Considerations When Purchasing Life Insurance

Posted on September 13, 2024 by VP of Marketing and Business Development Jessica

Discussing life insurance can be a sensitive topic — after all, talking about death is never comfortable. But life insurance is an important financial product, especially if you support others or have substantial assets that you wish to transfer to future generations.

Choosing a life insurance plan is anything but straightforward, though. There are many types of insurance and features for you to consider. Here’s a quick overview of the most popular types.

The most popular type is term insurance, which often is the least expensive. These policies are written for a specific period of time — one to 30 years, for instance. You can renew them once the term expires, but the price may increase. If you wish to lock in the premium, you’ll select what’s called a level term policy.

A declining balance term insurance policy is used to protect your mortgage principal, and its benefits are paid only if you die during the policy’s term, which aligns with your mortgage amortization. Once you pay off your mortgage, the policy expires and has no value – unless you choose to renew it.

Whole life features permanent protection with a savings element. You can lock in a premium rate, and part of the premium accrues a cash value. As the savings amount increases, you can even borrow up to 90% of the policy’s cash value tax-free.

Next is universal life, which is like whole life but potentially accrues higher savings. You can change the premium amount and withdraw cash, and even possibly change the face value of the policy. These can offer a guaranteed return on cash value, too.

A variable life policy generally features a fixed premium and a flexible cash value policy. In fact, you can invest the cash in a variety of investment types. However, keep in mind that the cash value and death benefit can fluctuate, based on the performance of your investments.

Finally, universal variable life is considered an “aggressive” policy. While similar to variable life, there is no guarantee beyond the original face value death benefit. As such, they are more common with wealthy buyers who can withstand the risks.

For questions about navigating the many complexities of life insurance, including recommended coverage amounts, consult your financial professional. You can also email the financial professionals in the First Financial Investment & Retirement Center at 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:

The cost and availability of Life Insurance depend on many factors such as age, health and amount of insurance purchased. In addition to premiums, there are contract limitations, fees, exclusions, reductions of benefits, and charges associated with policy. And if a policy is surrendered prematurely, there may be surrender charges and income tax implications.

Variable Universal Life Insurance/Variable Life Insurance policies are subject to substantial fees and charges.

Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with any accrued loan interest, will reduce the policy’s account value and death benefit. Withdrawals are taxed only to the extent that they exceed the policy owner’s cost basis in the policy and usually loans are free from current Federal taxation. A policy loan could result in tax consequences if the policy lapses or is surrendered while a loan is outstanding.

Policy values will fluctuate and are subject to market risk and to possible loss of principal.

Any life insurance guarantees are contingent upon the claims-paying ability of the issuing company.

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

This material was prepared by LPL Financial, LLC

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Things to Do on a Budget in Monmouth & Ocean Counties this September 2024

Posted on September 10, 2024 by VP of Marketing and Business Development Jessica

As we begin to fall out of summer, let’s find some free and inexpensive activities to explore this September. Grab your friends and family, and soak up the last bits of local summer!

September 11

Bell Works Fresh Farmers & Makers Market (Holmdel) will feature fresh produce and unique creations. Happening every Wednesday of September from 11am-4pm, this is a great place to explore handcrafted goods, and support the local community. Learn more here.

Fall Concert Series (Freehold) at the Hall of Records every Wednesday in September from 7:30pm-9:30pm. Bring the family out to enjoy an evening of live music, and discover both new and widely known local talent. Check out the schedule and voices here.

September 13

Bonfires on the Beach (Asbury Park) will take place from 7pm-10pm every Friday night during September, weather permitting. The 9/13 bonfire will be at First Avenue Beach. Check the schedule online for other dates and locations through the end of September.

Italian Festival (Englishtown) join the Italian American Association of Monmouth County at their Italian Festival from 6pm-10pm. Taking place all weekend long through September 15th, this festival features rides for the whole family to enjoy, games, food, live entertainment, and more. Admission to the festival and parking are free. For more information and a full schedule, click here.

September 14

A Tribute to All Things Broadway (Lincroft) takes place from 2pm-3:30 pm & 7pm-8:30pm. Bring the family for a day of appreciating Broadway without having to leave New Jersey! Featuring songs, scenes, and dances performed by local talent from hit Broadway musicals, there will be something for everyone to enjoy. Tickets cost $15/adult, $10/senior, and $5/child (ages 12 and below). Additional information can be found here.

Neptune Day – Celebrate the town of Neptune at the Neptune Middle School Parking Lot from 12pm-5pm. There will be inflatables, carnival games, pony rides, a petting zoo, and more. Admission is free. For more information, click here.

Sip and Shop Local Craft Vendor Fair (Toms River) – Join the Garden State Distillery in celebrating and showcasing local talent from 12pm-4pm. While admission is free, local craft vendors will be selling a variety of items. For ages 21+, you may also order craft beer from the distillery to enjoy while you shop. Find out more details here.

Wind & Sea Festival (Port Monmouth) will take place from 11am-5pm at Bayshore Waterfront Park, weather and conditions permitting. Visitors will celebrate all things water by enjoying a variety of family-friendly coastal activities including kayaking, fishing, sandcastle building, children’s crafts, and more. For additional information, check here.

September 20

Climb Time (Seven Presidents Oceanfront Park in Long Branch) – If you are looking for an adventurous family-friendly activity, head over to Seven Presidents Oceanfront Park for climb time. Open to ages 8+ (those under age 18 must be accompanied by an adult) and 42” or taller, you can try the 25’ portable climbing wall for free. Check it out on the Monmouth County calendar.

September 21

Allaire State Park Fall Harvest Festival (Wall) – If you are looking for a chance to get in the fall spirit, look no further than the Fall Harvest Festival, taking place from 11am-4pm both Saturday and Sunday, 9/22 at the Allaire Historic Village. Stop by to enjoy live music, live demonstrations, craft vendors, an apple pie baking contest, apple cider pressing, and more. Tickets are $10/adult and $5/child (ages 4-12, 3 and under are free). More information can be found here.

Howell Day & Green Fair – Join the Township of Howell from 3pm-8pm at Soldier Memorial Park for this fun for the whole family event. There will be an array of children’s activities, free inflatable and mechanical rides, live entertainment, vendors, and more. It will also feature fireworks at dusk. Get additional information here.

Kids Day America (Wall Township) is from 10am-2pm in the Court Yard at the Wall Municipal Building. This is the 21^st annual event dedicated to children’s health, safety, prevention, and environmental awareness. Come down for free information on children’s health and safety, free screenings, free goodies, and free interactive events. This event is free for all ages. For more information, click here.

Latino Festival of Monmouth County (Freehold) Grab your family and join the community in a day of immersion in Latino culture at the Latino Festival of Monmouth County. Taking place from 12-7pm at the Hall of Records Parking Lot, this family-oriented event celebrates the diversity of Latin America through special attractions, music, cultural offerings, and cuisine. Find more details here.

Red Bank Oktoberfest – Come down to the 2^nd annual Oktoberfest from 1pm-5pm at Edmund Wilson Plaza. There are a variety of activities to enjoy, Monmouth County breweries, distilleries, and wineries to meet, and sampling packages to purchase for tasters 21+. Admission is free for all ages. Learn more information here.

September 28

Fall Bazaar (Asbury Park) – Taking place at Convention Hall from 12pm-5pm Saturday and Sunday, 9/29, stop by to get in the fall-spirit with shopping from local makers, kid’s activities, fall photo opportunities, and more. The event is indoors, admission is free for everyone, and it’s pet friendly. Learn more here.

September 29

Jersey Shore Comic Book Show (Sea Bright) Sea-Con is back at the Sea Bright Recreation Center from 10am-4pm. From special guests and interactive activities for kids to artists and vendors, there is something for all comic book, collectibles, and pop culture lovers to enjoy. Get more details here.

SPUR Family Barn Dance (Lincroft) from 1pm-5pm at the Thompson Park Activity Barn, come learn to line dance with the family while benefiting Special People United to Ride (SPUR). To enjoy the live line dancing lessons, tickets will be $10/adult and $5/child. Find more information here.

We hope you, your friends, and your family participate in these fun ways to enjoy September!

7 Questions to Ask Yourself Before Spending Your Emergency Fund

Posted on September 6, 2024 by VP of Marketing and Business Development Jessica

An emergency fund is essentially a financial safety net, designed to ‘catch you’ in an emergency by helping you navigate unexpected challenges without going into debt. However, deciding when to tap into these savings is a crucial decision that requires many considerations. Before you dip into your emergency fund, evaluate the situation carefully to ensure spending that money is essential. Here are seven questions to ask yourself before spending your emergency fund, to help you make the right decision.

1. Is This Expense Truly a Necessity?

The first question to ask yourself is whether the expense you’re facing is truly essential. Your emergency fund is meant to cover critical needs, such as keeping a roof over your head, ensuring you have food on the table, or covering medical emergencies. If the expense isn’t vital to your survival or well-being, it may be wise to reconsider using your emergency fund. This might mean postponing non-essential expenses like entertainment or luxury items until your financial situation is more stable.

2. Are There Other Resources Available to Help?

Before using your emergency fund, check if there are any external resources available to help cover the expense. In times of financial crisis – many organizations, banks, and utility companies offer assistance programs such as deferred payments, waived fees, or discounted services. Additionally, food pantries and community services can provide essential support in times of need, reducing the need to use your savings. By leveraging these resources, you can stretch your emergency fund further and preserve it for truly critical situations.

3. Do I Have Other Cash Reserves?

Consider whether you have other cash reserves that can be used before tapping into your emergency fund. This could include money saved for non-essential purposes, like a vacation or new car fund, or extra cash in your checking account. Utilizing these funds before turning to your emergency savings can help you avoid depleting your emergency fund unnecessarily. However, be cautious about pulling money from long-term investments like retirement accounts, as this may have significant consequences in the future.

4. Can I Find a More Affordable Solution?

Another important consideration is whether there’s a less expensive way to handle the situation. Your emergency fund is a finite resource, so it’s important to stretch it as far as possible. Look for cost-effective alternatives, such as buying generic products instead of name brands, reducing utility usage to lower bills, or finding discounts on necessary items. Frugality and resourcefulness can minimize the amount you need to withdraw from your emergency savings.

5. Do I Have Other Ways to Generate Cash?

Before withdrawing from your emergency fund, consider whether there are alternative ways to generate the cash you need. For example, taking on a temporary side gig or selling unused items around your home may provide the extra income you need to cover an unexpected expense. This approach can help you preserve your emergency fund for more dire situations. Remember, your emergency savings should be a last resort, so explore all other options before making a withdrawal.

6. Will I Need This Money for Something More Urgent Later?

When considering whether to use your emergency fund, think about potential future expenses that could arise. If your job is unstable or you have an older car that might require costly repairs, you may need your emergency fund for these situations. While it’s impossible to fully predict future expenses, it’s important to weigh the current need against possible future emergencies. If you anticipate larger, more pressing expenses down the road, it might be better to hold off on using your emergency fund now.

7. How Much Will Remain in My Emergency Fund After This Expense?

Finally, consider how much of your emergency fund will be left after covering the current expense. It’s crucial to maintain a sufficient balance to handle future emergencies. If withdrawing for this expense would significantly deplete your savings, leaving you vulnerable to future crises, you may need to think twice about using the funds. Financial experts generally recommend keeping three to six months of living expenses in your emergency fund, so consider whether your balance will still meet this guideline after making a withdrawal.

Protect Your Financial Future

Your emergency fund is a vital tool for financial security, but it’s important to use it wisely. By asking yourself these seven questions, you can make informed decisions about when and how to use your savings, ensuring that your emergency fund remains intact for when you truly need it. For more personalized financial advice and tips on managing your finances, contact us at 732.312.1500, visit a branch, or explore our services online.

6 Tips to Save Money While Owning a Pet

Posted on August 29, 2024 by VP of Marketing and Business Development Jessica

Owning a pet can bring immense joy, but it can also come with heavy financial responsibilities. According to the American Society for the Prevention of Cruelty to Animals (ASPCA), the first year of dog ownership costs around $3,221, with an average annual expense of $1,391 every year after. Cat owners can expect to spend about $1,904 in the first year and $1,149 each year after. These costs can increase quickly, especially when unexpected medical expenses arise. However, with thoughtful planning – you can provide excellent care for your pet while staying within your budget. Here are six tips to help you save money on pet care.

1. Adopt, Don’t Shop

If you’re looking to add a pet to your family, consider adopting from a shelter as a cost-effective and compassionate option. Adopting a pet gives a homeless animal a loving home while also saving you money. Adoption fees are typically much lower than costs from a breeder, and many adopted pets come fully vaccinated and spayed or neutered, greatly reducing your initial costs.

2. Choose the Right Veterinarian

Finding the right veterinarian is crucial for your budget and your pet’s health. Take the time to research and compare costs from different vets in your area. Ask about the price of routine checkups, vaccinations, and emergency services. Don’t hesitate to ask for recommendations from other pet owners and switch vets if you find a more affordable or suitable option. A good vet will prioritize your pet’s health while offering fair prices.

3. Invest in Preventative Care

Preventative care is key to avoiding costly medical issues down the road. It may sound counterintuitive, but spending money upfront can prevent excessive costs in the future. Scheduling regular checkups, vaccinations, and dental cleanings can help prevent more serious health problems that could lead to expensive treatments and emergency visits at a premium cost. Some veterinarians offer wellness plans that cover routine care for a monthly fee, which can help you budget for these expenses. Alternatively, look for low-cost clinics in your area that provide discounted services through veterinary schools or non-profit organizations.

4. Shop Smart for Pet Medications

Just like human medications, the price of pet prescriptions can vary widely depending on where you purchase them. Before buying, compare prices from different sources including your vet, local pet stores, and online retailers like 1-800-PetMeds, PetCareRx, and Chewy. You may also find good deals at Costco or on Amazon. Remember to ask your vet if there’s a generic version of the medication that could save you money.

5. Buy Quality Pet Food

Similar to preventative care, investing in high-quality pet food can save you money in the long run. A nutritious diet leads to better health, reducing the likelihood of expensive vet visits. Look for food subscriptions from online retailers like Chewy, where you can often save by setting up automatic deliveries. Prioritize your pet’s health with a balanced diet and regular exercise to avoid preventable health issues.

6. Get Creative with Pet Toys

You don’t need to spend a fortune on pet toys to keep your furry friends entertained. Pets are often just as happy playing with simple items like cardboard boxes or other safe household objects as they are with store bought toys. If you want to buy new toys on special occasions, consider shopping at discount stores or wholesale clubs, where you can find quality toys at a lower cost.

Navigate Pet Ownership & Budgeting with First Financial

Caring for a pet doesn’t have to break the bank. By adopting smart strategies, you can enjoy pet companionship without straining your budget. For more personalized financial advice and tips on saving money and managing your budget, call us at 732.312.1500, visit a branch, or explore our services online. Don’t forget to subscribe to our First Scoop blog for more valuable insights on saving money and achieving your financial goals.

Why Every Small Business Should Have a Savings Account

Posted on August 16, 2024 by VP of Marketing and Business Development Jessica

For small business owners, managing finances effectively is crucial to long-term success. A business savings account is an often overlooked but essential tool in this endeavor. While many entrepreneurs focus on checking accounts for daily transactions, a savings account offers some unique benefits that can help safeguard your business and support its growth.

A savings account is distinct from a checking account in that it’s designed for storing money rather than making frequent transactions. Savings accounts typically offer interest on the balance, allowing your funds to grow over time. Unlike checking accounts for daily operations, bills, and payroll – savings accounts are ideal for setting aside money for future business needs or emergencies.

Keep reading to find out why every small business should consider opening a savings account.

1. Build a Financial Cushion for Emergencies

Unexpected challenges are inevitable in business – whether it’s a sudden drop in sales, unforeseen damage, or an economic downturn. Having a financial cushion in a savings account can provide much-needed stability during these times. According to research by the J.P. Morgan Chase Institute, the median small business has only about 27 days’ worth of cash reserves. By regularly setting aside funds in a savings account, you can increase your cash buffer, giving you peace of mind and the ability to handle emergencies without derailing your business.

2. Improve Financial Control and Budgeting

Managing day-to-day expenses alongside long-term financial goals can be challenging, especially when all your funds are in one account. By separating your savings from your checking account, you gain better control over your finances. You can allocate specific amounts for future expenses – such as taxes, insurance premiums, or equipment upgrades, and transfer them into your savings account each month. This approach reduces the stress of large, periodic expenses and ensures you’re financially prepared when they arise.

3. Earn Interest on Your Savings

Savings accounts typically offer more interest than a checking account would, allowing your money to grow over time. While interest rates on savings accounts may vary, even a modest rate can contribute to your business’ financial health. This can be beneficial for small businesses looking to maximize their resources.

4. Enhance Your Business’ Creditworthiness

A strong savings balance not only boosts your financial security, but also makes your business more attractive to lenders. When applying for a small business loan, lenders often review your financial statements to assess your ability to manage debt and expenses. A healthy savings account can demonstrate your business’ financial stability and increase your chances of securing financing.

5. Protect Your Money from Overdrafts

Overdrafts can be costly and embarrassing, and they’re often avoidable. By linking your business savings account to your business checking account, you can use your savings as a buffer to cover any unexpected shortfalls. This can prevent overdraft fees and the stress of dealing with insufficient funds. Additionally, setting up online alerts can help you monitor your account balances and catch any fraudulent activity early, further protecting your business’ finances.

6. Prepare for Future Growth

A business savings account isn’t just about protecting your current assets, it’s also a tool for planning future growth. Whether you’re saving for expansion, new equipment, or hiring additional staff – having funds set aside in a savings account ensures that you’re ready to seize opportunities when they arise. A strong cash reserve can give you the confidence to make strategic decisions that propel your business forward.

First Financial Wants to See Your Business Thrive

First Financial is here to support your small business every step of the way. For personalized advice on opening a business account and managing your finances – call 732.312.1500, visit a branch, or explore our services online. Don’t forget to subscribe to our First Scoop blog for more valuable insights and tips on managing your small business finances effectively.

*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.

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Fun and exciting financial education for all!

Author Archives: VP of Marketing and Business Development Jessica

Considerations When Purchasing Life Insurance

Things to Do on a Budget in Monmouth & Ocean Counties this September 2024

7 Questions to Ask Yourself Before Spending Your Emergency Fund

6 Tips to Save Money While Owning a Pet

Why Every Small Business Should Have a Savings Account

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