Category Archives: Financial Advice

5 Financial Reviews for the New Year

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2017 year on the sea shore. Element of design.

Happy New Year! 

How did you do financially last year? Did you meet all your goals? Now is the perfect time to take a look at what went your way financially last year so you can repeat it for the new year, and what may not have gone the way you wanted it to – so you can adjust in 2017.

1. Your Spending

What did you spend money on? Did it match your priorities? Did you overspend more than you should have? Were most of your purchases planned, or did you make a lot of impulse purchases?

If you want to get your finances under control, it’s essential to know where your money is going. Personal finance software is a great way to keep track. All you have to do is run a report to see which categories got the most attention from your pocketbook.

2. Your Saving

Did you save enough money in 2016? Review your savings habits. Did you put money toward retirement and do you have an investment portfolio? Do you have an emergency fund? Do you save up for large purchases?

Consider your long-term and short-term savings goals. Make sure you are on track with them. In some cases, it can make sense to cut back on the extra spending in order to divert some of that money toward your savings.

This is also a good place to review your debt load. Pay down your debt as quickly as possible to reduce the amount of interest you pay others.

3. Your Giving

One of the best ways to ensure a well-rounded financial life is to give to others. It seems counter intuitive, but it actually works. Look at how you use your resources to help others. Research charities to make sure your money is going where it should.

4. Your Taxes

Let’s not forget about a review of your tax situation. What deductions and credits are you eligible for? Review your spending and see if you can reduce your tax liability with a couple of well-placed contributions.

Don’t forget to review your pay stub as well. Are you withholding too much from your paycheck? A big tax return is an indication that you are withholding too much and giving the government an interest-free loan. Consider adjusting your withholding to improve your monthly cash flow — and put that money to better use.

5. Your Asset Protection

Are you covered in case of an emergency? Asset protection is a big part of your finances so make sure you are covered. You need to check your health care coverage, as well as your auto and home coverage. Tweak your coverage if necessary to balance cash flow with protection. You don’t want to overpay above what’s necessary.

Once you finish the financial review, you will have a better idea of what you did well in for 2016, and how you can improve for the new year.

Have you done a financial review with First Financial recently? If not, a brand new year is the perfect time to start! Stop into your nearest branch or call 732.312.1500 to get started today.

Article Source: Miranda Marquit for Moneyning.com

5 Money Problems Most People Deal With

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Young girl dreams about their future

Not using debt correctly.

All debt isn’t necessarily bad. Debt is useful when getting your education and even when hard times hit. If you take on too much debt – you could put yourself in a hole that you’ll never be able to dig out of. On the other hand, if you’re afraid of ever having any debt, you may live a boring life. Use credit cards to build a good credit score and never use them for major purchases. If you take on debt, make sure you keep it under control and always remain aware of where you stand.

Overspending.

In an ideal world, we would all save 33% of what we earn. For most of us, this a problem, due to our overspending habits. Whether it be for housing, child care, student loans, or other debt, we’re spending those savings on other things. Try to save wherever you can – even a little bit out of each paycheck is never going to be a waste!

Relying on only one income source.

By counting on our full time job as our only money source, we’re setting ourselves up for problems. Having some side money coming in from a part time or freelance job can also be a nice crutch if something were to go wrong.

Only paying the minimum on credit cards.

When you only pay the minimum on your credit card balance each month, you end up costing yourself a lot of money in interest by carrying a balance. Make sure you don’t spend more than you can pay off at the end of each month. Credit card debt can easily feel like a black hole with no escape.

Not saving.

If you’re not saving, you’re probably not budgeting. Plan ahead and put money aside each month for emergencies. Take a long look at what you’re spending and figure out what you need to put away for retirement. If you don’t have an IRA or other retirement account, you need to enroll ASAP and take advantage of that compounding interest for your future.

First Financial can help you with all of these items!  Visit our website at firstffcu.com, stop into any of our local Monmouth and Ocean County branches, call 732.312.1500, or email info@firstffcu.com.

Article Source: John Pettit for CU Insight, https://www.cuinsight.com/5-money-problems-people-deal.html

How to Financially Finish Out the Year

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USA Tax Day, April 15, coffee break with tax return, cash and coffee mug, vertical.

Take stock of your finances

If you set financial goals for this year, it’s time to see how well you did. Even if you didn’t set any goals, it’s important to have a good idea where you stand. Consider how you’re spending, whether or not you’ve been making progress toward shrinking debt and increasing assets. Calculate your end of year net worth as a point to move forward from.

Schedule time for your taxes

Tax professionals’ busy season is about to start, so if you don’t file your taxes yourself, it is not a bad idea to meet with your tax guru right now. The deadline may not be until April, but discussing your income, expenses, and taxes now can help you get your return as soon as possible.

Donate to charity

The holidays are a giving time of year, and the gifts you give now can pay off come tax season. Maximizing your charitable contributions this year can help with favorable tax deductions in just a few more weeks.

Put that bonus or raise to work

Any extra holiday money that you receive should be put toward your financial future. For those lucky enough to get an annual raise, consider putting a large portion of those new funds straight into retirement savings. Those with bonuses can do the same with catch-up accounts or by paying off debt.

Take a look at your investments

The end of the year is a great to time to review what your money has done for you. If you sold off some of your investments this year, consider selling off some of those not doing as well. Not only will this give you an opportunity to start off the new year in the green, it can also reduce your tax burden.

Set goals for the New Year

The year is almost over, for better or worse. The goals you did or didn’t reach for this year are in the past, but can help you write a more effective financial plan for the new year. Don’t wait until the ball drops to start thinking about where you want to be financially a year from now.

Happy New Year!

Article Source: Tyler Atwell for CUInsight.com

4 Retail Tricks You Don’t Know You’re Falling For

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Two Female Friends With Bags In Shopping Mall

The holiday shopping season is well upon us.  Don’t fall for these common retailer tricks while you are out buying gifts this year, try to keep as much of your own money in your pocket as you can!

The cold clothing store

Ever wander into a department store only to immediately notice a temperature drop? This change isn’t always made for the customer’s comfort. Often times, retailers will lower the temperature on purpose, prompting you to head to the coat section of the store. You may or may not actually purchase a jacket, but they have subconsciously made the thought cross your mind. If you don’t leave that day with new outerwear, you may be thinking now, “Do I need a new jacket? Should I come back and buy one later?”

The 10 for $10

On trips to the grocery store you may notice bins with signage shouting “10 for $10!” Before you fall for the trap, stop and think whether these items are ones you actually need. Do you really need ten boxes of cereal? Also, many customers don’t realize that even though the sign says 10, more times than not this deal often means one for $1 as well.

The “left-digit effect”

Ever wonder why something is priced one cent from the nearest dollar? This sales strategy has been proven successful according to a study by Colorado State University and Washington State University. The “left-digit effect” describes how customers overwhelmingly choose prices like $3.99 rather than $4.00 because when shoppers see the left-digit (lower) number, their brain has a stronger reaction.

The sneaky display

When you’re standing in line to check out and you see the random display of odd-and-ends (think travel coffee mugs, candles, or cookie gift bags) remember this isn’t an accident. There is plenty of room to display these items elsewhere in the store, but retailers choose to place them up front in an effort to add even more items to your purchase.

Article Source: Wendy Bignon for CUInsight.com

5 Money Moves to Make Before the New Year

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New year is loading. Holiday concept on a blue background with snow and snowflakes. New year template vector illustration.

Here comes the end of the year. Are you ready financially?

1. Review Your Retirement Contributions

Are you putting enough away for retirement? Now is a good time to check into that. Make sure you put aside what you can for your future. A tax-advantaged retirement account is a great way to go because it increases the efficiency of your earnings, and might even get you a bit of a break on your tax bill now.

Questions about retirement contributions or investments? To set up a complimentary consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals, contact us at 732.312.1500, email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com, or stop in to see us!*

2. Spend from Your Flex Account

If you have a Flexible Savings Account (FSA), you need to use your money or you’ll lose it. This is a great benefit, and comes with a tax deduction, but if you still have money left over and don’t use it for a qualified expense within a certain amount of time, you could lose the money.

Look at your FSA and see if you can spend that money on something that qualifies, like eye exams, new glasses, some medical procedure you’ve been waiting on, or dental work.

3. Harvest Your Investment Losses

You shouldn’t sell an investment lightly. However, you can take advantage of the losses in your portfolio. Consider selling some of the losing investments and deducting the loss before year end. Your investment losses reduce your income by the amount you lose, which helps, especially if you made more money this year than last year. Just be careful to avoid getting caught in the “wash sale rule” from the IRS. If you sell a losing investment, you can’t buy it back within 30 days.

4. Donate to Charity

This is a great time of year to donate to charity. Clean out the house and donate items in good condition to a charity thrift shop. This way you can claim a deduction for charitable goods while also helping a worthy cause. You can also get a tax deduction for cash donations you make. Just be sure to get a receipt from the organization so you have it for your tax records, and be sure to itemize on Schedule A of the federal tax return.

5. Review Your Budget

Now is the time for a budget review. How are things going with your budget? Are you on the right track? What’s worked well this year? What hasn’t? Be honest about how the budget is working. You might need to tweak the specifics before the new year so that you are ready to hit the ground running in 2017.

*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:

Article Source: Miranda Marquit for Moneyning.com, http://moneyning.com/misc/5-money-moves-to-make-before-year-end/

5 Smart Financial Moves Before the Year Ends

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Three classical shape pawns made of blue glass

When the leaves begin to change colors and the year draws to a close, people think about many things: the football season in full swing, apple picking, maybe even a thought or two about finding your rakes before the leaves start to fall all over your lawn. As the year begins its last act before drawing to a close, here are five things to do to get your finances in top shape for year’s end.

Assess Your Status

Take stock of your overall financial status. Look back on the goals you had for the year; have you met them? Don’t just look at your short-term goals, either. Review your earnings, your long term financial requirements, and your overall level of financial peace. If nothing is adding up, then it might be time to think about making some serious life changes – new job, downsizing, selling assets – to make sure you are meeting all of your financial objectives.

Review your Insurance Coverage

Other than paying your premiums or making claims, you likely don’t think of insurance too often. Now is a good time to review all of your policies and ensure that you are satisfied with your level of coverage. Start with your life insurance policies, and ensure that you have the right coverage for your circumstances. This can change as you age, or get married or divorced. Next, make sure your homeowner’s policy is up to date. Finally, if you have bought or sold any cars over the past year, make certain that you aren’t insuring a car you no longer own – and that you have sufficient coverage on your new car.

Save for the Holidays

Thanksgiving and Christmas are right around the corner, and with them come a plethora of expenses. Holiday gifts, food, travel, and vacation expenses require significant cash outlays at the end of the year; the average household spends nearly $900 on Christmas alone. Start saving money as the nights get colder, so that you are ready when the holiday season rolls around.

Get Ready for Winter

Now is the time to get ready for winter. Ensuring your house is winterized – basement, walls, and attic insulated, windows sealed, everything caulked – can provide substantial savings before the first snow falls. Changing furnace filters will help optimize your home heating and reduce costs, and running your ceiling fans in reverse (clockwise) will make your home heat go a little bit further. The savings from all of these moves add up, and will equate to less money going to utility companies this winter.

Max Out Your Retirement Account

You have until April of next year to maximize the yearly limit on retirement account contributions, but don’t delay making that deposit anymore. Your tax-deferred IRA, 401k, or other savings plan are your post-work future. Verify how much you have contributed thus far for the year, and work to maximize your contribution before the deadline.

Questions about retirement planning? To set up a complimentary consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals, contact us at 732.312.1564, email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com, or stop in to see us!*

Fall is the one of the best times of the year to get your finances in order, and to close out the year on a high note. Do a good assessment of your overall financial status; determine what you are doing well, where you are falling short, and decide whether or not major changes are in order. Take time to review all of your life insurance policies, and ensure you have adequate coverage. Winterize your house for savings from energy efficiency, and strive to maximize your retirement account contributions. If you do all of these things, you will close out the fall with peace of mind, and will be ready for whatever the next year holds.

*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:

Article Source: Will Lipovsky for Moneyning.com, http://moneyning.com/money-tips/5-smart-financial-moves-for-fall/