Category Archives: Financial Advice

Budgeting for a Family

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If you’re expecting your first child, congratulations! You’re about to embark on the most rewarding and fulfilling experience of your life.

As you already know, there’s a long list of responsibilities associated with your new title — parent. And financial responsibility takes a backseat to none of those. Raising a child is expensive, after all. The USDA estimates the total expenses for a child’s first 18 years at more than $200,000. So, as you begin planning for your first child, consider these key areas and their associated expenses.

First, there’s healthcare. If you’re covered by an employer’s plan, check to make sure of the options for adding a child. Additionally, if you do have an employer-sponsored plan, consider a medical reimbursement account (MRA) or health savings account (HSA), if either is available. These can pay for items such as deductibles, co-payments, and orthodontics.

If you’re paying for healthcare directly, you can choose a managed care plan, such as an HMO, which offers lower upfront costs than a traditional plan, which may require you to pay at least 20 percent of care costs. However, a PPO plan may provide you with more options as to which providers you can see and whether you need a referral to see a specialist. Whatever route you go – deductibles, co-insurance amounts, co-payments and monthly premiums vary greatly; review the options available to you carefully before making your selection.

Next, there’s childcare. Depending on your adjusted gross income, or AGI, you may be eligible to receive tax benefits as a parent. The Child Tax Credit provides a credit of up to $2,000 for children ages five and under – or $3,000 for children ages six through 17 years old. To qualify, your child must have a Social Security Number before you file your tax return.

Then, insurance. Purchasing disability and life insurance can provide income for your child if your earning capacity is compromised. A financial professional may be able to provide guidance as to the recommended amounts of coverage for each. Check to see if your employer offers these policies, they are often less expensive than those that you purchase independently.

Finally, consider drawing up a will that designates a legal guardian for your child, in the event that you and your spouse die together, or if you’re a single parent and you should die. If you and your spouse die intestate — that is, without a will — and you die together, a court will decide whom to appoint as your child’s guardian. Make sure that the will is written so that it applies to your new baby as well as your future children. By carefully budgeting for your baby, you can help secure the financial futures of both you and your child.

Questions about this topic? Contact First Financial’s Investment & Retirement Center by calling 732.312.1534.  You can also email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

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

This material was prepared by LPL Financial, LLC

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6 Tips to Financially Plan for a Career Change

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Embarking on a new career path is both exhilarating and daunting, requiring not just a leap of faith – but also financial preparation. Whether you’re venturing into entrepreneurship or transitioning to a field you’ve always been passionate about, the journey ahead demands strategic planning. First Financial is here with several pivotal tips to ensure your financial health remains strong as you pursue your career dreams.

1. Evaluate Your Emergency Fund

An adequate emergency fund is your financial safety net during a career transition. A good rule of thumb is to build your emergency fund to cover 6 to 12 months of living expenses. This fund can provide relief in case the transition takes longer than expected or if unforeseen expenses arise. Review and bolster your savings as soon as possible before your transition, as peace of mind is invaluable when stepping into the unknown. First Financial offers a variety of Savings Account options to help you reach your emergency fund goals and start your next chapter confidently.*

2. Budget for Health Insurance Costs

Health insurance is a critical consideration when leaving an employer-sponsored plan and can become a hefty expense if not planned for properly. Before accepting a new job, be sure to ask about a probationary period. Often new employees will not be able to receive some or all of their benefits until they have been employed for a certain amount of time, commonly 90 days. If this is the case, assess all your available options – including COBRA for temporary continuation of your current plan and options through the Health Insurance Marketplace. Also ensure the pricing can fit into your budget.

3. Life and Disability Insurance Coverage

Don’t overlook life and disability insurance, as losing these benefits can leave you vulnerable. Determine if your current plan allows for portability or if you’ll need to secure alternative coverage to protect against unexpected events. Ensuring continuous coverage is key to safeguarding your family’s financial future during and after your career change. If you find you’ll be left without coverage, First Financial offers options through our TruStage Insurance Program – with competitive rates and your protection in mind.

4. Retirement Savings Considerations

A career change can impact your retirement planning, especially if you’re leaving behind employer-matched contributions. Before making a move, check up on your retirement savings. Options for your existing retirement accounts include leaving the funds with your former employer or rolling them over into a new employer’s plan or an IRA. The First Financial Investment & Retirement Center can help you navigate your transition assistance options.**

5. Conduct a Financial Reality Check

Now is the time to scrutinize your spending, especially on hidden or unnecessary fees that can drain your resources. Regularly review your statements to identify and eliminate these financial leaks. Simplifying your financial obligations by consolidating debt can also free up more funds for your career transition, making it smoother and more manageable.

Small daily expenses often go unnoticed, but can cumulatively have a significant impact on your budget. Keeping a close eye on these can help identify opportunities to save, such as opting for home-cooked meals over dining out. Every dollar saved is one more dollar toward supporting your career change and maintaining financial stability. With First Financial online and mobile banking you can easily access your cards and statements to take a closer look at daily, weekly, and monthly charges easily eliminating unnecessary fees and expenses.

6. Create a Job Transition Budget

Planning for a career change involves more than just anticipating loss of income, it’s about adjusting to a new financial norm. A detailed transition budget will help you navigate this change, ensuring that you can account for all possible expenses and income changes. This foresight will allow you to adjust your lifestyle as needed, minimizing financial stress as you move toward your new career. Easily create a budget for your transition with our home budget calculator. Simply plug in your income, withholding amounts and expenses – and the tool will generate a detailed budget customized to your situation.

Embarking on a career change is a journey that involves financial preparation that can be overwhelming when navigated alone. At First Financial, we offer products and services designed to support you through every stage of your career transition. For more personalized assistance, call 732.312.1500 to schedule an appointment at your local branch today.

*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:

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.

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!