Category Archives: Planning for Your Financial Future & Retirement

Financial Planning for Major Life Events

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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.

Building a Financial Plan for 2024

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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:

Financial Steps to Take After Losing a Spouse

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The passing of a spouse is undoubtedly one of the most heart-wrenching events one can experience. Alongside the emotional distress, there’s also an intricate web of financial obligations and decisions that emerge. With emotions running high, making sense of these responsibilities can feel daunting. Here’s some guidance to provide some clarity and find your financial footing during a challenging time.

Take Time to Mourn

Before diving into any immediate financial matters, it’s essential to take some time for yourself. Grief is not a linear process, and it’s okay to pause. While some financial tasks may need prompt attention – remember that it’s okay to seek help and delegate when necessary.

Assemble Important Documents

Collate all essential paperwork, such as:

  • Death certificate (obtain multiple copies, as various institutions may require them)
  • Last will and testament
  • Insurance policies
  • Bank account details
  • Mortgage or loan papers
  • Tax documents

Seek Legal Counsel

Engaging with an attorney can help you decipher the legalities surrounding your spouse’s estate, especially if there is no will. They can guide you through the probate process and advise on any outstanding debts or assets.

Assess Immediate Financial Needs

It might be a few weeks or even months before insurance payouts or other funds become available. Ensure that you have access to sufficient resources to cover short-term expenses, such as funeral costs, household bills, or immediate medical expenses.

Notify Relevant Parties

Reach out to various institutions to inform them of your spouse’s passing. These include:

  • Banks and financial institutions
  • Credit card companies
  • Insurance providers
  • Social Security Administration
  • Employer and pension funds

Address Joint Accounts and Liabilities

If you had joint bank accounts or credit cards, get in touch with the financial institution to understand the procedures for transferring or closing them. Also understand any joint liabilities, such as mortgages or loans, and discuss your options.

Review Insurance Payouts

File for life insurance claims if your spouse had a policy. The funds can be invaluable in covering immediate costs and planning your financial future. Also, review your insurance needs, as they might change with your spouse’s passing.

Update Your Estate Plan

Reevaluate your own will, beneficiaries, and estate plan. If you don’t have a will, now is a crucial time to consider drafting one.

Reassess Your Budget

Your financial situation may have changed significantly. Analyze your new monthly income and expenses, and adjust your budget accordingly. This will also be a time to rethink long-term financial goals.

Protect Against Identity Theft

Unfortunately, deceased individuals can be targets for identity theft. Report your spouse’s passing to the credit reporting agencies and monitor their credit report for any unusual activity.

The loss of a partner is an unimaginable pain. While finances might seem like a trivial concern amidst the grief, ensuring stability can offer some solace without the additional weight of financial stress. The team at First Financial is here for you when you’re dealing with difficult losses, and is ready to help you navigate your finances with care and sensitivity. Contact us when you need us, or stop by your local branch.

Financial Considerations When Becoming a Parent

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Becoming a parent is one of the most rewarding experiences in life. Amid the flurry of adorable baby clothes, nursery themes, and countless baby gadgets – it’s easy to overlook the financial considerations of this significant life event. The reality is, raising a child involves a substantial financial commitment.

The U.S. Department of Agriculture predicts middle-income families will spend $233,610 on average, raising a child from birth to age 17. That’s why we’re here to help alleviate some of the financial stress and make the transition to parenthood smoother. Here are some financial considerations to keep in mind when you’re preparing to welcome a new addition to your family.

Budgeting for a baby

The first step in preparing for a new baby is examining your current budget and anticipating new expenses such as diapers, formula, and childcare. At First Financial, we offer financial counseling and budgeting tools to help you navigate this critical planning phase.

Consider how you can adjust your lifestyle and cut unnecessary costs to make room for baby-related expenses. Paying down any existing debt will also be a big priority for soon-to-be parents. Our VISA First Step Credit Card is a useful tool in helping you build or re-establish your credit. Plus, it has no annual fees and a 10-day grace period.*

Healthcare costs

Healthcare is a significant expense during pregnancy and after the baby arrives. Ensure you understand what your health insurance covers, and remember to add your new baby to your health insurance policy after they’re born.

To help you set money aside for medical expenses, we offer a variety of savings accounts that can be used to save up for future expenses and other health-related costs.** Also, consider checking in with your employer or health insurance company to see if they offer a Health Savings Account (HSA).

Childcare

If both parents plan to return to work after the baby arrives, childcare will be a significant part of your budget. According to the Economic Policy Institute, annual infant care costs $12,988 in New Jersey. This is why financial planning is crucial. Start with putting a set amount of money into your savings account as soon as possible, so you are ready when the time comes.

Life insurance and estate planning

Becoming a parent is a pivotal moment to reassess your life insurance needs and start or revise your estate plan. The goal is to provide financial security for your child if something were to happen to you.

With our First Financial Investment & Retirement Center, we can assist you in the establishment of planning your financial future and provide advice on suitable life insurance policies available to you. It’s also never too early to start planning for your child’s education. Consider opening a 529 college savings plan, which provides tax advantages for future educational expenses. We can guide you through the process and provide you with options that align with your financial goals.+

Emergency savings

Unexpected expenses can arise at any moment, and with a child – these costs can multiply. Building an emergency savings fund provides a financial buffer. Our credit union offers Certificates of Deposit (CDs) that can help grow your emergency fund more quickly.**

Preparing for a child financially can seem overwhelming, but remember – you don’t have to navigate these waters alone. First Financial is here to help. Take advantage of the tools and resources we provide to ensure you’re as prepared as possible for the exciting journey of parenthood.

Reach out to us today to speak with a financial representative. We’re excited to help you prepare for this significant life milestone and ensure you’re in the best possible financial position to welcome your new family member.

Looking for more financial advice? Subscribe to our First Scoop blog!

*APR varies up to 18% when you open your account based on your credit worthiness. These APRs are for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. See firstffcu.com for current rates.

 **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:

First Financial Investment & Retirement Center Spotlight: Maureen McGreevy

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“We’re located at the credit union and here for the members.”

In this spotlight, we’re shining a light on our First Financial Investment & Retirement Center (IRC), an investment services firm with access to a wide range of investment options. LPL Financial Advisor Maureen McGreevy says she loves seeing members build their confidence over time as they make their own financial choices, build wealth potential, and plan for retirement.

Learn more about Maureen’s experience as an LPL financial advisor in the video below.

Plan for Your Financial Future

Where do you see yourself in the next 10 or 20 years? It’s time to ensure your financial strategy aligns with your future goals. A financial advisor located within the First Financial Investment and Retirement Center can help you with retirement planning and work with you so you can pursue those goals. Connect with an IRC financial professional, or stop by one of our branch locations today!

*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:The LPL Financial registered representative(s) associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

Check the background of investment professionals associated with this site on FINRA’s BrokerCheck.

First Financial Federal Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for advisory services.

Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html for more detailed information.

What College Grads Need to Know About Money

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College graduation is a big milestone to feel good about. And as you head out into the world, you’ll be learning new things, facing new challenges, and making big financial decisions. One of the most helpful skills to have as you get older, is being able to manage your money. And luckily, you don’t need a class to learn financial management – you can get familiar with these skills through educational resources like ours! Keep reading for our top money management tips for recent college grads.

Learn how to budget

Budgeting is one of the most important financial skills you can learn. Maintaining a budget can help you be smart about your spending and plan for your financial future. We recommend using the 50/30/20 strategy as a rough guide for how you should spend your money. This means you should aim to spend 50% of your budget on essentials, 20% on savings and investments, and 30% on other remaining expenses.

Calculate your expenses (rent, student loans, utilities, food, transportation, etc.) and variable costs (dining out, vacations, shopping), and make sure your expenses do not exceed your income.

Start saving money

No matter what your financial goals are, opening a savings account is always a good idea. You can start by dedicating a certain amount of your paycheck toward your savings. While it’s recommended to keep 20% of your income for savings and debt repayment, you’ll need to evaluate what works within your budget and when you’ll need the funds. Even if you’re starting small, you’ll be surprised how quickly the account can grow!

Want to open a savings account?* We’re here for you! Contact us or stop by your local branch to speak with a representative today.

Plan for retirement

It may seem too early to start planning for your retirement, but it will make a big difference to start saving right out of college. For example, a 22-year-old who starts investing is going to have nearly twice the amount of money saved by 67 than someone who starts at 32. Most employers offer a retirement plan match program like a 401(k) or 403 (b) that is typically deducted straight from your paycheck. If your employer offers matching contributions like this, make sure to take advantage – since it’s essentially free future savings.

Pay off student loans

According to Forbes, there’s currently $1.75 trillion in total student loan debt with an average of $28,950 owed per borrower. And while graduating and starting your career may be exciting, paying back student loans can be daunting – to say the least. When it comes to paying off your student loans, you should take the time to look at your budget and determine how much you can afford to pay toward your debt payments. It’s recommended to start paying off the debt with the highest interest rates first, and then focusing on the debt with lesser amounts or lower rates like federal student loans. There are sure to be plenty of repayment options to choose from based on your current income and budget.

Don’t forget about your credit score

Having a decent credit score is going to be very important throughout your life. A credit score essentially is a rating that financial institutions use to determine how likely you are to pay off your debt. Whether you’re renting an apartment, opening a new credit card, or buying a car – your credit score will play a factor in what you’ll be able to obtain.

A credit score is determined by:

  • Your payment history
  • Your amounts owed
  • The length of your credit history
  • New credit
  • The variety of credit products you have

As a new college graduate, understanding financial management can feel overwhelming – but you’re not alone. Our financial experts can give you advice based on your situation. Contact us to get started, or stop into your local branch to speak with a representative today!

*A $5 deposit in a base savings account is required for credit union membership before opening any other account/loan. 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.