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Tag: Financial Planning

Cyberattacks: Help Keep Your Electronic Financial Data Secure

These days, the majority of people have sensitive electronic financial data online. In fact, 72% of Americans mostly access their banking accounts online or through mobile apps, continuing a growing trend, which can equate to an increase in cyberattacks.[i]

 

As our lives become increasingly digital, so does our personal and sensitive information. If we don’t take precautions to protect our data, then we risk becoming victims of breaches and cyberattacks, which are on the rise. During the three months ending in June 2018, there were 765 million cyberattacks, affecting billions of people worldwide.[ii]

 

From your investment accounts to your tax details and beyond, these three tips may help better protect your electronic data:

 

  1. Strengthen your passwords.

An easily hackable password is like leaving a door locked with your key in it: You’re inviting someone to take advantage. To create a secure password, avoid using personal details (like your child’s name), words found in any dictionary, or the same password across various accounts.[iii]

 

  1. Use a Virtual Private Network (VPN).

VPNs help shield your identity, location, and data by routing your internet traffic through an encrypted, virtual tunnel. You can choose from a number of VPN apps for your computers and mobile phones. As a quickly growing method to safeguard data, VPNs are an easy way to help provide powerful protection.[iv]

 

  1. Encrypt browsing sessions.

Whenever you visit a URL that uses “HTTP,” you aren’t on a secure site. As another layer of protection, you can install browser plugins that turn unsecure websites into secure, encrypted connections via “HTTPS.”[v]

 

The Takeaway

While no one can completely remove the threats from storing electronic data, you can take steps to help better safeguard your sensitive information. These tips are a starting point for protecting your and your family’s security with minimal effort.

 

Visit www.capsouthwm.com for more information.

 

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable.  CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

 

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.aba.com/Press/Pages/101618MCResults.aspx

[ii] https://www.usatoday.com/story/money/2018/12/28/data-breaches-2018-billions-hit-growing-number-cyberattacks/2413411002/

[iii] https://www.us-cert.gov/ncas/current-activity/2018/03/27/Creating-and-Managing-Strong-Passwords

[iv] https://www.pcmag.com/article/352757/you-need-a-vpn-and-heres-why

[v] https://www.wired.com/story/google-chrome-https-not-secure-label/

https://www.techworld.com/security/best-8-secure-browsers-3246550/

Social Security: By the Numbers

Social Security has been a pillar of retirement life for several decades, but how much do you really know about it? Here are a handful of facts that might surprise you:

 

The Social Security trust fund exceeds the gross domestic product of every country in the world except: China, the United States, India, Japan, Germany, Russia, Indonesia, and Brazil.[i]

 

For 61% of retirees, Social Security is a major source of income.1

 

Benefits are subject to federal income taxes, but it wasn’t always so. Amendments to the Social Security Act made benefits potentially taxable beginning in 1984.1

 

Benefits are determined by your average earnings during a lifetime of work, based on your 35 highest-earning years.1

 

If you receive Social Security, you no doubt welcome cost-of-living-adjustments (COLAs) to your benefits. Did you know that Social Security COLAs once required an act of Congress? That was the case before 1975, when they were finally pegged to advances in the Consumer Price Index.1

 

In the middle of 2018, more than 1 in 6 Americans were collecting Social Security benefits. Older Americans constitute about 80% of Social Security recipients, and their average monthly benefit in June 2018 was $1,413.[ii]

 

When should you begin taking Social Security? That may depend on several factors, but many people choose to claim benefits as soon as they are eligible. You can receive benefits beginning at age 62, but if you take them before reaching Social Security’s Full Retirement Age (67 for those born in 1960 or later), your monthly benefit will be fractionally reduced. You can wait until age 70 to claim your maximum potential benefit.

There are many factors to consider when determining the age at which you should begin taking benefits. We believe this decision should be made in conjunction with your overall financial planning process.

 

We would welcome the opportunity to discuss this further or to begin a conversation regarding your financial plan and how Social Security benefits fit into the plan.  Contact CapSouth at 800.929.1001.

 

To read more about financial and retirement planning visit http://capsouthwm.com/services/financial-estate-planning/

 

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable.  CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

 

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.waddell.com/explore-insights/market-news-and-guidance/planning/9-facts-about-social-security

 

[ii] https://www.cbpp.org/research/social-security/policy-basics-top-ten-facts-about-social-security

 

The Great Debate Continues: Active vs. Passive

In sports, music, and politics, there are “great debates” that never seem to conclude. In the investment world, one great debate asks a thought-provoking question: which investment approach is better – Active or passive?

 

Equally intelligent, educated people can take distinctly opposite sides in this discussion, which may mean no definitive answer exists.

 

Passive pointers. The case for passive investment management is anchored in the evidence that the preponderance of money managers has failed consistently to beat their comparative index. Why is this? Adherents of passive investing cite two primary reasons:

 

One, markets are efficient, and all known information is already reflected in the price of the stock, making it difficult for managers to find companies that are expected to outperform. Over the 15 years ending in 2017, more than 90% of small-cap, mid-cap, and large-cap asset managers of active equity funds failed to beat their benchmarks. Some did for a particular year, but across successive market years, their ranks quickly thinned.[i],[ii]

 

Two, actively managed equity funds often have an elevated expense ratio. That presents a hurdle, which can make it hard to match or exceed the return of a low-expense index fund. In 2017, actively managed funds had an expense ratio averaging 0.79%, according to the Investment Company Institute (ICI), compared to 0.09% for the average equity index fund.2,[iii]

 

Even so, a studious investor has to decide if the potential cost savings of a passive investing approach outweigh the possible opportunity cost.

 

Active arguments. Active investment managers counter that while the markets may be generally efficient, there are windows of inefficiency created by the time it takes for information to be properly reflected in a stock’s price.

 

Active managers further argue that performance is not just about relative return, but also, about managing risk. Since the performance of an actively managed account or fund is not tracked to an index, that freedom allows the manager more leeway and options to hedge or reduce exposure to disappointing sectors of the market.

 

Unlock the combination. Ultimately, the active vs. passive decision comes down to preference. Do you prefer the approach taken by index funds or the strategy behind active management? For some, the combination of both methods represents a strategy that takes no sides but seeks to tap into the distinctive potential benefits of each method. Some investors choose to have a portion of their invested assets actively managed and another passively managed. Perhaps this is not indecision so much as experimentation.

 

As a reminder, equity funds are sold only by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this information and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.

 

To read more about investment and wealth management, visit capsouthwm.com/services/investment-wealth-management/

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable.  CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

 

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.investopedia.com/ask/answers/032615/what-are-differences-between-weak-strong-and-semistrong-versions-efficient-market-hypothesis.asp

[ii] http://www.aei.org/publication/more-evidence-that-its-very-hard-to-beat-the-market-over-time-95-of-financial-professionals-cant-do-it/

[iii] https://www.thestreet.com/investing/etfs/expense-ratio-14686652

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