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Donna Cournoyer

Donna Cournoyer
In Economy

The “Shake It Off” Economy

Taylor Swift’s mega hit Shake It Off is a decade old this year. Over the course of ten years, the songwriter-musician-performer has gone from sensation to superstar. Her net worth, too, has gone from sensational to off the charts.

In addition to the financial benefits that have accrued to her personally, the demand created by The Eras Tour (149 concerts over 20 months spanning 5 continents) has had a meaningful economic impact. Swiftonomics refers to Taylor’s economic influence.

For example (according to Investopedia) ahead of her six concerts in Los Angeles, the California Center for Jobs & the Economy estimated the tour would result in a $320 million increase to the LA County GDP.

The Center also expected The Eras Tour would increase area employment by 3,300 and local earnings by $160 million.

Despite (or more likely because of) her success, there are haters. Imagine!

Like Taylor Swift, the US economy has been creating jobs and facilitating profits for companies since the last downturn in 2020.

The most recent jobs report, released by the Labor Department on October 4, showed US employers added more than a quarter million jobs in September, “blowing past expectations” according to the Wall Street Journal.

Nonetheless, the US economy still has its “haters”, too.

Bill Dudley, a well-respected economist and former head of the Federal Reserve Bank of New York, had been one of the haters, but has recently shaken off his negative outlook.

Dudley wrote an editorial published by Bloomberg on October 3, where he stated: “I’ve been too pessimistic about the risks of a so-called hard landing (recession) for the US economy” and “a recession remains very much in doubt.”

Dudley went on to highlight the following positives:

  • The economy retains considerable forward momentum: “Growth in the second quarter was revised up to a 3.0% annualized rate, and the Federal Reserve Bank of Atlanta’s GDPNow estimate for the third quarter is currently 2.5%”
  • The labor market is holding together quite well: “Although the unemployment rate has risen above 4% from a low of 3.4% in 2023, the increase has mainly been driven by rapid growth in the labor force rather than permanent job layoffs”
  • Financial conditions have improved: “Although monetary policy remains tight by almost anyone’s standard (interest rates are high), financial conditions have eased massively over the past year (stock prices have soared and bond yields have declined)”

Dudley concludes with the following: “What does this mean for financial asset prices? As I see it, a soft-landing scenario (lower growth but no recession) implies a buoyant stock market.”

I concur with Dudley: a strong US jobs market and declining interest rates are supporting economic expansion and higher stock prices.

Absent a nationwide catastrophe, or an about-face on key government policies, it’s reasonable to expect more of the same in the coming months: more economic growth, more US profit growth, and satisfactory returns from the financial markets.

For those concerned about the potential impact of the presidential election on the economy and financial markets, it may be helpful to consider the following chart that shows the direction of the stock market during US presidential administrations from Roosevelt to Biden, courtesy of Clearnomics.

Source: Clearnomics

The stock market, like the US economy, has experienced long-term growth under both major political parties, and has the propensity to “shake it off” when it comes to dealing with adverse conditions.

It is not the case that the market or economy turns down when a particular political party is in office This is because the underlying drivers of market performance – including economic cycles and company earnings – are far more important than who occupies the White House.

-RK

Donna Cournoyer
In Market Updates

September 2024 Market Recap: Quarterly Market Review

As we head into the last three months of 2024, the US Presidential election is a major source of uncertainty, and elevated geopolitical tensions are a cause for serious concern.

However, the rally in stock prices continued in the third quarter, and bonds showed a measure of resiliency, too.

A main mover of financial asset prices has been the anticipation of short-term interest rate reductions by the US Federal Reserve. In mid-September the Fed took action and lowered its target rate by 0.5% to a range of 4.75% to 5%.

The US economy, which has exhibited better-than-expected growth, has underpinned the stock rally. And bonds have done better because inflation has come to heel.

For the month of September, US large-company stocks rose by 2.1%; small-company stocks gained 1.9%, foreign stocks climbed by 0.8%, and bonds returned 1.3%.

The moves were more pronounced for the three-month period ending September 30: US large-company stocks rose by 5.8%; small-company stocks gained 9.1%, foreign stocks climbed by 6.8%, and bonds returned 5.3%.

Here’s a snapshot of stock and bond performance for the last six quarters:

US Stocks = S&P 500 Index; US Bonds = Bloomberg US Aggregate Bond Index

-RK

Donna Cournoyer
In Behavioral Finance, College Planning

The Path to Independence

Many clients wonder how their own finances will change as their children become independent young adults.

Where do parents draw the financial line with their children? What steps can parents take now, and in the future, to help keep themselves on track for personal and financial success as their children become independent young adults?

Our friends at fpPathfinder, a financial planning research organization, have put together a checklist (lick on the picture to enlarge and download) to ensure that you’re addressing critical planning concerns during your child’s transition into adulthood.

Topics on the ‘Path to Independence’ checklist include:

  • Do you have access to your child’s important records?
  • Is your child still able to be on your health insurance?
  • Are you planning to help your child with large upcoming expenses?
  • Do you need to review your taxes might change once your child becomes independent?
  • Are you concerned that your child is (or will be) fiscally irresponsible?
  • Are you concerned about your child’s actions or behaviors causing future liability issues for you?
  • Do you need to review your budget and expenses once your child leaves the house?

You can click on this link or on the image below to download the two-page checklist.

-RK

Donna Cournoyer
In College Planning

Seniors: A Financial Aid & Admissions Checklist + Tips for College Applicants

Our colleague and college specialist Donna Cournoyer contributed the following update for college planning

Senior year for a high school student and their family is usually quite busy. Settling into the new school year schedule and activities begins in earnest as Labor Day brings summer to a close.

Organization can keep a college-bound senior and their family on top of the to-do’s and deadlines, ensuring this last leg of college preparation and the application phase goes smoothly.

To help in this effort, I’ve provided need-to-know information in the following five sections:

  1. Key Considerations for High School Seniors
  2. FAFSA Application Form Availability & Deadlines
  3. FAFSA Formula & Net Price Calculator
  4. Merit Scholarships
  5. The Fall Checklist

Key Considerations for High School Seniors

Eligibility for financial need-based Federal financial aid from the US Government and need-based grants and aid from US colleges is based on the Federal FAFSA application (Free Application for Federal Student Aid) and its formula.

This includes free grant money from the government such as the Pell Grant, the colleges’ free grants, Federal Subsidized student loans and the Federal Work Study program.

The following link to studentaid.gov website runs through the Types of Federal Student Aid.

Eligibility for the student is determined by the financial aid office at the college or university to which the student is applying.

Even if you are likely not eligible for financial aid and need-based funds, I strongly recommend that everyone complete the FAFSA form.

Schools often award some free grant money to students for completing the FAFSA form regardless of eligibility and some schools require it for the student to be considered for a merit scholarship, even though those are not based on financial need.

FAFSA Application Form Availability & Deadlines

The traditional opening date of the FAFSA form is October 1 for the following academic year. (October 1, 2024, for the 2025-2026 year).

However, last fall due to major changes in the form for the first time in many years, there were many hiccups and delays from the Department of Education and the 2024-2025 application did not open until January 1, 2024. From there, issues continued for months.

In August, The Department of Education announced that the FAFSA is expected to open for testing with a limited set of students and institutions on October 1. The DoE also stated they will make the application available to all students on or before December 1.

Be sure to check the financial aid pages on the websites of your college list to keep up with the opening date of the FAFSA and each school’s required forms, and check online on the Federal Student Aid website- look for “2025-26 FAFSA form” here: FAFSA.

For schools on your list check to see if any also require the CSS Profile

FAFSA Formula & Net Price Calculator

The FAFSA formula uses some key figures to determine a student’s eligibility for financial aid, some key elements in that formula are:

  • Parents’ Adjusted Gross Income (AGI)
  • Parents’ Taxes paid
  • Parents’ investments OTHER than personal retirement accounts. (not including accounts such as your IRA, 401(k), etc.)
  • Number of family members

Another way to estimate financial aid ahead of access to the FAFSA and college financial aid letters is to use each college’s Net Price Calculator.

  • The simplest way to find a school’s Net Price Calculator is to search the name of the college followed by “npc”, such as: yourschoolnpc.
  • Keep in mind that they do not all include merit scholarship estimates, which will help your net cost if the student is awarded one with admission to the school.

Merit Scholarships

Merit Scholarships are school-awarded scholarships NOT based on the FAFSA form and financial need.

Merit Scholarships (also called Academic Scholarships) are based on the student’s overall admissions application which includes GPA, essays, possibly SAT or ACT scores and interviews, and any other requirements from the admissions office.

Schools usually have a range of amounts they may offer students, and Merit Scholarships are usually awarded for four years and may have a GPA requirement for continued eligibility. Each school will have different criteria and amounts available according to their own policies. Eligibility is determined by the admissions office.

Be sure to get your admissions applications and the Common App done early, to help put yourself in the best position to be awarded a merit scholarship. And make a list of the application deadlines for each school you are applying to.

The Fall Checklist

  • Deadlines: Make a list of deadlines for admissions and financial aid for your college list
  • FAFSA: Watch for the opening of the FAFSA and complete as soon as possible
  • Net Price Calculator: Estimate Your Net Cost for schools on your list (use NPCs for now, and merit and financial aid offers later)
  • Your Budget: Estimate how much you are able and willing to spend and / or borrow for your student’s education
  • Complete the Common App/Admissions Applications Early: Be sure to get applications done early. Early applicants are likely to receive decisions the earliest.
  • SAT/ACT: Decide if your student will submit scores and/or retake any tests.
  • Engage with your Admission Representatives: For your top schools reach out to your admissions counselors and let them get to know you so they can advocate for your admission and merit scholarship.
  • Make Another School Visit: If you are having trouble narrowing your list, or deciding which school is at the top, try to visit the school again. It is also good to tour when students are there.
  • Make a List of Pros and Cons for Each School: Look at programs, school size, student resources and activities, location, cost estimate and of your important decision factors for your college choice. This is helpful as you start applications, and the process gets closer to decision making time.

If you are interested in some guidance, we offer hourly college planning services, and a complimentary 30-minute consultation to discuss your personal situation. You can schedule an appointment here on our website: Schedule an Introductory Meeting.

Good luck and have a great year, seniors! 

Donna Cournoyer
In Economy

Presidential Polls & Tax Policy Points

We are now a little more than two months away from the next US Presidential election. Many of our clients are interested in following the contest, and the Presidential race currently looks like it will be close.

In their US Election 2024 section, The Economist magazine publishes a daily update on the Presidential polls. I like following this format because it’s assembled by a respected organization domiciled outside of the US.

Based on The Economist model, the latest projection, from August 30, shows Harris winning by 274 electoral votes to 264, with 270 electoral votes required to win.

Source: The Economist

From the perspective of the possible impact on personal finances, tax policy marks one of the bigger gaps between Democrats and Republicans.

Many provisions in the 2017 tax law, which reduced taxes, are scheduled to expire in 2026 if Congress takes no action.

Candidate Trump wants the 2017 law made permanent, while Candidate Harris has pledged no tax hikes on those making less than $400,000.

Below are other tax ideas that Harris supports (source is The Kiplinger Tax Letter):

Tax ideas for individuals, supported by Harris:

  • Bring back the top 39.6% income tax rate for people making $400,000 or more (currently the top tax bracket is 37%)
  • Hike the 3.8% net investment income surtax to 5% for $400,000 earners
  • For taxpayers filing Jointly with incomes over $1,000,000, long-term capital gains tax would be imposed at ordinary tax rates up to 39.6% (44.6% with the 5% Net Investment Income tax added in); for separate filers, the income breakpoint is $500,000
  • Tax unrealized gains upon death, with capital gains and losses reported on the decedent’s final income tax return, with a $5 million lifetime gain exclusion
  • Apply a 25% minimum income tax on the ultrarich (those with $100 million in wealth); this tax would apply to unrealized capital gains
  • Bring back expansions to the child credit: boost to $3,600 per child (from current $2,000), with monthly payments and full refundability
  • A new one-time credit of $6,000 per child claimed in the first year of the child’s life
  • Give first-time home buyers a credit of up to $10,000
  • Allow more people to get credits for buying health insurance through the Health Insurance Marketplace
  • Make tipped income tax free

Tax ideas for businesses, supported by Harris:

  • Raise the 21% corporate tax rate to 28%
  • Increase the 15% alternative minimum tax on large corporations to 21%
  • Quadruple the 1% excise tax on stock buybacks by publicly held firms

It’s likely that additional tax ideas will be floated by both campaigns in the weeks ahead.

It’s also important to recognize that, regardless of who becomes 47th US President, the composition of the House and Senate will be critical in determining which policy proposals actually become law.

-RK

Donna Cournoyer
In Economy

Interest Rate Showdown

In poker, the “showdown” is a situation where, if more than one player remains after the last betting round, remaining players expose and compare their hands to determine the winner.

The showdown for interest rates occurred on August 23 in Wyoming – absent horses, cowboy hats, pistols, and booze.

The Jackson Hole Economic Symposium is an annual three-day international conference hosted by the Federal Reserve Bank of Kansas City at Jackson Hole, Wyoming.

The keynote speaker is the Chair of the Federal Reserve Board of Governors (the leader of the Fed), whose comments typically focus on the US economy and monetary policy.

This year, Fed Chair Powell played the interest rate showdown during his Jackson Hole speech, when he said:

  • “my confidence has grown that inflation is on a sustainable path back to 2%”
  • “we (the Fed) do not seek or welcome further cooling in the labor market”
  • “the time has come for (interest rate) policy to adjust”

What gives the Fed Chair such confidence? Pandemic-driven inflation peaked at 9% in 2022, but has declined since, and recent readings show inflation has dropped below 3%.

The chart below shows the Consumer Price Index since 1965. According to this data series, inflation had ticked down to 2.9% in July.

Source: New York Times

Along with inflation, the jobs market has cooled, too – meaning jobs are still available, but harder to find now than a year ago.

Borrowing costs at their current level may be unnecessarily high, pressing down too much on the economy and inflation. Concerns about the possibility of an economic slowdown are likely behind the Fed’s signaling of future interest rate reductions.

So, the parlor game played by Wall Street people, where prognosticators pontificated and professionals speculated on the direction of interest rates, ended with the Jackson Hole speech.

What’s important to bear in mind is that the Fed has direct control over the overnight cost of funding for big banks (the Fed Funds rate) which is a very short-term interest rate.

The Fed Funds rate then affects other interest rates, such as the Prime Rate, which sets the cost of borrowing for consumers.

Currently, the Fed Funds target rate is 5.25% – 5.5%, and the Prime rate, which is usually about 3 percentage points higher than the Fed Funds target rate, is 8.5%.

The decline in short-term interest rates will begin soon, and most likely on September 18, when the Federal Reserve concludes its next board meeting.

Fed Funds futures contracts are financial instruments which allow Wall Street traders to speculate on what the Fed Funds target rate will be next month, or next year.

Fed Fund futures now anticipate a steady decline in short-term interest rates during the next 15 months.

These contracts currently anticipate Fed Funds declining in September, continuing to fall during the next sixteen months, and dropping by 2 percentage points from today’s level, to around 3.5% by the end of 2025.

What does this mean for Main Street people?

  1. It will get cheaper to borrow money (mortgage rates have already started to drop)
  2. “Safe” returns from CDs and High Yield savings accounts will start to come down
  3. Lower interest rates should provide a tailwind for stocks

Fixed rate mortgages have already begun to decline. The average 30-year mortgage was over 8% in late 2023. Today the mortgage rate sits at 6.5%. As short-term rates and the Prime Rate fall, it’s reasonable to expect that mortgage rates will continue to decline, too.

For savers, there is likely limited time to earn 5%+ yields on CDs, High Yield savings, and Money Market accounts. If you’re counting on that income to meet expenses, you should expect to receive less of it in the months ahead.

Since short-term rate declines should proceed at a measured pace, short-term yields above 4% should be around for a bit longer. But expect those yields to fall below 4% by the end of 2025.

For stockholders, the impending interest rate declines should be beneficial. Typically, a Fed easing cycle is a tailwind for stocks when the economy is growing (no recession, like today’s environment) at the time of the first rate cut.

The chart below shows that on average, stocks have significant gains during the year after the Federal Reserve reduces interest rates.

Source: Edward Jones

The chart measures time along the horizontal axis in weeks prior to and following the first “Fed cut”, or reduction in short-term interest rates by the Federal Reserve.

Stock market performance has been much less satisfactory when interest rates are declining during recessionary times.

-RK

Donna Cournoyer
In Market Updates

August 2024 Market Recap: Smooth Slide into September

The thrill of sliding down a water slide happens at the beginning. Initially, there is a sharp, breathtaking decline, followed by a level area that is quick and smooth, after which the rider is deposited into a refreshing pool.

While less than a perfect analogy for financial market activity in August, the water slide comes close.

Stocks fell at a breathtaking clip early in the month, declining by 6% in the first three trading days (see our August Mid-Month Update for more details).

But the fast ride down leveled out, and ultimately stock prices moved back up. For stock investors who maintained their investment strategy, August results were pleasing.

US Large Company stocks rose by 2.3%, and foreign stocks increased by 3.3%. Technology stocks did less well, climbing by 1%.

US small-company stocks struggled, dropping by 1.7%, following a stellar performance in July. Stocks generally have now risen for four straight months, with the last monthly decline occurring in April.

Thus far in 2024, financial market returns have been constructive: Technology, 20.5%; US Large Company, 19.3%; Foreign, 12.1%; US Small Company 10.2%. Bonds returned 1.5% in August and are up 3.2% year-to-date.

Positive stock market returns likely are one factor influencing consumer confidence, as recent data show an upward shift in sentiment.

The Conference Board, a New York-based research organization, said on Tuesday that its consumer confidence index rose in August from July, matching its highest level since February.

Other consumer confidence polls, such as the University of Michigan’s consumer sentiment gauge, and a recent Wall Street Journal survey, point in the same direction.

Below is a snapshot of financial market performance for August.

-RK

US Small Co = Russell 2000 Index; Foreign Stocks = MSCI EAFE Index; US Bonds = Bloomberg US Aggregate Bond Index; US Large Co = S&P 500 Index; Tech Stocks = Russell 1000 Technology Index

Donna Cournoyer
In Reading Recommendations

Reading Room: How to Know a Person

David Brooks is a Canadian-born American conservative political and cultural commentator who writes for the New York Times and The Atlantic.

He’s also written for the Washington Post, The Wall Street Journal, and The Weekly Standard. He joined Weymouth, Massachusetts native Mark Shields from 2001 to 2020 on PBS News Hour and continues to comment on PBS.

In his recent book How to Know a Person, he offers observations and personal experiences that help us become more skilled at the art of seeing others and making them feel seen, heard, and understood.

Chapters include: The Right Questions, The Art of Empathy, and What Is Wisdom?

In Brook’s words: “I’m hoping this book will help you adopt a different posture toward other people, a different way of being present with people, a different way of having bigger conversations.”

-RK

Donna Cournoyer
In College Planning

College Planning in the Summer: A Focus for High School Seniors

Our colleague and college planning specialist Donna Cournoyer contributed the following article.

Summer before senior year for a high school student is often filled with good times, maybe a summer job, and also great anticipation of the final stretch of the college planning process with fall college applications looming in the coming weeks.

For families of college bound students entering their final year in high school, the end of summer is a great time to ensure most of the preparation is done, and that you’re organized and ready for application season this Fall.

Focus Items for Being Well-Prepared

  • Narrow your school list and decide on a final list for applications (for all criteria including costs)
  • Have accurate estimates for out-of-pocket costs for each school; either by working with a college planner, and/or using the Net Price Calculators on each school’s website for financial aid and merit scholarship estimates
  • Make a list of deadlines and choose your application timeline (early action, regular decision, etc.) for each school and list any materials needed for your applications
  • Finalize essay or essays for your applications
  • Have your list of extracurriculars, achievements, and awards up to date and ready
  • Have any personal statements and teacher recommendations ready
  • Start the Common App soon after it opens on August 1 to be sure you stay on schedule

For high school students heading into senior year, here are a few things which are important to keep in mind:

High School Courses and Activities

Keep up focus on grades and activities. Admissions will require final transcripts and may question if your student’s grades suddenly dip after the application has been submitted.

Do not make significant changes to your curriculum, or switch from AP and honors to all regular courses. Again, keeping up with your plan is important so that you will maintain your status as a highly focused student.

Admissions Process

If the schools on your college list heavily consider demonstrated interest in applicants, be sure to reply to requests for communications and attend events in the fall during the admissions process. Interact with your admissions counselors when they reach out.

Some schools weigh a student’s engagement and interest when reviewing applications. However, if you contact the school, be sure to have specific questions and make it a productive call for both you and the admissions staff.

You should be assigned an admissions counselor at each school. Be sure to reach out to them if you have important questions, especially if it affects your decision about where you will be attending, such as costs, or any other key factors in decision making.

Finally, get organized for your senior year and create a plan for applications so you can balance completing applications with your senior year coursework and activities. This will also help to keep the stress to a minimum. Reach out for help from parents and school counselors when needed.

Remember: most of the hard work is done!

Head into fall organized and prepared with enthusiasm to complete college applications. Before you know it, the holidays will be here, and your students may soon know where they’ll be headed off to college next year.

-DC

Donna Cournoyer
In Personal Data Security

Identity Fraud: A Cautionary Tale

Our colleague and MFA founder Susan Moore contributed the following article.

Over the last weeks, I’ve received six letters that went something like this:

“Dear Susan – We’ve received your application for a credit card. We are unable to act on your application at this time because we’ve received notification from [Experian/Equifax/Transunion] that you’ve placed a security freeze on your credit file.”

I expect that I’ll receive more letters like this in the coming weeks.

Somewhere along the line, elements of my identifying information, including my Social Security number, have been hacked. That’s not really surprising.

Identity fraud is a growing concern in today’s digital age, impacting millions of people each year. As your financial planners, we want to provide you with the information and tools to help you protect yourself from this pervasive threat.

The Scope of Identity Fraud

Identity fraud affects a significant portion of the population in the United States. According to a report from Javelin Strategy & Research, approximately 33% of U.S. adults have experienced some form of identity theft. This means one in three people have had their personal information compromised, leading to financial loss and emotional distress.

How Is Information Stolen?

Fraudsters use various methods to steal personal information. Here are some common ways:

  1. Data Breaches: Large-scale data breaches at companies can expose millions of individuals’ personal information, including Social Security numbers, addresses, and financial data.
  2. Phishing Scams: Fraudsters use emails, texts, social media messages, or phone calls that appear to be from legitimate sources, tricking individuals into providing personal information.
  3. Skimming: Devices placed on ATMs or point-of-sale terminals capture card information during transactions.
  4. Mail Theft: Stealing mail can give criminals access to bank statements, credit card bills, and other personal information.
  5. Social Engineering: Manipulating individuals into divulging confidential information through deceitful tactics.

Notable Companies Affected by Data Breaches

A number of high-profile companies have experienced data breaches, exposing millions of people’s personal information, and the list keeps growing. A few of these include:

  • Equifax: In 2017, the credit reporting bureau Equifax suffered a data breach affecting over 147 million people, compromising Social Security numbers, birth dates, addresses, and driver’s license numbers.
  • Target: In 2013, Target experienced a data breach that affected 40 million customers’ credit and debit card information.
  • Yahoo: Yahoo faced a series of data breaches between 2013 and 2016, affecting all 3 billion user accounts.
  • Marriott: In 2018, Marriott disclosed a data breach that exposed information on approximately 500 million guests.

How to Place a Credit Freeze

Placing a freeze on your credit report can prevent fraudsters from opening new accounts in your name.

Even though the fraudsters who tried to open accounts in my name has my Social Security number, their efforts failed because I have a freeze on my credit reports.

Here are instructions for placing a freeze with each of the three major credit bureaus:

  1. Visit the credit bureau’s website or call them
  2. Provide the required personal information
  3. Create a PIN to manage your freeze
  4. Confirm the freeze through the method provided (online, phone, or mail)

And here is the contact information for each of the major credit bureaus:

Equifax

Experian

TransUnion

It’s important to put a freeze on your records at all three of the above agencies. And although the above three companies are the largest credit reporting agencies, there is another one: Innovis. You can place a freeze on your records there by calling 1-866-712-4546 or going to their website.

Additional Tips to Protect Against Credit Fraud

  • Use Extreme Caution in Sharing Your Personal Information. Don’t share personal information over the phone or online unless you are certain of the recipient’s identity. Don’t assume that because you’ve been asked for information, you need to provide it.
  • Example 1:if filling out a new client/account/patient form that asks for your SS number, try leaving it blank, and see if you’re asked again to provide it.
  • Example 2:If you receive a phone call asking for personal info, it most likely is an attempt to steal your information for fraudulent purposes. Be suspicious of these calls. Ask them to send you a request in email or snail mail. (Don’t ask for a phone number where you can call them back; they often have set up fake phone numbers to trick you.)
  • Monitor Your Credit Reports: Regularly review your credit reports from Equifax, Experian, and TransUnion to check for unauthorized activity. You can get a free report annually from each bureau at AnnualCreditReport.com.
  • Use Strong Passwords: Create strong, unique passwords for your online accounts, and update them regularly. Consider using a password manager to keep track of them.
  • Enable Two-Factor Authentication (2FA): Add an extra layer of security to your online accounts by enabling 2FA, which requires a second form of verification.
  • Shred Personal Documents: Shred any documents containing personal information before disposing of them.
  • Secure Your Devices: Use antivirus software, keep your operating system updated, and be cautious when downloading apps or software.

Identity fraud is a serious threat that requires vigilance and proactive measures to mitigate.

By understanding how fraudsters operate and taking steps to protect your personal information, you can significantly reduce the risk of falling victim to identity theft.

If you suspect your identity has been compromised, act quickly to minimize potential damage. As always, feel free to reach out for assistance or guidance in safeguarding your financial future.

-SM

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