Best and Worst Home Improvements Based on ROI

There are two reasons why homeowners renovate their houses: to add resale value, or for personal preference. Even if you fall into the second category, it is important to keep resale value in mind, as you never know what the future holds.

With that said, these are the five best and worst home improvement projects based on return on investment, according to Remodeling Magazine’s 2017 Cost vs. Value Report.

Top 5 Best Home Improvement Projects

1. Fiberglass attic insulation: 108% return on investment

This is the only item on the list which actually adds more value to your home than it costs to install. The energy savings are also a nice perk.

2. New steel entry door: 91% return on investment

Your home starts at the front door, which may be why this project is near the top of the list every year.

3. Manufactured stone veneer: 89% return on investment

Replacing the bottom-third of your vinyl siding with stone veneer instantly boosts curb appeal and resale value.

4. Minor kitchen remodel: 80% return on investment

A “minor” kitchen remodel includes replacing your stove, refrigerator, countertops, sink, faucet, cabinet fronts and hardware.

5. Garage door replacement: 77% return on investment

A new garage door can improve curb appeal and security, which is why it boasts such a high return on investment.

Top 5 Worst Home Improvement Projects

1. Bathroom addition: 53.9% return on investment

Think adding a bathroom will increase the resale value of your home? Think again. This ranks as the worst home improvement project, with a paltry ROI of 53.9%.

2. Backup power generator: 54% return on investment

Standby generators can automatically detect power outages and run for days at a time. However, potential home buyers just don’t seem to value them very highly.

3. Backyard patio: 55% return on investment

The upscale patio used in this report included a gas-powered fire pit and a stone veneer kitchen unit complete with grill, sink, and mini-fridge.

4. Bathroom remodel: 65% return on investment

In 2005, this home improvement project recorded an impressive ROI of 102%, but has since fallen to the bottom of the ranks.

5. Master suite addition: 65% return on investment

The average cost for this job was nearly $120,000, but it only increased resale values by $77,000.

Whether you need help saving up for your first house, or making room in the budget for your next home improvement project, the financial advisors at American Investment Planners, LLC are here to offer their professional consultation. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

How Much Are Your Bad Habits Costing You?

We all have our bad habits – some of them just tend to cost more than others. Even simple pleasures that only cost a couple of dollars can quickly add up over several weeks, months, and years. Take a look below for a few examples of how much your bad habits may be costing you:

Smoking Cigarettes

Cigarettes aren’t just bad for your health, they are bad for your wallet. Across the country, a box of cigarettes averages $6.16, with some states charging over $10 per pack. An occasional smoke won’t kill you, or your bank account, but everyday smokers should re-consider the habit. Here’s how much cigarettes can cost you, assuming $7 per pack and no medical expenses:

• One cigarette per day: $127.75 per year
• One pack per week: $364 per year
• One pack per day: $2,555 per year

Drinking Alcohol

There’s nothing wrong with an occasional bottle of beer or glass of wine. In fact, some studies show that alcohol can actually be beneficial for your health if consumed in moderation – moderation being the key word. Here’s how expensive regular drinking can be (costs may be even higher in major cities or upscale bars):

• One six-pack per week: $416 per year
• Three beers with tip, twice per week: $1,872 per year
• One big night out per week: $3,120 per year

Eating Fast Food

Continuing on the theme of habits that are bad for both your finances and health: fast food. Sure it’s quick, convenient, and cheaper than sit-down restaurants, but it can take its toll on your health and wallet. Here’s a few examples to help illustrate the point:

• 1 McDonald’s combo meal per week: $365 per year
• 1 Chipotle burrito and drink per week: $624 per year
• 5 Fast Food Meals per Week: $1,560 per year

Drinking Coffee

It’s hard to imagine getting through a morning without your daily dose of caffeine. About 84% of Americans drink coffee, with the average person consuming three cups per day, according to a poll from the National Coffee Association. The cost of this can vary drastically, depending on where you get your fix from:

• One cup per day, home brewed: $91 per year
• Three cups per day, home brewed: $273
• One cup per day, coffeehouse: $1,274 per year
• Three cups per day, coffeehouse: $3,822 per year

Need help getting a grasp on the expenses in your life? The financial advisors at American Investment Planners, LLC are here to help. We will sit down with you and work together to construct a sound financial plan which meets your needs, budget, and long-term goals. Call (516) 932-5130 to schedule an appointment with one of our consultants, or email info@americaninvestmentplanners.com.

10 Ways to Save Money On Your Wedding

Your wedding is the biggest day of your life, but that doesn’t mean it has to be the most expensive. Follow these ten money-saving tips from American Investment Planners to keep your costs down without sacrificing any of the excitement:

1. Don’t get married on a Saturday. Since Saturday is the most popular day for weddings, venues can get away with charging more – up to 20% more. Save hundreds (or thousands) by booking on a different day, perhaps a week day that falls next to a holiday so everyone is off from work.

2. Get married at the end of the off-season. Peak wedding season starts in May and goes through October. Getting married towards the end of April will generally land you cheap prices with good weather.

3. Choose your own vendors. Don’t select a venue which forces you to use their vendors. Choosing your own music, food, drink, and photography can easily save you thousands.

4. Shop at non-wedding retailers. Whether you are shopping for decor, flowers, or a cake, try stores that don’t specialize in weddings for more economic pricing.

5. Cut costs on decor. Small decorations for your venue can really add up over time. Save money by choosing a space which is already well-decorated, or using second-hand items. You can also resell your decor after the big day to recoup some costs.

6. Go paperless. Hand-written wedding invitations can cost up to $5 per person when all is said and done. Skip this expense and save the environment by making a wedding website to keep your guests updated.

7. Have your ceremony and reception in the same place. This will not only save you money on transportation costs, it prevents potential headaches and out-of-town attendees from getting lost.

8. Skip the ceremony all together. Getting married in the courthouse saves you an immeasurable amount of time, money, and stress. Have a small family and friends reception after to celebrate tying the knot.

9. Cut down the guest list. Everybody in their mother doesn’t need to be invited to your wedding. The less people who attend, the less money you spend.

10. Separate your needs from your wants. It can be easy to get caught up in the excitement and go overboard during the planning process. Know what you absolutely need and what you can get away without.

American Investment Planners, LLC helps individuals across the country plan for life’s biggest moments. No matter what’s on the horizon, our advisors can sit down with you and help construct a plan that meets your needs and budget. To schedule an appointment with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Stocks 101: A Beginner’s Guide to Investing

Stocks are one of the most popular investing tools in the world, yet there is so much uncertainty surrounding them. If you don't know the purpose of stocks, or the different types of stocks available, don't worry. You are not alone.

Luckily, the financial advisors at American Investment Planners, LLC are here to offer their professional insight. Here are some of the stock market basics every investor should know:

What are stocks?

Stocks are an equity investment that represent partial ownership of a corporation. If a company is divided into 1,000 shares, and you own one of them, you effectively own 1/1,000th of that company.

What types of stocks exist?

There are two main types of stock, common and preferred.

• Common stocks: owners are entitled to vote and may (or may not) receive dividends.
• Preferred stocks: owners usually do not have voting rights, but have priority over common stockholders when it comes to dividends and asset liquidation.

Why do investors buy stocks?

There are many reasons why an investor may purchase a stock, but three of the most popular are:

• Capital appreciation: occurs when the stock rises in price, increasing the net worth of the owner’s portfolio. When a stock increases in value, the investor may look to sell it for a profit, or continue to hold onto it in hopes of continued success.
• Dividends: some companies regularly distribute their earnings to stockholders in the form of dividend payments. The more shares you own, the more money you will receive.
• Company control: stockholders have the ability to vote on management issues at annual shareholder’s meetings. The more shares you own, the greater your influence.

Want to get started investing?

Investing in stocks involves risks, including loss of principal. Before you take a plunge into the stock market, it’s a good idea to sit down with a qualified financial advisor and develop a sound investment strategy. The professionals at American Investment Planners, LLC have decades of experience, and will work with you to craft a plan that meets your needs, goals, and budget. To schedule a meeting with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

6 Pieces of Investing Advice for Millennials

Millennials have it tough, financially speaking. The job market is unforgiving, student debt is at an all-time high, and the aftermath of the Great Recession is still fresh in their minds. Seeing their parents and grandparents suffer from the recent economic downturn has scared away many millennials from investing altogether – but it shouldn’t.

These six tried-and-true pieces of advice will take the fear out of investing and put you on the path to financial success later in life…

1. Start as early as possible.

The most common mistake young people make is waiting too long to start investing. You may think that you don’t yet earn enough money to make a significant impact, but you are wrong. The amount of capital you start with is not nearly as important as when you start. Because of factors such as compound interest, every year you push off investing can really hurt you in the long run.

2. Set up automatic deposits.

When it comes to investing, consistency is key. The easiest way to stay consistent with your portfolio is by scheduling automatic deposits into your savings, retirement, and investment accounts. Doing this will ensure your funds are safely secured before you have a chance to spend them on something else.

3. Maximize your match.

401(k) plans are company-sponsored retirement plans which are funded through pre-tax deductions from your paycheck. Many employers even offer a matching program, in which they will contribute on your behalf up to a certain percentage of your salary. Make sure you are contributing enough money to qualify for the maximum match amount; anything less is basically giving away free money.

4. Pay off your high-interest debts.

It’s impossible to save money when you are drowning in debt. That’s why your first priority should be paying off all of your outstanding balances. If you have multiple debt accounts, make the minimum payment on all of your bills, and put any extra money towards the debt with the highest interest rate. This strategy will allow you to pay off your debts as quickly and efficiently as possible.

5. Diversify your portfolio.

Don’t put all of your eggs in one basket. Diversification is a core investment strategy used to mitigate risk by spreading your money across multiple investments. If you experience a significant loss in one of your accounts, your entire portfolio will not suffer as a result.

6. Consult with a financial advisor at American Investment Planners, LLC.

Just because it’s called “personal finance”, it doesn’t mean you have to do it by yourself. Consulting with a professional advisor at American Investment Planners now can put you on the path to financial success later in life.

The financial advisors at American Investment Planners, LLC have decades of experience helping people of all ages plan for life’s biggest moments. Let us help you. To schedule an appointment with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

5 Things to Know About Life Insurance

Life insurance: simple in theory, complicated in practice. Navigating the world of life insurance can be tricky, but it’s a fundamental component of your personal finances. Here are five things you need to know about life insurance, courtesy of the professionals at American Investment Planners, LLC.

1. If anyone relies on you financially, you need life insurance. Whether it’s a dependent spouse, children, parents, or someone else, if someone relies on you financially, you should have a life insurance policy so they are protected in the event of your untimely death.

2. There are four primary players in every life insurance policy. They are the insurer, the owner, the insured, and the beneficiary. The insurer is the insurance company. The owner is responsible for paying the monthly premium. The insured is the person whose life is being covered by the plan. The beneficiary is the recipient of the payout if the insured passes away.

3. There are two types of life insurance. They are term life insurance and permanent life insurance. Term life insurance covers you for a set length of time, such as 5, 10, or 20 years. Permanent life insurance is broken down into three subcategories: whole life, variable life, and universal life. You can learn more about those here.

4. Life insurance should not be treated as an investment. It is a risk management tool. Some life insurance policies do offer an investment component, but you are better off putting your money into an emergency fund, Roth IRA, 401(k), or paying off your non-mortgage debt.

5. Life insurance plans can be extremely expensive, or relatively cheap. Premiums can vary drastically depending on your policy type, age, health, and other factors. You should discuss your options with a financial advisor at American Investment Planners, LLC to pick the plan that best meets your needs and budget.

Want to learn more about life insurance? The financial professionals at American Investment Planners, LLC are available for consultation. To schedule an appointment with one of our advisors, please please call (516) 932-5130 or email info@americaninvestmentplanners.com.

3 Last Minute Tax Tips for Procrastinators

Time is running out to file your 2017 tax returns. With the April 17th deadline quickly approaching, procrastinators everywhere are scrambling to submit their paperwork on time.

Does this sound like you? Don’t panic. Take a deep breath and follow these three last-minute tax tips from the professionals at American Investment Planners, LLC…

Take your time.

Better safe than sorry. The old adage holds true when submitting your tax return. Even if you are filing last-minute, it’s important to take your time when preparing your paperwork. Rushing through increases your chance of making a mistake, which increases your chance of an audit. Some of the most common last-minute errors include:

• Mathematical mistakes
• Misspelling names
• Entering the wrong social security number(s)
• Failure to sign or date your return

File faster online.

Submitting your taxes online offers tons of benefits. It’s quick, easy, allows for faster refunds, and can even help minimize mistakes and maximize deductions. Last-minute filers will love the ability to submit their returns during the waning hours of Tax Day, after post offices have closed. Not to mention, it’s nearly impossible to schedule a meeting with a professional tax preparer this late in the season.

Consider filing for an extension.

If you feel that there is no way you can get your taxes submitted by the April 17th deadline, you can always apply for an extension, pushing the due date back to October 16th. Beware, if you owe money to the IRS, you will still need to pay your debt before April 18th. An extension on your paperwork is not an extension on your bill. You can learn more about the advantages and disadvantages of applying for a tax extension by clicking here.

American Investment Planners, LLC proudly employs a team of professional tax planners and advisors to help with all of your financial needs. To schedule an appointment with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Financial Spring Cleaning Checklist

Spring cleaning isn’t just for your house, it’s also the perfect time to organize and simplify your money matters. Here are nine ways you can tidy up your personal finances, courtesy of the financial advisors at American Investment Planners, LLC:

• Review your credit report. Federal law requires each of the three major credit bureaus – Equifax, Experian, and TransUnion – to provide you with one free credit report per year. Make sure your reports are free of mistakes, and communicate any problems immediately.

• Review your budget. If you created an annual budget at the beginning of the year, now is a good time to review your progress and make any necessary updates.

• Set up auto-pay, or auto-deposit. Missing bill payment deadlines can lead to late fees and damage your credit score. Set up auto-pay on your bills to eliminate the chance of this happening. Conversely, if you are having difficulty saving money, you can set up automatic deposits into your savings account.

• Consolidate accounts. Do you have several bank or investment accounts? Consider consolidating them into one. You will have less accounts to remember to check on, and bigger balances could offer more favorable rates.

• Pay off holiday debt. Are you still paying off debt from the holiday season? This type of debt tends to be high-interest, making it a priority to pay off as soon as possible.

• Go paperless. Enroll in paperless bank, credit card, investment, and insurance statements. This will not only reduce clutter around the home, it might even save you from account maintenance fees.

• Organize/shred old financial documents. Once you’ve gone paperless and eliminated future incoming documents, it’s time to focus on the paperwork which is currently cluttering your home. Tax documents should be kept in hard copy form for seven years, but you can safely shred old bank statements, credit card statements, and most receipts.

• Update beneficiaries. Important life events, such as birth, death, marriage, or divorce, can impact your beneficiaries. It is a good idea to review these every year to make sure everything is how you want it, and set a contingent beneficiary in case something happens to your primary recipient.

• Host a garage sale. When you get around to spring cleaning your home, gather all of your unwanted goods and host a garage sale. Put these extra funds into a savings account, or use them to pay off high-interest debt.

Need help organizing your finances? The professional advisors at American Investment Planners, LLC are here to help. To schedule a face-to-face appointment with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.