9 Wise Ways to Spend Your Tax Refund

So, you followed our tax advice and were able to maximize your 2017 refund. You’re off to a good start, but what good is a big refund if you don’t spend it wisely?

While it may be tempting to take that refund check to the mall and spend it on a fancy new toy, you will thank yourself later if you exercise restraint and invest this money.

Here are nine smart ways you can spend your tax refund this year:

1. Re-invest the money in a retirement account. Roth IRAs allow your money to grow tax-free and have no minimum required distribution, making them a popular choice.

2. Pay off some credit card debt. Pay off your accounts with the highest interest rates first.

3. Make an extra payment on your mortgage. If you are lucky enough to have no high-interest debts, consider putting your money towards your mortgage.

4. Build your emergency fund. Your emergency fund should be able to support up to six months’ worth of living expenses.

5. Put it towards your next big purchase. Whether you have a new car or home improvement project on the horizon, your tax refund can be used to pay off a significant chunk of it.

6. Use it on your insurance policy. Upgrade your policy or just pay next month’s premium, the choice is yours!

7. Invest in your career with additional training or an industry conference. You are your own biggest source of income, so it makes sense to invest in yourself.

8. Make a charitable donation. Doing the right thing just feels good, plus it can reduce your taxable income for next year.

9. Treat yourself. There’s nothing wrong with spending part of your tax refund on yourself. The key word is part: try to limit this spending to 10% or less of your total refund.

Whether you are looking to maximize your tax return, or just need advice on spending it wisely, the financial consultants at American Investment Planners, LLC are here to help. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Remortgaging Your Home: What it Means and When to Do it

If you’re like most Americans, your mortgage is your biggest financial commitment. If you are stuck in a bad agreement, you could be overpaying by thousands of dollars each year. Luckily, homeowners may have the option to remortgage their home in order to secure a better deal.

In this article, the financial advisors at American Investment Planners, LLC discuss the purpose of remortgaging, when you should consider it, and what steps you need to take to finish the process…

What is remortgaging?

Remortgaging your home is simply the process of switching your mortgage deal – either with your current lender or a new one. There are four main reasons to do this:

• Reduce your interest rate
• Free up some of your property’s value for other spending
• Reduce monthly payments by extending the term
• Reduce the mortgage term

When you should (and shouldn’t) consider remortgaging

In some cases, remortgaging your home could save you thousands of dollars. In other cases, you may lose money by making the switch. Here are some factors to consider when making the decision…

You should remortgage if:

• Your current deal is about to end
• You have a high interest rate
• Your home’s value has significantly increased
• You are worried about rates going up
• You want more flexibility

You should NOT remortgage if:

• Your remaining mortgage debt is small
• Your home’s value has dropped
• You have little equity
• You already have a great interest rate
• You have credit problems

Still don’t know if remortgaging is the right choice? This interactive online calculator can quickly estimate the potential savings (or losses) of making the switch.

How to remortgage your home

If you want to remortgage your home, or are at least seriously considering the idea, here is what you will need to do:

1. Think about why you want to remortgage.
2. Get your paperwork together.
1. Calculate your current costs.
2. Research your current loan’s restrictions and fees.
3. Shop around for a new mortgage.
1. Calculate potential switching fees.
4. Speak with an independent financial advisor at American Investment Planners, LLC to see if remortgaging makes sense.
5. Ask your current lender to match your new deal or offer a better one.
6. If they decline, apply for the new deal.

American Investment Planners, LLC has helped families across the country manage their mortgages for decades. If you are considering remortgaging your home, let us help. Our consultants can answer any questions you may have, and formulate a plan to meet your needs.

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

How to Pay Off Debt – the Right Way

Are you up to your eyeballs in credit card debt? You’re not alone. According to Business Insider, the average American household with credit card debt owes upwards of $16,000.

Like anything else in life, the key to paying off your debt is having a plan. Most people blindly pay what they can on their bills, with little-to-no thought on how they are allocating their payments. This ultimately costs them time, frustration, and hundreds of dollars in interest.

Luckily for you, the professional financial planners at American Investment Planners, LLC are here to help. This proven four-step method will allow you to pay off your debts as quickly and efficiently as possible.

Step 1: Stop adding new debt.

If you are serious about paying off your debt, the first thing you need to do is stop adding to it. Leave your credit cards at home the next time you go shopping, or cancel, freeze, or cut them up if you need to.

Step 2: List each of your debts in order of interest rate.

Make a list of all of your debts, including car payments, student loans, credit cards, store cards, and anything else which isn’t a mortgage. Now rank all of these debts in order of interest rate, with the highest rate at the top of your list.

Step 3: Pay all of the monthly minimum payments.

When compiling the aforementioned list, be sure to include a column for minimum monthly payment. This is the amount you will pay every month towards all of your debts, except for the one at the top of your list…

Step 4: Put extra money towards the debt with the highest interest.

This is where that list of interest rates comes in handy. Once you have made the minimum payments on all of your debts, put your remaining money towards the debt with the highest interest rate. Most people pay off their debts in order of total amount owed, starting with the smallest sum. While this allows you to close small accounts quickly, paying off in order of interest rate guarantees you spend the least amount of money possible.

Bonus Tip: Lower your interest rates and consolidate your debt with balance transfers.

A balance transfer is the process of moving your credit card to another bank in exchange for a lower interest rate. When utilized correctly, balance transfers could save you hundreds (or even thousands) of dollars in interest fees. Shop around to get the lowest interest rate for the longest duration possible, and be sure to read all terms and conditions to avoid hefty fees.

American Investment Planners, LLC has been helping families across the country pay off their debts for more than 30 years. Our professional financial consultants will sit down, examine your current debts, and work together to construct a repayment plan that meets your needs and budget.

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

How to Shop Smart for Your Next Car

Besides your home, your automobile is likely the biggest purchase you will make in your lifetime. Like anything else in life, there is a right way to shop for a new car, and a wrong way.

Follow these tips from American Investment Planners, LLC to shop the smart way, and save thousands of dollars doing it:

• Determine your budget. Before you embark on your car shopping journey, you need to figure out how much you can afford to pay. Our online car affordability calculator is an easy-to-use, interactive tool that can help determine your ideal price point in just a few seconds.

• Explore your options. Don’t mentally commit yourself to anything too early in the buying process. Get the most out of your money by exploring your options. Compare different car makes and models, dealerships in your area, new vs. pre-owned, etc.

• Secure the loan before the car. The dealership isn’t the only option you have for a loan. In fact, many times it is the worst option. Shop around various banks, credit unions, and other financial institutions and get pre-approved for a car loan before heading to the dealership. Bring this information to the salesperson and see if they can match (or exceed) your other financing offers.

• Know the final price tag, and what it includes. One of the trickiest parts of car shopping is the extra charges and fees added throughout the process. What looks to be an affordable car can quickly exceed your budget after taxes, dealership fees, and the like. It is important to know not only the final price, but what the price includes. Some dealers will include perks such as an extended warranty, roadside assistance, or free oil changes for a year.

• Strike while the sales are hot. If you can afford to wait, don’t shop until the end of the model year – which typically starts around September. Dealerships need to make space for their incoming inventory, which translates into big time savings for the buyer. The holiday season (Black Friday through New Year’s) is also a good time to shop.

Budgeting for a new car can be difficult, but it’s not impossible. The financial consultants at American Investment Planners, LLC have decades of experience helping individuals and families just like you plan for life’s biggest expenses.

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

Why Millennials Will Need to Save More Than Their Parents Did

You know it’s important to save money for your future, but if you’re a millennial, we’ve got a bit of bad news: you’re probably going to need to save even more than you originally thought.

How much more? According to Dan Kadlec from Time.com, up to twice as much as the baby boomer generation.

Why is this? Ever since the internet bubble popped at the turn of the century, we have been living in a low-return economic environment. People planning for retirement can no longer depend on the market to do the heavy lifting for them.

Since 1978, the average annual return on a portfolio consisting of 60% stocks and 40% bonds has been 6.3% – a very robust number. Going forward, it is estimated that this return will be closer to 2.9%. It may not sound like much of a difference, but over a 40-year time period, it translates to a 60% smaller retirement fund.

The old rule of thumb was to set aside 10% to 15% of every paycheck. Unfortunately, that will no longer allow you to live comfortably. If you want the same result as baby boomers, you will need to save about 25% of your paycheck for 40 years.

That’s a lot, especially for millennials. Between outsized housing costs and student loan debt, Time estimates that young workers are only saving about 6% of their current pay – about 76% less than recommended.

If you are saving closer to the 6% mark, don’t panic. The 25% number is not set in stone, and is an overly-aggressive estimate based on the assumption that Social Security will no longer be available (which may not be the case). Still, the point remains. Young adults will need to save significantly more money to produce the same results as past generations.

Are you worried about saving for retirement? Having a professional advisor by your side can help ease your stress. The financial consultants at American Investment Planners, LLC have decades of experience helping people just like you plan for retirement.

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

Starting an Emergency Fund: What You Need to Know

We can never be certain what the future holds, so it’s always best to be prepared. Financially, this means building an emergency fund in case of, well, an emergency. If you don’t have an emergency fund yet, don’t worry. The financial advisors at American Investment Planners, LLC will tell you everything you need to know to build one.

What is an emergency fund?

An emergency fund is just what it sounds like – a separate account set aside specifically to cover unexpected expenses that may pop up.

Why everyone should have an emergency fund

You never know what life is going to throw at you. An emergency fund will help cover your financial shortcomings in the event of monetary emergencies such as:

• Losing your job
• Automobile breakdown
• Home repairs
• Major medical expenses
• Unanticipated travel
• Loss of a family member

How to build your emergency fund

• Open a new account. First things first. If you don’t already have an emergency fund established, head over to your bank and open a new account. You should always keep your emergency fund separate from the rest of your money. Skip the ATM card, too – the less convenient it is for you to access this money, the better.
• Set a realistic target number. Eventually, your emergency fund should be able to cover six months of expenses. This may seem like an overwhelming number, so start with something more manageable: such as $1,000. If you can set aside just $20 each week, you will have $1,000 in your emergency fund in a year.
• Automate the process. Once you have determined how much money you will be setting aside each month, enroll in automatic deposits. This way, you will never forget to transfer your emergency fund money, nor will you be tempted to spend it on something else.
• Track your progress and look for more ways to save. Keep close tabs on your deposits every month. Are you on track to meet your goal? Even if you are, there is still room for improvement. Look over your budget and try to find more ways to save. Just 28 extra cents per day can add up to $100 over the course of a year.

American Investment Planners, LLC offers professional financial planning services to individuals and families across the country. Whether you need help building an emergency fund, planning for retirement, or anything in between, 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.

Why Should You Work With American Investment Planners, LLC in 2018?

Now is the time of the year when people focus on self-improvement. The most common way of doing this is by making New Year’s resolutions. If you’ve resolved to take control of your finances – whether that means saving more money, paying off debt, or planning for retirement – a professional financial planner can help you meet your goals.

While there are many financial advisement firms to choose from, there is only one clear option: American Investment Planners, LLC.

Here are three reasons why you should work with us in 2018:

We have decades of experience.

Our president and founder, Lee Rosenberg, has been advising clients since 1983. Over the past 30+ years, he has become one of the most respected names in the industry, and American Investment Planners has grown to manage hundreds of millions of dollars in assets each year. Our team has more than 100 combined years of experience, and many of us have gone through the same financial struggles as our clients.

We believe in individualized attention.

American Investment Planners, LLC offers the resources and experience of a large corporation, with the personalized service of a boutique firm. No one wants to feel neglected, especially by their financial advisor. That’s why we offer families the individual attention they want, along with the investment products and services they need. We don’t take shortcuts – we believe that frequent communication and customized portfolios is the only way to help our clients meet their goals.

We focus on your entire family.

We don’t just help with your finances; we strive to assist your entire family, so that your children and their children have the means they need to succeed. From college savings to retirement planning, we’ve helped individuals across all generations achieve their financial goals. Trust us to be your family’s financial planner!

Ready to schedule an appointment with one of our advisors? Give us a call at (516) 932-5130, or email info@americaninvestmentplanners.com.