Password potato chips

Jim O’Hara, CISM, CISSP, CEH, Information Security Officer

Passwords are like potato chips.  You can’t (and shouldn’t) have just one.

A new trend is developing in phishing and email extortion tactics. Attackers are including the potential victims’ passwords in the messages sent. Why would they do this?

If you’re the target of this attack, you’ll typically receive a message from someone claiming they’ve compromised your computer and have obtained a list of your website usernames and passwords.  The message will contain a set of credentials to a site you’ve used, which were valid at some point. You’ll also be threatened with some sort of undesirable consequence unless an online payment is made. By including valid credentials in the extortion message, the attacker is hoping to instill fear and doubt in your mind, prompting you to take immediate action.

But how did the attacker obtain your credentials?

When a website is compromised, the attacker typically mines the site for useful information, including the login credentials of the site’s users. The attacker knows that people tend to be lazy when it comes to passwords, and there’s a good chance one site’s credentials will work for other sites the user visits. These collections of stolen usernames and passwords are constantly being bought and sold online, and eventually, make their way into the hands of an extortionist. It’s likely the credentials in the email you receive will have been stolen quite some time ago, and in many cases are no longer valid. If you use the same password for more than one website, it will be impossible for you to determine which of the sites you visit was compromised.

This is why it’s so important to maintain unique passwords for each account you have. Yes, it takes a bit more effort to maintain separate passwords, but the additional protection is well worth the effort.

Tips to protect yourself: 

  • Never use the same password for more than one website. To keep track of multiple passwords, consider storing them in a password-protected spreadsheet.
  • Change your passwords from time to time. Especially for email accounts, or other accounts which don’t employ multi-factor authentication.
  • Never use public computers to access sensitive accounts. Even if you direct the browser to not save your credentials, the machine could be compromised in other ways designed to capture your credentials regardless.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor

A crash course in financial maturity: 4 lessons for children going off to college

beaman 150 x 150Noreen D. BeamanChief Executive Officer

As a certified public accountant, I enjoy being organized and find it helps maximize my productivity during the day. Not only does organization benefit my professional life, but it also helps in my personal life, particularly when it comes to discussing financial readiness with my children. As I think back on the financial maturity fundamentals I imparted on my two daughters – one who completed law school and the other who’s completing her graduate degree – I find myself in a familiar position as I focus on my son who is a junior in high school and will be leaving for college in two short years. Below are some of the items on my financial maturity list that may help cover the basics as others face a similar situation.

1. Use resources wisely 

As simple as it sounds, insist that your child knows and makes good use of the resources at his or her disposal. For example, if you’ve bought a dining plan there should be limited spending on food outside the dining plan. Your child should regard credit at the campus store or library/print center as limited resources that only get replenished when wisely used.

2. Be choosy with checking 

Encourage your child to do some research and find the best banking option. According to NerdWallet, a student-focused checking account can save students an average of $110 or more in fees each year, when compared to the most basic account available to the general public. Your child should pay attention to the conditions that allow for the waiver of such fees. For example, some college checking accounts will waive the monthly fee as long as the student maintains a minimum balance, receives regular deposits, or links to a parent’s checking account. Have your child take notice of the banks which are most prominent on campus and those that have easy-to-access branch locations. If your child chooses a bank that does not have a local presence, make sure he or she is aware of how quickly service charges for out of network ATMs can eat into their account. 

3. Credit scores matter 

Your child needs to know the importance of building good credit, as future landlords, employers, and banks will use that score to determine eligibility for housing, jobs, and loans. Building good credit is a process that often starts in college.

Students with little or no credit history can often obtain credit if they are able to provide proof of capacity to repay debt, or if they have a co-signer, who can bear the financial responsibility for the debt.

If your child is going to get a credit card, make sure he or she knows to pay the full balance each month, and on time. They should also be advised only to make a purchase on credit if they know how to pay for it when the bill comes due. You should have a conversation about the importance of building a positive credit history to pave the way for future financial transactions. Additionally, they should understand that your credit score, as a co-signer, is at risk if they abuse the card privileges. 

4. Know where it’s going

Set the expectation with your child that when you ask where all the money is going, they have an answer. Encourage your child to download a free app, like Mint, to easily track and monitor spending and stay on top of account balances. Explain that tools such as Mint help increase awareness and lead to better financial decision-making.

There are only 940 Saturday’s between a child’s birth and leaving for college so enjoy the last few days, months, or years before they start the next chapter of their lives.

We at Brinker Capital believe goals are personal, so solutions should be too. Learn more about Brinker Capital and our investment solutions at BrinkerCapital.com.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a registered investment advisor.

Investment Insights Podcast: August 2018 market and economic outlook

Leigh Lowman, CFA, Investment Manager

On this week’s podcast (recorded August 10, 2018), Leigh provides a brief review of July markets.

 

Quick hits:

  • The third quarter was off to a good start with risk assets positive for July.
  • Global trade tensions continued to escalate throughout the month, but geopolitical uncertainty was offset by positive economic growth.
  • The S&P 500 Index was up 3.7% for the month with sector performance positive across the board.
  • Developed international equities, as measured by the MSCI EAFE Index, was up 2.5% for the month and flat year-to-date.
  • The Bloomberg Barclays US Aggregate Index was flat for the month and down -1.6% year-to-date.
  • Overall, we remain positive on risk assets over the intermediate-term.

Listen_Icon  Listen to the abbreviated audio recording.

Read_Icon  Read the full July Market and Economic Outlook.

 

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The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a registered investment advisor.

 

Vlog – Is value poised to gain on growth?

Tim Holland, Brinker Capital’s Global Investment Strategist, discusses how value stocks have badly lagged growth stocks, but there are signs that dynamic could be shifting.

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The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a registered investment advisor.

You will never regret your vacation

Crosby_2015-150x150Dr. Daniel Crosby Executive Director, The Center for Outcomes & Founder, Nocturne Capital

Bronnie Ware is an Australian nurse who has spent her career in a palliative care unit, caring for those with very little time to live. As someone who interacts with the dying, she has had the privilege of speaking with these people about the things that make their life worth living, as well as what they wish they’d done differently. Ware summarized the top five regrets of those about to pass on in her excellent blog, “Inspiration and Chai.” The “Top Five Regrets of the Dying” are:

  1.  I wish I’d had the courage to live a life true to myself, not the life others expected of me.
  2.  I wish I hadn’t worked so hard.
  3.  I wish I’d had the courage to express my feelings.
  4.  I wish I had stayed in touch with my friends.
  5.  I wish I had let myself be happier.

Notice, not one mention of money and the only mention of work is to say they (especially male patients) wished they had done less of it. If you are like me (and perhaps like most people), you are chasing the wrong dream and setting the wrong goals. As you sit and evaluate your life as it draws to a close, I promise you that you will never regret the year your portfolio underperformed the benchmark, but you may well regret lost time spent living a life that confused money with what matters much more.

The Path Forward
In a money-obsessed world that has socialized us to chase the almighty dollar, it can be weirdly unsettling to learn that money isn’t everything. As much as we whine about money, having something that is the physical embodiment of happiness is nice. We can hold it, save it, get more of it, all while mistakenly thinking that getting paid is how we “arrive.” Realizing that money does not directly equate to meaning can leave us with a sense of groundlessness but once we’ve stripped away that faulty foundation, we can replace it with things that lead to less evanescent feelings of happiness. Breaking your overreliance on money as a substitute for real joy is a great first step, here are two ways to move forward upon having made this important realization:

Spend money in ways that matter – Let’s be balanced in the way we talk and think about money. It’s not the key to happiness, but it’s not nothing either. A lot of our troubles with money stem from the way we spend it. We think that buying “things” will make us happy. We engage in retail therapy which is quickly followed by feelings of regret at being overextended. Before we know it, we’re surrounded by the relics of our discontent; the things we bought to be happy become constant reminders that we’re not.

Instead of amassing a museum of junk, spend your money on things of real value. Spend a little more on quality, healthy food and take the time to savor your new purchases. Use your money to invest in a dream – pay yourself to take a little time off and write that novel about which you’ve always dreamt. Give charitably and experience the joy of watching those less fortunate benefit from your wealth. Finally, spend money on having special experiences with your loved ones. It’s true that money doesn’t buy happiness, but it can do a great deal to facilitate it if you approach it correctly.

Find a new metric – Part of the appeal of money as a barometer for happiness is that it’s so…well…quantifiable. Meaning, joy, happiness, and fulfillment are all abstractions that can be hard to get our hands around. Thus, we aim for something we can count (but end up sadly disappointed). So, take things that really will make you happy and try to come up with metrics for those things instead. Maybe you enjoy painting and you could set a goal to complete three new pieces by the end of the summer. Perhaps you want to be more service oriented and you could set a goal to engage in a charitable act each week. The impulse to measure happiness is a natural and good one, let’s just make sure we’re using a yardstick that delivers on its promises.

The Center for Outcomes, powered by Brinker Capital, has prepared a system to help advisors employ the value of behavioral alpha across all aspects of their work – from business development to client service and retention. To learn more about The Center for Outcomes and Brinker Capital, call us at 800.333.4573.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.

 

Investment Insights Podcast: The US economy accelerates in Q2. Will the momentum continue?

Tim Holland, CFA, Senior Vice President, Global Investment Strategist

On this week’s podcast (recorded July 30, 2018),
Tim discusses why the underlying components of the GDP growth report were most encouraging and speaks to why the US economy should continue to perform well into 2019.

Quick hits:

  • During Q2 the US savings rate was a very healthy 6.8%, this should keep the US consumer on firm financial footing, a key development when one considers the US economy is 70% consumer driven.
  • Both housing and inventories detracted from economic growth during Q2.
  • Nonresidential fixed investment – which is another way of saying spending by corporate America – increased a very healthy 7.3% during Q2, after rising an even stronger 11.5% in Q1.

For Tim’s full insights, click here to listen to the audio recording.

investment podcast (31)The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a registered investment advisor.

Vlog – Quarter End Q&A: 2Q18

Brinker Capital’s Global Investment Strategist, Tim Holland, asks and answers those questions we think will be top of mind for clients as they open their quarterly statements and think back on the quarter that was:

  1. Why did US equities rebound in Q2?
  2. Why did Emerging Market equities struggle during Q2?
  3. When will fixed income find its footing?

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The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a registered investment advisor.

Investment Insights Podcast: July 2018 market and economic outlook

Leigh Lowman, CFA, Investment Manager

On this week’s podcast (recorded July 13, 2018), Leigh provides a brief review of the second quarter.

 

Quick hits:

  • Volatility continued into the second quarter with risk asset performance mixed.
  • The Fed implemented a 25-basis point rate hike in June and revised its forecast from three to four rate hikes for 2018.
  • Concern over a more hawkish Fed coupled with increasing trade tensions will likely cause volatility to persist, but we expect fiscal stimulus and strong fundamentals will lead to positive economic growth over the intermediate-term.

Listen_Icon  Listen to the abbreviated audio recording.

Read_Icon  Read the full July Market and Economic Outlook.

 

market outlook (9)

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a Registered Investment Advisor.

 

Considering the use of benchmarks

Williams 150x150Dan Williams, CFA, CFPInvestment Analyst

A common, yet hard to answer, question for clients is “how are my investments doing?” By definition, the answer lies with benchmarks as a frame of reference but the semantics of their proper use often proves to be a stumbling block. Do you use a single broad index such as the S&P 500? Do you look at a risk equivalent blend of multiple broad indexes? Do you just look at the absolute return number? Additionally, do you look over the quarter, the year, or the decade of performance? Often the best way to properly use benchmarks is drilling down the context and the intent of this seemingly simple question.

This is to say, if the question is to assess how an investment portfolio is performing in the context of the current market environment, a blended benchmark of the neutral weights of a portfolio over a short time period is best. This is to say if you are looking at a large cap growth stock fund, you could look at the Russell 1000 Growth Index over the past quarter or year. If you wanted to judge a moderate risk portfolio with a neutral weight of 60% equity and 40% fixed income, you would turn to a blended benchmark of the same risk level over a similar period of time. However, while this shows how the portfolio is relatively performing currently, this comparison will serve as a poor judge of the true skill of the portfolio managers. Market conditions in the short-term favor different styles of investing over others. These preferences wax and wane over time with skilled managers proving their worth through the long-term of multiple market environments rather through every market environment.

Considering the use of benchmarks

As such, if the question is instead to evaluate the skill of a portfolio manager, the answer requires a much more rigorous analysis. You would like to see skill over various market environments and not just the current market environment. Accordingly, one of the many statistics that we look at is the percent of rolling 36-month periods that a strategy has outperformed its market benchmark. It is unreasonable to expect a strategy to outperform all such 3-year periods but a skilled manager should hope to do so more often than not. Additionally, looking at 7-year or longer time horizons provide a clearer view of how a manager faired after the dust has settled over one or more market cycles. As always looking at past performance only provides evidence of past skill and not necessarily future skill. The complete manager due diligence process extends beyond the numbers and requires additional work with regards to the qualitative characteristics of the managers and their organization.

A final way for this question to be asked is what should be most meaningful to the client. Specifically, how are the investments doing with regards to accomplishing the clients’ financial goals? Here we leave the market-based indexes behind and instead look to the absolute return numbers to determine if purchasing power is growing at a pace consistent with the investments savings goals. The time horizon of the evaluation should be consistent with the time horizon of the goal. In practice, a conservative portfolio that strives to deliver 3-5% a year for a goal that is 3-4 years away, should be evaluated by whether after 3-4 years if this return mandate is met. Similarly, an aggressive portfolio that strives to deliver 7-9% for a goal that is more than 10 years in the future should be evaluated over a period of at least 10 years against this return mandate. These return mandates could be further tweaked to be a spread in excess of inflation or a risk-free rate as clients’ goals are best defined as a growth in purchasing power rather than just a raw performance number.

It is clear that there is no one right way to tell clients how their investments are doing. Hopefully though helping clients define their “how are my investments doing” question can improve the relevance of the benchmarks and time horizons used to give an answer.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a registered investment advisor.

Investment Insights Podcast: What’s submerging Emerging Markets?

Tim Holland, CFA, Senior Vice President, Global Investment Strategist

On this week’s podcast (recorded July 6, 2018),
Tim discusses why 2018 is proving to be a very different story for EM equities relative to US and developed international equities.

Quick hits:

  • The MSCI EM Index is off approximately 6.5% year-to-date compared to a gain of 2.7% for the S&P 500 and a more modest loss of 2.4% for the MSCI EAFE, through the end of the second quarter.
  • While the volatility that accompanies EM equities can be unnerving, the long-term wealth building power of the asset class has been extraordinary.

For Tim’s full insights, click here to listen to the audio recording.

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The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a Registered Investment Advisor.