Author Archives: VP of Marketing and Business Development Jessica

5 Points for 5 Years Before You Retire

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Retirement is an exciting prospect for many and choosing how to spend your retirement could likely be based on the planning you do today. For example, have you considered your plans for housing, healthcare, and travel expenses? If you are wondering how to get started, here are five points to consider within five years of your retirement.

  • Estimate your monthly income and allowances. The monthly amount could decline based on a lesser need for extras, but it could also quickly change based on your health or family circumstances, so estimating on the higher side could help. Also, consider readjusting or reallocating your portfolio and evaluating other income-producing and growth investments. And lastly, don’t forget to include any Social Security or Required Minimum Distributions.
  • Where will you live? Have you considered relocating to a state that doesn’t require as many taxes? Many retirees consider downsizing to lower expenses, or plan to move closer to family to help care for grandchildren or loved ones. Overall, there can be many benefits to living closer to family as you age.
  • Consider your debt and taxes. Retiring to a lower income tax bracket is possible. Considering a one-time tax hit, moving from a traditional IRA to a Roth IRA could eventually produce a source of tax-free retirement income. But before you make any decisions, talk with a qualified tax professional to see if this move is right for you. Income and age restrictions may apply.
  • Healthcare costs. Will you apply and be eligible for Medicare and will this cover your present and future needs? It is possible you or a loved one may need long-term care at some point during retirement and this could affect your overall bottom line.
  • What will you do? How do you dream of spending your days? Will you take time to travel and see the world, or would you prefer to keep closer to home and pick up a new hobby? However you see your retirement, it’s important to make sure your finances can support your overall goals.

Planning for retirement involves setting goals and a defined strategy toward those goals. Whatever your plans are, make sure you have made all of the arrangements beforehand so you can live your retirement years as confidently as possible.

Questions about this topic? Contact First Financial’s Investment & Retirement Center by calling 732.312.1534.  You can also email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

This material was prepared by LPL Financial, LLC

Tracking #1-05363549

Protecting Your Finances: Beware of Double Zero Scams

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In today’s digital age, financial scams come in many forms and staying vigilant is crucial to safeguarding your hard-earned money. One such scam gaining traction is the Double Zero Scam, a cunning scheme that preys on unsuspecting individuals’ goodwill and trust. Let’s delve into exactly what this scam entails and how to protect yourself.

What is a Double Zero Scam?

Imagine receiving a call from someone claiming to represent a reputable company that you may have an account with or have purchased a product or service from in the past. The caller informs you that a $150 refund was issued to your bank account for unused services. However, due to a bank error – an additional two zeros were added to your account, making the refund amount $15,000. The caller is in distress and pleads for you to wire back the excess amount or to go to the bank and withdraw it in cash, to rectify the error so that they don’t lose their job.

How Does it Work?

The scammer relies on psychological manipulation, leveraging urgency and fear to coerce victims into compliance. By creating a sense of urgency and portraying themselves as reputable entities facing dire consequences, they aim to bypass your logical reasoning and exploit your desire to help.

Protect Yourself from Double Zero Scams

  • Verify the Caller: Always verify the identity of the caller, especially if they claim to represent a company or organization. Hang up and contact the company directly using a trusted phone number to confirm the legitimacy of the call.
  • Be Skeptical of Unsolicited Requests: Exercise caution when presented with unexpected refund offers or requests for financial transactions. Legitimate companies typically do not request immediate action or ask for sensitive information over the phone – much less a payment via a wire transfer, gift card, person-to-person payment (i.e. Venmo or Zelle), in cash, or with cryptocurrency.
  • Trust Your Instincts: If something feels off or too good to be true, trust your instincts. Scammers often rely on creating a sense of urgency to pressure victims into making hasty decisions. Take a moment and call your financial institution for a second opinion before making any financial transactions. A trusted company representative will not have an issue with further verification.
  • Educate Yourself: Stay informed about common scams and fraudulent tactics gaining traction in today’s digital landscape.

At First Financial, your financial well-being is our top priority. Our tools and resources such as our Fraud & ID Theft Protection Guide can equip you with the knowledge necessary to protect yourself from scams. By staying informed and vigilant, you can safeguard your finances and enjoy peace of mind in an ever-evolving digital world.

For more personalized financial assistance with your First Financial accounts, call us at 732.312.1500 or visit a branch today. Don’t miss out on more financial tips and advice, be sure to subscribe to our First Scoop blog.

Get in Touch with Your Finances During Financial Literacy Month

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April is Financial Literacy Month and First Financial is here to guide you on getting in touch with your finances with smooth sailing. While financial automation can be a great way to bring ease into managing regular expenses and savings, it also demands a vigilant approach to ensure your financial health remains robust. Here are some important things to keep in mind when automating your finances and areas of consideration when conducting necessary financial check-ups.

Catch Mistakes Early

Automation doesn’t guarantee perfection. Errors in billing amounts or unexpected charges can occur. Regularly reviewing your accounts allows you to spot these discrepancies early, preventing minor issues from escalating into financial headaches. At First Financial, we encourage members to utilize our mobile banking app and card management resources for effortless monitoring of finances.

Maintain Awareness of Spending

It’s easy to let automation lead to an out-of-sight, out-of-mind attitude toward your finances. However, this approach can cause you to lose track of where your money is going and lead to unnecessary spending – deviating from your financial goals. First Financial offers budgeting tools and resources that help you stay on top of your spending habits, ensuring you’re always aligned with your financial aspirations even when you’re not actively thinking about them.

Strategic Financial Planning

Automation should enhance, not hinder your ability to plan for the future. Regular check-ins with your personal financial plan and budget will allow you to adjust as needed, keeping you on track toward your long-term goals. Whether you’re saving for retirement, planning a major purchase, or building an emergency fund – our planning resources are designed to support your journey toward financial stability and success.

Conducting a Financial Check-Up

Don’t overlook the value of a comprehensive financial check-up. First Financial’s suite of online tools and personalized advice from our team can guide you through this process, ensuring your financial well-being is always at its peak.

Key Areas to Review:

  • Net Worth: Start by evaluating your current net worth to understand where you stand financially. Compare it with past assessments to gauge your progress or identify areas needing attention.
  • Financial Plan: Revisit your financial goals and the plan you’ve laid out to achieve them. Are you on track? Adjustments may be necessary to realign with your objectives.
  • Insurance Coverage: Review your insurance policies thoroughly. Ensure you have adequate coverage for your assets while also identifying opportunities to optimize premiums.
  • Investments: Examine your investment portfolio. Check if your asset allocation aligns with your risk tolerance and financial goals. Look for ways to reduce fees and improve returns.
  • Spending and Saving Habits: Assess your spending patterns and saving practices. Ensure they’re aligned with your financial priorities and adjust where necessary, to meet your goals.

By regularly performing these checks, you’ll maintain a strong pulse on your financial health and adapt more effectively to life’s changes. First Financial is here to support your financial check-ups and to help you navigate your financial journey with ease and confidence. Remember, your financial well-being is our top priority. Let’s make this Financial Literacy Month a milestone in your journey toward financial empowerment! For more personalized financial assistance call 732.312.1500 or visit a branch today.

Budgeting for a Family

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If you’re expecting your first child, congratulations! You’re about to embark on the most rewarding and fulfilling experience of your life.

As you already know, there’s a long list of responsibilities associated with your new title — parent. And financial responsibility takes a backseat to none of those. Raising a child is expensive, after all. The USDA estimates the total expenses for a child’s first 18 years at more than $200,000. So, as you begin planning for your first child, consider these key areas and their associated expenses.

First, there’s healthcare. If you’re covered by an employer’s plan, check to make sure of the options for adding a child. Additionally, if you do have an employer-sponsored plan, consider a medical reimbursement account (MRA) or health savings account (HSA), if either is available. These can pay for items such as deductibles, co-payments, and orthodontics.

If you’re paying for healthcare directly, you can choose a managed care plan, such as an HMO, which offers lower upfront costs than a traditional plan, which may require you to pay at least 20 percent of care costs. However, a PPO plan may provide you with more options as to which providers you can see and whether you need a referral to see a specialist. Whatever route you go – deductibles, co-insurance amounts, co-payments and monthly premiums vary greatly; review the options available to you carefully before making your selection.

Next, there’s childcare. Depending on your adjusted gross income, or AGI, you may be eligible to receive tax benefits as a parent. The Child Tax Credit provides a credit of up to $2,000 for children ages five and under – or $3,000 for children ages six through 17 years old. To qualify, your child must have a Social Security Number before you file your tax return.

Then, insurance. Purchasing disability and life insurance can provide income for your child if your earning capacity is compromised. A financial professional may be able to provide guidance as to the recommended amounts of coverage for each. Check to see if your employer offers these policies, they are often less expensive than those that you purchase independently.

Finally, consider drawing up a will that designates a legal guardian for your child, in the event that you and your spouse die together, or if you’re a single parent and you should die. If you and your spouse die intestate — that is, without a will — and you die together, a court will decide whom to appoint as your child’s guardian. Make sure that the will is written so that it applies to your new baby as well as your future children. By carefully budgeting for your baby, you can help secure the financial futures of both you and your child.

Questions about this topic? Contact First Financial’s Investment & Retirement Center by calling 732.312.1534.  You can also email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

This material was prepared by LPL Financial, LLC

Tracking #1-05363540

Essential Tips for Navigating the Spring Housing Market

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Why Prepare to Buy in Spring?

The spring housing market, peaking from April to June – is renowned for its heightened activity. The allure of spring lies not just in its weather, but also in the potential for finding great deals on homes that didn’t sell or were not listed in winter. The spring market – fueled by both new listings and the eagerness of buyers who are shaking off the winter chill, creates a landscape filled with opportunity. First Financial is here with 5 essential tips for a successful springtime homebuying journey.

1. Gauge Market Conditions: The spring market’s vibrancy varies, influenced by whether it leans in favor of buyers or sellers, prevailing mortgage rates, and local real estate trends. Keeping a pulse on these conditions can significantly impact your buying strategy. Evaluate each condition closely before making any commitments.

2. Isolate Your ‘Must-Haves’ From Your ‘Wants’: In the bustling spring market, knowing what you’re looking for is crucial. This includes the type of home, desired neighborhood, and essential amenities. However, with heightened demand and high competition, it’s important to isolate what you truly need from the things you want. A well-defined list of must-haves will streamline your search and help you act decisively.

3. Mortgage Preapproval is Key: Securing mortgage preapproval before diving into the housing market not only sets realistic expectations – but also positions you as a serious buyer, enhancing your bargaining power. Preapproval will allow you to know how much home you can realistically afford, as well as lock you in at the best interest rate.

Here at First Financial, we’re here to help you throughout the mortgage process. Stressed about where to start? Schedule a video chat or phone call with one of our mortgage experts with no commitment required! Ready to get preapproved? Simply fill out our quick mortgage inquiry form and a member of our Loan Department will contact you. You can also choose to sign up for our mortgage rate text alerts, and we’ll send you a text whenever our mortgage rates change.+

Finally, when you close on a home with a First Financial mortgage – you’ll receive a $500 Home Depot gift card, your appraisal is on us ($580 value), along with a host of other benefits.* Not ready to apply just yet? Utilize our wide range of website mortgage calculators to help you plan for the future!

4. Leverage Expertise: Collaborating with a real estate agent who understands the nuances of the spring market can be invaluable. They can provide insights into fair pricing, negotiate on your behalf, and even unearth hidden gems in your desired locations. Having a real estate agent on your side will position you ahead of buyers heading the journey alone and take many stressors off your shoulders.

5. Have Your Documents Ready: If you’ve made an offer and are hoping to fast-track the process, make sure you have your paperwork ready to go. The process of compiling all the necessary documents can be longwinded, so be sure to get a jump on things and have all your ducks in a row. Some of the documents you’ll need include:

  • Identification
  • W2s
  • Pay stubs
  • Bank statements

Before making an offer, build a mortgage document checklist to keep track of what you’ll need to close the deal. Our homebuying guide is a great resource!

Embrace the Spring Market with Confidence

The spring housing market offers a unique blend of challenges and opportunities. With strategic preparation, you can navigate this bustling season effectively. Whether you’re gauging market conditions, calculating what you can afford, or securing mortgage preapproval – we’re here to help you achieve your homebuying goals.

Contact us today and embark on your journey to homeownership with confidence. Don’t miss out on more financial tips and advice, be sure to subscribe to our First Scoop blog.

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties. Qualified borrowers must meet eligibility requirements including, but not limited to, property location, loan amount, loan type, occupancy, property type, loan to value, debt to income ratios, FICO credit scores, refinance with cash out and other variables. NMLS CU ID: 685814. $500 Home Depot Gift Card will be issued at loan closing on any First Financial mortgage, while supplies last. Applicant to pay $580 appraisal fee up front at the time of appraisal. First Financial will credit the $580 appraisal fee back to the member at loan closing.

 +The Text Message Signup box must be checked in order to receive text messages. Standard text messaging and data rates may apply.

6 Tips to Financially Plan for a Career Change

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Embarking on a new career path is both exhilarating and daunting, requiring not just a leap of faith – but also financial preparation. Whether you’re venturing into entrepreneurship or transitioning to a field you’ve always been passionate about, the journey ahead demands strategic planning. First Financial is here with several pivotal tips to ensure your financial health remains strong as you pursue your career dreams.

1. Evaluate Your Emergency Fund

An adequate emergency fund is your financial safety net during a career transition. A good rule of thumb is to build your emergency fund to cover 6 to 12 months of living expenses. This fund can provide relief in case the transition takes longer than expected or if unforeseen expenses arise. Review and bolster your savings as soon as possible before your transition, as peace of mind is invaluable when stepping into the unknown. First Financial offers a variety of Savings Account options to help you reach your emergency fund goals and start your next chapter confidently.*

2. Budget for Health Insurance Costs

Health insurance is a critical consideration when leaving an employer-sponsored plan and can become a hefty expense if not planned for properly. Before accepting a new job, be sure to ask about a probationary period. Often new employees will not be able to receive some or all of their benefits until they have been employed for a certain amount of time, commonly 90 days. If this is the case, assess all your available options – including COBRA for temporary continuation of your current plan and options through the Health Insurance Marketplace. Also ensure the pricing can fit into your budget.

3. Life and Disability Insurance Coverage

Don’t overlook life and disability insurance, as losing these benefits can leave you vulnerable. Determine if your current plan allows for portability or if you’ll need to secure alternative coverage to protect against unexpected events. Ensuring continuous coverage is key to safeguarding your family’s financial future during and after your career change. If you find you’ll be left without coverage, First Financial offers options through our TruStage Insurance Program – with competitive rates and your protection in mind.

4. Retirement Savings Considerations

A career change can impact your retirement planning, especially if you’re leaving behind employer-matched contributions. Before making a move, check up on your retirement savings. Options for your existing retirement accounts include leaving the funds with your former employer or rolling them over into a new employer’s plan or an IRA. The First Financial Investment & Retirement Center can help you navigate your transition assistance options.**

5. Conduct a Financial Reality Check

Now is the time to scrutinize your spending, especially on hidden or unnecessary fees that can drain your resources. Regularly review your statements to identify and eliminate these financial leaks. Simplifying your financial obligations by consolidating debt can also free up more funds for your career transition, making it smoother and more manageable.

Small daily expenses often go unnoticed, but can cumulatively have a significant impact on your budget. Keeping a close eye on these can help identify opportunities to save, such as opting for home-cooked meals over dining out. Every dollar saved is one more dollar toward supporting your career change and maintaining financial stability. With First Financial online and mobile banking you can easily access your cards and statements to take a closer look at daily, weekly, and monthly charges easily eliminating unnecessary fees and expenses.

6. Create a Job Transition Budget

Planning for a career change involves more than just anticipating loss of income, it’s about adjusting to a new financial norm. A detailed transition budget will help you navigate this change, ensuring that you can account for all possible expenses and income changes. This foresight will allow you to adjust your lifestyle as needed, minimizing financial stress as you move toward your new career. Easily create a budget for your transition with our home budget calculator. Simply plug in your income, withholding amounts and expenses – and the tool will generate a detailed budget customized to your situation.

Embarking on a career change is a journey that involves financial preparation that can be overwhelming when navigated alone. At First Financial, we offer products and services designed to support you through every stage of your career transition. For more personalized assistance, call 732.312.1500 to schedule an appointment at your local branch today.

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

**Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are: