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On-line security matters with retirement accounts December 23, 2014

Posted by forwardfinancialplanning1 in Retirement Savings, Retirement Spending.
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We’ve heard a great deal about security breaches which have taken place with major retailers like Target and Home Depot that expose our credit/debit card numbers to thieves. However, illegal access to our retirement accounts is potentially even more hazardous to our wealth. Yet we don’t see as many headlines, perhaps because of a smaller number of individuals being affected by each occurrence.

But, it does happen! The Missouri State Employees Retirement System (MOSERS) was the latest victim, where there are confirmed reports of four employees accounts being hacked. The administrator stated that attempts were made to extract money, but none was removed from the affected accounts. As a safety measure, all on-line passwords and security questions were reset, causing participants to re-establish their on-line credentials.

Plan Sponsor magazine reports at least fifteen instances in recent years of unauthorized entry into government retirement systems and/or employee benefit service providers.

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“You don’t know what you don’t know…” December 4, 2014

Posted by forwardfinancialplanning1 in Annuities, Financial Planning, Retirement Savings, Retirement Spending.
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One of my best friend’s favorite euphemisms is, “you don’t know what you don’t know”. He is generally using this to describe peoples’ “clueless” behavior in various situations and circumstances. While his frequent utterances usually give us something to laugh about, a recent study by the American College is no laughing matter.

In the Retirement Income Literacy Survey, researchers found that respondents posted an average score of 42% on the 38 question quiz and only 20% achieved a passing grade of 60% or better. Despite this demonstrated lack of knowledge, 97% of survey participants rated themselves as either “knowledgeable” or “somewhat knowledgeable” about saving for a comfortable retirement.

The results of the entire research project can be found at:
http://www.theamericancollege.edu/ricp-retirement-income-survey/index.php ).