What We're Thinking: Safe Cyber

Morgan Stanley settled a case with the state of New York for $6.5 million for compromising the personal information of millions of customers nationwide. The company “failed to properly decommission its computers and erase unencrypted data in devices that were later auctioned off while still containing consumers’ personal information."

Closer to home, have you been notified that your Amazon account has been compromised? Or have you been asked for some additional information before the air fryer you really didn't order can be shipped? Or maybe the Social Security Administration would like to inform you of benefits due to you? These are just a few examples of attempts to capture your personal information and gain access to your financial accounts.

Managing our lives online is a modern day reality. And no, saving paper statements won't help. It's time to fortify your defenses against the numerous threats we know about and especially the ones we don't know about.

Fortunately, there's plenty of credible information available to help with that. A great set of guidelines is this five-page presentation titled "Simple Safeguards: How to Stay Safe From Identity Theft and Cybercrime."  Here's the safe link:

https://thelanzagroup.com/wp-content/uploads/2020/10/jeff-lanza-identity-theft-and-cybercrime-handout-five-pages.pdf

Here's a summary of the contents.

1. Prevent Identity Theft.

• Create an online Social Security account.
• Freeze your credit reports.
• Protect your paper.

2.  Watch Out for Tricks.

• COVID Scams.
• Account takeovers.
• Wire transfer fraud.

3. Protect Your Computer.

• Beware of pop-ups.
• Keep your software updated.
• Use passphrases instead of passwords. 

4. Preventing Identity Theft.

• Protect your Social Security number.
• Get access PINs from the IRS and FTB.
  
• Monitor your medical and healthcare documents.
• Provide death certificates to credit bureaus and financial institutions where a deceased person had accounts.
• Steps to take if you're a victim of identity theft.
• Social media.
• Robocalls.
  

5. Preventing Cybercrime.

• Protect your credentials.
• Hover to discover.
• Use multi-factor authentication (MFA).
• Use antivirus software.
• Unsubscribe from unwanted emails.
• Securing mobile devices.
• Your home wi-fi.

 6. Common Cybercrime Scams.

• Fake emails.
• Email account takeovers.
• Tech support scams.
• Email extortion.
• Ransomware.
• Real estate wire transfer fraud.

We're not cyber security pros. But we know enough to take reasonable and easy steps to manage our online life. Good defenses are available. The number one defense is to be a frequent and proactive monitor of your information. Contact us if you have any questions.

James Cosgrove, CFP, Plano, TX jim.cosgrove@verizon.net 972-489-0262
Jim Cosgrove, Partner, San Jose, CA jimcos42@gmail.com 408-674-6315

Evidence-based. Rules-driven. Policy-focused.

 

 

 

What We're Thinking. An Opportune Moment?

  

Back in July, we wrote that "we trim sails to take what the market gives us." At that time, it was giving us money market and CD rates that were better than the declining inflation rate. That was a good thing. It's still giving us that.

It's also giving us a shot of Fear. We see this by observing the Fear & Greed Index from CNN. Today, it looks like this:

 

We've been here before. Like almost exactly a year ago! Does anyone remember whatever the terrible news of that moment was? Probably not. Now, a year later, globally diversified, balanced portfolios are 8%-12% higher. The tech heavy NASDAQ is an outlier at +36%.

We like to say that we "buy fear" and "sell greed." Just don't conclude that we're market timers. Our core, evidence-based strategy, is to choose an asset allocation target and stay that course. 

But there are moments when market conditions give us an opportunity to "trim our sails." This is one of those moments. Here are some things you might do:

• Nothing!  This is actually the starting point. Long ago, Jack Bogle, founder of Vanguard, said, "Don't just do something, sit there." The first question to ask is, "What problem or situation needs fixing?" And, "What are some ways to do that?"
  

• One situation is that there's too much cash sitting around still earning practically nothing.  Consider re-allocating it to stocks, or even to a money market fund or CD. Do this while still respecting your asset allocation target.

• Maybe you still need to take an RMD for 2023? Deferring that until November or December could give you more assets to withdraw from.

• If you're thinking about making your employer savings plan (401k, 403b) contributions more aggressive, now is likely to be a good time to do that. It's OK to leave the existing balance as is. 

• No matter where you are in life's journey, there are almost always opportune moments. Could this be one for you?
  

 Contact us to have a talk about what's most important to you.

 James Cosgrove, CFP, Plano, TX jim.cosgrove@verizon.net 972-489-0262
Jim Cosgrove, Partner, San Jose, CA jimcos42@gmail.com 408-674-6315

Evidence-based. Rules-driven. Policy-focused.

 

Disclaimer!!! These comments are general and for information only. They are not specific to your situation, nor are they an offer or solicitation to buy or sell any securities. Past performance is not a guarantee of future performance.