Tax Changes You Need to Know for 2018

It’s that time of year again — time to start filing your taxes. While you’re gathering all

the necessary documents to take to your tax expert, there are a few changes you

should know during this tax season. Keep them in mind in order to make the most

of your money.

Retirement Contribution Limits

Employees who contribute to 401(k), 403(b), Thrift Savings, and most 457 plans

can now contribute as much as $18,500 as opposed to the $18,000 they previously could.

Deductible Contributions to IRAs

Those who contribute to individual retirement accounts will have higher income ranges

after adjustments are made for costs of living. The deduction will phase out for those covered

by workplace retirement plans.

-Single taxpayers will have a limit of $63,000-$73,000.

-Married couples’ limits will depend on employer coverage. When the investing spouse has access to an employer plan, the limit will be $101,000-$121,000. If a person doesn’t have access to an employer plan, but their spouse does, the phase-out will be at $189,000-$199,000.

-It’s important to note the phase-out will not affect married couples who file their taxes

separately and are covered by an employer plan, so their range is still $0-$10,000.

Top Income Tax Rates

A 39.6% tax rate will affect single taxpayers with incomes over $426,700 and joint filers

with incomes over $480,050.

Standard Deductions

-Married couples who file joint tax returns will have a standard deduction of $13,000, a

$300 increase.

-Single filers or married people who file separately will have a raised deduction of $6,500.

-Heads of the household will have a $9,550.

Personal Exemption

Personal exemptions will increase by $100-$4,150. The phase-out for single filers begins

at an income of $266,700 and ends at $389,200. For married, joint-filing couples, it begins

at $320,000 and ends at $442,500.

Estates Taxes

The basic exclusions amount will increase from $5.49 million to $5.6 million for decedents

who die is 2018.

At American Investment Planners LLC, we make it a priority to help you prepare for the

best financial future possible. From tax management to retirement plans, we’re here to

help with anything you may need. To schedule an appointment with one of our advisors,

please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Things to Stop Spending Money On in the New Year

Do you ever feel like you check your bank account and have no idea how you spent so

muchmoney? That may be because you’re spending it on things that either don’t last

or don’t really matter. If you want 2018 to be the year that you really start saving, cut out

a few things you really don’t need to buy. These are some things to stop spending money

on in the New Year.

ATM Fees

Unless you are in some dire situation where you desperately need cash, stop

withdrawing money from ATMs that aren’t from your own bank. Some ATMs at

restaurants and bars can charge you as much as almost $5.00 just to take money

out of them, and then there’s always the chance your bank charges you another

fee for using a different ATM. Forget fees, and only take out cash from your own

bank’s ATMs.

Take Out

Even if you’re just getting a coffee each morning, those costs add up. Plus,

imagine if you’re going out to dinner or drinks with friend several nights a

week — that’s a lot of money leaving your pocket. Make your own coffee, pack

your own lunches for work, and limit yourself to eating out only a couple of times

a month. Groceries cost much less than restaurant tabs.

Cable

You’d be surprised how many people don’t actually sit and watch live television

anymore — and with all the available streaming sights, we don’t blame them.

Ditch your monthly cable bill, which for some of you could cut close to $100 off

your monthly expenses, and opt for streaming services that cost only $5-15 a

month instead.

At American Investment Planners LLC, we want to help you and your money

stay safe, which is why we make it a priority to help you prepare for the best

financial future possible. From managing your cash to retirement plans, we’re

here to help with anything you may need. To schedule an appointment with

one of our advisors, please call (516) 932-5130 or email

info@americaninvestmentplanners.com.

Retirement Moves to Make in the New Year

When you start thinking back on all the positive changes you made and things you

accomplished last year, does your retirement plan pop into your head? We’re hoping

that you’ve spent the last 12 months doing all that you can to set yourself up for a

comfortable retirement, but in case you slacked a bit, here are a few retirement moves to

make in the New Year.

Take Your Required RMDs

Once you turn 70.5, you have to start withdrawing money for your traditional IRAs as

well as your 401(k) or similar employer-sponsored retirement plans — unless you’re

still employed by that sponsor — by December 31st. If you don’t take the

required distribution, the IRS will hit you with a 50% penalty on the money you didn’t

take but should have.

Contribute to Your Employer-Sponsored Retirement Plan

If you’re under 50 year olds, you can contribute up to $18,000 to your employer-

sponsored retirement plan and up to $24,000 if you’re over 50. Not only will you be

putting more into your plan, but that is a good amount of money you can save in a

tax-deferred account.

Rebalance Your Portfolio

A lot of people go years without checking their portfolios. You should be checking

yours regularly to make sure it is appropriate for the risk level it’s currently at. What

may have been a good amount of risk 10 years ago may not work today, so it’s important

to rebalance your portfolio to align with current returns and your specific needs.

At American Investment Planners LLC, we want to help you and your money stay safe,

which is why we make it a priority to help you prepare for the best financial future possible.

From managing your cash to retirement plans, we’re here to help with anything you may

need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or

email info@americaninvestmentplanners.com.

How to Keep Your Spending Low New Year's Eve Weekend

As the year comes to a close, we all start to reflect on the changes we’ve made over the past 12 months — and hope some of them relate to how we spend our money. We’ve given you plenty of tips this past year on how to be more financially responsible, and we’re not about to let the final (or first, depending on how you look at it) holiday of the year ruin that. Go out with a bang by keeping your spending low this New Year’s Eve Weekend.

How to Keep Your Spending Low New Year's Eve Weekend

Make Parties Potlucks

Hosting a New Year’s Eve party can be expensive, especially if you plan on supplying all the champagne. Instead of fronting the entire bill yourself, ask guests to each bring a dish of food or some drinks. It can seriously cut down on how much you spend on the party.

Share Your Rides Home

Basically every transportation app and taxi company gives you the option to share your ride and lower the cost per person. If the friends you’re leaving a party with live relatively close to you, split the car ride home with them.

Bring Cash Instead of Opening a Tab

Cash allows you to decide exactly how much you’re spending while you’re ringing in the New Year. If you open a tab on your credit card, the bubbly can get the best of you, and you can end up ordering and spending more than you ever intended.

Don’t Drink and Drive

While we’d hope this is a given, we’re going to remind you anyway — if you’ve been drinking, spend a few dollars on a cab ride to get home and then get back to your car in the morning. The expenses you’ll end up paying if you get pulled over and arrested for drunk driving are not worth it. Think of it this way — $30 on cab rides so you stay safe, or $2,000+ dollars in legal fees for risking driving yourself?

At American Investment Planners LLC, we want to help you and your money stay safe, which is why we make it a priority to help you prepare for the best financial future possible. From managing your cash to 529 savings plans, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Gifts That Give Back

There’s a phrase that says, “The holiday season is the perfect time to reflect on our blessings and seek out ways to make life better for those around us.” While it’s easy to get caught up in what we want as presents and what we need to buy, the holiday season is, indeed, a time of giving. Each type of financial gift you can give comes with its advantages and disadvantages, so it’s important to weigh your options when deciding which gift strategy to choose.

Gifts That Give Back

Outright Gift: These are gifts in the form of cash or other assets.

• Advantages:  Deductible for income taxes.
• Disadvantages: No retained interest.

Charitable Lead Trust: Your gift is placed in a trust, and the recipient draws income from the trust.

• Advantages: A current gift to charity; Current income tax deduction; the ability to pass assets to future heirs.
• Disadvantages: The transfer of assets is irrevocable; if a current income tax deduction is, future income is taxable to the donor; the donor gives up the use of income for the life of the trust.

Charitable Remainder Trust: You receive the income generated by your gift, and the recipient receives the principal upon your death.

• Advantages: Offers a current tax deduction; avoids capital gains tax on appreciated property; reduces future estate taxes.
• Disadvantages: The transfer of assets is irrevocable; generally requires a qualified appraisal; involves complex administration and setup; the distributions to non-charitable beneficiaries are usually subject to income tax.

Gifts of Insurance: You purchase a life insurance policy and name a charitable organization as the owner and beneficiary of the policy.

• Advantages: Offers possible current tax deductions; enables a donor to make a large future gift at a small cost in the future.
• Disadvantages: May require annual premiums; the death benefit could be part of the donor’s taxable estate.

At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From devising gifting strategies to 529 savings plans, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

The Best Money-Oriented Presents for Kids

Every year, you ask your kids, “What do you want for the holidays?” and every year, they probably give you a laundry list of toys and other items that they’ll want the new versions of the following year. Rather than getting them gifts that they’ll get tired of in a few months, give them something they can benefit from in the long-term. These money-oriented presents are the perfect way to start your child’s financial journey out right.

A Piggy Bank

These are great for even the smallest of children. A piggy bank helps them start learning to save in a fun way. Teach your children to “feed” their piggy every time someone gives them a little bit of money. (You might also want to choose a plastic piggy bank over a ceramic or glass one so you don’t have to hurt the piggy to get the money out later on.)

Saving Bonds

While these may not seem as popular as they did years ago, saving bonds are a great way to teach your children about compounding interest and long-term investments. They offer a small range of interest rates and are typically exempt from local and state taxes and potentially federal tax if used towards college tuition. Plus, you can now use your tax refund to buy a savings bond for your child or grandchild by checking a box on your return form — so it’s even easier to get one!

529 Savings Plans

While this isn’t something your child will be able to use right away, it’s something they’ll definitely thank you for when they start applying to colleges. Used only for education specific expenses, your child won’t be able to blow the money on a new car but can use it to cover his or her room and board at school. In terms of giving them as a gift, print out a certificate of the account and wrap it with a hat or shirt from a school you may want your child to go to.

At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From savings bonds  to 529 savings plans, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

Holiday Shopping Safety Tips

Time’s winding down for you to get all of your holiday shopping done, which can make you feel a little stressed as you come down to the wire. But before you go loopy trying to find the best present for every Tom, Dick, and Harry, make sure you’re not putting your safety or wallet at risk — follow these holiday shopping safety tips instead.

• Don’t Wait Until the Last Minute: We’ve said it before but we’ll say it again — waiting until the last minute to go holiday shopping makes you more likely to spend more money on presents just so you’ll have something to put under the tree.
• Save All Your Receipts: There can be a bigger chance of having fraudulent charges on your credit cards during the holiday season since thieves think you won’t notice random purchases in all the shopping mayhem. Keep your receipts so you can check your statements and dispute any false charges.
• Don’t Take Out Money Until You Have To: Don’t go flashing all the cash in your wallet before you get to the register. A thief would love to know how much money they could get from you early on.
• Keep Your Purse and Wallet Close: Deter pickpockets by keeping your purse close to your body and your wallet in an inside jacket pocket or front pant pocket.
• Take Care When Shopping With Children: Always make a plan in case you and your children get separated, and designate a specific meeting place where they should go in case they get lost.
• Beware of Online Bargains: If you’re on an unfamiliar website and something sounds too good, it probably is, so don’t make a purchase and put your credit information on that site.

As the holiday season rolls on, you should want to protect your finances even more. At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From managing your cash to 529 savings plans, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.