Tag: financial literacy

Ten

Today we celebrate 10 years in operation! Thank you to our clients and everyone who has supported the mission since inception.

In May, I earned the CompTIA Security+ certification. Passing the exam validates the baseline skills necessary to perform core cybersecurity functions and pursue an IT security career.

This year the Securities and Exchange Commission is proposing a new rule to require broker-dealers, clearing agencies, Municipal Securities Rulemaking Board, national securities agencies and other associated parties to address cybersecurity risks through policies and procedures, notification of a significant incident reporting detailed information to the Commission when applicable, and public disclosures that would improve transparency with respect to cybersecurity risks and significant cybersecurity incidents. Comment period ends 6/5/23. *See the FederalRegister.gov

In 2021, for the first time the Department of Labor Employee Benefits Security Administration issued cybersecurity guidance for plan sponsors and fiduciaries regulated by the Employer Retirement Income Security Act of 1974 (ERISA).

An information security policy may be a high goal for the solo entrepreneur but it is clear maintaining sound business practices now includes securing your online activity.

CyberSecurity Tips for Entrepreneurs

  1. Create a password policy
    • Use strong passwords
      • Change your passwords periodically – including email
      • Don’t use the same password twice
      • Never share passwords of any sort
  2. Use antivirus/malware software
  3. Patch your operating systems and applications in a timely manner
  4. Harden your browser security settings – Cybersecurity Infrastructure Security Agency – Securing Your Web Browser
  5. Learn to recognize phishing
    • “The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.” irs.gov
  6. Use a secure file sharing service
  7. Sign and/or encrypt e-mail
  8. Adjust your servers email filter sensitivity
  9. Block unwanted senders of email and STOP unwanted SMS
  10. Backup and encrypt files and drives periodically

Resources

Department of Labor Employee Benefits Security Administration, Cybersecurity Guidance

Federal Register, Securities and Exchange Commission Proposed Cybersecurity Risk Management Rule

Federal Trade Commission Do Not Call list

Federal Trade Commission Cyber Insurance Tips

Cybersecurity Risks and Privacy Rules Add Pressure on Boards, WSJ

P.S. For those who may be interested in attaining an entry level position in cybersecurity, professionals are in high demand. (ISC)2 is offering their Certified in Cybersecurity certification free through their One Million Certified in Cybersecurity initiative. Become a Candidate today.

Our NJ REALTOR®

Good news everyone! I am now a licensed realtor in the State of N.J. working with Keller Williams Village Square Realty at 74 Godwin Ave, Ridgewood, NJ 07450.

To some, it may seem like poor timing to start a career in real estate or even buy a home as inventory is low, the Federal Reserve has slowed interest rate increases, and the looming probability of recession. We choose to approach life with a mind of abundance and use the tools we have available to us to make informed decisions.

In personal training, coaching child and youth athletes, business consulting, financial advice and portfolio management, I have found fulfillment in being a part of others reaching their dreams and goals.

It is serendipitous to have met the right people during a period of transition in my life and to have the time to invest into this endeavor. We see this as an opportunity to expand the Coroebus brand, leverage nearly ten years of experience managing a fixed income portfolio as well as our focus on behavioral finance/decision science to gain greater insight into another area of the market.

Achieving home ownership is central to the American dream and a key milestone on the road to wealth accumulation. If you or someone you know is selling or searching for a home or rental please follow the link and enter your information so that we may discuss your goals!

Markets in Review

2022 was the worst year of performance in 97 years for the bond market, ending the year -13.07% as measured by the Bloomberg U.S. Aggregate Float Adjusted Index. Equity markets did not fair much better with the most comprehensive view of the U.S. equity market, the Wilshire 5000 -19.00%. 

The Federal Open Market Committee increased the federal funds rate from around zero to 4.25% to 4.50% in an attempt to reign in inflation. With an additional two increases this year the overnight rate now sits at 4.75% to 5.00%. Changes in the fed funds rate triggers a chain of events that effect  short and long term rates as well as many other variables throughout the economy. 

The Feds hawkish stance impacted the 10-year treasury or risk free rate as it more than doubled, ending 2022 at 3.88% after starting the year at 1.63%. The 10-year was 3.42% at todays close. Interest rates and bond prices have an inverse relationship meaning increases in interest rates cause the value of bonds to decrease, while rate decreases cause bond values to increase.

30-year mortgage rates hit historic lows diving to 2.66% in 2020, fueling the real estate market by decreasing borrowing costs and boosting home values. At the close of 2022 rates were 6.42%, up from 3.22% at the years start.

Some define recession as two consecutive quarters of negative Gross Domestic Product (GDP) growth. According to U.S. Bureau of Economic Analysis data the first half of both 2020 and 2022 were recessionary by that definition, though we continue to see slow growth over the longer term. 

“The National Bureau of Economic Research (NBER) Business Cycle Dating Committee—the official recession scorekeeper—defines a recession as a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”

When short term Treasury rates exceed long term rates the result is an inverted yield curve which is often used by economists and portfolio managers alike as an indicator a recession is to come. Federal Reserve Board of Governors Chair Jerome Powell has directed investors to focus on short term rate spreads to measure recession risk. The 3-month bill and 2-year note inversion may hold a strong correlation to recessionary periods.

Recent bank failures of Signature, Silicon Valley and Credit Suisse and fear of contagion may force the Fed to slow rate increases in the near term. In a 2021 article published in the Financial Times Federal Reserve Bank of Minneapolis President and CEO Neel Kashkari expressed the need for “banks to increase their equity funding to protect against the next shock.” It should be noted he made no suggestion of a return to the gold standard. 

The 2020 policy shift to fractional reserve banking and the Fed considering the launch of a central bank digital currency make any prediction of what the future holds for our banking system and economy as good as my own.

Will unemployment rates stay at their current levels?

Will wage growth continue its upward trend?

Can the Fed tame inflation and avoid pushing the U.S. economy into a recession?