Why You Should Enroll Your Student Loans in Auto-Pay

When it comes to paying your student loans, if there are ways you can make things easier, you should. While there are definitely things you can do pay them off quicker, one thing you should do — as long as you have the option —  is enroll your student loan payments in auto-pay. Here are just a few reasons why:

You can enroll while you're still in school.

Many student loan lenders, especially private ones, offer you the chance to enroll your student loans in auto-pay while you're still in school in order to start paying off the interest. Typically, they only ask for a small amount such as $25 or $50 per loan per month. This can benefit you a lot since, the sooner you start paying off your loans, especially the interest on them, the sooner you can be done with them.

You can qualify for a lower interest rate.

When you enroll  in auto-pay, many lenders will give you a lower interest rate as an incentive. While your principal doesn't change, having a lower interest rate can make a big difference in how much you end up paying back over time.

You will never forget to make a payment.

It’s not uncommon for life to get in the way and make you forget to pay your student loans, manually, on time. When you're enrolled in auto-pay, you don't run the risk of missing a payment and potentially hurting your credit score or incurring a late fee.

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.

Financial Graduation Gifts That are Better Than Cash

Graduation is one of the proudest moments of a person’s life. He or she has worked hard for the past few years to earn a degree in the field of his or her dreams —  so it's no surprise that you would want to reward them for that. While most graduation gifts end up being cash, why not give your graduate something that he or she can really benefit from?

Retirement Funds

Offering to start funding a retirement account, such as a Roth IRA, can help your grad begin planning for the future. Often, these things aren’t at the top of new graduate’s mind, so starting one for them can really put them on the right track. Plus, starting a retirement fund earlier allows the principal to compound for longer.

Investments

These are typically a good idea if you’re in a higher tax bracket, as gifting appreciated stocks could lower the assumed capital gains tax. Since new graduates tend to be in a lower tax bracket, the investments won’t be taxed at as high of a capital rate if they sell them. And who knows, certain investments could inspire an interest and love for the stock market!

Student Loan Payments

It’s no secret that loan payments are one of the biggest fears students have upon graduating, so why not make it easier on them? Offering to pay a certain percentage or even repayment period of their loans can help them start saving money sooner and not feel as financially burdened right after graduating.

The best gift you can give to a college student is a 529 plan started years before they even apply — and we can help you start one! 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.

Things to Remember as a First-Time Renter

Finally moving out of Mom and Dad’s house can be one of the most exciting and nerve-wracking experiences of your life. While we're sure you're thrilled to finally have your own place, moving out isn't as simple as it seems. If you are a first-time renter,  these are some things you should keep in mind.

Upfront Costs

Rarely will you find a landlord that doesn't expect you to pay a security deposit as well as at least one month’s rent up front. That being the case, you have to have enough money saved up to be able to pay that before moving in. You also may have to pay application fees or real estate fees on top of that.

Long-Term Costs

Once you move out, you're not just paying basic rent each month. You’ll have to factor in the cost of utilities, food, and other amenities, such as internet, into your monthly budget. It's also wise to get renter’s insurance that way you're protected in case something should go wrong.

Furniture Costs

In some cases, you may be lucky enough to be able to bring your bed and dresser from home with you to your new apartment. However, you're still probably going to need things like living room furniture and kitchen appliances — all of which cost more money.

Pet Costs

A lot of young people are tempted to get a pet once they move out, whether it be because they finally can without their parents’ permission or just want the company. But it's extremely important to be aware of how much a pet costs. You'll need to be able to pay for food, veterinary visits, grooming, and more — not to mention a potential pet fee your landlord may charge you just to have your furry friend. If you’re not able to comfortably afford all that, don’t get a pet so quickly.

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.

Financial Preparing for a Vacation

When you're planning a vacation, it's easy to just focus on what hotel you'll be staying at, what excursions you'll take, and how often you’ll eat at the all-inclusive restaurants. While all of that is very exciting, it's important to make sure you're financially ready for your vacation, so keep a few things in mind.

Account for extra spending.

Sure, your hotel and plane ticket cost a certain amount of money, but what about the cost of souvenirs, taxi rides, or tips for the wait staff?  If you don't account for little expenses as much as the big ones, it can put a big rut in your plans.

Remember the exchange rates.

It's important to remember that the dollar doesn't have the same value as every other form of currency. If you bring along $500 as spending money, but convert it to a currency that doesn't value the dollar as high, you could end up having much less in your pocket than you planned.

Careful with your credit cards.

It’s easy to say you'll just swipe everything on vacation  and have one bill at the end of it, but that's not the best idea. Just like at home, it's easier to spend more when you're using plastic versus cash. Plus using a credit card on vacation can put you at risk of identity theft if someone steals your information.

Remember your regular bills.

Just because you're going on an extended vacation, it doesn't mean that your utility company or mortgage lender stop sending you bills. If you have the option, request that those companies not send paper bills to your home while you're away, and just pay your bills online. This way, you stay on top of your payments, and don't risk your bills, or identity, getting stolen.

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.

Tips for Those Who Missed The Tax Deadline

In life, some of us are better at deadlines than others. And while some deadlines are more important than others, like your tax return deadlines, sometimes you just don't make it to the wire. Whether it be because you didn't have all your necessary paperwork in time or you simply procrastinated, if you missed the tax deadline, this is what you need to do.

File as soon as possible.

If you know you're going to owe taxes, get your return in as soon as you can to avoid more late fees. If you know you were going to get a refund, you won't be charged a late fee. The IRS will just accept your lack of a return as a donation of your money.

Use the IRS’ Free File.

If your income was less than $64,000, you can file your taxes with the IRS for free. If your income was more than $64,000, you can use Free File Fillable Forms. Even if you missed the deadline, you can file using options from IRS.gov through October 16th.

Use e-file.

Once your return has been prepared, submitted through IRS e-file for the quickest results. The IRS will let you know once they have your return, and typically, you can see a refund within 21 days of submitting it.

Pay as much as you can as soon as you can.

If you know you owe the IRS money, even if you can’t pay everything in full, pay back as much as you can when you file your return to avoid further or greater penalties.  You can then set up payment plans to pay off the rest.

Let the team at American Investment Planners LLC been your resource this tax season. We have experienced many of the same situations our clients have, so we know exactly what solutions to offer. For more information about our tax planning services, please visit us on our website or give us a call at (516) 932-5130.

Little Ways to Pay Off Student Loans Faster

After you graduate college and begin to pay your student loans, it can feel as though you're giving your lender so much money each month and still have such a long road to go before you'll ever be done.  But student loans don't have to follow you forever. There are little ways to pay off your loans faster that way you can start putting that money towards other things.

Pay more than the minimum.

More often than not, you're paying the number on the bill you get each month. But if you want to pay your loans off faster, increase your payment. Even just $25 more on the payment each month can make a big difference.

Consolidate and refinance the loans.

When you refinance your loans, you can lower the interest rate so more of your money ends up going towards the principal amount you owe. You can do this with multiple loans so you have a single payment each month or you can choose to just refinance a single loan to get a lower interest rate.

Choose a career that offers loan forgiveness.

Certain fields, such as teaching or government jobs, will pardon some or all of your student loans —  you just have to meet specific requirements to be eligible. The only downside here is that many programs like this will lower your principal but give you higher interest rates, so make sure to do your research before applying for one.

Apply your raises.

We would hope you work for a company that gives you a raise every year or so. When you do get a raise, instead of using that extra income for a new TV or a vacation, put it towards your student loans.

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.

What To Do If You Missed Your RMD

If you've invested your money in a tax-deferred retirement account, you've seen how your income can compound itself over the years —  but tax-deferred doesn't mean tax free. At a certain point, you're going to have to take your required minimum distribution. But what happens when you don't? If you missed your RMD this year, here are the steps you're going to need to take.

Pay the excise tax.

When you don't take your RMD by your deadline, the IRS typically charges you a 50% excise tax on the amount you should have taken. In order to comply, you'll need to list the tax on your 5329 or 1040 IRS form. If by special circumstance you do not have to file a tax return, you must fill out your 5329, make a check with the amount owed payable to the U.S. Treasury, and include your social security number on the check in order to pay the excise tax on its own.

Request a waiver.

If you believe you were prevented from taking your RMD due to a reasonable cause, request a waiver form to explain to the IRS why you should not have to pay the excise tax. When you submit your waiver, hold off on paying the tax. If the IRS does not accept your reasoning, they will notify you to pay the tax then.

Take the full balance.

If you are the beneficiary of a retirement account and missed an RMD, you may be able to get out of the excise tax by switching to the five-year rule and taking out the full balance of the account. (It's best to consult a financial expert before making this decision.)

At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From preserving your wealth to estate planning, 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.

Can I Deduct Legal Fees

Anyone who has been to court knows that it isn’t the cheapest experience. Between lawyers fees, court fees, and transportation to and from the courthouse, you could end up spending a pretty penny just to win your case. But contrary to popular belief, there are certain situations in which you can deduct your legal fees from your taxes and get some of your money back.

Can I Deduct Legal Fees?

The answer is yes — as long as the legal action is used to produce or collect taxable income or determine or obtain tax returns. To put it more simply,  if you're using an attorney to gain money that will be taxed, you can deduct the fees you pay your lawyer.

What Would Qualify As An Example?

Certain Cases Of Divorce

If you ask a lawyer for advice on how to determine who will be deducting your mortgage from his or her taxes, since that would make you money, you can deduct the lawyer’s fee in your taxes. Just make sure your lawyer notes the difference between his or her tax-related and non-tax related fees.

Collection of Alimony

Let's say your ex-spouse has failed to pay you alimony that you are owed. If you hire a lawyer to help you collect those dues, you can deduct their fees in your taxes since you are gaining income that will be taxed on its own.

Job Income Disputes

If you hire a lawyer for a workplace dispute, such as discrimination or unlawful termination, you're using that lawyer to collect income, and therefore can deduct his or her fees.

Still not sure if you can deduct your legal fees? Let the team at American Investment Planners LLC been your resource this tax season. We have experienced many of the same situations our clients have, so we know exactly what solutions to offer. For more information about our tax planning services, please visit us on our website or give us a call at (516) 932-5130.

*Cadaret, Grant and its representatives do not provide tax or legal advice. Tax advice provided solely by American Investment Planners LLC.