Enhanced Web Security Features You Should Activate Today

Presented by Mark Phillips

Are your e-mail and other online accounts as secure as they should be?

 As hackers continue to develop more elaborate tactics, a password alone is no longer enough to protect your accounts. Fortunately, a number of web-based e-mail providers and other online services now offer multifactor authentication—one of the simplest and most effective ways to secure your data.

What is multifactor authentication?

Rather than relying on a password alone, multifactor authentication asks users to provide two forms of identification in order to log in. When you enable multifactor authentication, the website typically sends a passcode to your mobile device; you must enter that code, along with your password, in order to verify your identity. The code helps ensure that only you—and not an imposter who has stolen your login information—can sign in to your account.

Updating your accounts

Here’s an overview of the multifactor authentication features offered by several major websites. You can learn more about each system and get specific instructions by visiting the sites.

• Gmail. When you activate Gmail’s 2-Step Verification, you’ll be prompted to enter a six-digit code that Gmail sends to your cell phone, as well as your username and password, at login. You can elect to have the computer you’re using remember the code for 30 days. (Whenever you use a different computer or device, you’ll have to type in the code.) Once the 30 days are up, you will receive a new code.
• Yahoo! Mail. Yahoo! Mail’s Second Sign-In Verification adds another layer of protection to your account by authenticating suspicious login attempts. For instance, if you try to sign in from a computer you don’t normally use, you’ll either have to answer an account security question or enter a code sent to your mobile device.
• Facebook. When you enable Facebook’s Login Approvals, the site will ask you to enter a verification code if you try to access your account from a new computer or mobile device. Once you log in, you can save that computer or phone as a recognized device, so you won’t have to enter a code the next time you log in.
• LinkedIn. LinkedIn recently began offering Two-Step Verification, which requires you to enter a security code sent to your phone when logging in from an unrecognized device for the first time.
• Twitter. Another newcomer to the multifactor authentication bandwagon, Twitter unveiled Login Verification this spring. When you enroll, the site will ask you to enter a six-digit passcode sent to your phone each time you log in.
• PayPal/eBay. PayPal’s Security Key, which also works on eBay, protects your accounts by generating temporary security codes that you use to log in. You can either register your mobile phone to receive the security codes by text message or, for $30, order a credit-card-sized hardware token that creates security codes on the go.
• LastPass. If you use LastPass to keep track of all your passwords, it’s especially important to enable the Google Authenticator option to protect your account.
• Outlook/Hotmail. Microsoft is currently working on a multifactor authentication feature for Outlook/Hotmail accounts. In the meantime, it’s a good idea to request a single-use code when accessing your account from a public or shared computer.

 

Upgrade your online security today!

Considering how easy these security features are to activate, we encourage you to enable them as soon as possible for the sites you use.

Of course, multifactor authentication doesn’t replace commonsense e-mail security practices—it’s still essential to be proactive in protecting your cyber safety. Never open suspicious e-mails, and never provide personal information online unless you’re sure of the recipient. If you haven’t updated your passwords or password recovery options recently, take some time to do so.

As always, helping you keep your sensitive information secure is one of our top priorities. If you have any questions about the information presented here, please don’t hesitate to contact our office.

 

The Rule of 72 – When Growth and Time Yield Double

Presented by Mark Phillips

You might wonder how I can so quickly tell you how long it will take for an investment to double your money at a fixed rate of return – all in my head.

Well, the rule of 72 can help you figure this out just as quickly. The rule gives you an approximation of how long it will take any investment at a specific rate of interest and/or growth—whether it’s a simple savings account or a complex investment portfolio—to double.

Simply divide 72 by the annual interest/growth percentage you expect to earn on the investment. The result is the number of years it will take to double your money.

Let’s say we have a hypothetical investment that currently returns 7.20 percent annual compound interest:

72 divided by 7.20 = 10 years to double

And we have a second hypothetical investment that returns 8.6 percent annual compound interest:

72 divided by 8.6 = about 8.4 years to double

You can see how the slightest difference in interest rates can have a pronounced effect on how quickly your money might grow.

Another way to use this is to see the effect of apparent (nominal) growth and real (inflation adjusted) growth. Consider the first case above with annual average growth of 7.2% per year.

72 divided by 7.20 = about 10 years to double

In a 4% inflation environment the real (inflation adjusted) growth rate is really 3.07% per year and the following would express the time for the hypothetical investment to double in purchasing power:

72 divided by 3.07 = ~ 23½ years to double 

Now then, using the second example above with nominal growth of 8.6% per year we see a real return rate of 4.42%. Thus the time to double purchasing power is determined as follows:

72 divided by 4.42 = ~16.3 years

This is 30% faster and is much faster than the rate at which the nominal amount of money will double.

Of course, interest rates can and do fluctuate, and taxes can take a chunk, too—so that’s why I stress this is only a rough approximation. Also, note that the hypothetical illustrations are not predictions of investment performance; investment principal and interest are not guaranteed and are subject to market fluctuation in virtually all investments.

Clearing Out Catalog Clutter

Presented by Mark Phillips

In my role as your advisor I work hard to find ways to help de-clutter your financial lives. But as consumers, we’re all faced with other forms of clutter, like the clutter we find in our mailboxes.

To help you simplify life from a nonfinancial perspective, I’m calling your attention to Catalog Choice, a cost-free service that enables you to slow down—or stop entirely—catalog delivery to your mailbox. Using its website, www.catalogchoice.org, is simple:

1. Sign up. Your contact information won’t be shared, except to initiate catalog receipt preferences.
2. Find the catalogs you receive; then select receipt options.
3. Watch for a reduction in the number of unwanted catalogs. It could take up to 12 weeks to be dropped from the mailing cycle, but the results will be worth the wait.

I hope that you can take these steps to de-clutter your mailbox. Meanwhile, I will continue to work diligently to make your financial life as clutter-free as possible. If you have questions about the information shared here, please contact me at 949-333-6394

How do we struggle…Consider Diabetes

Presented by Mark Phillips

The Center for Disease Control tracks many maladies in the US and compiles history which they have put into an interactive map program that you can access through the internet from their web page.

Click on the following image or paste the URL into your web browser to access the site.



As we age we are more prone to disability and death due to maladies such as diabetes. Having, and living, a fun plan for an active lifestyle that will support good health and thus our ability to stay physically engaged with our friends, family, community and world is just as important as a “healthy” financial plan.

Sadly the state of our bodies as a nation by and large is representative to the state of our overall financial health as a nation. This is to say, not so much where we would like to be on average.

The amazing and wonderful thing is that so much of what we will get in both areas of our life is under our own control to manage. This is to say effectively deal with the difficulties and leverage the opportunities through clarity about what is now and will be important to us, each of us, in the future.

As for the CDC data map – consider that many people, well-meaning and wonderful people most, are struggling to improve their circumstances. None of us is not struggling in some element(s) of our lives to make improvements. To struggle towards better is good, it is growth and makes the world a more beautiful place in some way.  To give up is the enemy of better, growth and beauty.

Champion your personal struggle!

Let us know how we may best coach and help you.

Tips and Tricks for Smart Holiday Shopping

Presented by Mark Phillips

 

As the end of the year approaches, shopping malls and online stores will soon be bustling with bargain hunters on a mission to check items off their gift lists. Yes, the holidays are just around the corner, and, according to the National Retail Federation, the average person will spend about $740 on presents, decorations, and the like this year. Although the thought of crowded parking lots, long lines, and sold-out items may be daunting, these smart shopping strategies can help you ease the stress of gift-buying.

Plan ahead

It may seem obvious, but planning ahead is key to efficient holiday shopping. Knowing what you want from different stores and how much you can spend will help you make quick work of your list. Here are a few ideas for getting organized before the rush starts:

·         Make a detailed list. There’s nothing worse than forgetting someone and having to make a last-minute trip to the mall. In addition to friends and family members, think of any coworkers, teachers, or neighbors you’d like to acknowledge this year.

·         Set a budget. Before you spend a dime, ask yourself how much you want to shell out overall. (Be sure your total is realistic.) Then, break out costs for each individual on your list.

·         Do your research. It’s helpful to compare products and prices online before heading to the mall. Making a game plan for what you want to buy and where can help you avoid rushing from store to store looking for the items on your list.

·         Get there early. Some retailers program their registers the night before a sale, so shopping after 6:00 p.m. the night prior can be a great way to take advantage of advertised discounts before the crowds descend.

Try shopping online

Visiting brick-and-mortar stores during the holiday season often means waiting in traffic and searching for scarce parking spaces, all to get inside and wait in another line at the register. Although some of the best deals may be found in-store, buying gifts online has its advantages. Here are some factors to keep in mind:

 

·         Consider the time value of money. It’s safe to say that browsing products online is much less time-consuming than wading through crowds at the mall, especially if you’re not sure what you want. Staying home and hopping on the Internet can save you time (and gas money), at least until you’ve figured out what you’re buying and where.

·         Weigh your shipping options. Many online retailers can ship your purchase to a different location than the billing address. This can be a useful feature if you’re traveling and want to send gifts directly to your destination. Some merchants also let you buy online and pick up the item at the store.

·         Check return policies. Stores’ policies vary significantly, so before you buy anything online, get the details on returning and exchanging items. For instance, who pays for return shipping? Can you return an item you order online to your local retail store?

·         Stick with trusted retailers. It’s best to do business with merchants you know and to avoid any too-good-to-be-true online promotions. If you’re interested in an item on an unfamiliar website, look for the site’s security and privacy seals or check out other customers’ experiences at www.bizrate.com.

Find creative ways to save money (and time)

Whether you plan to shop online or at the mall, saving a little money here and there can really help stretch your holiday budget. For example:

·         Compare prices on the go. If you need to check prices while you’re out and about, consider using a smartphone app like Red Laser, which lets you scan a product to see if it’s available anywhere else for less.

·         Use cash. Shoppers who pay with credit cards are likely to spend more than those with cash in hand. It’s all too easy to buy on impulse this time of year, and making cash purchases may help deter you from blowing your budget.

·         Outsource gift wrapping. Many charity groups offer gift-wrapping services in malls and stores. For a small donation, you’ll save yourself some time, not to mention the cost of supplies like ribbon and tape.

·         Don’t overlook coupons. During the holidays, coupon specials abound. Browse your local newspaper supplements, and look online for deals from retail stores you plan to visit. Apps like Coupon Sherpa can even deliver discount offers to your phone.

Make a post-shopping to-do list

After you’ve finished your shopping, there are still a few things you can do to avoid last-minute hassles:

·         Keep track of purchases. Save your store receipts and print out confirmations for online purchases. This can come in handy when checking your credit card or bank statements, and also if you need to return or exchange items.

·         Include gift receipts. As you wrap your packages, enclose a gift receipt so recipients can easily return the item, if necessary.

·         Get to the post office ASAP. If you plan to mail any packages, it’s best to do so as soon as your shopping is done. The U.S. Postal Service and other shipping companies only get busier and busier as the holidays draw near.

Here’s to a more peaceful season!

The holidays shouldn’t be stressful, but they certainly can be if you wait until the last minute to finish your shopping. We hope these tips will help make your preparations a bit more pleasant—and give you more time to celebrate with your loved ones!

Mark Phillips is a financial advisor located at Mark Phillips & Associates, 19712 MacArthur Blvd., Suite 225, Irvine, CA 92604. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network^®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (949)333-6394 or at mark@phillipswealthmanagement.com.

© 2013 Commonwealth Financial Network^®

When “Knowing” May Be Just Guessing And Hoping…

By Mark Phillips

The below chart illustrates why we loath to guess what the market will do tomorrow, next week, or next month (and even a bit flummoxed over what the next year may bring).

The corollary to the below graphic is that we can account for all of the positive net return in the S&P 500 index over this  ~6,000 day period (from Jan. 1, 1993 to Dec. 31, 2013) with what occurred on the best 35 days of the market. Take away these 35 days and the S&P 500 index had no net total return. This is roughly 2 days per year on average.

When do these days most often occur?  During periods of heightened volatility, often directly on the heels of a drawdown, so often right around the time that many have fled the stock markets.

Of course we are not 100% invested in the S&P 500 or any proxy for it. A diversified portfolio likely includes stock exposure to this and other equity categories, as well as bond and alternative (hard assets and hedging strategy) categories. Nonetheless, this type of attribution to total return is true of most all equity categories.

 














Now if only there were a reliable tool to pre determine what will be those most important 35 days over the next 20 years….Many have tried, billions have been spent on the effort, none have succeeded.

For us, staying fully engaged is part of the strategy for your success.

Read the full article at: Business Insider

All indices are unmanaged and investors cannot actually invest directly into an index. Unlike investments, indices do not incur management fees, charges, or expenses. Past performance does not guarantee future results.

 

 

1 in 4 Seniors Have Meager Savings

Presented by Mark Phillips

We found this article that we thought was interesting about the savings situation of seniors. Particularly disturbing is that one-quarter of the Medicare beneficiaries have less than $11,300 in their retirement and financial accounts.

“Most people on Medicare are of modest means with relatively low incomes, low savings and low home equity,” said Gretchen Jacobson Associates Director of the Medicare policy program at Kaiser Family Foundation.

While our practice is focused on designing and implementing retirement income for clients of moderate to high means we understand that there are some people in your life, that matter a lot to you, that are in this group with very limited means. For you as our clients we urge you to have them meet once off with us such that we might help them focus on those behaviors that may help them not slip into a financial black hole.

Of course we welcome an introduction to your friends of moderately to high means as they too want to maximize their “lifestyle” with the resources, and to manage the risk in their life going forward.

We are here to help create financial stability and security for you and your friends.

Access the full Article  - Enjoy!

IRS Benefit Plan Limits for 2015

Presented by Mark Phillips

he Internal Revenue Service (IRS) has announced contribution limits for retirement plan participants for 2015. Many of the limits will change because the Consumer Price Index met the statutory thresholds that trigger their adjustment.

The maximum annual contribution employees can make through salary reduction to a 401(k), 457(b), or 403(b) has increased to $18,000. Catch-up contributions for employees 50 years of age and older has also increased, to a maximum of $6,000 per year. SIMPLE IRA limits have increased from $12,000 to $12,500, while the compensation limit for SEPs has also increased from $550 to $600.

 

The dollar limit used in the definition of a key employee for top-heavy purposes remains unchanged at $170,000, but the definition of a highly compensated employee has increased to $120,000.

401(k) Plan Limits for Plan Year	2015 Limit	2014 Limit	IRC Reference
401(k) Elective Deferral Limit1	$18,000	$17,500	402(g)(1)
Catch-Up Contribution2	$6,000	$5,500	414(v)(2)(B)(i)
Defined Contribution Dollar Limit	$53,000	$52,000	415(c)(1)(A)
Compensation Limit3	$265,000	$260,000	401(a)(17); 404(i)
Highly Compensated Employee Income Limit	$120,000	$115,000	414(q)(1)(B)
Key Employee Officer Limit	$170,000	$170,000	416(i)(1)(A)(i)
Non-401(k) Limits
403(b) Elective Deferral Limit1	$18,000	$17,500	402(g)(1)
Defined Benefit Dollar Limit	$210,000	$210,000	415(b)(1)(A)
457 Employee Deferral Limit	$18,000	$17,500	457(e)(15)
SEP and SIMPLE IRA Limits
SEP Minimum Compensation	$600	$550	408(k)(2)(C)
SEP Maximum Compensation	$265,000	$260,000	401(a)(17); 404(i)
SIMPLE Contribution Limit	$12,500	$12,000	408(p)(2)(E)
SIMPLE Catch-Up Contribution2	$3,000	$2,500	414(v)(2)(B)(i)

¹ Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit.

² Available to employees age 50 and older during the calendar year.

³ All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult a tax preparer, professional tax advisor, and/or a lawyer.

IRS CIRCULAR 230 DISCLOSURE:
To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax information contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed here.

 

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