FTC and IRS are hosting a webinar for small businesses about imposter

tax scams that target businesses, methods to improve your business’ cyber security, how to

respond to data breaches, and free resources for businesses, employees, and customers.

3:00 p.m. EST: The FTC and Identity Theft Resource Center are co-hosting a Twitter chat

about protecting yourself from tax identity theft, the warning signs to watch for, and how to

handle being in that situation.

American Investment Planners, LLC offers professional financial planning services to

individuals and families across the country. Whether you need help filing your taxes or

deciding how to spend your rebate, our financial advisors are here to help. To schedule

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

Protecting Yourself from Credit Theft

In a world where we can access our bank information via a mobile app and buy things off

the internet with literally one click of a button, it’s more important than ever to protect your

personal information — especially when it comes to your finances. Since there are,

unfortunately, a lot of ways thieves can compromise your money, there are a few steps

you should be taking to protect yourself from credit theft.

Clear your logins.

Change your passwords every month or so in case someone tries to hack your account.

This is especially important if you’re using a public wifi connection or public computer —

which brings us to our next tip.

Don’t use public networks.

While it may be inevitable sometimes, try your hardest to only use your own devices on

secure networks. Public networks and devices are more likely to be targeted by hackers

and thieves who want to steal your credit information.

Only use reputable sites.

While a social media site may show you a cool product that takes you to a site you’ve

never heard of, don’t be so quick to enter your information there. These sites are rarely

as secure as well-known ones, making it easier for your information to get stolen.

Use your credit card to online shop.

Your credit card has better guarantees of safety under federal law than other online

payment services or debit cards. While you can contest suspicious charges on your credit

card and get your money back, you can’t always do the same on PayPal or your debit card.

Monitor your credit statements.

When you get your credit card statements each month, go through the charges to make

sure none look out of place. For example, if you live in New York and see a random charge

at a gas station in Texas, you’ll need to call your credit company to report suspicious activity.

At American Investment Planners LLC, we make it a priority to protect your money and help

you prepare for the best financial future possible. From tax management to retirement plans,

we’re here to help with anything you may need. To schedule an appointment with

one of our advisors, please call (516) 932-5130 or email

info@americaninvestmentplanners.com.

Estate Planning Secrets You Need to Be Aware Of

It’s no secret that estate planning is not the easiest thing in the world to navigate. A lot goes

into making sure the legacy you worked so hard to create is properly passed onto future

generations. In order to really protect your legacy, there are a few estate planning secrets

you need to be aware of.

Don’t disinherit your kids.

There are times when children from previous marriages miss out on the inheritance you

mean to leave them because a stepmother or stepfather end up with control off your

assets and pass them onto his or her own children. This can be avoided by using a

well-drafted living trust instead of a beneficiary designation — this way the inheritance can

only go to your child.

Protect your child’s inheritance from divorce.

Unfortunately, half the marriages in the United States end in divorce, so this is a sad reality

you have to take into account when estate planning. If your child ends up getting divorced

down the line, the inheritance you left him or her can end up in the hands of the former

spouse. This can be remedied by creating a specially designated trust that will ensure the

shares will remain in the trust’s name and the trustee will be in charge of them.

Choose a trust to avoid probate.

When your estate is planned around a will, it has to go through probate — this involves

court fees, taxes, and legal fees. When your estate is planned around a living trust, you

can avoid probate. While there are costs associated with this route, they are typically

much less than the fees associated with probate. (You may have to mention this to your

estate planning lawyers, as some don’t mention living trusts since they don’t financially

benefit them.)

At American Investment Planners LLC, we make it a priority to help you prepare for the

best financial future possible. From tax management to 529 plans, we’re here to help with

anything you may need. To schedule an appointment with one of our advisors, please call

(516) 932-5130 or email info@americaninvestmentplanners.com.

*The estate planning information contained herein is general in nature, is provided for informational

purposes only, and should not be construed as legal or tax advice. Please consult legal or tax

professionals for specific information regarding your individual situation.

Financial Aids Terms Parents Should Know

As the acceptance letters start rolling in, it’s time to start thinking about how to pay for your

child’s college education. If this is your first rodeo, you’re going start hearing a lot of terms

that might not make a lot of sense to you. No fear — we’ll help sum them up! These are the

financial aid terms every parents should know.

FAFSA (Free Application for Federal Student Aid)

This is the application that you fill out that summarizes your current financial situation and

starts the process of getting federal financial aid. It may also be used by your state, college,

and private lenders to determine your child’s eligibility for other types of financial aid.

Financial Aid Award Letter

After your FAFSA is processed, each college will provide your child with his or her financial

aid award letter that will outline the cost of attendance and the amount of financial aid the

school is offering.

Direct Subsidized and Unsubsidized Loans

When your child receives their award letter, there may be two aid amounts labeled as

“direct subsidized loan” and “direct unsubsidized loan” which have different interest

repayment conditions.

--Direct Subsidized Loans: Interest on the loan is paid by the U.S. Department of

Education while the student is in school at least half-time, the first six months after

he or she graduates, and during a period of deferment.

--Direct Unsubsidized Loans: The student is responsible for paying the interest

during all periods.

Grants

This is a form of financial aid that is given to a student based on need. They sometimes are

related to the student’s area of study, and most of the time, they don’t have to be repaid

unless the student leaves school.

Work-Study Programs

This form of financial aid allows a student to work part-time during their undergraduate or

graduate studies. Typically, work-study encourages community service work or work related

to the student’s major.

At American Investment Planners LLC, we make it a priority to help you prepare for the

best financial future possible. From tax management to 529 plans, we’re here to help with

anything you may need. To schedule an appointment with one of our advisors, please call

(516) 932-5130 or email info@americaninvestmentplanners.com.

What is a Biweekly Mortgage?

For those who have a mortgage on their homes, you’re probably like the majority of people

and make monthly payments on it. This is probably due to the fact that most people think

that that’s the only way to pay off a mortgage. Well, surprise — you have more options!

You can make biweekly payments and reduce the amount of interest you’ll pay over time.

What is a Biweekly Mortgage?

As the name implies, a biweekly mortgage is one in which you make half payments every

two weeks instead of full payments every four weeks. Over a year, you end up making 26

weeks worth of payments equaling 13 months instead of the typical 12. This allows you to

pay off your mortgage quicker, saving you money in interest. Besides that, there are a few

other benefits of biweekly mortgages.

Benefits of Biweekly Mortgages

Easy to Budget

Since most people get paid every other week, making payments on a biweekly mortgage

can be easier since it would coordinate with your biweekly paychecks. Plus, it can

sometimes be easier making smaller payments more frequently than making larger

payments less often.

Builds Equity Faster

Since biweekly mortgages allow you to pay off your mortgage sooner, you’ll own your home

sooner and have more equity. You can use that equity down the line towards home

improvements or to help pay for your children’s college education.

Investment Opportunity

Think of it this way: let’s say you pay 5% on your mortgage, and pay the amount off 3

years ahead of schedule since your biweekly mortgage allowed you to make those extra

month’s payments. That’s 3 extra years of 5% interest that stays in your pocket instead of

going to your lender — that amount can be used for other investment opportunities.

At American Investment Planners LLC, we make it a priority to help you prepare for the

best financial future possible. From tax management to retirement plans, we’re here to

help with anything you may need. To schedule an appointment with one of our advisors,

please call (516) 932-5130 or email info@americaninvestmentplanners.com.

How to Create a Solid Budget

We wouldn’t be surprised if you’ve lost count of how many people have told you to start

budgeting in an effort to improve your finances. But we’re also well-aware that budgeting

is often easier said than done. Where do you start? How do you keep track of

everything? Before you start panicking, let us help with some tips for how to create a

solid budget.

Collect the Necessary Tools

You can decide whether you want to keep track of your spending digitally or on paper,

but either way, you need to set yourself up for success. Get a specific notebook or

phone app to track everything you spend and make adjustments accordingly to save

money.

Calculate Your Expenses

We’re not talking about only figuring out what you’re paying for rent and loans. Calculate

how much you’re paying for groceries, utilities, dinner outing... everything. If you spend

money on it, put it into the equation. Pro Tip: Since some expenses, such as insurance,

are not always paid monthly, try to figure out your expenses over a six-month period.

Figure Out Your Income

While this may seem as simple as checking your pay stubs, include any other income you

may get from cash gifts, alimony, child support, interest dividends, and rental income.

Even if you have regular garage sales and make some money from that, include it in

your income.

Set Savings and Debt Payoff Goals

Set specific goals for how much you want to put into your savings account and how

much of your debt you want to pay off. If you subtract your expenses from your income

and see you’re making more than you spend, great! If not, you need to start making

some cuts in your spending. For example, let’s say you’re spending $10 a week buying

lunch. That adds up to over $500 a year, which is a good chunk of change.

Be Realistic

Don’t try to cut all your spending right away. Set realistic time frames in which you’re

going improve your savings and spending. Trust us, it makes things so much easier.

At American Investment Planners LLC, we make it a priority to help you prepare for the

best financial future possible. From tax management to retirement plans, we’re here to

help with anything you may need. To schedule an appointment with one of our advisors,

please call (516) 932-5130 or email info@americaninvestmentplanners.com.