Author Archives: Chief Marketing Officer Jessica

Considerations When Purchasing Life Insurance

Posted on by
Reply

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

Tracking #1-05363544

7 Questions to Ask Yourself Before Spending Your Emergency Fund

Posted on by
Reply

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 by
Reply

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.

Summer 2024 Newsletter

Posted on by
Reply

We hope you had a fabulous summer season and are soaking up the last week of fun in the sun before Labor Day!

In a continued effort to go green, we’re publishing our quarterly member newsletter electronically – it can also be found on our website and social media sites. Paper copies will be available in our branches.

The Summer First Edition Member Newsletter features the following articles:

To view a copy of the newsletter, click here.

Enjoy the rest of your summer!

6 Ways to Save Money on Back-to-School Shopping

Posted on by
Reply

The back-to-school season arrives quickly each year, often catching parents and their budgets off guard. Preparing for back-to-school shopping can also be a challenge in the current economic climate. The National Retail Federation predicts that in 2024, parents will spend an average of $875 on back-to-school shopping for younger students and around $1,365 for college students. These significant costs emphasize the need for careful planning and smart shopping strategies to ease the financial burden of this season.

To help you prepare without overspending, here are six tips to make back-to-school shopping more budget-friendly.

1. Assess What You Already Have

Begin by taking a comprehensive inventory of what you already own. Check last year’s supplies and clothing to see what can be reused. Thoroughly search desks, drawers, and closets for items that can be repurposed or that don’t need replacing (notebooks, pens, pencils, etc.). By identifying what you already have, you can avoid duplicate purchases and buy only what is necessary. Additionally, go through your child’s wardrobe to determine which clothes and shoes still fit, reducing the need for a full wardrobe replacement.

2. Set a Realistic Budget

Establishing a clear budget before you start shopping is crucial. Review your child’s school supply list and set a spending limit that covers all the essential items. To avoid overspending, base your budget on regular prices rather than sales, giving yourself a buffer for unexpected expenses. If the projected total exceeds your budget, prioritize essential items and seek alternative options for items that may not be as crucial.

3. Conduct Thorough Research

Maximize savings by comparing prices across different retailers and planning your shopping around sales events. Keep an eye out for student discounts offered by many retailers, which can provide significant savings on tech, clothing, and supplies. Additionally, explore and take advantage of online only deals and subscribe to retailers’ newsletters for exclusive discounts and promotions. Sift through your emails for coupons you may have missed – we’ve all signed up for store emails that we’ve forgotten about, and you may just have additional discounts in the palm of your hand.

4. Explore Alternative Shopping Options

While popular retailers like Amazon, Target, and Walmart are convenient, consider alternative options such as dollar stores, discount outlets, and wholesale clubs. These stores often offer substantial savings on school supplies without sacrificing quality. Wholesale clubs can be especially advantageous for large families. Bulk shopping doesn’t make sense for your family? Ask other parents if they’d be interested in splitting the cost of bulk purchases among a larger group.

5. Opt for Refurbished or Gently Used Items

Save money on electronics by purchasing certified refurbished models from reputable sellers. These products often function just as well as new ones, but come at a fraction of the price. Additionally, explore thrift stores for gently used clothing, backpacks, sports equipment, and other supplies. This can be a cost-effective way to provide your child with stylish outfits and necessary items while staying under budget.

6. Plan for Future Needs

Consider planning for next year’s needs during current sales. Anticipate items your child will need and purchase them during off-season sales or special promotions. For example, remember to take advantage of Memorial Day and 4th of July sales for clothing or tech items you know your child will need next year. This proactive approach can spread expenses and reduce financial stress in the future.

First Financial is Here for You

Navigate back-to-school season with confidence and ease the financial burden by implementing these strategies. First Financial is here to help you make informed purchasing decisions and ensure a stress-free start to the new school year.

For personalized financial advice, 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 money-saving tips.