LATUSPERSPECTIVES WINTER 2018 NEWSLETTER
SAFEGUARD YOUR CREDIT Protect Yourself from Fraud and Safeguard Your Financial Life
START 2018 WITH THESE FINANCIAL NEW YEAR’S RESOLUTIONS Only 41% of Americans make resolutions. Avoid being this statistic, and turn 2018 into the year you strengthen your financial standing.
4 TIPS FOR STICKING TO YOUR GOALS Having goals is one thing. Meeting them is an entirely different story. Find the tips you need to make your goals stick in 2018.
WINTER VACATION DESTINATIONS ACROSS THE UNITED STATES Whether you like warm or cold climates, an array of exciting vacation spots abound this winter. Check out which made our list!
WELCOME DEAR CLIENT, Another new year is officially upon us, and as often accompanies a new year, we find ourselves both reflecting on the past year’s events yet eager and obliged to take on promises of improvement and the challenges of change. 2017 will be a year that we will not soon forget, and as a financial advisor, it is tough to say goodbye to a year that saw improved economic growth which lead to stellar investment performance for our clients. But as I write this letter from my desk looking out at the beautiful Las Vegas Skyline, I am fixated on the bright lights of Steve Wynn’s “ENCORE” Hotel, and I believe 2018 is quickly shaping up to be the ENCORE performance to 2017. 2018 started with Congress passing “The Tax Cuts and Jobs Act” which overhauls America’s tax code and should lay the foundation for our nation’s continued economic expansion. Our team at the Latus Group has been intently watching this historic legislation unfold and monitoring the effects on the investment marketplace, and tax changes for our clients. I couldn’t be more excited for our corporate retirement plan clients as this legislation is a huge boost for small and large employers across America who can now operate more competitively. As a result, we have included the 2018 updated tax table for your reference in this winter edition of Latus Perspectives. Furthermore, in our winter newsletter, we offer various articles to help you start 2018 on the right foot. We share insights into important steps you can take to safeguard your credit, as well as financial New Year’s resolutions worth making. You will also find tips for making your New Year’s resolutions and goals stick. A sound financial life begins with taking action, and we believe you’ll find helpful strategies to support your efforts. Lastly, should you be ready to take a winter vacation, we’ve selected some top picks across the U.S. for both warm and cold destinations. As always, we at The Latus Group appreciate the honor of helping you make the most of your financial life. We wish you and your family a wonderful winter filled with the joy of the season.
WARM REGARDS,
David J. Segarra, AIF®, CPFA President, Retirement Planning Solutions
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For the complete ‘Key Financial Data 2018’ chart, please contact the Latus Group
2018
Key Financial Data
Identity theft in the United States is on the rise, with record amounts of people being affected. In 2016 alone, 154 million people were victims of identity fraud–a year-over increase of 16%—with $16 billion stolen.1 As our financial lives increasingly go online, protecting our credit is more important than ever. The 2017 Equifax credit breach, which affected at least 143 million people in the United States, exposed serious vulnerabilities in identity protection.2 And while no single fix exists to control identity theft, a variety of actions can help protect you. Follow this guide for key ways to safeguard your credit and prevent identity theft.
Freeze Your Credit Accounts If you believe that you have been a victim of identity theft—or are susceptible to being a victim—a first step to consider is freezing your credit accounts.
To freeze your credit, you will need to contact each credit-reporting company individually. Married couples should keep in mind that both spouses have individual credit records to protect.
Your credit report provides detailed information about you. If someone hacks into your credit, you can have everything from your Social Security number to your account details stolen. By freezing your credit accounts, you will:
You can take additional steps to safeguard your credit: • Check your credit report and look for behavior you do not recognize. • Monitor your credit cards and bank accounts to catch odd charges. • Place a fraud alert on all sensitive accounts to warn creditors.4
• Halt banks and credit companies from pulling your report.
• Prevent others from gaining access to your sensitive information.3
Contact Credit Bureaus Freeze your account with online service or call the following numbers: Equifax 800-846-5279 Experian 888-397-3742, automated 714-830-7000, live TransUnion 800-916-8800 source: https://www.nextadvisor.com/blog/2012/11/20/whatare-the-phone-numbers-of-equifax-experian-and-transunion/
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Protect Your Online Accounts
Online fraud is on the rise • 40% increase in Card-Not-Present (CNP) fraud fueled by increased online and mobile shopping • 50% increase in costs related to CNP fraud compared to Point-of-Sale fraud
Today, nearly everyone is online in one way or another—from banking to shopping and more. As we spend more of our lives digitally connected, we end up creating a bunch of different online accounts. In fact, the average person in the United States has as many as 150 online accounts that need passwords. And by 2020, the average person is projected to have an average 300 accounts.5 With vulnerabilities abounding online, protecting your accounts from hacking and identity theft is no longer something to avoid.
1. Passwords
2. Transactions
• 30% higher chance of fraud for e-commerce shoppers
To responsibly manage your passwords, follow these tips:
*Card-not-Present means the shopper used no physical credit card in the transaction.
• Aim to use 10–12 characters. • Combine numbers, symbols, and capital
• Update your operating software to remove
Source: https://www.javelinstrategy.com/press-release/identityfraud-hits-record-high-154-million-us-victims-2016-16-percentaccording-new
letters within the middle of your password, not the end. • Create new passwords for different accounts. • Avoid using easily guessed words, such as dates, family names, or pet names.
Secure Your Social Security Number A Social Security number (SSN) is an individual’s unique government-issued ID. And since SSN’s creation in 1936, the number has become the go-to personal identifier used by many companies and organizations.7 As a result, it is also now a key target for people trying to steal someone’s identity. Once someone has your SSN, the ability to do real harm to your financial life compounds. Here are ways you can secure your Social Security number and safeguard your credit: • Do not carry your Social Security card in your wallet. Memorize the number, and put the original card in a safe place. • Report concerns about a compromised Social Security number by calling the Social Security Administration fraud line at 877-IDTHEFT (877-438-4338). For deaf and hard-of-hearing-callers, call 866-653-4261. • Never give your Social Security number by phone or online, unless you initiate the call and know the number is legitimate and the site is valid.
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In 2016 alone, 154 million people were victims of identity fraud—a year-over increase of 16%—with $16 billion stolen.1
Protect online financial transactions by doing the following:
security vulnerabilities. • Shop on encrypted websites that protect your information through “https” URLs. • Never use public internet access, which is easy to hack, to make financial transactions. • Avoid unsolicited offers that prompt you to act fast for a deal.6
Manage Your Credit Card Paying with credit cards is a common method for making daily purchases, since these transactions typically are more secure than debit cards. Credit cards can offer more overall legal protection, as well as liability for stolen or lost cards, among other perks.8 While the United States is implementing chip credit cards to combat identity theft, the crime is not going away anytime soon. In fact year-over, stolen credit card information is the top crime committed against households. And for those who are affluent and between 34 and 54 years old, their chances of identity theft increase.9 From how you store your card to how frequently you check your account, managing your credit requires action. Here are some ways to secure your credit card information:
1. Account Details • Write only the last four digits of your
account number in the check memo line when paying your bills. • Never write your account number on the outside of a payment envelope. • Shred all sensitive documents that you no longer need to save.
2. Oversight and Monitoring • Review your accounts regularly to identify irregular activity.
• Monitor your credit by requesting a credit
report every 4 months, rotating between a different agency each time. • Keep a list of your credit card numbers and their toll-free customer service numbers in a safe place at home.
Ultimately, safeguarding your credit requires you to take extra precautions across a variety of financial matters. While no single step can totally shelter you, protecting yourself on- and offline will put you on a better path to financial security.
1 https://www.javelinstrategy.com/press-release/identity-fraud-hits-record-high-154-million-usvictims-2016-16-percent-according-new 2 http://money.cnn.com/2017/09/08/technology/equifax-hack-qa/index.html 3 https://www.thebalance.com/how-to-freeze-your-credit-report-at-each-credit-bureau-960796 4 https://www.consumer.ftc.gov/blog/2017/09/equifax-data-breach-what-do 5 https://blog.dashlane.com/world-password-day-2017/
Victim of credit card fraud? Report the crime by going online to IdentityTheft.gov. This process can eliminate the need to file a police report.
You will receive the following:
1. Your personalized recovery plan 2. Prefilled letters from the government to send to merchants, banks, and other affected entities 3. Your Identity Theft Report, an official government statement about the crime Source: https://www.consumer.ftc.gov/blog/2017/04/most-idtheft-victims-dont-need-police-report
https://www.consumer.ftc.gov/articles/0009-computer-security https://www.fdic.gov/consumers/assistance/protection/idtheft.html 7 https://www.bloomberg.com/news/articles/2017-06-01/identity-theft-feeds-on-social-securitynumbers-run-amok 8 http://www.investopedia.com/articles/personal-finance/050214/credit-vs-debit-cards-which-better.asp 9 http://news.gallup.com/poll/196802/americans-credit-card-information-getting-hacked.aspx 6
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With These Financial N
l New Year’s Resolutions
E
ach new year is a chance to reflect on the past 12 months and plan for the future. In fact, 41% of Americans usually make New Year’s resolutions.1 And while 80% of resolutions fail by February, making them can put you on a better path to creating the future you desire.2 People who explicitly make New Year’s resolutions are 10 times more likely to meet their goals.3
If you are looking to make changes for 2018, start with your financial life. Our finances can impact nearly every area of our lives—and can mean the difference between living with comfort or calamity. To help you get started, here are some financial New Year’s resolutions to consider:
You can typically meet these goals within a few months.
Top 10-Year Financial Goals • Pay down debt (58%) • Save more money (53%) • Avoid further debt (42%) • Save for vacation (31%)
• Open a retirement account, • Buy a home (23%) or ramp up contributions to • Start a business (10%) an existing one (28%) • Save to have children (8%) • Buy or lease a car (27%) • Save for a wedding (8%)
Source: https://www.fool.com/investing/2017/10/20/americans-top-10-financial-goals-and-why-some-of-t.aspx
1. Identify Your Financial Goals When people set goals, they often have a better outlook on their futures. In a recent study, at least 50% of people who set goals felt their situations would greatly improve in 4 years— versus 12% of people without goals.4 That said, according to one study, only 45% of people generally know what they want to achieve
Examples include the following: • Paying down student loans • Saving for a wedding • Buying insurance • Taking a vacation 7 Long-Term Goals
in their financial lives.5 This statistic is a bit alarming, considering consumer debt is on the rise and the majority of people have not saved enough for retirement.6
These are the financial items that affect the bigger scope of your life. These goals may take years or even decades to achieve.
You can create a clearer perspective on your future by taking steps to identify your short- and long-term goals.
Examples include the following: • Paying back your mortgage
Short-Term Goals
• Creating retirement income
These are financial items that you want to address in the near future but bring immediate expenses.
• Saving for a child or grandchild’s education • Launching a business 8
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Here are some tips for making a budget that works:
2. Use a Budget A budget is one of the most effective ways to manage finances, yet only 41% of people use one.9 By having a budget, however, you can gain financial clarity. Think of it like a financial blueprint: You identify the foundation of all your expenses and income and from there create the framework for your true spending abilities. Without a clear understanding of the money that revolves in and out of your life, you may end up spending more money than you actually have. From there, a domino effect can occur, affecting your ability to meet financial needs, like paying bills and saving for retirement. And once you have gaps in your cash flow, taking on debt can become an easy—yet risky—solution.
6 Reasons to Have a Budget 1. Focus on long-term goals
4. Prepare for emergencies
2. Support realistic spending
5. Fix bad spending habits
3. Fund retirement
6. Minimize worry
Source: http://www.investopedia.com/financial-edge/1109/6-reasons-why-you-need-a-budget.aspx
You can take control of your finances and avoid reactionary decisions by creating and using a budget.
• Use a tracking system that helps you easily see money that goes in and out. Spreadsheets, budgeting apps, or accounting software are especially helpful tools. • Track every single daily expense to accurately manage your available money. A helpful method is to make all your purchases with the same manner (such as a credit card). This process simplifies record keeping. • Budget each month, rather than with your bimonthly paycheck. By focusing on 30-days at a time, rather than 14 days, you can take a longerterm view of your financial standing without going too far into the future. • Identify fixed and variable costs so you better know how expenses ebb and flow. Fixed costs are things like your mortgage or health insurance; variable costs are items like utility bills.10
3. Protect Your Credit The 2017 Equifax breach reminded us that we must properly manage our credit and Americans need to know how to better protect themselves. One study revealed that 34% of people have never checked their credit reports, despite the fact that around 70% own a credit card.11 And while preventing identity theft is a prime reason to better protect your credit, it is just one spoke in the wheel. From paying bills responsibly to regularly checking your credit report, here are steps to make sure you keep your credit profile safe and in tip-top shape. • Pay bills—such as utility, credit card, mortgage, and others—when they’re due” for readability. When you fall behind, your credit score reveals reported delinquencies and will decrease your rating. • Maintain low balances on credit cards to keep your score high. The higher your balance, the worse your credit score will be. Aim to keep charges below 30% of your credit limit, even when you can pay off the full amount each month. • Control your debt, which can account for up to 30% of your credit score. Any loan or lines-ofcredit balances that you carry will hit your score
hard, so create a strategy for paying down your debt. And do not take on new debt unless you absolutely must. • Check your credit score to identify both the quality of your credit and any suspicious activity. By watching your credit, you can proactively do damage control, should you find errors or odd behavior in your report. Plus, by knowing your score, you can identify whether you need to strengthen your credit profile.12 No matter the resolutions you choose to make, remember that you are in control of your financial decisions and goals to reach them. Setting resolutions can help you clearly identify the financial changes you want to make and create a strategy. By choosing to improve your financial life in 2018, you can be on a path toward the experiences and dreams you envision. Sources: 1
http://www.statisticbrain.com/new-years-resolution-statistics/
http://www.businessinsider.com/new-years-resolutionscourses-2016-12
2
http://www.statisticbrain.com/new-years-resolution-statistics/
3
https://www.debt.com/2017/americans-struggle-financialgoals/
4
5
http://www.businessinsider.com/sc/financial-goals-guide-2017-6
http://www.npr.org/2017/09/12/550250789/americansborrowing-hits-another-record-time-to-worry
6
https://www.cnbc.com/2017/10/23/americans-are-saving-poorlyfor-retirement.html https://www.nerdwallet.com/blog/finance/short-vs-long-termgoals/
7
https://www.nerdwallet.com/blog/finance/short-vs-long-termgoals/
8
http://money.cnn.com/2016/10/24/pf/financial-mistake-budget/ index.html
9
10
http://www.investopedia.com/university/budgeting/basics2.asp
https://www.fool.com/credit-cards/2017/10/13/if-you-think-theequifax-data-breach-is-scary-chec.aspx 11
12 https://www.thebalance.com/maintain-good-creditscore-960513
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S P I 4FORTSTICKING TO
S L A O G R U O Y
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G GOALS N I T A IV T SET MO sure goals, make rm e -t g n lo t, 93% of g short- and When settin at motivate you. In fac turn es th are unable to rent ls a o you pick on g t n a v dif fe set irrele rain has two people who 1 Further, the b In . n al. ternal ctio them into a tion: internal and extern ally tiva els person types of mo omething fe el from losing s n e h w is e you fe motivation e confidenc en we do something th e k li , g in wh reward otivation is m l lace in a a rn te x E ch as first p you set u s weight. g in th e m void so e goals to earn or a 2 So make sure that th f motivation t. s pe o baking conte ou, and know which ty y te truly motiva u to act. o y e will driv
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FOCUS ON APP VERSUS AVOIDAROACH NCE
The brain ha s lef t side o specific areas fo r go f the brain is where w al setting. The “approach ”g ec outcomes oals. These focus reate and process , such as on creatin ha v gd from regu lar exercis ing more energy d esirable uring the e. The rig where we day ht sid as avoid a pa sociate “avoidance e of the brain is ”g r tic and veget ular outcome, suc oals. These help u s ables to a h as eatin void diabe g goals are tes. And t more fruits the ones he a t ha to our pro gress. Wh t can be the most voidance detriment y? Studie correlate al s sho wit low self-e h negative traits li w that these goals ke s te ones that em. When setting procrastination an d focus on y approach our goals, opt for and succe 3 t o boo s t y s s. our positiv it y
WRITE OUT WHAT YOU WANT TO ACHIEVE Only 4% of people take time to write out their goals.4 Yet not focusing on our goals can quickly derail any progress, causing us to lose 30% of our capacity and performance potential.5 A helpful way to stick to short- and long-term goals is to write them out. By doing so, you can see the things you want to achieve and revisit tangible items as the days go by. In fact, one study found that people who write out goals had a 76% higher success rate than those who just think about them.6 You can improve your odds by making an effort to put pen to paper and outline the goals you care about.
EMBRACE HABITS THAT LEAD TO YOUR GOALS Meeting your goals is one thing—creating new habits that boost your abilit y to meet your goals is another trait entirely. Our brains store habits and goals differently. The orbitofrontal cortex is directly responsible for the abilit y to turn hopeful goals into bona fide habits. To trigger your brain’s abilit y to create habits and meet your goals, you must be consistent. Whatever objective you are trying to meet, identify the habits that will support action—and do these actions at the same time and in the same way each day. For example, to publish a novel by year’s end (goal), you must write for an hour each morning (habit). With regularity, 7 your habits will soon stick.
A variety of factors can hurt or help your ability to reach your goals. But by starting with these 4 tips, you will identify what you aspire to reach and develop an ability to follow through and act.
1
https://www.entrepreneur.com/article/291912#
2
https://www.entrepreneur.com/article/286021
https://www.psychologytoday.com/blog/the-dolphin-4 way/201612/howset-achieve-and-sustain-goals
3
https://www.forbes.com/sites/marciaturner/2016/12/31/want-to-achieveyour-goals-this-year-start-by-doing-this/#214ecafa4d29
4
https://www.incimages.com/uploaded_files/inlineimage/ AchieveYourGoals_32950.pdf
5
http://www.ibtimes.co.uk/always-give-your-new-year-resolutions-hereshow-make-them-foolproof-1598729
6
https://www.psychologytoday.com/blog/the-truisms-wellness/201610/ the-science-accomplishing-your-goals
7
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As the fall season fades and winter descends, people from around the United States are preparing to take seasonal vacations. Depending on which region of the country you live in, you may be craving time away in a warm- or cold-weather destination. Whether you want a holiday getaway, a skiing retreat, or another familyfriendly trip, adventure abounds.
To help you plan your next winter vacation, here are some destinations to keep in mind: For those who like to take in the beautiful scenes of a snowy winter, consider a vacation traveling on the Alaska Railroad. A top winter destination in National Geographic, a trip on the Aurora Winter Train will take you through a variety of backdrops that reflect the magic of the season. The train operates from mid-September to mid-May and winds you through the scenic back country of one of America’s most remote states. What to Do | You can stop in different locations and see everything from the aurora lights to an ice museum. The Aurora Winter Train also has travel packages available. Trips to consider include the following: • See the aurora borealis (and hear its crackling noise!) overnight in Fairbanks. NTER A WI R O R U UR–A AILROAD IC TO R SCEN , AL ASK A N TR A I
• Go ice climbing or dogsledding in Anchorage. • Visit the remotely located Winterlake Lodge on the Iditarod National Historic Trail.1
WARM
&
WINTER VACATION DESTIN A Soaking up the sun and waves is a perfect way to beat the cold-season blues. Honolulu offers a laid-back, sun-filled experience that both parents and kids will enjoy while embracing the season’s festivities. In fact, the Honolulu holiday spirit puts it on the top of lists as one of the best holiday destinations. What to Do | Fun awaits for all family members in Honolulu. Things to do include: • Bask in the glittering city center with its month-long lights display, Honolulu City Lights.
ISLAND GET AWAY–HOLI DAY IN HONOLULU , HAWAII
WARM-WEATHER TRIPS 14 | 20 1 8 W I N T E R N E W S L E T T E R
• Visit the Bishop Museum, often considered the world’s best Polynesian anthropological museum.2
&
COLD-WEATHER TRIPS If your family’s the type that waits all summer for skiing season to arrive, then consider putting Keystone on the top of your winter vacation list. With an impressive 2,718-foot vertical, Keystone is a popular vail resort property nestled in the great skiing mountains of Colorado. As one of the top family-friendly ski resorts in the United States, Keystone built its excitement around ongoing family fun through “Kidtopia.” And if you book through the resort directly, kids even ski for free. SKI RE S KEYS ORT– TONE , COLO R AD O
What to Do | In addition to skiing, families can find a variety of ways to keep everyone happy. Here are a few ideas to consider: • Take a Mountaintop Family Adventure Tour with views of the Continental Divide. • Eat out at a unique dinner sled ride, and listen to live cowboy and folk tunes. • Refresh in their spa and with yoga and exercise classes.3
COLD
N ATIONS ACROSS THE U.S.
From nature hikes to animal watching and beyond, the Everglades has plenty to keep you busy. Listed as a top winter destination by Fodor’s Travel, the Everglades is America’s largest subtropical wilderness, with 1.5 million acres to explore. Outdoor adventures abound, and the cooler season has less humidity and insects, as well as lower water levels that lure woodland animals out of hiding. Plus, the Everglades is a prime spot for migrating birds each winter, and even panthers and alligators call this park home. If you want to take in the beauty of nature in a warm climate, this could be the trip for you. What to Do | You can camp in the park to be immersed in wilderness or stay at nearby lodging. Things to do include the following: PERIENCE– NATURE EX ES D LA G EVER A RK, FLORID NATIONAL PA
• Climb the 65-foot observation tower in Shark Valley for an impressive view of the glades. • Go paddling to explore the mangroves in Nine-Mile Pond. • Take a boat tour, and see manatees, dolphins, and crocodiles.4 Whatever adventure your family craves, now is a great time to pull away for the season and reinvigorate with new experiences. From cold to warm weather, you can find the perfect trip awaiting.
Sources: 1 https://www.nationalgeographic.com/travel/best-trips/best-winter-trips-united-states/ https://www.alaskarailroad.com/ride-a-train/route-map/aurora-winter
3 https://www.usatoday.com/story/travel/destinations/2017/01/09/family-ski-resorts/96319060/ http://www.keystoneresort.com/activities/winter-activities.aspx
2 http://www.cnn.com/travel/article/christmas-destinations-2015/index.html https://www.honolulucitylights.org/blogs/opening-night https://www.lonelyplanet.com/usa/honolulu/attractions/bishop-museum/a/poi-sig/376767/361979
4 https://www.fodors.com/trip-ideas/national-parks/news/photos/10-best-national-parks-to-visit-this-winter https://www.nps.gov/ever/index.htm https://www.nps.gov/ever/planyourvisit/index.htm
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Securities and advisory services offered through Centaurus Financial, Inc., member FINRA and SIPC and registered investment advisor. Centaurus Financial, Inc. and Latus Group are not affiliated. Centaurus Financial, Inc. does not provide tax or legal advice. These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative, Broker Dealer, or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker Dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.