Personal Finance Blog

Tips And Stories To Help You With Managing Money

Has A Hacker Victimized You?

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Has a Hacker Victimized You
So much personal data has been breached that traditional methods for verifying identity, such as user names, passwords and/or knowledge-based questions, have become less reliable.
“Pwned.” Strange word that you won’t find in an English dictionary, but one that has affected people all over the world. It’s the coined word used to identify a person whose personal information has been breached when a corporate data base is hacked. Gamers recognize it as meaning “utterly defeated.”

We hear about it a lot these days. Large retailers and other companies have been attacked by hackers, compromising the data of millions of customers. Even Equifax, the credit rating company, was not immune. A breach of its data gave fraudsters millions of names to work with. The list of other well-known companies that have lost data has become long. The thieves have a hey day using the personal data for their own purposes.

Are you one of them and how can you find out?

An Australian named Troy Hunt may be able to tell you. He has accumulated some 4.8 billion pieces of hacked data and he uses it to help ordinary people determine if they have had their personal data lifted. His website, Have I Been Pwned?, has been in operation since 2013. It’s free.

Hunt has become a specialist regarding big breaches and has exposed some hack jobs before the victim companies have been aware themselves. He used to be a software architect at Pfizer, the pharmaceutical giant, but quit to work as an independent information security consultant and instructor.

The U.S. Congress recently availed itself of his expertise when he testified before that body, which has become increasingly concerned at the number of their constituents who have been victimized. He had to buy a new suit and tie (and visit a website to find out how to tie the tie.) His usual garb is beachwear or jeans — what the well-dressed Aussie wears while working on the beach.

The problem is serious. So much personal data has been breached that traditional methods for verifying identity, such as user names, passwords and/or knowledge-based questions, have become less reliable.

Hunt’s relentless search for hacked information has put him ahead of the game in several instances. He has made it harder for big companies that have been hacked to hide the fact. Uber, for instance, had failed to publicize a breach that put 57 million bits of information on passengers and drivers into the hands of fraudsters. On the other hand, when he advised Imgur, a photo-sharing corporation, that they had been hacked, they made the information public within a day.

People using his site to determine the status of their information can search Hunt’s website on their email address. Some 1.7 million people also have subscribed to alerts that sound when their data pops up in newly discovered breaches.

How To Choose A Financial Advisor

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Financial Advisors
Be specific and go with the advisor who will meet your particular needs.
If you have decided it is time to involve an expert in the handling of your assets, what questions should you ask before selecting that expert?

What are your charges and how do you calculate them? This information may be on the potential planner’s website, but be clear if he/she charges an initial fee, whether charges are based on assets under management and if he/she stands to benefit from any products they may want to sell you. That would create incentive for the advisor to sell your particular products.

What licenses, credentials or other certifications do you have? There are four main types of financial advisors: certified financial planner designation is harder to achieve than chartered financial consultant. The former requires a comprehensive board exam. The latter does not demand the test, but uses the same curriculum. If you need someone just to manage money, you might opt for a registered investment advisor. If you have high income or own a small business, a certified public accountant may be your choice. A CPA may also qualify as a personal financial specialist through additional training.

What services does your firm provide? This question may screen out services you may NOT expect to receive from a particular provider. Some financial planners focus on retirement, insurance, estate planning or tax planning. Be specific and go with the advisor who will meet your particular needs.

What types of clients do you specialize in? Some financial planners have a niche, serving clients with particular interests such as charitable giving or socially responsible investments or the problems related to marriage or divorce. As a professional factor, most financial advisors tend to relate best to people within 10 years of their own age. Those who are closer to retirement, for instance, can relate to clients facing the same challenges.

May I see a sample financial plan? There is a lot of variation among plans. If you are provided a complex stack of pages complete with graphs and charts regarding things you don’t understand, likely you wouldn’t relate to your own plan any more easily. A sample might guide you in choosing an advisor whose approach meets your specific needs.

What is your investment approach? If you already have a firm preference about how to invest, you need to know if the advisor you are contemplating is on the same track. If you prefer low-cost funds, ask if the advisor would use actively managed funds or passive investments. If you are willing to be risky in hopes of a large return, say so. Discuss risk tolerance and goals.

How many times will you expect to meet? After an initial planning meeting, some advisors do not see the client again for a year. Some clients need more support than that. How much control are you willing to cede to your money manager? Some surveys suggest that more frequent meetings result in the most satisfaction for the majority of clients.

Will I work directly with you or with team members? Often, you will meet annually with the advisor you select, with additional contacts during the year with a team member. Companies differ on this issue. One approach is not better than the other if the bottom line is to serve your needs. But the more you know before you make a commitment, the more satisfactory the relationship is likely to be.

Why should I choose you to handle my financial affairs? If the answer comes close to “I’m your savvy best friend, financially,” you are on the right track.

After a conversation with a potential advisor, ask the next questions of yourself: Did he or she talk most of the time? Does he or she appear genuinely interested in my circumstances and not just the numbers? Am I sure he or she will act based on my goals, financial background and philosophies about money? Based on these answers, make your choice.

Three Ways To Stop Worrying About Money

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Stop Worrying About Money
Worry about the markets seems to be a common stressor, regardless of the amount of the individual’s assets.
Things look pretty rosy on the American economic front, with slow but steady improvement in the measures experts use to gauge such things and a stock market that is definitely on the upswing. So how come about half of Americans, even those with six-digit incomes, still say they worry about their personal financial security? Money is, in fact, the number one source of arguments between partners.

What’s in the wallet is not the only measure of monetary comfort. And in today’s world, despite the positive signs, real incomes are not rising much, college costs are off the charts and retirement lasts longer on average. Those are all areas for concern, Marguerita Cheng, a financial planner in Rockville, Md., offers these three ways to keep money concerns reasonable:

Pay less attention to the markets. Worry about the markets seems to be a common stressor, regardless of the amount of the individual’s assets. If you believe more wealth would free you from that concern, forget it. A survey among people with $5 million to $25 million in assets showed they worried too. Psychologists call this “loss aversion.” People tend to fret more over a dip in the portfolio than they celebrate an uptick. A diversified strategy can help you to avoid these lopsided perceptions. Don’t dwell on the market. Do check your portfolio once a quarter. You can be assured that your asset/allocation balance is okay and hopefully fend off obsession with unimportant ups and downs.

Tell someone “Thank you.” People who develop an “attitude of gratitude” for the things they have report themselves to be happier. Try writing a note of appreciation to someone who has given your life a lift at some point. Make it beyond a simple “thank you” card. Be specific about the “gift” you received. People who study such matters report that those who take the time for such niceties are happier. Putting gratitude into writing makes it more real, they say, and takes the writer’s mind off what they do not have in favor of what they do have.

Spend socially. Psychologists report that few people ever arrive at a point that they have enough. And accumulating more and more doesn’t lead to happiness. Strong relationships are more important, whether it is with a spouse, family members, friends or a religious group. Direct some of your spending to others. Plan a family vacation, donate to a charity or simply buy a gift for a friend. In one study, participants were given a $10 Starbucks gift card with instructions to use it, give it to a friend to use or to take the friend to Starbucks and share the gift card. The final choice produced more happiness, the survey said. Giving is a way to boost a sense of well-being.

(These suggestions are adapted from “Never Worry About Money Again,” by Carla Fried, Ian Salisbury and Taylor Tepper. Their article appeared in the July 2015 issue of MONEY Magazine.)

Bezos Surpasses $100 Billion in Wealth

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Jeff Bezos Surpasses 100 Billion
The surge in Amazon transactions that put Bezos in the $100 billion-plus spot shot the company’s stock up 60 percent, to a record $1,213.4 per share.
Jeff Bezos, founder of Amazon and Amazon’s largest shareholder captured the title of Richest Man in the World. When Bezos reached the $100 Billion in wealth, the moment was noted by Forbes Real-Time Billionaire Rankings. The exact time when the total ticked up to $100 billion was 1 p.m. Eastern Time on Friday, November 24, 2017. He was able to continue his $100 billion figure for 5 days – through November 28.

His riches are a reflection of his long term devotion to building Amazon into the biggest “Everything Ecommerce Store” on the planet. Even his selection of the name of Amazon – the largest river in the world – reflects his goals and aspirations.

Bill Gates, Bezos’ competition in the race to see who can amass the greatest fortune based on the world’s technology mania, once enjoyed a few hours in the $100 billionaire’s spotlight. His personal wealth reached that pinnacle in 1999, but it was very short-lived. Gates today lists his personal wealth at $89 billion-plus. That doesn’t include the $35 billion he has donated to his charitable foundation.

The surge in Amazon transactions that put Bezos in the $100 billion-plus spot shot the company’s stock up 60 percent, to a record $1,213.4 per share. Amazon experienced a similar phenomenon in July, when a surge added $10 billion to the bottom line in one day.

Bezos, now 53, has capitalized on his successful wedding of technology and retail sales. He created an ecommerce phenomenon that seems to have no end. It is due to his unique genius that this holiday season is expected to end with record-breaking online purchasing.

Don’t Overlook These Credit Card Benefits

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Credit Card Benefits
Wisely used, your credit card could help with your holiday expenses.
Wisely used, your credit card could help with your holiday expenses. The trick is to control your spending and to use your credit card “extras” to make your credit go farther.

First off, consider “zero liability.” Identity theft is a serious problem today and protecting your information is imperative. A credit card or cards that offer zero liability can be one step toward that goal. They allow you to quickly freeze your account if you have any hints that things are not right. With some cards, this protection is built in if the issuer detects purchases that seem out of step with your usual practices. The inconvenience that you might suffer if they are wrong in refusing a purchase on your card is nothing compared with the damage that can be done by a thief using your card.

If travel is part of your holiday plans, you can get collision damage insurance on a rental car at no cost. It is included if you use your credit card to pay for the rental, according to the Department of Insurance, Securities and Banking. Otherwise, you may be charged $10 to $20 per day for the insurance. Consumer Reports notes that rental companies can hold drivers liable for anything that happens to the vehicle during the rental period. If something happens to the vehicle after you have returned it to the rental company but before they have done their inspection, you could be charged for that damage. Using a credit card to complete the transaction before driving off the lot prevents such an event. Decline the rental company’s collision damage waiver coverage.

Visa credit card holders also have a pay-per-use option for roadside dispatch in the event of a problem. If you are stranded while traveling, you’ll save money with this option. For $69.95, you are assured towing, tire-changing, jump-starting, lockout service, fuel delivery or winching services.

Most credit cards offer perks such as a rewards program. That’s especially attractive during the increased shopping that most people do during the holidays. Look for such perks when you choose a charge card. Caution: Don’t let the fact that you get a small cash rebate on credit card purchases push you into buying more than you had planned. It’s too easy to let the shopping get ahead of you.