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 Tips for Taking Over a Family Business

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Have you secured the future of your family business? Whether you’re passing it on to the next generation or preparing for an eventual sale, having a succession plan in place offers a variety of benefits. It not only ensures a seamless transition, but also instills confidence in financial institutions, clients, and suppliers about the stability of your business. At First Financial, we’re here to help you through the process. Let’s explore what you need to know to make the right decisions for the future of your business.

Choosing Your Path

As a business owner, your company will face one of four potential outcomes when you retire:

1. Transfer to a Family Member: This option involves passing the business down to the next generation, and requires careful planning to avoid potential tax pitfalls.

2. Sell to Employees or Business Partners: Selling to those who are already intimately familiar with your business can be a seamless transition. However, this option will demand resources and time for them to prepare the capital.

3. Sell to an External Buyer: Attracting an external buyer can be lucrative, but it can present its own set of challenges.

4. Liquidation to Pay Taxes: In the absence of a succession plan, the business could be liquidated to cover taxes upon the owner’s death.

Know Your Company’s Value

Before proceeding, it’s essential to understand the value of your business. A professional valuation provides a clear picture of what your company is worth, helping potential successors qualify for business loans and ensuring a smooth transition. Valuation methods include cost, income, and market value – each with its own approach.

Create and Share Your Succession Plan

The core elements of a successful succession plan include:

  • Establishing Goals and Objectives: Begin by defining collective business goals and objectives. Consider the roles of family members in future leadership and ownership, as well as the potential for outside leadership.
  • Evaluating and Selecting Successors: Describe each family member’s responsibilities and required skills. Identify successors for key roles, assessing each against their skill set and goals.
  • Sharing the Succession Plan: Openly share the succession plan with all family members – fostering an honest discussion about strengths, development opportunities, and goals. Plan for skill development and personal relationship transitions.
  • Updating Family Estate Plans: Seek professional estate planning assistance to minimize taxes, transfer ownership, establish trusts, and pass on company ownership. Options may include gifting shares, setting up trusts, or enabling employees to purchase equity through an employee stock ownership plan (ESOP).
  • Implementing the Plan: The transition may span several years, covering both personnel and financial aspects. A clear timeline is crucial, with flexibility to accelerate if necessary.

A properly drafted succession plan not only safeguards your business, but also eliminates the need for family members to sell the business to cover taxes upon your passing. Additionally, it ensures that your business falls into the hands of those with genuine interest and competence.

Connect with Us to Get Started Today:

Let’s take the first step together. At First Financial, we’re committed to helping you plan and secure the future of your family business. Reach out to us today, call 732.312.1500 or stop by any of our local branches.

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Splurges that are Worth the Cost

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In the pursuit of savings, we often find ourselves tempted by budget-friendly options. However, what is sometimes overlooked is the hidden cost that comes with these choices. Opting for the less expensive alternative can mean making a trade-off on quality, which may prove costly in the long run. On the other hand, making splurges that are worth the cost by investing in higher quality options from the outset can be a savvy financial and practical choice. This can not only save both time and money over the years, but also ensure long term satisfaction and financial well-being. There are several areas in your lifestyle where splurges may be worth the cost, and prioritizing quality over cost is the best approach.

1. Health

Your health is your most valuable asset, and investing in it is always worthwhile. High quality, and healthy groceries for example, may seem expensive upfront – but can save you substantial healthcare costs down the road. Plus, a well-balanced diet contributes to your overall well-being. Splurging on a fitness program or gym that suits your lifestyle and preferences means you’ll enjoy your workouts and you’re more likely to stick with them. If you have an active hobby like cycling, hiking, or yoga – investing in quality gear will enhance your experience and motivate you to stay active.

2. Your Bed

A good quality mattress and pillow are investments in your overall health and well-being. These can both provide the essential support your body needs during sleep, promoting proper spinal alignment and alleviating pressure points. This translates to restful, rejuvenating sleep – which in turn can improve cognitive function, boost your mood, and enhance your physical health. Moreover, these investments are built to last – sparing you frequent replacements associated with cheaper options, and ultimately saving you money in the long run.

3. Office Chairs

Many of us spend hours at our desks, whether for work or leisure. A quality ergonomic desk chair is not just a piece of furniture – it’s an investment in both your comfort and health that can stand the test of time. These types of chairs are designed to offer optimal lumbar support, adjustable features, and cushioning that reduces the strain on your back, neck, and shoulders during long hours of work. By maintaining proper posture and alleviating the physical stress associated with prolonged sitting, a top-notch desk chair can prevent chronic back pain, improve circulation, and reduce the risk of musculoskeletal issues.

4. Kitchen Knives

Invest in a single quality chef’s knife instead of a collection of special purpose knives. A good knife is a kitchen workhorse that will last for years and make food preparation a breeze. In fact, many professional chefs advise against buying a set of knives altogether, as the quality of the tools is often compromised to lower the cost. They suggest slowly building a collection of better quality knives over time as your cooking needs grow. These knives will stay sharper for longer, which makes them safer to use.

5. Tools

Quality tools are a DIY enthusiast’s best friend and an asset to any household. They may cost more initially, but they’ll save you money over time by helping you tackle home improvement projects effectively. Plus, they can last a lifetime with proper care.

6. Quality Wardrobe Staples

Investing in certain wardrobe staples like shoes, jeans, and timeless basics, is not just a fashion choice – but a smart financial decision for a wardrobe built to last. While the initial cost might be higher, the longevity of these items more than justifies the investment. High quality shoes, for instance – not only elevate your style, but also back your health by offering superior arch support and cushioning, reducing the risk of discomfort and long-term orthopedic issues. Durable jeans and timeless basics never go out of style, ensuring that your wardrobe remains relevant and functional for years to come.

7. Experiences and Vacations

Investing in experiences and vacations is a financial decision that pays in both joy and peace of mind. While it may seem like a splurge, spending a little more on accommodations often translates to better customer service and a smoother travel experience. When unexpected issues arise, well-established travel providers can offer prompt solutions, sparing you the stress and additional expenses of scrambling for alternatives on your own. Beyond the practical benefits – creating lasting stories, memories, and connections enriches our lives in ways that material possessions cannot.

Remember that financial well-being isn’t about depriving yourself, it’s about finding a balance between enjoying life today and securing your future. By budgeting for occasional indulgences, you can satisfy your wants without compromising your overall financial goals. It’s like giving yourself permission to enjoy life while staying financially responsible. Allocate a specific portion of your budget for fun, prioritize your purchases, track your spending, take your time making decisions – and you’ll be able to make some nice-to-have purchases without throwing away your whole budget.

At First Financial, we’re here to support your financial journey. If you have questions about budgeting, saving, or managing your finances – feel free to reach out to us. We’re here to help you make the most of your money!

First Financial Business Member Spotlight: Matticus Bricks LLC

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“Whenever I come into the branch, I’m greeted by name. I feel like I’m known here. It feels kind of like coming home.”

At First Financial, we believe in going beyond transactional service by fostering connections. This personal touch wasn’t lost on Matthew Koba, also known as Matticus Bricks on social media platforms. A dedicated LEGO builder and content creator, Matthew has built an impressive following and found a financial home for his creative ventures with First Financial.

With over 24,000 followers on Instagram, Matticus Bricks has cultivated a community of fellow LEGO enthusiasts who appreciate his unique creations and engaging content. His posts consistently garner hundreds, and sometimes even thousands of likes – a testament to his hard work, creativity, and personability.

Matthew’s journey with First Financial began with his personal banking needs, where he experienced the emphasis on one-on-one relationships that sets us apart. Impressed by the personal touch he received, Matthew decided to explore our business banking options as he started to monetize his social media presence through collaborations. He recognized the importance of having a financial partner that understood his evolving needs and shared his commitment to growth.

“I had such a great experience doing my personal banking with First Financial that I came in, and I asked about their business options. It’s more like a personal one-on-one type of relationship. I feel really comfortable coming into the branch.”

Matthew’s story is a reflection of our commitment to providing exceptional service that evolves alongside our members’ needs. Just as he meticulously assembles LEGO bricks to create unique pieces for his audience, we meticulously tailor our services to provide a banking experience that’s just as unique as each member.

Watch the video below to hear Matthew share his journey and the connection he’s forged with First Financial.

Follow Matthew and see all of his creations on YouTube and Instagram!

How to join First Financial

If you live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties in NJ, you’re eligible to become a member. Businesses in Monmouth or Ocean Counties and our community partners are also eligible for membership. To join, all you have to do is open a savings account with $5. It’s that easy! Once you’re a member, your immediate family can also sign up. To get started, call us at 732.312.1500, email info@firstffcu.com or stop by any of our local branches.

 

 

Accounts You Should Check Daily

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A big part of budgeting, preventing fraud and making sure your finances are on track – is monitoring your accounts. It’s always a good idea to do this regularly. Keep reading to find out what accounts you should be checking on a daily basis.

Your Main Checking Account

If nothing else, your main checking account is one you really need to be reviewing daily. If you use your debit card to make frequent purchases from your checking account, you will want to check your account balance and review each transaction everyday to make sure all purchases made are legitimate and that you have enough money in your account for future purchases or bills. If you get paid via direct deposit and it comes into your main checking account, you’ll want to review that as well. You’ll want to make sure you have enough of a balance in this primary checking account, to avoid overdrafts and fees. By checking this account each day, you can track all your expenses and weed out unnecessary purchases.

Credit Card Accounts

If you have a credit card or cards you use frequently, you should try to remember to login online and check these accounts each day. Better yet, if your credit card company offers purchase alerts, payment due alerts or payment received alerts – sign up for them. These types of alerts will then be sent to your phone as a text or to your email, to help you monitor your account and charging activity. If you are carrying a credit card balance, we recommend logging into your account each day to ensure accuracy and to be sure any pending charges or posted purchases are yours. Even if you have credit card transaction alerts set-up, it’s still a good idea to check your online account everyday and review all activity to prevent or quickly notice any fraudulent charges.

Your Savings Account

While you probably don’t use your savings account very often, it’s important to review your balance and make sure you have enough saved for a rainy day, to meet any financial goals or big ticket items you’re saving up for, and that withdrawals and activity in this account are minimal. Regularly checking up on your savings will hold you accountable for reaching your monetary goals.

Business Accounts

If you’re the owner of a small business, it’s important to be up to speed on all your business accounts. You truly need to know what money is going where on a daily basis when you own a business. Checking your business accounts daily will ensure what you’re spending isn’t exceeding what you’re bringing in. You’ll also want to make sure your business invoices are paid on time, and that you have the funds to purchase any supplies or equipment your business needs each week.

The team at First Financial can help you better manage your money and reach your financial goals. Call us at 732.312.1500 or stop by any of our local branches if you have any questions about personal finance.

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*A First Financial membership 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 to establish membership prior to opening any other account/loan.

Strategies to Afford Your First Home Down Payment

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Buying a home is a pivotal milestone and a cornerstone of the American dream. Yet for many, the daunting hurdle of a down payment can seem insurmountable. The good news is that with careful planning and strategic saving, homeownership can become a reality sooner than you think. At First Financial, we’re here to guide you through the journey of saving for your first home’s down payment.

1. Open a Dedicated Savings Account and Automate it

One of the key steps to successfully save for your down payment is to open a dedicated savings account. By keeping your down payment fund separate from your regular savings, you will gain clarity on your progress. Consider opening a high-yield savings account to maximize interest rates and let your money work harder for you.

To make saving seamless, automate your contributions. Set up direct deposit or automatic transfers from your checking account to your dedicated savings account. Consistency is key – even modest contributions can accumulate over time and help you reach your goal faster.

2. Really Look at Your Income

Scrutinize your budget with a discerning eye. Trim discretionary spending wherever possible. Can you live without certain luxuries temporarily? The power of ruthless budgeting lies in redirecting these funds toward your down payment savings. For dual-income households, explore the possibility of living off of one income temporarily and saving the other. Remember, it’s not about deprivation – but about redirecting resources toward a meaningful goal. Your disciplined efforts will pay off when you step into your very own home.

3. Put Every Spare Dime Toward it

Windfalls, bonuses, tax refunds – seize every financial opportunity. Allocate these unexpected inflows directly to your down payment fund. Adopt a ‘spare change’ mindset by enrolling in bank programs that round up debit transactions to the nearest dollar, with the difference automatically transferred to your savings. A popular strategy is to apply the “spare change” concept to your regular finances. Whenever you receive a chosen amount in change, funnel it into your down payment fund. These seemingly small contributions can add up over time.

4. Look at Assets, but be Smart

While liquidating non-cash assets can provide a boost to your down payment fund, be cautious. Stocks, bonds, and CDs can be converted – but tapping into retirement accounts might compromise your long-term financial security. It’s essential to strike a balance between immediate needs and future financial well-being.

5. Set Specific Goals

Before embarking on your savings journey, establish clear goals. Determine the total amount you need for the down payment, closing costs, and other post-purchase expenses. A down payment calculator can help you gauge the target amount.

6. Scour Your Spending

Take a closer look at your expenses and identify areas for savings. It’s not about giving up life’s small pleasures, but about minimizing unnecessary spending. Compare insurance rates, bundle services, and eliminate unused subscriptions to free up extra cash. Tracking your spending for a month can reveal areas where you can cut back.

7. Automate to Maximize Savings

Automate your savings by setting up recurring transfers to a high-yield savings account. Keep short-term savings in secure options like money market accounts or certificates of deposit. Align the maturity of CDs with your anticipated home purchase timeframe to optimize returns.

8. Earn Extra Income

Explore side gigs or freelance opportunities to supplement your income. Be cautious of potential scams and do thorough research before committing to any income-generating opportunity. Additional income streams can significantly boost your savings efforts.

9. Keep Your Eye on the Prize

Regularly review your savings progress, celebrating each milestone achieved. Utilize tools like NerdWallet’s app to monitor your journey. Visual aids such as a savings chart on your refrigerator or images of your dream home, can provide motivation during challenging moments.

At First Financial, we understand the significance of homeownership. Saving for a down payment may require careful planning, sacrifice, and time – but the rewards are plentiful. By implementing these strategies and seeking our expert guidance, you can confidently work toward your first home purchase, turning your dreams into a tangible reality.

If you’re a first-time homebuyer in Monmouth or Ocean Counties, ask us about our Home Possible Advantage Mortgage Program.* Stop into your local branch or contact us to get started today!

*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.