By Edward Leone Jr. CFP RFC DMD MBA
Contact Information:
edleonedds@gmail.com
With all of the digital account hacking activity which has taken place lately in the retail space, the CFP Board makes the following suggestions to consumers:
1. keep hard copies of financial information
2. be selective when using a debit card
3. don’t share your social security number unless necessary
4. create strong online passwords
5. avoid accessing personal information in the public wireless environment
6. review bank and credit card statements frequently
7. request your credit report at Annual Credit Report.com.
Another area of consumer awareness which is necessary for those who are approaching the age of 62 or have exceeded that status is the basics on social security benefits. When to begin taking these benefits given the individual’s status will make a great difference in the amount of benefit available. The opportunity for spousal benefits and dependent benefits also requires consideration in the effort to maximize benefit structure. Mercer has produced an excellent publication on this matter called Guide to Social Security 2014.
The recent down trend in equity markets has many people concerned. Let’s remind ourselves that this is nothing new. There have been 13 market corrections since World War II which were not followed by recessions.There is a disconnect between stock prices and the economy in many aspects. Much of equity market returns occurs as a result of dividend reinvesting. In a down market, this occurs at bargain prices and enhances equity returns over the long-term. So many investors create additional problems for themselves in times like this by following the herd, giving in to fear, not rebalancing the portfolio and failing to stick with their investment plan. It appears that current market trends are driven by a slump in the global economy along with the spreading of the virus EBOLA and a variety of military conflicts in the Middle East and the Ukraine. These are issues of concern;however, our U S economy is rebounding, but very slowly. It will be interesting to observe economic activity after election results are in. 2015 will also bring additional conditions regarding Obama Care which individuals and employers will have to navigate. Pew Research shows that Americans are still experiencing difficulty regarding the ability to function financially in the current economy. The Department of Commerce states that in the month of July, personal income increased by .2 percent while personal consumption decreased by .1 percent. Confidence in the economy is just not there yet.
For The Record:
DJIA 16,380.41
NASDAQ 4,258.44
S&P 500 1,886.76
Suggested Reading: “The Mindful Money Mentality” by Holly Thomas
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