VOLUME 8, ISSUE 1, MARCH 2019
PAYMENT CARD FRAUD ON THE RISE
HOW TO ACQUIRE “KASH” FOR YOUR RETIREMENT
EASY AND FUN JOBS FOR RETIREES
DOWNSIZING
HOW LIFE CHANGES AFFECT RISK TOLERANCE
DECIDING ON A SAFE BEACH TO VACATION
TABLE OF CONTENTS PLAYING IT SAFE
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STAYING SAFE DURING YOUR BEACH GETAWAY By Steve Dinnen
PERSONAL FINANCE
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PAYMENT CARD FRAUD ON THE RISE DESPITE USE OF CHIP TECHNOLOGY By TMA Small Business Accounting
SAFE RETIREMENT
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YOU NEED “KASH” WHEN PLANNING FOR RETIREMENT By Raymond J. Ohlson, CLU, CRC, LACP EASY HI-TECH GIGS FOR RETIREES By Leo LaGrotte
SAFETY PINS
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LIFE SHOCKS & RISK TOLERANCE By Dr. Jack Marrion
SAFE FOR LIFE
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DOWNSIZING.. DECIDING WHAT TO KEEP By Norm Wilkens
PLAYING IT SAFE
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S TAYING S AFE DURING YOUR BEACH GETAWAY By Steve Dinnen
As I was shoveling my driveway in Iowa for the third time this week I was pondering why, exactly, I felt compelled to leave Aruba. Certainly it wasn’t because of the beach, which is one of the best, safest combinations of sun and surf I have ever come across.
And there were no waves to pound on me as I splashed about. We had been to Baja California the year before and found it, well, dangerous. That’s mainly due to its waves, which were 3-4 feet high when they hit the beach and could easily knock you down.
We were at Eagle Beach, on the west side of Aruba. It sported fine-grained sand that your feet sank into nicely, without scorching bare feet. Palm trees provided shade, and elsewhere on there were palapas – thatched roofs hoisted atop poles that kept the sun away.
We’d also been to the French Riviera, which is pretty but whose beaches are mostly rounded stones that are very uncomfortable to walk or lay on. Plus, partygoers in Nice sometimes haul in bottles and leave behind them, or their shards. If you want sand, try up the coast in Antibes.
The water temperature was great. You can Google any city you want for monthly water temperature. That’s one reason I chose Aruba, as it had the warmest water in the Caribbean (78 in January, a comfortable temperature, versus 71 for Miami Beach).
So that’s how I define a safe beach: Smooth sand coupled with placid, shallow waters that coddle even novices. Ideally there would be a lifeguard, though I saw none at Eagle Beach.
The Red Cross has tips about safe swimming, including instructions on handling a rip tide. Check them out at https://www. redcross.org/get-help/ how-to-prepare-foremergencies/types-ofemergencies/water-safety/ beach-safety.html
About the Author: Steve Dinnen Steve is a freelance writer specializing in financial and travel news. He received his Bachelors Degree from Drake University and his Master of Journalism from Oklahoma University. Mr. Dinnen served as Sr. Business Reporter for the Des Moines Register, Business News Editor for the Indianapolis Star and served as Editor (freelance) for the Christian Science Monitor of its weekly personal finance column. Email: paudel2001@msn.com.
PERSONAL FINANCE
PAYMENT CARD FRAUD
ON THE RISE DESPITE USE OF
CHIP TECHNOLOGY By TMA Small Business Accounting When the major U.S. credit card
companies — including Visa, MasterCard, Discover and American Express — agreed to switch to chip-enabled payment cards, many saw it as a way to chip away at billions of dollars in losses from payment card fraud. Unfortunately, more than three years after the major U.S. card companies mandated a liability shift for certain in-store payment card transactions, credit card fraud continues to plague the United States. Statistics collected from October 2017 to October 2018 show that criminals compromised roughly 45.8 million payment
SAFETY PINS cards via point-of-sale (POS) devices. Of those thefts, 90% were chip cards, according to a report by cybersecurity firm Gemini Advisory. How have thieves stolen data from chip cards, and why has the adoption of chip cards failed to generate similar reductions in fraud as it did in the United Kingdom and Canada? The answers may help U.S. merchants and credit card companies understand how to curb future losses.
Chip Cards How do chip cards help fight payment card fraud? Chip cards — also known as Europay, MasterCard and Visa (EMV) cards — contain tiny metallic squares that are actually minicomputers, designed to generate a unique encrypted code for each transaction. Instead of being swiped, EMV-equipped cards are dipped into the merchant’s card reader for about 10 seconds, giving the card’s chip and the merchant’s terminal time to communicate. The time it takes to complete a chip-card transaction is similar to the time it takes to pay cash and receive change. Outside of the United States, chip cards typically require a personal identification number (PIN) to authenticate transactions. This enhances the security of chip cards issued abroad, because criminals must steal a payment card number along with the cardholder’s PIN. Many U.S. merchants have been reluctant to switch to chip-and-PIN cards, because some chip card readers aren’t equipped to accept PINs, just signatures. In addition, some cardholders aren’t in favor of memorizing PINs and, instead,
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prefer to authenticate transactions with signatures as they’ve done in the past.
Magnetic Strip Cards By comparison, magnetic strip cards store static information, similar to old-fashioned music cassette tapes. Instead of dipping the payment card in a reader, cardholders swipe the card to allow the merchant’s POS to read the information encoded on the card’s magnetic strip. This outdated technology makes them easy targets for hackers. When issuing new chip-enabled cards, U.S. card issuers didn’t remove magnetic strips from the back of the new cards. While that decision provided merchants and their customers with two ways to complete transactions — and a backup in case a POS device was unable to read a chip — it reduced the pressure on merchants to invest in new POS chip readers. As a result, some merchants haven’t yet updated their card readers. When a cardholder swipes the magnetic strip on a chip card, instead of dipping it, they make it possible for criminals to steal data from the less secure magnetic strip. Once the information is stolen, it can be used to create a cloned card that can be used online or at merchants that haven’t upgraded their POS devices.
Facilitating Secure Payments Consumers aren’t directly affected by the liability shift when their credit cards are dipped, instead of swiped. The change just transferred liability from credit card companies to merchants that continue to accept magnetic strip cards for in-store purchases. Consumers do, however, benefit indirectly from the shift, because chip cards generally offer a more secure payment method.
PERSONAL FINANCE ... PAYMENT CARD FRAUD ON THE RISE DESPITE USE OF CHIP TECHNOLOGY
Nonetheless, if criminals continue to steal U.S. payment card numbers from POS systems, cardholders still may be forced to accept replacement cards and then update their monthly autopayments for their new card numbers. This inconvenience, in turn, may cause consumers to pressure merchants to speed up their adoption of chip technology — and credit card companies to adopt PIN-and-chip technology. Merchants that haven’t yet upgraded their equipment and internal processing systems to allow for the processing of chip cards should do so immediately. In addition, they might consider enabling mobile near field communication (NFC) payments, such as Apple Pay or Google Wallet. Doing so is likely to minimize the long-term cost and hassle of upgrading card readers, as well as providing optimal flexibility and fraud protection when processing transactions for years to come.
Using U.S. Chip Cards Overseas Chip cards are the norm outside of the United States, but don’t assume that your U.S. chip card will be accepted overseas. Foreign merchants and automated payment kiosks sometimes deny U.S. credit cards as an acceptable form of payment, because they don’t require PIN
authentication. This is especially true at smaller retailers and self-service payment machines without an attendant nearby, say, at a train station or a parking garage. Before you travel internationally, contact your credit card company. A representative can help determine whether you’ll need a different card, a PIN or an alternative method of payment where you’re traveling.
The TMA Small Business Accounting, P.C. staff have been delivering professional services to small businesses in Central Indiana for over 20 years. Having worked with hundreds of small business clients, we have significant expertise with a wide variety of service businesses in Indiana. We have especially strong experience and expertise in working with businesses in the healthcare (medical, dental, etc.) and foodservice (restaurants, caterers, etc.) industries. Contact Info: (317) 571-8080
SAFETY PINS
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Visit www.SafeMoneyPlaces.com for more information about The Safe Money Choices available to you in today’s marketplace
SAFE RETIREMENT
YOU NEED “KASH” WHEN PLANNING FOR RETIREMENT By Raymond J. Ohlson, CLU, CRC, LACP Yes, I said “KASH” and not cash. Of course we need cash when either in retirement, or planning for retirement. But, today I want to focus on an acronym I learned many years ago, in a management class. The two week course was through Main Event Management. The title of the course was “Model-Netics”. At the time, the thought was that our business, personal, spiritual and family life revolved around 151 models. The course is still around today, and the number of models has increased past the 151 models at that time. But, “KASH” has been a guiding principle for me. The “K” stands for knowledge. Let’s relate this to retirement planning. Basically, the more
knowledge that you have about this topic, the better your attitude (the A in KASH) in dealing with your retirement income goals, challenges, etc. The “S” stands for Skills. The better your planning skills, the better your chances of having a happy retirement. Finally, the “H” stands for habits. So, in a summary, the better your Knowledge, the better your Attitude, the better your Skills and it all becomes a Habit. So, how can you get
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help. You should also take a “risk tolerance” test. You can find many of these online. Also, forget what If you are nearing retirement, take your friends are doing. It is your some time to learn about options retirement and not theirs. Also, take a and choices. There are many different look at the birth date on your drivers sites available to you. One, is www. license. Do you have enough time to safemoneyplaces.com. Go there overcome losses? And, be realistic. and browse around. You can also go Knowledge in everything is key. to the social security site. I would A good attitude when planning is also go to your employer and take paramount. You still have time to a look at your 401K plan. And, I improve your retirement planning suggest meeting with a financial skills. And, you need to make it a professional. Check our habit to give you the best shot at a his/her website, look happy retirement. Finally, there is for credentials, etc. always a time to start playing it safe. Then, arrange an introductory phone Are you more motivated by the hope call and determine for a huge gain, or the fear of a huge loss? That could give you direction. if you want to Stay safe my friends. meet. more KASH? Let’s look at some opportunities.
You do need a plan, and most of us need some
About the Author: Raymond J. Ohlson CLU, CRC, LACP CEO & President of The Ohlson Group, Inc. and SMP International, LLC Mr. Ohlson entered the insurance business while completing his Bachelor of Science Degree at Ball State University. He quickly qualified for the Million Dollar Round Table (MDRT) of which he is a Life Member. He also received his Chartered Life Underwriter (CLU) designation from the American College in Bryn Mawr, Pennsylvania. Mr. Ohlson, a former life insurance company president, currently sits on college and hospital boards and is a published author. Raymond J. Ohlson can be reached at: Email: rohlson@ohlsongroup.com.
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SAFE RETIREMENT
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EASY HI-TECH GIGS FOR RETIREES By Leo LaGrotte
According to a recent study by the AARP of almost 4,000 people over 45, 13% said they still work some in retirement. And why not? For many seniors, some work in retirement can offer significant benefits, from adding extra spending power in a fixed budget, to giving seniors something new and exciting to do with all their extra time. Maybe you have friends or family who would benefit from a new source of income, but don’t want anything to do with regular schedules or a boring office. Good news! There’s never been a better time than 2019 to find work in the gig economy. Here are five different jobs you can share with your senior friends and family that require nothing more than a smartphone app and a desire to get to work. With these companies, seniors can take on as little or as much work as they want, so they can enjoy the freedom of retirement while still earning.
UBER AND LYFT: PUTTING YOUR CAR TO WORK Across the country, Uber and Lyft are changing the way people get from A to B. These ridesharing apps allow anyone with a smartphone to hail a ride from nearby drivers—and those drivers can make some serious income! In fact, studies have shown that seniors are flocking to these rideshare apps in droves to earn some extra money using the vehicles they already own. To get started, all you need is to
download the driver app for your smartphone. You also need a 4-door vehicle, a valid driver’s license, car insurance, and a vehicle registration. Drivers for Uber and Lyft can make an average of $8.55 to $11.77 per hour (as of 2018).[1]
WAG!: TAKING YOUR LOVE FOR DOGS PRO Do you know a senior who loves animals and staying active? Wag! might be just the app for them. By signing up as a dog walker for Wag!, you can choose to walk local dogs in your neighborhood whenever you’d like—for pay. Wag! also offers dog sitting services for seniors who are happy to share their home with a furry friend for a few hours. Specifically, Wag! requires their walkers to be physically able to walk for at least 20 minutes at a time. They also have an application process that involves a quiz on dog care and safety, as well as your knowledge of harnesses and collars. In other words, this is a great fit for anybody who loves dogs and has experience with them.
POSTMATES: DELIVERING HOT MEALS There are many apps available in most cities around the U.S. that allow hungry people to order delivery from virtually any restaurant they can imagine. Postmates is unique in that, unlike many of the other apps, they don’t require their couriers to own a car. When you sign up to deliver
SAFE RETIREMENT ... “EASY HI-TECH GIGS FOR RETIREES”- CONTINUED for Postmates, you’ll have the opportunity to take as many delivery orders as you’d like, and you’ll be responsible for picking up orders from restaurants and delivering them to homes and offices. All you need to sign up is a smartphone and a visit to the Postmates website. A bike or car to get around is optional. On average, Postmates couriers can expect to make up to $25 per hour.
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extra money. Seniors who can lift 30 pounds or more, who have a car, and are excited by the prospect of keeping active walking the aisles of their local superstore can register to be a shopper and start earning money right away. Today’s digital shoppers can typically expect to make up to $10 to $20 per hour.
Are your senior clients looking to increase their spending power in retirement? Side HANDY: HOUSEKEEPING AND jobs aren’t their only resource! Did you know you can sell all or a portion of a life HANDYWORK insurance policy, even term insurance? At Life Settlement Advisors, we help trusted Do you know any seniors who have a advisors just like you to give their senior knack for cleaning house or keeping everything in working order? Handy offers clients the opportunity to sell unwanted or the chance for anyone with experience in unneeded life insurance policies for more than the cash surrender value. Learn housecleaning or handiwork to put their skills to work at their chosen pace. Unlike more about how you can start offering some of the other apps on this list, Handy your clients this powerful financial tool, and contact us today to learn how we can does require contractors to have some help! professional experience—so this is best for that retired contractor you know, or your client who cleaned on the side a few Case Study: Harold and Dorothy bought life insurance when they were young to years back. protect their children’s futures. Now the kids are grown and have good jobs, their For the right person, however, Handy youngest is 49 years old and they no makes it easy to find jobs and get paid. longer needed the coverage. Harold’s Once you sign up and start working, you bring your own supplies to the job. Then, financial advisor informed him he could sell his unwanted life insurance policy when a job is completed, Handy takes payment from the customer and deposits for an immediate cash payment. Harold and Dorothy sold their life insurance it directly into your bank account. Professionals working through Handy can policy and used the proceeds to pay off a few medical bills, take a vacation and expect to make anywhere from $22 to supplement their retirement. $45 an hour on their own schedules.
SHIPT AND INSTACART: GROCERY SHOPPING FOR CASH Written By: In a world of smartphones, there’s nothing you can’t have delivered right to your door—and that even includes your groceries! Apps like Shipt and Instacart offer convenience for busy people who need to keep their pantry stocked, and they also offer a flexible way to make
Leo LaGrotte Life Settlement Advisors 4630 Lisborn Drive | Carmel, IN 46033 llagrotte@lsa-llc.com 317-863-5936 www.lsa-llc.com
SAFET Y PINS
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LIFE SHOCKS & RISK TOLERANCE By Dr. Jack Marrion
Studies have found that we tend to get more risk averse about financial matters as we get older, especially after we hit age 50. However, aging, in and of itself, accounts for 60% of the increased dislike of risk. The balance is due to life events. We all don’t look at financial risk the same way. Not surprisingly, the rich are more tolerant of risk than the poor, as are those with college degrees, and some people simply enjoy the rush of taking a risk. Even so the studies show whatever group you fall into, you are more likely to become a bit more reticent about exposing yourself to loss as you get older. This was originally thought to be purely a chronological thing, but it turns out life choices and life shocks affect how we perceive risk.
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Two sixty-five year olds are seated at a table. They are identical in every way, but one is retired and the other isn’t . The odds are the retired senior will be the more risk averse. Okay, same senior pair, identical in every way, but one is recovering from a mild heart attack. The one that experienced a health shock will probably be the more risk averse.
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Same seniors, but one lost a spouse through death or divorce within the last several years. The senior that experienced the companion change will usually be the more risk averse.
Even though each has the same income. net worth and health picture, the change in the household changes their risk tolerance. The study also found that the effect of these life shocks is greater on women than men. Agents need to go beyond the financial questions to truly understand what is in the best interests of the consumer. Banks, J., E. Bassali & I. Mammi. 2019. Changing Risk Preferences at Older Ages. University of Venice No. 01/ WP/2019
About Dr. Jack Marrion Dr. Marrion’s research on senior decision making and the financial world have been featured in hundreds of publications including: Business Week, Kiplinger, Smart Money, and The Wall Street Journal. He is the author of six books and a frequent media guest.
SAFE FOR LIFE
D OW N S I Z I N G . . . DECIDING WHAT TO KEEP By Norm Wilkens
Let me state at the outset of this article, that “downsizing” is not for the faint of heart. After a little over eight decades of living; more than twenty-eight years of marriage; almost too many moves to remember and dozens of disarrayed storage closets, it is not only difficult to comprehend, it is just about impossible to fathom. I suppose it happens to the best of us at least once in our lives. We go along throughout our twenties and thirties accumulating boxes of memorabilia - momentous piles of significant keepsakes that we just can’t part with. Our forties and fifties don’t improve the storage picture, we just add to the junk pile hidden in secret places we alone are allowed to enter because no one else would dare to disturb our cache of treasures. The sixties and seventies should prove the worth of our valuables, but often there is only a little more dust on the faded folders and forgotten reasons why they were saved in the first place. What type of memorabilia have I saved over the years? Taking stock of the many treasures accumulated, I found materials covering years of ads and commercials for varied clients. There
were archives honoring political campaigns for candidates of local, state and national level. There was a wealth of pictures from grade school, high school and college days along with grades that weren’t always so glorious. I found speeches covering every topic from welcoming new students to honoring recent graduates. Family and friends were captured in slides, photos and movies that would take hours to sort through. The phrase “pack rat” began to take on a new meaning where I was concerned and I knew something had to be done, or many of the items saved would disappear in a wisp of dust and mildew. Downsizing opens the doors to a lot of questions. Once the decision had been made that it was time for us to downsize, we had details to work out. Where were we moving? How much room would we have? This was a major concern of mine considering the amount of stuff I have stored away. I have a store house of a lifetime of memories – most documented in one way or another. Personally, what was I going to do with a lifetime of accumulation of stagnant junk – most of which, as mentioned, had been unopened for a long time?
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SAFE FOR LIFE ... “DOWNSIZING.. DECIDING WHAT TO KEEP” - CONTINUED This all has a happy ending. We made a successful move to a lovely home in East Texas near children, grandchildren and great grandchildren, all of whom have gone out of their way to assure our continuing comfort. And, yes, I shipped the boxes of my unopened accumulation! I am passing along the inherent wisdom of this article so that those of you who may be thinking this “will never happen to me”, can start making adjustments now – before it’s too late. I am still trying to unpack and sort through the boxes that I just couldn’t live without, but hardly ever opened. The lesson learned is very simple. Don’t wait till until the moving van is at your front door and the movers are asking what you want to take with you. Start “downsizing” your significant piles of precious artifacts asap! Suggest you start today! If you don’t, your kids, family members or friends, will end up doing it for you. They won’t understand why you kept all that stuff anyway!
Back
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About the Author: Norm Wilkens A nationally recognized speaker and writer, Norman Wilkens has traveled to forty-seven of the fifty states speaking on topics of marketing, advertising and public relations. His most noteworthy subjects include: Healthcare Marketing; Multi-generational travel and Baby Boomers - their contribution to society and economics. He is presently serving as Midwestern Contributor to California’s AAA WESTWAYS Magazine. Among Wilkens’ current activities are the Butler University Alumni Board of Directors; Butler’s Central Indiana Alumni Chapter Board; Chairman of the Board of Visitors for the new Communication College of Butler; Board of Directors of Ruth Lilly Educational Foundation; Salvation Army of Indiana Advisory Board and as an Elder at Second Presbyterian Church of Indiana. Email: NormWilkens@aol.com
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