Year: 2023

What Actions Can Data-Breach Victims Take?

What Actions Can Data-Breach Victims Take?Over the years, millions of individuals have been affected by data breaches, where their sensitive data is accessed by unauthorized cybercriminals or publicly exposed. A data breach can result in huge financial loss if stolen data is used to compromise consumer identity, which also can affect a credit score.

Unfortunately, there is a great number of people who don’t know what to do if affected by a breach. At the same time, there are those in the know who do nothing.

What is a Data Breach?

A data breach is a cyber security incident that exposes sensitive data such as names, contact details, bank details, Social Security numbers, etc.

Data breaches are the work of criminals who aim to obtain specific data. Criminals do this through various methods, including phishing attacks, malware attacks, targeted attacks, vulnerability exploits, and loss or theft of devices. However, data breaches are also a result of technical or human errors. For example, a misconfiguration error exposed the car location data of 2 million Toyota customers in Japan and overseas for 10 years; and the work of an insider led to Tesla’s massive data breach.

Unfortunately, data breach cases keep rising. May 2023 alone saw numerous breaches from different organizations, including healthcare organizations, education institutions, the transportation department, and even tech giants.

For companies, the consequences of data breaches are reputation damage, loss of consumer trust, intellectual property theft, financial loss, and fines due to failure to conform with data protection legislation. While cyber criminals mainly target organizations, individuals also experience identity theft and financial crimes. This especially happens when stolen data is sold on the dark web or publicly published.

What action can data-breach victims take?

Unfortunately, no one is immune from a data breach. However, victims can survive a breach with less disruption. Once a data breach has occurred, the U.S. breach notification law requires businesses or governments to notify those affected immediately after its discovery.

Although companies are responsible for securing customer data in their possession, customers also have a role to play in securing their data. Essential steps to take include:

  • Being aware of any site claiming to be a data breach check site.
    Such sites could ask for personal information or ask a victim to click a link to verify their details. Hackers also take advantage of a breach and pose as the affected company to lure victims into clicking malicious links, primarily through emails. A user must, therefore, first confirm that a breach happened. This can be in the news or on the affected company’s website.
  • Change passwords for accounts exposed.
    In most cases, affected companies will notify victims of their affected accounts, and their security team will provide instructions on how to stay safe. Such instructions include changing passwords on the breached site or any other account that uses similar login credentials.
  • Set up two-factor or multi-factor authentication (2FA/MFA).
    This extra security measure will require a one-time user code to log in to an account in addition to the login and password.
  • Notify the bank.
    If financial-related data is stolen, such as credit card information, the bank must be notified immediately to freeze the cards.
  • Credit freeze.
    Cybercriminals can use stolen data to open new accounts and take loans. To avoid a ruined credit score, individuals can request a credit freeze from major credit bureaus such as Experian, Equifax, and TransUnion.
  • Monitor personal accounts for any unusual transactions.
    Although it depends on the type of data breach and exposed data, victims must look out for unauthorized transactions, including bank account transactions, medical bills, insurance claims, and tax refund claims.
  • File a report with the Federal Trade Commission (FTC).
    If criminals have already used personal data, filing an identity theft report will serve as proof to clear one’s name or dispute a fraudulent transaction.
  • Practice cyber hygiene.
    These are practices that help individuals remain safe online. Aside from account security, consumers must use up-to-date software and operating systems, antivirus software, and avoid publishing too much personal information to minimize online footprints that fraudsters can easily access, such as on social media.

It is worth noting that data breaches are not detected immediately, which means that by the time users get notified, cybercriminals already have had access to the data for some time. And as technology advances, cybercriminals are taking advantage of new technologies, such as generative AI, for phishing attacks. This means that more data breaches may continue to be witnessed.

However, users can help prevent future data breaches by using strong passwords, being cautious of phishing scams, and regularly monitoring financial accounts.

6 Ways to Travel on a Budget

6 Ways to Travel on a BudgetThe thrill of summer travel is always invigorating, but the prices to get there can be a real bummer. But not to fear. We’re here with some smart tips that will help you navigate in this price jungle and have a wonderful, memory-filled getaway.

Plan Way Ahead

Even though you can sometimes find great deals at the last minute, if you can wrap your head around thinking in advance about your vacay (especially if you’re buying long-haul flights), it’ll pay off. For instance, if you’re traveling to Europe or Asia, you’ll find that buying your tickets early not only provides significant savings but also gives you a jump start on exploring other aspects of your trip, like hotels and excursions. Some helpful sites for comparing prices are Expedia, Kayak, and Priceline. Check these when planning so you can snag the best deals.

Be Flexible

Do you have to travel in July? What about August? Are the fall and December holidays out of the question? If you aren’t stuck on a certain time of year, you’ll realize some significant savings. Also, must you leave town on a Friday? What about a Tuesday or Thursday? Choosing to fly on weekdays can dramatically change the price of your ticket. Plus, flights can be less crowded.

Create a budget – and Stick To It

While this is a challenge, it’s not impossible. That’s why it’s important to think about where you want to go. For example, San Francisco and New York City might be a little on the pricey side. Another thing to consider is how long you want to be away. If you’re thinking about a two-week-long vacation, you might want to be a little stricter with how much you spend each day. That said, don’t be too strict! The whole idea of a holiday escape is to kick back and dive into the culture of a new place.

Choose a Budget-Friendly Destination

As mentioned above, choosing a vacation destination that won’t break the bank is a strategic way to cut costs. Southeast Asia and South America are great places to start. If you’ve decided you must go to Europe, you might want to stay away from the Scandinavian countries. Although they’re crazy beautiful, they have some of the highest cost of living index scores. One way to get ahead of what you might spend is to check out cost of living sites, where you’ll find current stats, estimates, and calculations of how much you might spend each day.

Don’t Overpack

While it’s probably irresistible to overpack (I want to have choices!), if you can travel light, you’ll save on bag fees big time. Even better, if you can limit what you’re taking to just a carry-on, you’ll really avoid those pesky charges, plus it’ll give you the ability to breeze on and off the plane in no time. In terms of what you bring, this also requires some forethought. While packing multiple bathing suits and shorts (if you’re going somewhere tropical) is fun, these fashionable items might be taking the place of necessary gear like a raincoat, a warm hoodie or even a sweater. So take a breath, think through your days, and get packing – judiciously, that is.

Find Free Activities

Before you head out on your adventure, let your fingers do the walking over to your favorite search engine and get going. Search “free stuff to do” (or the like) at your intended destination. You’ll find things like free museums, parks, gardens, and festivals. Then let your feet do the walking! Getting outside, weather permitting, and strolling is one of the best ways to soak in a city.

When you can stay on budget and have a fabulous time with family and friends, you’ll not only come back with amazing memories; you’ll also return without a lot of debt. And that’s a fantastic feeling that will stick with you for a good while.

Sources

https://www.worldremit.com/en/blog/migration/tips-to-travel-on-a-budget/

New Personal Finance Provisions in the 2.0 Secure Act

2.0 Secure ActThe Continuing Appropriations Act, enacted at the end of 2022, included several provisions that impact retirement plans going forward. Specifically, the legislation enacts SECURE 2.0, an updated version of the Setting Every Community Up for Retirement Enhancement Act of 2019. The following provisions are financial planning considerations that affect individuals.

Increases Catch-up Contributions

Beginning in 2024, catch-up contributions to employer retirement plans made by employees who earn more than $145,000 a year (regularly adjusted for inflation) must be classified as after-tax Roth contributions. This is necessary for eligible plans to retain their tax-favored status.

Starting in 2025, catch-up contributions for participants ages 60 to 63 will increase from $7,500 to $10,000 per year for contributors in most qualified retirement plans. Beginning in 2026, the new catch-up contribution will be indexed to inflation.

Allows Employer Contributions to Roth 401(k)

Employers are now able to make post-tax contributions to a Roth option in an employee’s 401(k) plan. Employers also may open a Roth account option in SIMPLE, and SEP IRA plans for employees.

Expands Emergency Distributions from Retirement Accounts

Starting in 2024, there will be a new exception to the rule for early withdrawals from qualified retirement accounts. Distributions used for unforeseeable events, such as a personal or family emergency, will not be subject to the 10 percent early withdrawal penalty. However, the rule applies to only one distribution per year and only up to $1,000. The plan member has the option to repay the distribution within three years. Absent full repayment, no further emergency withdrawals may occur during those three years.

The provision also waives the withdrawal penalty on any amount for individuals certified by a physician to have a terminal illness.

Increases Age for Required Minimum Distributions (RMD)

Starting in 2023, the age that triggers required minimum distributions (and their requisite income tax liability) from qualified retirement accounts increases from 72 to 73. Starting in 2033, the trigger age raises to 75. The RMD rule apples to 401(k), 403(b) and 457(b) plans). Also, starting in 2024, Roth 401(k) accounts will no longer require RMDs.

Reduces Excise Tax on Noncompliant RMDs

If an investor is required to start taking minimum distributions and does not take out the required amount in a single year, he is subject to a tax on the amount not distributed. The tax used to be 50 percent, but starting in 2023, it was reduced to 25 percent. Moreover, if the account owner corrects the course and takes the full distribution within a certain window of time, the tax may be further reduced to only 10 percent.

Allows Emergency Savings Accounts

Starting in 2024, the legislation permits employers to offer an emergency savings account option within its retirement plan. The following provisions apply:

  • Employee contributions are made with after-tax income
  • There is an annual cap of $2,500
  • Participants may make at least one withdrawal per month
  • Up to four withdrawals per year are not subject to fees
  • Emergency savings may be held in an interest-bearing cash-equivalent account
  • Employers may match contributions, but those must be deposited to the participant’s retirement plan investment, not the emergency savings account.
  • The emergency account is portable when the participant leaves the employer and can be rolled into a Roth-defined contribution plan or IRA

Permits Employer Match for Student Loan Payments

Presently – through 2025 – employers may contribute up to $5,250 (tax-free) a year toward worker student loan payments. Starting next year, employers have the option to classify those loan payments as contributions to the company retirement plan, such as a 401(k). This allows workers with student loans the opportunity to pay down that debt with their own income and still receive an employer match toward their retirement plan – so they don’t have to choose one or the other.

How Businesses Can Identify and Increase Efficiency with Managerial Accounting

Managerial Accounting, What is Managerial AccountingManagerial accounting is a form of internal reporting that helps business owners and others involved in the organization’s decision-making. It looks at individual processes and products to see how they are functioning via practical data points. This is done in hopes of applying data analysis to improve the business’ operational efficiency.

It is important to keep in mind the intended audience and data structure with regard to managerial accounting versus financial accounting. While managerial accountants analyze information, it is not subject to GAAP requirements; however, financial accountants must present company information according to GAAP standards – and such information is often intended for external consumers like investors or lenders.

Measuring Inventory Levels

One way that businesses turn to managerial accounting is through scrutinizing their inventory turnover. Companies that analyze how often they have sold and replenished their inventory over a measured time period can make better decisions about their inventory cycle (production, buying new input materials, marketing, and pricing). Managerial accounting professionals help businesses identify the carrying costs of inventory. It’s expressed as follows:

Inventory Turnover = Cost of Goods Sold (COGS) / Average Value of Inventory

Higher ratios usually indicate greater company sales. Lower sales generally indicate there are problems with product or service demand.

Monitoring Outstanding Accounts Receivables

Analyzing accounts receivable can provide beneficial insights into a business’ bottom line. An accounts receivables (AR) aging report categorizes AR invoices based on how long they have been outstanding. The report can categorize how late payables are (30 days or less, 31-60 days, 61-90 days and so on). Based on the results, companies can look at historical data, along with projected sales, to figure out how much they need to allocate for uncollectable accounts. Companies also can proactively reduce credit limits, determine when it’s time to stop doing business with a customer/client, and send unpaid bills to collection.

Price Variance Considerations

When a business looks at price variance, the first step is to take the final price paid for each unit, then subtract the unit’s standard cost from the former figure. The resulting figure is multiplied by however many units were actually bought. It’s a way for managerial accountants to determine the difference, either a positive variance (increased costs above the standard price) or a negative variance (decreased costs relative to the standard price), between the cost planned and the cost at the time of purchase.  

The formula is expressed as follows:

Price Variance = (Actual Price – Standard Price) x Actual Quantity

If a business is planning to make a purchase for its next fiscal year, it may want only 5,000 widgets that cost $10 per widget. The business gets a bulk discount of $1 per widget, bringing it down to $9 per widget. However, when the time to purchase the 5,000 widgets comes along, it realizes it only needs to purchase 3,500 widgets. At the quantity of 3,500 widgets, the business won’t receive the bulk discount, reverting the cost back to $10 per widget, creating a variance of $1 per unit or widget.

Using the formula, it could be expressed as follows:

Price Variance = ($10 – $9) x 3,500 = $1 x 3,500 = $3,500. Since circumstances changed at the business between their initial planning and ultimate purchase time-frame, the price variance resulted in $3,500.

While managerial accounting has many different tools for analysis, the one common thread is that regardless of the tool used, managerial accountants help businesses find higher levels of operational efficiency.

Increased Tax Bills Hitting Private Companies Big and Small

Increased Business Taxes 2023, New Business Taxes 2023Private companies, both large and small, are feeling the tax pinch due to changes in the law. With rampant inflation, labor shortages, lingering supply chain issues, and increased borrowing costs due to rising interest rates, tax problems are the last thing struggling companies need to face.

While tax rates themselves remain largely unchanged, business taxable income is increasing due to changes in three main deduction areas: research and experimental (R&E) capitalization; interest expense deduction calculations; and a reduction in bonus depreciation. All of these provisions were made more liberal in the Tax Cuts and Jobs Act (TCJA) of 2018 but with a wind-down over a 10-year period.

Part of the problem is that these tax law changes can increase a business’s overall tax burden even though there have been no operational changes to the business, leaving less profits than prior years, with all other factors being equal. Below, we look at each of the three tax provisions, the changes coming, and the impact on businesses.

Stricter Interest Expense Limitations

Tax code section 163(j) limits the amount of business interest expense to 30 percent of adjusted taxable income. The 30 percent limit remains unchanged, but the basis of what constitutes “taxable income” as part of the calculation is becoming tighter.

From 2018 through 2021 year-end, businesses were allowed to add back depreciation, amortization, and depletion in coming up with their adjusted taxable income that underlies the calculation. As a result, for 2022 and onward, without these add-backs, the taxable income on which the 30 percent limit is applied will be lower, resulting in smaller interest deductions.

Given that borrowing rates have gone up substantially with increases by the Federal Reserve over recent years, businesses are now hit from two sides at once. They are likely to have higher interest costs but can take less as a deduction.

Research and Experimental Capitalization

At one point, business investments in research and experimentation under the TCJA were 100 percent deductible. Starting with 2022 and after, they need to be capitalized over a five-year period (15 years for foreign R&E).

Bonus Depreciation Decreases

Under the TCJA, bonus depreciation allowed immediate expensing and deduction of qualified investments in property and equipment up through the taxable year-end of 2022. Starting with property and equipment investments placed in service in 2023, however, bonus depreciation is reduced from 100 percent down to 80 percent and decreases by an additional 20 percent each year until the taxable year 2027. From 2027 onward, there will be zero bonus depreciations available. This will not only increase taxes, but it will also put a hamper on capital investments, rippling through the economy.

Conclusion

There is already chatter about extending some of these provisions, especially regarding bonus depreciation. Optimism on changes or extensions of these tax provisions should be taken cautiously, however. Many predicted that tax bill extenders would be in place before the end of 2022, but that never came to fruition. Right now, businesses are in a wait-and-see situation, with the threat of materially higher tax bills unless Congress does something.

Understanding Modified Accrual Accounting

What is Modified Accrual AccountingAccording to the Federal Register, there were about 90,000 local and state government entities throughout the country in 2022. This number is comprised of towns, counties, cities, special districts, and independent school districts. One of the commonalities these organizations share is their use of modified accrual accounting.

Understanding the Differences Between Cash and Accrual Accounting

Cash basis accounting recognizes transactions upon the exchange of cash. Expenses are not recognized until they are paid, and revenue isn’t recognized until payment has been received. Neither future obligations nor anticipated revenues are recorded in financial statements until the cash transaction has happened.

Accrual accounting treats the recognition of expenses when they are incurred. When it comes to recognizing revenue, it occurs once a business is owed compensation for its contracted complete delivery of products or services. The act of exchanging cash or payment is less important with accrual accounting.

What is Modified Accrual Accounting

This method of accounting merges the directness of cash accounting and some attributes of the more complex but equally useful accrual accounting method to account for transaction differences. One can record modified accrual accounting as each transaction is analyzed and accounted for, hinging primarily on whether an asset is short- or long-term, be it how a business recognizes revenue or incurs a liability.

Short Term Versus Long Term

This method is highly dependent on the type of asset in question. When the cash balance has been impacted by a short-term occurrence, such as a sale to a customer or the purchase of raw materials from a vendor, it must be recorded using the cash basis. This is most often recorded on the income statement.

When it comes to events that impact more than one accounting timeframe, it is referred to as long-term. If the debt that is due beyond 12 months or fixed assets are in question, these are considered long-term and must be documented on the balance sheet.

For assets such as fixed long-term debt and fixed assets, which are considered longer-term, they are recorded on the balance sheet. Such assets are then depreciated or amortized over an asset’s lifetime.

Where Modified Accrual is Used

While public companies may use this for financial statements internally, it is not permitted for public financial reporting by generally accepted accounting principles (GAAP) or the International Financial Reporting Standards (IFRS). One important consideration for private or public companies is that when the modified cash basis method is used, there is an implicit consideration that transactions recorded on a cash basis will have to be adjusted to an accrual-based accounting to be accepted by third-party auditors.

Since the financial statements submitted to be evaluated by a third-party auditor would not have been 100 percent on an accrual basis, they would fail a third-party audit, creating a crisis of confidence among outside observers. The transition from a cash basis will require less translation to a full accrual basis accounting. However, for non-publicly traded, private businesses, for internally-only used financial statements and/or no financing required, it can be useful.

One important reason this standard is widely used throughout government agencies is because the Government Accounting Standards Board (GASB) created the standard, and it is recognized as an established metric.

The reason governmental agencies implement this standard is because local and state governments keep their attention on present year fiscal responsibilities. This works with their dual principal purposes. The first is to document in any event if present-year monetary inflows are satisfactory to fund present-year costs. It also satisfies that each government entity can substantiate if government funds are utilized in accordance with the law.

Depending on the type of entity and how they are functioning in the economy, private or public sectors can look at how modified accrual accounting impacts their operations.

Increasing the Federal Debt Limit, Improving Disaster Resources and Attempting to Reduce Government Waste

Limit, Save, Grow Act of 2023 (HR 2811) – This bill was introduced in the House by Rep. Jodey Arrington (R-TX) on April 26. It would authorize and increase the federal debt limit as well as specific cuts in spending, such as repealed energy tax credits, expanded work requirements for the Supplemental Nutrition Assistance Program (SNAP) and other programs, and nullifies regulations for the cancellation of federal student loan debt. This bill passed in the House on April 26 but was not expected to pass in the Senate.

Pharmacy Benefit Manager Reform Act (S 1339) – Co-sponsored by three Republicans, this bipartisan bill would provide for increased oversight of benefits managers that provide pharmacy management services on behalf of health insurers and employer health plans. The bill was introduced by Sen. Bernie Sanders (D-VT) on April 27. A committee report was ordered and returned on May 11, where it awaits assessment by the full Senate.

Fire Suppression and Response Funding Assurance Act (S 479) – This bill is designed to ensure that pre-deployed state and local fire suppression assets are eligible for FEMA’s Fire Management Assistance Grants (FMAG) in an effort to improve the federal government’s response to wildfire disasters. It would adjust the cost share for fire management assistance to no less than 75 percent of the eligible cost. The bill was introduced on March 14 by Sen. Alex Padilla (D-CA). A committee issued its report on the bill on March 29 and it is currently under consideration in the Senate.

National Weather Service Communications Improvement Act (S 1414) – This bill is designed to improve the instant messaging service used by the National Weather Service, as well as other purposes. The bill was introduced by Sen. Maria Cantwell (D-WA) on May 3; its committee report was returned to the Senate on May 10, where it currently awaits review.

NWR Modernization Act of 2023 (S 1416) – Introduced by Sen. Maria Cantwell (D-WA) on May 3, this bill would authorize upgrading and modernizing the National Oceanic and Atmospheric Administration Weather Radio All Hazards Network. The Senate committee issued its report to the Senate on May 10, where it currently awaits review.

A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to “Control of Air Pollution From New Motor Vehicles: Heavy-Duty Engine and Vehicle Standards” (SJ 11) – This joint resolution nullifies the Environmental Protection Agency rule that pertains to the control of air pollution by new motor vehicles. The current rule sets high emission standards for heavy-duty engines and vehicles in order to reduce air pollution. The bill was introduced by Sen. Deb Fisher (R-NE) on Feb. 9 and passed in the Senate on April 26. It is currently awaiting review in the House.

Identifying and Eliminating Wasteful Programs Act (S 666) – Introduced on March 7 by Sen. Margaret Hassan (D-NH), this bill would require the Chief Operating Officer of each federal agency to compile a list of unnecessary programs. The assigned committee issued its report on March 29; it is currently awaiting review in the Senate.

Federal Agency Performance Act of 2023 (S 709) – This Act also is designed to improve performance and accountability within the Federal Government. It was introduced by Sen. Gary Peters (D-MI) on March 8. The assigned committee issued its report for this bill on March 29; it is also awaiting review in the Senate.

Upholding Human Agency in an Era of Evolving Digital Systems

AI and Human AgencyTechnology has greatly contributed to improving and streamlining everyday life. However, as technology advances, there is an increased reliance on digital tools powered by artificial intelligence and machine learning. Unfortunately, these technologies are also challenging the fundamental notion of human agency. As a result, there are rising concerns about humans losing the ability to make independent decisions.

What is Human Agency?

Human agency refers to the capacity of individuals to act intentionally and make choices that shape their lives. Although the human agency is influenced by various factors, including social, cultural, and environmental contexts, individuals should maintain the ability to exert some degree of control and influence over their lives. As far as technology is concerned, individuals must retain control and decision-making power. This calls for technologies that support humans in making informed decisions rather than controlling the decisions made.

Concerns Over the Effects of Digital Systems on Human Agency

The Pew Research Center and Elon University’s Imagining the Internet Center conducted a nonscientific canvassing to gather expert views about the future of the human agency.

The experts were specifically asked, “By 2035, will smart machines, bots, and systems powered by artificial intelligence be designed to allow humans to easily be in control of most tech-aided decision-making that is relevant to their lives?”

Of the 540 experts from different fields, 56 percent disagreed with the statement, while 44 percent agreed. Some of the main themes raised by the experts who disagreed with the statement include:

  • The agendas of commercial interests and governments will determine the future.
  • The convenience that comes with automation makes users less vigilant over technology.
  • AI technology’s complexity and rapid evolution can be overwhelming, making it difficult for users to assert their agency.

Common themes raised by participants that agreed with the statement include:

  • Humans also will evolve with technology, and there is the expectation that AI and tech companies will be regulated.
  • Expectations that businesses will protect the human agency to retain public trust and to keep ahead of the competition.
  • Technology will allow varying degrees of human agency.

Key Considerations for Upholding Human Agency

Seeing that technology will keep advancing and more automated systems will be witnessed, it’s crucial to implement ways to help uphold human agency. Some considerations include the following:

  1. Implement mechanisms that contest AI systems. An AI system is as good as the information fed to it. Therefore, it can be faulty or deliberately flawed, and there should be ways to request redress. This can be through AI policies that allow users to contest or rectify a decision made by AI systems.
  2. Empower users through systems that include meaningful choices and controls, enabling users to decide how to interact with them. For example, a system should allow users to adjust preferences, customize settings and choose the features they want. This promotes a sense of ownership and autonomy over digital experiences.
  3. Promote digital literacy and education to teach about technology capabilities and limitations. Technology users must develop critical thinking skills to exercise human agency and make informed decisions.
  4. Integrate ethical principles into technology design and deployment. This can be done by creating guiding ethical frameworks that consider the likely societal impacts and consequences of digital systems.
  5. Guarantee transparency and explainability in technologies and algorithms, providing users with accessible explanations of how decisions are made and what data is utilized. This transparency fosters trust in the technology and empowers individuals to make informed choices.
  6. Establish accountability for the design, development, and implementation of digital systems. Holding individuals and organizations accountable for the impact of their technology helps maintain human agency and promotes ethical behavior.
  7. Implement robust measures to safeguard individuals’ privacy and protect their data. This includes incorporating strong data protection mechanisms, giving users control over their personal information, and establishing clear consent mechanisms for data collection and usage, accompanied by transparent policies. Respecting privacy rights is paramount for preserving human agency in the digital realm.

Conclusion

The essence of being human lies in exercising control over the nature and quality of an individual’s life. However, technological advances such as artificial intelligence are raising concerns about this human ability. Humans are responsible for actively embracing and comprehending the possibilities and implications of living in a world where digital systems take over various tasks and processes. Instead of surrendering their agency, humans should view partnering with these digital systems as a means to supplement and strengthen their intelligence rather than surrendering it.

7 Tips to Save Money This Summer

7 Tips to Save Money This SummerSummer is here, and so are all the activities. But as we know, these activities cost money. Here are a few ways you can still have fun and, while doing so, save some cash.

Look at Your Calendar

Summer months are filled with holidays, birthdays, cookouts, weddings – the list goes on. Take a look and make an estimate of how much you want to spend on each event. When you can plan ahead and figure out your budget, you won’t be faced with surprise expenditures at the last minute. Nobody likes that.

Go on a Spending Cleanse

We’re not talking for months on end – just a few weeks. During this time, make a point to spend only on necessities. It will force you to take a look at what you want versus what you need. The money that you might have otherwise spent on wants can go into a slush fund for future summer events.

Check Out Money-Saving Sites

If you want to go to an amusement park or, say, the movies, you know how quickly this can add up. Go to Groupon or LivingSocial for some serious price-slashing coupons. Other resources to check out are AAA or AARP. For instance, AAA members get up to 30 percent off tickets to Six Flags.

Take Advantage of Free Entertainment

Inquire at your public library for free events and activities. Check out your local zoo and botanical gardens for free admission days. Go online to your local parks and recreation centers – many plan free, outdoor things to do. All you have to do is dig around a little!

Freeze Your Gym Membership

Chances are you’ll be spending a lot more time outside this summer, some of which might be working out. So why pay for a gym membership if you’re not using it? Instead of paying a hefty cancellation fee or initiation fee to rejoin, ask if you can freeze your membership for the summer. You might be charged a small fee, but in comparison to your monthly or yearly dues, you could save a lot. Plus, exercising outside is good for you.

Turn Down Your Air Conditioner When Away

After you’ve been out in the heat, coming home to an icy home undoubtedly feels great. But what doesn’t feel so great is looking at your A/C bill every month. You could turn down your A/C to a tolerable temp when you leave, then, of course, turn it up when you return. Or, you can get a programmable thermostat that will automatically adjust while you’re away. According to the U.S. Department of Energy, one of these devices can save you as much as 10 percent on heating and cooling costs.

Unplug Electronics When You Leave for Vacation

Before you head out for your summer adventure, make sure to unplug everything from your entertainment system – cable box, TV and speakers – to your small kitchen appliances like your toaster and coffee maker. These devices still consume energy when they’re plugged in. If you want to expedite this, get a power strip. With just one or two flips, you can save up to 5 percent on your energy bill.

These are just a few little things you can do to shave costs, but over time, they can add up to substantial savings. They’ll also help remove the stress that lack of money can cause. You deserve to have a relaxing, worry-free summer!

Sources

https://theeverygirl.com/summer-money-tips/

https://www.gobankingrates.com/saving-money/budgeting/money-mistakes-probably-making-summer/

https://www.consumerreports.org/appliances/thermostats/best-programmable-thermostats-of-the-year-a1031454339/

How To Recession-Proof Your Portfolio (Just in Case)

How To Recession-Proof Your PortfolioSome economists and market analysts have been predicting a U.S. recession ever since last fall. They’ve been wrong before – but they’ve also been right. Rather than try to predict how the stock market will react during the next recession, investors are better off planning for a range of potential outcomes. This will help reduce the risk of losses regardless of whether or not the United States experiences a recession in 2023.

Bear in mind that stock and bond markets are forward-looking and typically priced to take into account economic conditions such as higher interest rates, inflation, and commodity prices. In response to whatever factors are in hand, the market adjusts in ways to try to keep returns on par with historical norms and practices.

In its market perspective for 2023, Merrill Lynch suggested that the economic cycle would bottom out, market returns would begin turning a corner, and investors who hold diversified portfolios would see less volatility and be positioned to fully participate in a renewed bull market.

There are several strategies you can implement to help mitigate the impact of an impending recession. Be aware, too, that these strategies are sound all-weather moves designed to help reduce your risk and maximize returns over the long term, regardless of economic and market conditions.

Diversify Your Portfolio

The recent failure of established regional banks is a reminder that there are no “safe” stocks – all stock market investing is subject to a wide range of risks. However, investors should be most wary of owning a high concentration in any single stock. After all, while it is unlikely the stock market will ever be reduced to zero, it is entirely possible for an individual stock to lose total value. This can happen due to a fall in demand, bankruptcy, corruption/embezzlement, a natural disaster, or a public relations scandal. There are many situations that are unforeseen and out of an investor’s control that can lead to substantial losses.

By diversifying your portfolio across a large number of stocks, even those within the same industry (such as competing banks), you can mitigate exposure to a single stock that experiences a major decline in performance. For 2023, Merrill Lynch recommended a broad global stock portfolio with a slight overweight in U.S. equities, including large-cap value stocks and a mixture of small-cap growth and value stocks. It contends that the Energy, Financials, Healthcare, Utilities, and Real Estate sectors offer stable returns via strong cash flow and attractive valuations.

Well-established dividend stocks pay out a steady income as well as offer growth opportunities, which is a good hedge for a strong long-term total return regardless of economic conditions.

Merrill Lynch also favors global fixed-income securities, including investment-grade corporates, 10-year Treasury bonds, and longer-maturity municipal bonds.

Fund Investing

An easy way to diversify across a wide range of stocks and/or bonds is to invest in asset category-specific mutual funds or exchange-traded funds. The immense universe of funds offers a broad range of stocks (e.g., growth, value, large-, medium- and small-cap) and bond (high yield, high quality, government, corporate) fund options. A balanced fund offers a combination of both stock and bond securities to help capture growth as well as capital preservation.

If you invest regularly through a 401(k) plan at work or defer income to an IRA, note that your money will purchase more shares when prices drop, which is often the case during a recession. As long as you have vetted and have faith in your investment choices, this discounted buying opportunity can set up your portfolio for stronger gains once the market recovers.

Cash Allocation

It is always a good idea – even more so during a recession – to hold an allocation in cash or cash-equivalent vehicles such as CDs and money market funds. However, it is not a good idea to sell stocks that have lost ground just to beef up your cash allocation. It may be better to sell a stock with significant appreciation instead, especially if it is in an industry that does not tend to perform well during a recession (e.g., Construction, Manufacturing, Retail, Leisure, and Hospitality).