Questions To Ask Yourself Before Taking Out A Loan

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

What plans do you have for this year that require you to consider your finances? Perhaps you know that you'll be sending a child off to college soon, or maybe you're just looking to make sure that all of your (and maybe even your parents') financial ducks are in a row. For example, it may be time to discuss your parents' estate and figure out how the mortgage will be handled should something happen to them. Thinking that your next steps may result in you taking out some sort of loan? If so, before you go about doing so, make sure you ask yourself these questions:

1. What is my current credit score?
Your credit score says a lot about your borrowing habits, and it could be a deciding factor when lenders determine your eligibility to receive a loan. If you suspect that your credit score is relatively low, see what you can do to improve it before inquiring about a personal loan - for example, you can start by making sure all of your payments are made on time!

2. What do I need to provide to get a loan?
In order to be approved for a loan, you may need to provide certain documents such as bank statements so that the lender has a clear understanding of how much money you currently have. On the other hand, it may be as easy as simply stating your income on an application! Before you move further, make sure you know exactly what you need to supply so that you don't put yourself at risk for not having the right information ready.

3. What is the interest rate?
Considering that the interest on loans has a direct effect on how much money you pay back in the long run, it is imperative that you know what it is before agreeing to borrow from any lender. At this point, your credit score will also come into play, since it can cause your interest rate to go up or down.

4. How long do I have to pay back the loan?
If you're able to handle higher payments each month, then you may prefer for a shorter payback period to minimize the amount of interest applied to your loan (and vice versa, of course). That said, it's your responsibility to ask the lender if there is any flexibility in how long it takes to pay the loan back, considering that the amount of time you need may differ from someone else.

5. Are there any penalties for pre-payment?
It isn't unusual to want to pay back more than the minimum payment if your budget allows, but for some loans, this can lead to a penalty. Therefore, it's important for you to find out the specifics of the repayment plan that you're on! After all, who wants to be penalized for paying early?

By going through these questions first, you can better figure out which loan is right for you depending on your current financial situation and circumstances. However, it is important to keep in mind that with the proper financial planning, obtaining a loan for major life events may not be necessary. Sounds pretty good, right?

When you choose to work with a team of financial planners such as those here at American Investment Planners LLC, we can help you prepare for all kinds of milestones. Take sending your child to college for instance. Instead of worrying about costly student loans, we can help you plan accordingly when they are younger so that you have what it takes to assist them with the cost of their education when the time comes. But that isn't all we can do! From retirement planning to estate planning and more, we can also help ensure that adult children have the resources and knowledge needed when it comes to the retirement and estate of their aging parents.

For more information about our financial planning services, please call (516) 932-5130 or visit us on our website today.

10 Financial Terms You Should Know For Next Year

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

A challenge that many people often face when it comes to their finances is that they don't understand some of the complex terms that tend to be used in certain conversations. And since not having the knowledge surrounding the language used in this industry can have adverse effects on your financial success, there is no better time than now to learn a few. Below, we hope to eliminate any confusion you might have by outlining 10 of the most important financial terms we think you should know.

Asset Allocation: Asset allocation refers to the process of re-positioning the assets in your portfolio to really maximize the potential return that comes with a certain level of risk. Although it does not guarantee there will be no loss, it is used to help manage your overall risk when it comes to each of your investments.

Diversification: Diversification means investing in different companies, asset classes or industries to minimize your overall risk. While this also does not guarantee against loss, it certainly helps to manage your investment risk.

Estate Tax: An estate tax is the tax placed on the value of the estate left by a deceased decendent. This tax is given by the federal and state governments, and there are usually some limitations involved.

Fixed Income: Fixed income is the income you receive from investments like CDs and pension benefits; it is income that is the same from month to month.

Gift Tax: Gift taxes are federal taxes that are imposed on property that is transferred as a gift. Usually paid by the donor, the first $14,000 gifted each year is considered to be exempt from this tax. For more information about gifting, please click here.

Inflation: Inflation is the increase in price of a product or service over time. In order to measure inflation, the government uses the Consumer Price Index.

Liquidity: Liquidity refers to how quickly and easily assets can be turned into cash.

Probate: When a decendent passes, probate is a process used by the court to handle their estate. Ultimately, it is the process in which the deceased's estate is settled and distributed.

Roth IRA: A Roth IRA is another account that can be used to save for retirement. This type of savings plan, which is a nondeductible IRA, permits tax-free withdrawals so long as certain conditions are met.

Volatility: Volatility is best defined as the range of price swings of a security or market over time.

Aside from these terms, are there others that you hear time and time again that you are unsure of? To learn the definitions for several other popular financial terms, be sure to check out our online glossary here. Of course, if you have any other specific questions, you can contact us at (516) 932-5130; our team would love to sit down with you and speak about several financial planning processes.

5 Financial Tasks To Complete Before The End Of The Year

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

With 2016 right around the corner, we know many of you may be coming up with your New Year's Resolutions. But before you can get into what you'd like to do next year, there are still a few things you need to take care of this year, especially where your finances are concerned. Below, we outline five financial tasks you need to complete before the clock strikes 12 on January 1st:

1. Speak to your financial advisor: Before you set any financial goals for next year, it's important to talk to your financial advisor to get their insight on what you should be working towards. You never know when new strategies may work in your favor, so make it a priority to sit down with them to learn if and how some of your financial plans may need to be changed.
2. Check your credit: Your credit could easily be affected by an error on your report, so you'll want to catch any before it's too late. If you haven't received a free copy of your credit report yet this year, make it a point to get it now so that you can check for any mistakes.
3. Make contributions: Have you made the maximum contributions to your IRA or 401(k)? In 2015, you are permitted to contribute $5,500 to your Roth IRA and Traditional IRA, and $18,000 to your 401(k). For additional contribution limits, such as catch-up limits and those specifically for the self-employed, click here. 
4. Analyze investments: What do your current asset allocations look like? Is there enough diversification in your portfolio? To set yourself up for the greatest benefit from your investments, you'll want to review your portfolio and see how your current choices are working out for you. If you realize that some aren't working in your favor, it's time to make some changes!
5. Review your taxes: Believe it or not, tax season is approaching rather quickly, which means it's time to start figuring out where you might be able to save. At this point, take a look at the income you received this year and review things like donations you may have made to learn what may qualify you for a tax break.

At the end of the day, it's extremely important to make sure that you always feel confident about where you are and where you're headed financially. If you went through 2015 without a financial advisor or team of financial planners working with you, make your number one task for 2016 to find one. Need a recommendation? Choose American Investment Planners LLC!

For more information about the financial planning services we offer, please visit our website or call (516) 932-5130 today.