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.

3 Financial Tips Every Widow Needs to Hear

Losing a loved one is never easy, especially when that loved one is a spouse. Nearly 1 million women experience widowhood annually, half of which will live for at least 15 more years. The grieving process can leave victims heartbroken, distressed, and financially uncertain.

While only time can heal heartbreak, these three tips from American Investment Planners will at least help to bring clarity to your financial situation.

Don’t rush into any major, irreversible decisions.

Recent widows have many financial decisions to make, but most of them don’t need to be made right away. The grieving and mourning process can impact the way your brain functions and makes decisions. Handle only the urgent matters at first, such as reexamining your cash flow, making sure your bills are paid, and filing for death benefits. Wait until your cognitive function has returned to normal (up to three months or more) to make other, more important decisions.

Beware of new friends, family members, and financial experts.

A widow with a sudden influx of new money usually finds herself surrounded by people who want to “help”. These may be old friends, distant family members, or a salesperson with a sure-fire investment. Even if your spouse’s insurance plan or retirement account paid out a large sum of money, it is important to remember that you are not rich. Think very carefully before spending or giving away even a dime.

Get an objective review of your financial situation.

The death of a spouse can greatly alter your long-term financial plans. Family or friends may offer their advice, but they may not know your entire situation, and likely lack professional experience. You should seek guidance from someone who is unbiased, well-informed and qualified to offer financial insights. The financial advisors at American Investment Planners, LLC will sit down with you, listen to your needs, and offer comprehensive suggestions. To schedule an appointment with one of our consultants, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Widows interested in learning more about financial management should attend our Ladies Luncheon in Woodbury, New York on Monday, May 22, 2017. The seminar will be lead by author Bea Lewis, most known for her book, “A Widow’s Journey: How I went from loss, to learning, to moving on.” Seating is limited. Guests must register by May 15th. Call (516) 932-5130 to reserve your spot.

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.

How to Save Money for a House: a Step-by-Step Plan

Have you always dreamed of being a homeowner? It’s time to turn that dream into a reality. Stop imagining and start saving up for a down payment with this step-by-step plan from the financial advisors at American Investment Planners:

• Step 1: Figure out how much you’ll need to save. First things first, you need to figure out (roughly) how much money you need to save. As a rule of thumb, your housing expenses should not exceed 25-30% of your monthly income. This includes mortgage principal and interest, taxes, and insurance. You should also aim to save at least 20% for a down payment; this much money is not required, but it will help you earn better interest rates.

• Step 2: Open a savings account. Next, you will need to open up a savings account so you have a place to hold your money. Keep this account separate from your traditional savings account or emergency fund, but consider opening it at the same bank for convenient e-transferring capabilities.

• Step 3: Create a budget. Make a detailed list of your monthly income and expenses. After calculating the necessary bills and other costs, how much money are you left with? And how much of this leftover cash can you comfortably put towards your new home each month? Make sure to keep your budget somewhat flexible for unexpected occurrences. You can learn more about creating a budget here.

• Step 4: Make your monthly deposits. Congratulations, you’ve determined how much money you need to save each month to meet your goal. Now comes the hard part: actually saving it. Setting up automatic deposits can help you put away your money before you accidentally spend it on something less important.

• Step 5: Save 100% of your windfall money. We all have those occasional events that bring us some extra cash: holidays, birthdays, special celebrations, work bonuses, and income tax returns just to name a few. Put 100% of this “extra” money towards your new home to help expedite your savings plan.

• Step 6: Check your credit score. When you start to make significant progress on your goal, it’s a good idea to sit down and check your credit score. A better credit score means lower mortgage rates, and since poor scores can take awhile to improve, it is something you want to address as early as possible.

• Step 7: Sit down with a real estate agent. Once the time comes when you are almost at your goal and your credit is in good standing, it’s officially time to sit down with a real estate agent and start looking for a new home. They can help you determine if your savings are sufficient, shop for mortgage rates, and show you qualifying homes in your area. Happy house hunting!

Are you having trouble planning and saving for a new house? The financial advisors at American Investment Planners, LLC 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.

5 Smart Strategies to Make Your Money Last Longer in Retirement

What does America’s increasing life expectancy mean for retirees? It means they need to make their money last longer — up to 30 years or more. Even with a diligent savings strategy, the chance exists that you may outlive your nest egg.

Follow these five tips from the retirement professionals at American Investment Planners, LLC to make your money last as long as possible.

Have a plan.

As the old adage says, failing to plan is planning to fail. A well-thought-out withdrawal plan should take into account estimated income, expenses, tax rates, and other variable factors. Sitting down with a financial advisor at American Investment Planners, LLC can help you develop a plan that meets your needs and budget.

Delay social security.

Though you may be eligible to begin Social Security at age 62, the smarter move is to delay these benefits for as long as possible. Every year you wait to start, your paycheck increases significantly. Waiting until age 66 will boost your income by 25%, and if you can hold off until age 70, you will earn 83% more each month!

Don’t dump your stocks.

As you near retirement, most financial experts recommend shifting your money from highly-volatile stocks to more safe, conservative bonds. This strategy makes perfect sense in theory; you want to minimize risk as you grow older. However, with most bonds yielding 1% or less, you should still maintain a modest stock portfolio to encourage growth.

Take on a part-time job.

Wait a minute, isn’t the whole point of retirement not to work? Maybe, but taking on a part-time job isn’t always a bad idea. Working just a couple of days per week can help you earn more, spend less, and enjoy a sense of fulfillment.

Downsize and relocate.

Just because you can afford to live in your home now, doesn’t mean you can afford to for the rest of your life. Consider downsizing and relocating to one of these five cities, which offer affordable housing, low living costs, and generous tax advantages.

American Investment Planners, LLC has decades of experience helping individuals across the country plan for retirement. Let us help you. Schedule a sit-down meeting with one of our advisors by calling (516) 932-5130, or email info@americaninvestmentplanners.com.