Prevent Social Media from Leading Thieves to Your Doorstep

John_SolomonJohn Solomon, Executive Vice President, Wealth Advisory

As the class divide widens, modesty has become increasingly important to the wealthy. A recent study indicates nearly nine out of every ten wealthy individuals (89%) believe in the concept of stealth wealth–the idea of keeping their level of wealth under the social radar.[1]

While there are plenty of statistics to support the stealth wealth movement as an aspirational lifestyle, many wealthy Americans unwittingly leave digital breadcrumbs that could reveal their riches.

If you want to fly under the radar, you and your children need to be cognizant of how the use of social media could put the family’s reputation, and even its physical security, at risk. After all, your children don’t have to use the hashtag #RichKidsofInstagram to paint a picture of their lifestyle. Simply by posting pictures, checking in at trendy locations, or tweeting family adventures could draw unwanted attention.

Consider taking these steps to protect your family’s privacy on social media:

  • Talk to your entire family about the importance of exercising discretion on the web. It’s helpful to identify and create guidelines for the appropriate and inappropriate uses of social for everyone, regardless of age.
  • Establish an alert with Google to notify you whenever your name or your children’s names are mentioned on the Web.
  • Follow and monitor your children’s social media accounts as well as your extended family’s accounts. Many extended family members may post pictures of their favorite Aunt and Uncle’s summer home, and a seemingly harmless caption could lead na’er-do-well’s to your door.
  • Have different user names/passwords for each account.
  • Regularly change and be more creative with passwords. If you are like most people, you use a password you can remember … like your dog’s name. Savvy hackers, however, troll social media sites for pictures of your pets and captions that reveal their names – which often provide fruitful password clues.

Now, managing your online presence is potentially time consuming that you neither have the time nor inclination to pursue; however, there is help. Services and applications exist to help you keep private information off the web, while also offering online reputation management services. The fact that there are so many resources available in social media protection and management is a testament to how important you must take it.

[1] New Elite: Inside the Minds of the Truly Wealthy, Jim Taylor, Doug Harrison and Stephen Kraus, p. 57

The Brinker Capital Wealth Advisory team delivers service and support to meet the unique wealth management needs of high-net-worth and ultra-high-net-worth investors, family offices, institutions, and endowments. 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 – Prospects and Possibilities of Brexit

Stuart Quint, Investment Insights PodcastStuart P. Quint, CFA, Senior Investment Manager & International Strategist

On this week’s podcast (recorded March 1, 2016), Stuart takes to the mic to discuss what the impact could look like should Britain exit the European Union (EU).

Quick takes:

  • On June 23, the United Kingdom (UK) will hold a referendum on whether to remain or exit the EU.
  • The consensus leans towards the UK staying put, but polls in recent general elections were wrong.
  • The UK has more to lose from “Brexit” than the EU, but it could also highlight other cracks in Europe.

Markets have reacted by selling off UK markets, particularly the British pound, in light of the impending uncertainty and potential adverse impact of a “yes” for Brexit. So what potential impact could there be for the UK?

  • Direct trade – the EU accounts for roughly half of UK imports and exports; potentially three million jobs at stake¹.
  • Scottish independence – Scotland is more sympathetic to the EU and could seek another referendum for their independence from Britain; they currently make up roughly 40% of UK’s GDP.
  • Multinational headquarters – could start vacating out of London; banking sector could reduce operations in UK and uproot to Frankfort or Paris, as well as Asia.

What’s the potential impact to the EU?

  • Trade – while not as impactful, a UK departure is still negative especially with tepid economic growth in Europe
  • Political risks – France elections in 2017 could see more impetus to opposition party of Marine Le Pen, which is of an anti-Europe mindset; Catalonian desire to secede from Spain could be rekindled
  • Economics – Europe’s focus on broader economic and national security issues could become complicated

Please click here to listen to the full recording

[1] Webb, Dominic and Matthew Keep, In brief: UK-EU economic relations (Briefing Paper Number 06091, House of Commons Library), 19 January 2016, page 3 accessed on www.parliament.uk/commons-library on March 1, 2016.

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, a Registered Investment Advisor.

Retire Healthy, Retire Happy

Sue BerginSue Bergin, President, Bergin Communications

Most retirement planning focuses on the nest egg. It involves making sure you have enough saved to live your retirement years the way in which you have dreamed. The laser-like focus on the bottom line, however, could prevent you from paying attention to the single most important predictor of retirement satisfaction. Your health.

According to MassMutual’s Health, Wealth and Happiness in Retirement study, health is typically more important than wealth when it comes to determining the well-being of American’s retirees. Retirees in better health are more likely to feel financially secure, enjoy retirement, feel fulfilled, and are less likely to experience negative emotions.

The study shows that the loss of health is more costly to a retiree’s overall experience than the loss of wealth. Consider these stats:

  • 76% of those with $250,000 or more in assets report having a positive retirement experience, compared to 68% of those with less than half the assets.
  • 80% of those in better health report having a positive experience in retirement, compared to only 59% of those who are in poorer health, regardless of their balance sheet.
  • 73% of retirees in better health report feelings of financial security compared to 51% of retirees in poorer health.
  • Retirees in poorer health were twice as likely to feel anxious about their finances and lack a sense of purpose, and three times more likely to feel lonely.

The bottom line…focus on your health!

To make the most of your retirement, your planning and preparation should focus as much on your health as it does your wealth.

AARP provides these helpful tips to incorporate into your retirement readiness checklist.

  • Seek preventative medical care by scheduling checkups and routine examinations, from annual physicals to teeth cleanings.
  • Work with your health care providers on a plan to improve or maintain your health.
  • Commit (or recommit) to eating healthy, exercising and adequate sleep.
  • Commit to staying mentally sharp with brain games, puzzles and books.
  • Stay in close contact with family and friends. Typically, your friends and family will be the first to notice if your health starts to slip.

For more tips from AARP, see 10 Steps to Get You Ready for Retirement.

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.

Safeguarding the Family Enterprise: Security

WilsonTom Wilson, Managing Director, Private Client Group &
Senior Investment Manager

This is the first installment of a continuing series on the safeguarding of the family enterprise

During a recent trip in Chicago, I had the opportunity to listen to a speech by Arnette Heintze.  Arnette is a former Secret Service agent who has since created a security firm that caters to the needs of wealthy families.  His presentation included many examples of how his firm has been deployed to safeguard these families.  Some of the stories were very alarming.

Arnette’s intent was not to scare the audience, but rather to make the attendees aware that threats to wealthy families are real.  From harassment and name defamation, to extortion and blackmail, to the more personal security issues of stalking, threats, and kidnapping.  The wealthy family demographic has a variety of security challenges.

Many families contact security firms after a crisis has arisen.  This is unfortunate as preventative measures can have a meaningful reduction in the risks to families.

10.29.13_Wilson_SafguardingFamilyEnterprise_SecurityA holistic approach to wealth management can go beyond asset allocation and financial planning.  If you have not discussed the subject of security with your wealthy families, consider including this on the agenda in your next meeting.  After all, awareness is one of the best preventative measures.

Some is More Like 6.5 Million

LinkedIn, social media darling of financial advisors, recently confirmed a security breach. It was reported that 6.5 million encrypted passwords were compromised and that some were posted on a Russian hacker website.

LinkedIn has invalidated all compromised passwords and notified the impacted members.

While only approximately 10% of LinkedIn’s 161 million user base have suffered from this security breach, it does serve as a healthy reminder to the remaining 90%–create a unique password for every online account you maintain.

Out of sheer convenience, many advisors use the same password for access to social media sites, mobile applications, and even financial accounts. This practice leaves the user vulnerable if the password falls in the wrong hands.

There are many digital tools on the market to help generate strong passwords and organize them more efficiently than with the current method of a sticky note in your top drawer, or a card in your Rolodex.

According to LifeHacker, a wildly popular blog that recommends downloads, websites and digital shortcuts, the best password managers are:

KeePass
RoboForm
LastPass
SplashID
iPassword

To read LifeHacker’s full review of these password management systems, click here.