Cell Phone Security

By
June Adams
January 4, 2022
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As scammers get more sophisticated, be sure to protect yourself and your access points, such as your smartphone.

Start by making sure your phone is encrypted. Most phones, such as iPhones, Google Pixels and post-2018 Samsung phones are encrypted by default. Should you have a different model, search online for instructions on how to encrypt your phone.

Be sure to have a secure passcode for your phone. 6-digit passcodes are better than the standard 4-digit. Face or fingerprint recognition is secure as long as you use the phone’s built-in systems rather than a third-party. Utilize your smartphones’ “find phone” feature if it has one. Your smartwatch can also be utilized to locate a misplaced phone.

As your data can be intercepted on Wi-Fi networks that are not encrypted, it’s best to disable the Connect Automatically feature on your smartphone. This usually requires the simple UNCHECKING of a box. If storing payment methods electronically on your phone, only keep debit cards. Most vendors require a PIN to be entered when debit cards are used, adding an extra layer of protection. Lastly, should you be switching to a new phone, factory-reset the old phone after the switch, regardless of who will be receiving the old phone.

Ultimately, treat your phone with the same security as you treat your wallet, if not better.

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By
Mike Loo, MBA
July 12, 2018

There may be plenty of factors outside of your control that impact your financial situation, such as the markets, the economy as a whole, or an unexpected illness. But those circumstances may not play as critical of a role in your financial life as you might think. The real dangers to your financial future are the lies you tell yourself when it comes to financial planning. Here are some ways you could be undermining your financial success and some ideas on how to change course.

Lie #1: I Don't Need Help. I Know What I'm Doing

Let’s say you read a plethora of financial planning books, stay up-to-date on the markets, and know all about budgeting software. That may put you ahead of a lot of other people, but there are certain aspects of financial planning that often go ignored even by the most knowledgeable people. Let’s look at a couple of hypothetical examples.

How Often Do You Review?

How often do you refresh your goals, adjust your plan, and determine how and when to make changes? A financial planner does more than just monitor your portfolio. They act as your coach, motivating and guiding you when things get tough. They bring an objective perspective to the table and develop a customized strategy based on your financial priorities. The end result is increased confidence in your financial strategies and decision-making. You don’t want to suffer a financial setback just because you were too busy or too forgetful to keep up with your financial plan.

In Case of Emergency

What if the unthinkable were to happen and you couldn’t make financial decisions? Will your family be able to handle the details and figure out your financial plan? An advisor can offer a holistic overview of your net worth and determine what elements need to be in place to protect your family and your wealth. These are often things you may not be aware of, such as life insurance or a living trust.

Market Research

Investing is tricky business on a good day. Can you manage the emotions, anxiety, and possible second-guessing of your investment choices if you were living on a fixed income and the market were to face a correction? An advisor has tools to evaluate cash flow to help you determine the probability of your money lasting through your retirement years. They can also keep you accountable and committed to your long-term strategy in the midst of market ups and downs.

Lie #2: I Can Always Get Help When I Need It

If you were going on vacation, would you rather have everything packed ahead of time and enjoy your restful break? Or would you prefer to be disorganized and arrive without essential items, forced to then spend your time off running around shopping for things you forgot? When it comes to money, it’s the same idea. When you really need the help, you may have lost your most valuable resource – time. Instead of thoughtfully researching your options and making decisions with a clear head, waiting until you need help will result in a frantic scramble to just get things done.

Whatever it is you experience in life, having a financial planner on your team will help you stay on top of your money and prepare in advance for future milestones and events.

Lie #3: I Don't Need An Advisor, I Have Financial Technology

Financial planning has evolved. Years ago, it was about who had the most up to date information on a company to buy a stock, and the planning industry was mostly concerned with buying and selling stocks and bonds rather than portfolio management. Today, financial planning is more about what’s missing in your overall strategy, what have you not thought of, and what could you be doing that you’re not. On top of that, the financial planning process helps you emotionally connect with your goals so you can get on the right track. Technology, at the present time, can’t do that.

Technology has many good points, but several drawbacks as well. For example, you can find more information than you’ll ever need, but you’ll also come across plenty of misinformation which could lead you astray. It’s not uncommon for someone to research something on the Internet and find just as many pros as there are cons. If you want to save for your child’s college education, you’ll find articles touting the value of using a 529, a Roth IRA, or a Roth 401(k). How do you figure out which one is truly right for you? The abundance of information has created so much noise that in many cases, people don’t do anything at all.

While technology should be used in financial planning, it should not replace the role of an advisor. The importance of what advisors do from a human aspect is help clients sift through the noise and misinformation and encourage them to move forward in taking action.

A Change In Perspective?

Have you ever believed one of these lies? It’s easy to do, but the consequences are real. Don’t take a gamble with your money. Join forces with a financial advisor who can help you make the most of what you have, where you are, and get you positioned for a bright financial future. Call my office at (949) 221-8105 x 2128, or email me at michael.loo@lpl.com for a no-strings-attached meeting to discuss your situation.

By
Mike Loo, MBA
August 30, 2018

Whether we attribute it to a decline in marriage rates, poor job prospects, student loan debt, technological improvements, or generational shifts, times have certainly changed for young adults. One major topic which my clients bring up centers around their adult children moving back home. While this was not a common conversation ten years ago, I come across this topic more often nowadays. I’ve heard statistics such as “a third of young people, or 24 million of those aged 18 to 34, lived under their parents’ roof in 2015”, and look at it as my job as an advisor to provide advice on how to best navigate through this new landscape.(1)

Within this topic, a common question that I try to help my clients answer is this: Should I charge my adult children rent if they move back home? What I’ve found is that every situation is different, so what may work for one family, may not work for another. However, in this article, I hope to provide a framework to consider when trying to answer the question.

Setting Expectations

Depending on your own experiences and values as parents, as well as the specific circumstance of your adult child, you may insist that they live at home rent-free. For example, if your adult child is being responsible by saving a good share of his/her paycheck for a house down payment and you want to reward that responsible behavior by letting him/her live at home rent-free, there’s absolutely nothing wrong with that. For other parents, such an assistance for an adult child does not make sense, and no matter what the circumstances, would believe it only right to charge for rent if living at home.

No matter where you fall on this spectrum, it is important to set expectations with your adult child. For instance, if you decide that it is out of your comfort zone to charge your child rent for living at home, then what other mechanisms can you put into place to make sure he/she does not get too comfortable? In my experience, I’ve seen parents create timelines and goals, as well as make it crystal clear that the adult child must still pitch in, in other ways such as chores or errands. While it may be a tough conversation initially, imagine the alternative. What if your child gets too comfortable living at home and would rather stay at your “hotel” rather than spread their wings in the real world!

Whether rent is being paid or not, the adult child will have a particular reason as to why they want to or need to live back at home. If they are simply being lazy and are not making an effort towards adulthood, it is crucially important to provide clear expectations. As parents, you want to always help and support, but you never want to enable. Therefore, in this example of being lazy, a parent could set expectations of applying for X number of jobs per week, or something similar.

How Much To Charge For Rent

If you do decide that it makes sense to charge your adult child rent, how much should you charge? In my experience, parents usually charge well below market rates. As parents, you want to help your child out, but you also want to build up their personal finance awareness. How much you charge will also be highly correlated to what your daughter or son can afford, and could change over their time living with you. By having an open conversation and being clear about why you will be charging them, it should not be hard to fall on a number that makes sense for your family.

Alternatives

There are also other ways in which your adult child could pitch in that could be alternatives to paying rent. Such alternatives could be household chores or errands, cooking meals, or even helping parents with their own work. In addition, it could make more sense to have your adult child pay for other household expenses (instead of rent), such as internet, tv, or groceries.

Another alternative could be to make their stay at your home contingent on them depositing money into their own retirement account. This way, you are teaching them how to save and plan for the future.

Finally, if you want to help them grow personally, you can make their stay at your home contingent on community service or volunteering. This is a win-win as well!

Budgeting

This experience can also be thought of as a great teaching moment for your child. Specifically, parents in this situation are in a unique position to extol the virtues of budgeting and personal finance when their child needs it most. If the adult child in your household has to pay you rent and decide how to allocate their small-to-no income, they will quickly learn how to budget. As a parent, you may decide to get creative and instead of using the rent money for expenses, stash it (and maybe even match it) into a savings account for your child. They will be happily surprised with a small nest egg to leave home with!

Other Considerations

Other considerations that I make sure clients consider is their own budget and retirement goals. If your adult child is going to come back home and live there, you’ll want to make sure that adding another adult to the household does not negatively affect your own goals. Because you’d anticipate that household expenses will go up, you must make sure you budget for them, based on your expectations and timeline with your adult child. Again, by having an open conversation with your adult child, I am confident that a reasonable game plan can be implemented with success.

Having this conversation is not always an easy one, but I hope that the considerations above help provide better ways to think about it. If you’d like to discuss your situation further, call my office at (949) 221-8105 x 2128, or email me at michael.loo@lpl.com.

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