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.

Top Sources of Retirement Income

Working Americans typically have one major source of income: their job. However, upon retirement, individuals may rely on several different sources of income to sustain their lifestyle. Here are seven different ways that current retirees are making their money:

1. Retirement accounts. A well-funded IRA or 401(k) account should make up a significant portion of your retirement fund. The earlier you open an account and start saving, the bigger your nest egg will be when it’s time to retire.

2. Social security. Social security is currently the largest source of retirement income, with more than 88% of retirees receiving steady payments. While baby boomers can rely on Social Security for now, funds may be depleted for future generations.

3. Pension. More than one-third of current retirees get a pension income, however this number is likely to drop in the future. Fewer companies are offering pension programs to new workers, and those who do are yielding smaller payouts.

4. Savings Accounts & CDs. Also known as “time deposits”, CDs require investors to deposit their money for a predetermined length of time while it earns interest. If you have the funds to spare, keeping some of your capital tied up in CDs is a good, safe way to earn additional money.

5. Home Equity. If you have a lot of equity built up in your home, you can use it to help fund your retirement by using a reverse mortgage or by downsizing and pocketing the extra cash.

6. Stocks & Annuities. According to U.S. News, only 20% of workers think stocks will provide a significant amount of their retirement income. Even fewer are utilizing annuities. Talk to your financial advisor about the benefits of these income sources.

7. Part-Time Work. Retiring from your career doesn’t necessarily mean you have to stop working altogether. Picking up a part-time job can give retirees a sense of fulfillment and an additional source of income.

If you are currently planning for retirement, you should be looking to utilize as many income sources as possible. Not sure where to begin? The financial advisors at American Investment Planners, LLC can help you craft a personalized, diversified retirement plan that meets your needs. To schedule an appointment with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

5 Things to Consider Before Changing Jobs

The grass isn’t always greener on the other side.

When faced with the prospect of a potential career change, it may be tempting to make the switch, but first it is important to consider everything about the new job. Here are just a few factors to consider before accepting the offer.

1. Salary

Compensation is often the first thing we consider about a job, but it’s worth mentioning anyways. Will you be making more or less than your current job? If more, is it enough more to outweigh the potential extra work? If less, will you still be able to live your current lifestyle? How often does the company give raises? These are all questions you must ask yourself.

2. Benefits

Benefits, such as health insurance or retirement plans, are very important. Sometimes, an improvement in benefits can even make up for a small dip in salary. Benefits can also include vacation time, flexible working hours, extended maternity leave, or tuition reimbursement.

3. Opportunity for Advancement

Unless you want to be in your new role the rest of your life, you should consider the opportunity for advancement within the new company. How quickly you can climb the corporate latter can drastically impact the other points on this list, such as compensation and benefits.

4. Company Culture

When interviewing with the new company, what was the impression you got of its culture? Does it match your personality and preferences? Did you meet any of your potential coworkers, and what kind of vibes did you get from them? You will spend most of your waking hours in the office; you may as well like it.

5. Impact on Lifestyle

How will your new job impact your lifestyle outside of work? Will you have to work more hours or travel further to the new office, leaving less personal time in your life? You should also think about how the new position aligns with your out-of-office life and long-term goals.

A career change can instantly impact all matters of your personal finances. If you have recently switched jobs, or are considering switching jobs, consider talking to the professional financial advisors at American Investment Planners, LLC.

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

Your End-of-Year Financial Checklist

The holiday season is always busy, but it is important to set aside some time at the end of each year to straighten out your personal finances. With that in mind, here is a list of tasks to tackle before 2017:

1. Max out your IRA contributions. Returns generated through IRA accounts compound without taxes for life. The more money you can put in now, the more money you get when it’s time for retirement. We encourage everybody to max out their contribution limit each year if it is financially possible.

2. Balance your portfolio. Diversification is a fundamental way to minimize investment risks. Now is a good time to go through all of your portfolios and make sure you are not becoming too weighted towards one asset; even if it has performed well recently.

3. Donate to charity. Donating to charity is a great way to minimize taxable income, all while helping those in need. December 31st is the deadline for all tax-deductible charitable contributions.

4. Use up money in your flexible spending account. If you have leftover money in your flexible spending account (FSA) for health care expenses, schedule a last-minute eye exam or dental cleaning. If you don’t use it, you lose it!

5. Double-check your beneficiaries. Events such as divorce or death could impact your beneficiaries, so it is a good idea to double-check them at least once per year.

6. Budget for 2017. Review your 2016 spending. What changes (either to your income or your expenses) do you foresee occurring within the next year? Use this information to draft a rough budget for 2017.

7. Schedule a meeting with your financial planner. This is the best time of the year to schedule a check-up appointment with your financial advisor. Not only can they help you wrap up these (and other) end-of-year tasks, they can also help you prepare for the year ahead.

Don’t have a financial planner? Now is the perfect time to schedule an initial consultation! American Investment Planners offers professional financial advisement services to individuals and families across the country. Don’t trust anybody else to help you achieve your short- and long-term financial goals.

Call (516) 932-5130 today to schedule your appointment, or email info@americaninvestmentplanners.com.

Don’t Make These Money Mistakes!

Bestselling author Elizabeth Gilbert once said there are three types of people in this world:

1. People who never learn anything.
2. People who learn from their own mistakes.
3. People who learn from the mistakes of others.

Our goal is to help you be the third type of person – the one who learns the valuable lessons without enduring the pain and suffering that goes along with them. Countless people have made the money mistakes listed below; here’s how you can avoid being one of them:

Mistake #1: Not having a plan.

When it comes to personal finances, like most things in life, you should always have a plan. Without one, you will be blindly spending and saving your money with no idea how it is impacting your long-term goals. Sit down and take the time to map out your most important financial objectives; such as how you are going to get out of debt, fund your retirement, or send your children to college.

Mistake #2: Not having a budget.

Budgeting is the best way to take control of your finances. For best results, you should have both a short-term (monthly) and a long-term (yearly) budget. If you are new to budgeting, you can use the 50/30/20 rule to help get yourself started:

• 50% of your income to essential expenses: houses, transportation, groceries
• 30% of your income to lifestyle choices: travel, dining out, shopping
• 20% of your income to financial priorities: retirement, savings, debt

Mistake #3: Not understanding the importance of your credit score.

Your credit score shows potential lessors how you’ve managed your finances over time. A good credit score can save you thousands (or even tens of thousands) of dollars when it’s time to make large purchases, such as buying a home. Developing these habits now will put you on the path to a good credit score in the future:

• Pay your bills in full and on time every month.
• Don’t exceed more than 30% of your available credit.
• Check your credit score three times per year, and dispute any mistakes you may find.

Mistake #4: Not seeking help.

Navigating through your personal finances on your own is difficult. Having a professional financial advisor by your side can help you make tough decisions and avoid falling into common pitfalls -- such as the ones listed above. You may need to pay for their services, but the money you can save in the long run makes it a wise investment.

Looking for more money mistakes you should avoid making? Check out this article from Forbes.com.

American Investment Planners offers financial planning services to individuals and families across the country. Whether you are starting your first job, planning for retirement, or both, we can help you achieve and exceed your financial goals.

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