Author Archives: VP of Marketing and Business Development Jessica

Common Retirement Investment Mistakes

Posted on by
Reply

Having enough money after you retire is a big concern today for Americans. In fact, only roughly one-in-four Americans feel very confident that they will have enough money to live comfortably when they retire, according to a recent survey.

The concern is certainly justified. After all, Americans are living longer lives than ever before, and the uncertainty of being able to maintain a lifestyle for 20, 30, or 40 years after you retire is understandable.

While there’s no single action that can increase your confidence if you’re nearing retirement age, there are several key investment mistakes that, if you avoid them, can help you maximize your retirement savings and perhaps give you the confidence to help you retire with less financial stress. These are the things you’ll want to avoid.

Mistake number one: Failing to maximize your contribution. If you can afford to do so, contributing the maximum amount to your employer-sponsored retirement plan will increase the chance that you’ll reach your investment goal. The earlier you start, the better. It will allow your investments the opportunity, along with any potential earnings to grow on a tax-deferred basis.

Mistake number two: Failing to develop a plan. Without a plan, it’s difficult to understand whether your savings will help support your living standard. As such, establish a plan early, laying out clear goals that incorporate the number of years until your planned retirement. This will help you create a practical investment plan for your goal. Without such a plan, it will be difficult to understand whether your savings will provide you with the living standard to which you’ve grown accustomed and for each year of your retirement.

Mistake number three: Adopting a short-term investment mindset. The stock market fluctuates a lot and in the short term, there’s a decent chance of price volatility. Therefore, selling off your holdings whenever the market drops is a sure way to incur losses that impact your long-term goals.

Mistake number four: Trying to be perfect. Trying to time your investment decisions on when the market will be at its lowest or highest is risky business, and it can lead to missed opportunities. Invest your money with an eye toward the long term.

Mistake number five: Putting all of your financial eggs in one basket. Some investors make the mistake of investing in just one fund or asset type. This is risky business if the market swings and impacts that one holding. On the other hand, if you diversify your risk over a mix of assets, this can help control any potential losses during sharp market swings.

By avoiding these common mistakes, you increase the potential for investment success and reaching your retirement savings goal.

Questions? 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. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This material was prepared by LPL Financial, LLC

Tracking #1-05363542

Source: 2020 Retirement Confidence Survey Summary Report

 

Financial Planning for Major Life Events

Posted on by
Reply

In the journey of life, certain events stand out as significant milestones. These major life events, from starting a new educational path to retirement – shape our future in profound ways. First Financial can help you understand the financial implications of these events while maintaining sound financial health. Let’s delve into the intricacies of financial planning for these pivotal moments.

Continuing Education

The cost of education, be it college or post-graduate studies, is a significant investment. Exploring options like custodial accounts and 529 plans can ease the burden of saving for your or your child’s education. Considering the return on investment (ROI) is crucial, not just for traditional university programs but also for additional training that could lead to lucrative careers.

Getting Married

Getting married is more than a romantic commitment, it involves serious financial planning too. Budgeting for the big day is just the start. Discussing financial management with your partner, considering pre-nuptial agreements for asset protection, and updating insurance are vital steps in this journey. This is a time to re-title assets, revise estate plans, and align investment strategies with your shared goals.

Parenthood

Planning for a new addition to your family means preparing for pregnancy expenses and ensuring adequate health coverage. It’s also crucial to understand the financial aspects of fertility treatments or adoption if applicable, ensuring you’re ready for this life-altering event.

Navigating Divorce

If facing a divorce, it’s essential to prepare for its legal and financial implications. Maintaining financial independence and planning for life post-divorce are critical steps in this challenging phase.

Unforeseen Health Events

Illness or personal injury can strike unannounced, making health insurance and understanding workplace coverage indispensable. Similarly, the death or severe illness of a loved one necessitates having life insurance and an estate plan in place.

Buying or Moving Homes

Buying or moving homes involves more than just finding the right place to live and being able to afford your new monthly mortgage payments. It requires financial planning for insurance, property titling, home furnishings or renovations, and potential relocation costs too.

Career Shifts

Whether it’s about changing jobs or starting your own business, these decisions demand careful financial planning. Consider the costs of job training, the importance of emergency savings, and the need to protect personal assets. Developing an exit strategy, especially for business owners – is a prudent step. If you have questions about starting your own business, reach out to our Business Development Team today.

When planning for retirement, it’s all about ensuring a financially secure and fulfilling post-work life. Shifting investment strategies and planning for higher healthcare costs are also part of this stage, as is considering where you might want to settle down during your golden years.

Handling Windfalls

Receiving a large sum of money, be it from an inheritance, settlement, or a business sale, requires strategic planning. Consulting with advisors and tax attorneys is crucial to make the most of this financial bonus.

Economic Hardship

In times of economic hardship, like job loss or inflation – being prepared is key. This involves maintaining an emergency fund, avoiding debt, and making informed decisions.

Financial planning for major life events is not just about securing your immediate future, it’s about ensuring long-term happiness and security, regardless of life’s unpredictable nature. By preparing for both the expected and the unexpected, you can set the stage for your overall financial well-being. And if you need a little helping hand, check out our Financial Helper Loans – designed to help you manage life’s unexpected or necessary expenses.*

First Financial is your financial partner, no matter what happens in your life. To talk to a representative, call us at 732-312-1500, or visit a branch today.

*APR = Annual Percentage Rate. Rates are subject to change. Not all applicants qualify, subject to credit approval. A First Financial membership is required to obtain a Personal Loan, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. See credit union for details.

Save Money and Energy This Winter with These Utility Tips

Posted on by
Reply

As winter continues, managing utility costs becomes a priority for many households. There are several effective strategies to further reduce these expenses. First Financial is committed to helping you navigate these colder months with useful winter utility savings tips.

Understanding High Winter Utility Costs

In colder climates, gas and electricity bills tend to spike during winter due to increased heating needs. Factors like inflation and global events also contribute to these rising costs. However, by implementing a few smart strategies, you can significantly lower your bills.

Strategic Heating Tips

  • Close off unused rooms: Limit heating to areas in use to save energy.
  • Block drafts from doors: Use simple items like towels to block drafts and retain heat.
  • Cook at home: Warm your home while preparing meals.
  • Lower thermostat settings: The U.S. Department of Energy suggests keeping your thermostat at 68 degrees F and reducing it by 7-10 degrees for eight hours daily.
  • Smart thermostat use: These devices adjust heating based on your preferences, reducing energy use.
  • Weather stripping: Seal doors and windows to prevent heat loss.
  • Window insulation: Thick curtains and insulation kits can significantly reduce heat escape.
  • Attic insulation: Proper insulation in the attic can lead to substantial energy savings.

Efficient Use of Space Heaters

Space heaters are a cost-efficient alternative to central heating systems. For instance, running a 1,500-watt space heater for eight hours in a standard room costs about $1.60 per day. This is considerably lower than the average monthly gas and electric bill of $180. However, it’s crucial to use space heaters safely. The Consumer Products Safety Commission advises that smart space heater use includes always plugging them directly into a wall outlet and avoiding leaving them on while sleeping or when you aren’t in the room.

Long-Term Heating Solutions

For those looking to invest in their homes, improving insulation and upgrading windows are effective ways to reduce heating bills. Although these solutions may require an upfront investment, it can pay off in the long run in terms of energy savings and comfort. It’s often beneficial to consult and use professionals, especially when considering major home improvements.

Financial Assistance for Utilities

Beyond these tips, remember that financial assistance is available. Many states including New Jersey, offer programs funded by the federal government to help lower-income households with energy costs.

By implementing these winter utility savings tips, you can enjoy a cozy and economically efficient winter. Remember, small changes can lead to significant savings. First Financial is here to support you in finding financial solutions that work for your lifestyle all year round.

For more information, contact a First Financial representative or visit your local branch.

Things to Do ASAP in Preparation for Tax Season

Posted on by
Reply

It’s only January, but April 15th (AKA: Tax Day) will be here before you know it. One of the smartest things you can do is begin to prepare everything you’ll need to file sooner rather than later. Here are a few places to start.

Get Your Personal Information Prepared: If the personal information on your tax forms isn’t correct, it can be a nightmare. Be sure you know your Social Security Number and that it appears correctly on your forms, and if applicable – your spouse and children’s Social Security Numbers as well. It’s also a good idea to keep last year’s return nearby in case you need it for reference and to ensure everything matches up.

Organize All Your Documents in One Place: Be sure you have access to all of this year’s income documents that you will need to file your return, and keep them in one spot (a file folder labeled for this tax season or a digital folder on your computer where all the documents are scanned in together). Documents you’ll need are your W-2, and any other sources of income like rental income, dividends, or unemployment. If you’re a homeowner with a mortgage, you’ll also want to have your mortgage interest statement available.

Keep Your Receipts: If you’re a small business owner or self-employed, you’ll need to file a Schedule C with all of your business expenses. Be sure you have kept your business receipts and expenses from the past year, and that you store them all together in a place where you can easily locate them to file this year.

Decide How You’ll File: Now is the time to choose between doing your taxes on your own or if you’d rather pay a professional. Decide now, because as it gets closer to April 15th – tax professionals may get backed up and not be available to file your return on time. If your taxes aren’t overly complicated and you decide to file on your own through TurboTax or H&R Block, First Financial members can save money as well as enter this year’s grand prize sweepstakes once you file!*

Need More Time? File an extension. If you don’t think you’ll have everything ready by April 15th, you can file for an extension with the IRS for October 15th. However, if you owe – you most likely will still need to pay what you’ll owe by the April 15th deadline. Learn more and complete the IRS tax extension form here.

Getting ready for tax season early will simplify the process as it draws closer to Tax Day. For more financial tips and resources, subscribe to our blog or monthly member e-newsletters.

*TurboTax Offer: Visit turbotax.intuit.com for TurboTax product guarantees and other important information. Limited time offer for TurboTax 2023. Savings are on TurboTax federal products only. Terms, conditions, features, availability, pricing, fees, service and support options subject to change without notice. Intuit, TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties’ trademarks or service marks are the property of their respective owners. H&R Block Offer Void if sold, purchased, or transferred and where prohibited. No cash value. Valid at participating U.S. offices only. A new client is an individual who did not use H&R Block or Block Advisors office services to prepare their 2023 tax return. Discount valid only with or for preparation of an original 2023 personal income tax return. Coupon must be presented prior to completion of initial tax interview. Discount may not be combined with any other offer or promotion. Expires October 15, 2024. OBTP#13696-BR ©2023 HRB Tax Group, Inc. NO PURCHASE NECESSARY. Legal residents of the 50 United States (D.C.) 18 years or older who are members or employees of a U.S. credit union. Ends 4/15/24. To enter and for Official Rules, including odds and prize descriptions, visit https://taxservices.lovemycreditunion.org. Void where prohibited.

 

Essential Tips for Winterizing Your Finances

Posted on by
Reply

Now that we’re past the holidays and into winter, it’s crucial to prepare your finances. The cold months often bring unique financial challenges – such as higher heating bills and recovering from holiday expenses. Here are some essential tips to effectively winterize your finances for a stress-free season.

Preparing Your Home and Car for Winter

A key step in winterizing your finances involves ensuring your home is ready for the colder weather. This includes getting your furnace inspected by a professional to guarantee its efficiency, which can lead to significant savings on heating costs and help avoid expensive breakdowns. Additionally, changing your furnace filters regularly can reduce energy usage and wear on your HVAC system. Implementing smart adjustments like setting a lower temperature on your thermostat during times you are away or asleep, can further reduce your heating bills by up to 10%. Keeping your gutters clean is also crucial this time of year.

Similarly, preparing your car for winter is essential. This includes checking the battery and engine coolant levels, ensuring your tires have sufficient tread for safe driving in snow and ice, and equipping your car with an emergency kit that includes jumper cables and an insulated blanket. A professional car inspection can also be beneficial for comprehensive winter readiness.

Financial Planning Post-Holidays

After the holiday season is a good time to review and adjust your budget for the immediate future, and review your spending to even better prepare for next year’s expenses. It’s also a good idea to consider implementing a no-spend month in January or February, which can be an effective strategy to recuperate from holiday spending.

Anticipate higher costs in certain budget categories like heating, clothing, and gasoline through the winter months. To balance these increased expenses, it might be necessary to reduce spending in other areas. Utilizing digital resources such as our online budgeting tools, can help you manage your finances during the colder months – or even all year long!

Preparing for Emergencies

Having a well-established emergency fund is crucial for unforeseen expenses like car repairs or furnace replacements. First Financial provides various loan options, including personal loans and lines of credit and home equity loans – which can offer support in emergency situations.

Winterizing your finances involves a proactive and resourceful approach. By ensuring your home and car are prepared for winter, adjusting your budget accordingly, and being ready for emergencies – you can navigate the financial challenges of the colder months with confidence. Remember, First Financial is here to assist you with all your financial needs. Stay warm and financially secure this winter!

For more financial tips and resources, subscribe to our blog.

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. 

Building a Financial Plan for 2024

Posted on by
Reply

As we approach 2024, financial planning for the new year is crucial. Surveys have found that people who have a plan have overall healthier money habits. Financial planning requires a mix of foresight, strategy, and adaptability. It’s a journey of managing your finances, from immediate needs to long-term aspirations. Here’s how you can gear up for financial success in the new year.

Understanding the Financial Planning Process

Financial planning isn’t a one-time event, but a continuous process. It’s about balancing short-term necessities with long-term dreams, reducing stress, and building a comfortable nest egg. Whether for retirement or creating generational wealth, the process supports your present while paving the way for your future.

Embracing the Framework

This structured approach is adaptable and can be started at any point. Don’t worry if you’ve already embarked on some of these steps – it’s all about progress and adjustment.

  1. Setting Financial Goals – Start by defining your financial goals for the new year and beyond. What do you want to achieve next year? Whether it’s saving for a down payment, paying off debt, or planning a big trip – clarity in your objectives is key.
  2. Planning for Taxes – Tax planning is an integral part of financial health. Explore potential tax credits and deductions. Remember, efficient tax planning can boost your savings substantially.
  3. Building an Emergency Fund – Life is unpredictable. An emergency fund acts as a financial buffer against unexpected expenses. Aim to save enough to cover at least 3-6 months of living expenses.
  4. Managing Debt – Debt management is critical. Create a plan to reduce high-interest debt and maintain a healthy credit score. Consider strategies like debt consolidation, if applicable. Here at First Financial, we have a consolidation loan which can help simplify paying your bills by combining multiple sources of debt into one monthly loan payment.*
  5. Utilizing Insurance – Insurance provides a safety net for life’s unexpected turns. Review and update your insurance policies, ensuring you have adequate coverage for your needs.
  6. Planning for Retirement and Beyond – It’s never too early to think about retirement. If you haven’t already, start contributing to a retirement plan like a 401(k) or an IRA.** Consider increasing your contributions if possible. Also look into other investment opportunities beyond traditional retirement accounts to maximize your financial growth. If you need help getting started, contact the First Financial Investment & Retirement Center.+

Starting Your Financial Planning Journey

Whether you’re crafting the plan yourself or seeking professional guidance, the key is to start. The journey to financial wellness in 2024 involves strategic planning and execution. By following these steps, you can build a solid foundation, giving you the confidence to face financial challenges and achieve your big picture goals.

Embark on your financial planning journey today, and set the stage for a prosperous new year! For more financial tips, subscribe to our blog, get in touch, or stop into your local branch today.

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. 

**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.

+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: