5.29.19 How to protect your business from ransomware; Redirecting your career post-layoff
Glad you're here with this on the Clark Howard show where it's about your empowerment, with knowledge, safe in heat, more Leche, may, you got a question for me. Go to Clark dot com slash ask. And we got lots of ways dance your questions you want. Specifically, try to get meet answer your question, you'll see a box you can check for that coming up later in the midst of a very strong job market. There's still an average of a million people, a year who get laid off many times, because their employers failed what do you do about that? What do you do? Next. So I want to talk right now about something that is unfortunately a booming business right now. And it's hackers that sees the computers at government offices at businesses big and small. And we only hear about it happening when it's a big institution. There was a county government apparently recently that got hacked. And the rumor is they paid a ransom to the hackers to get their systems back working. It's a tough choice. What do you do? Once you're systems have been seized line of times for small businesses. Never makes the news, but the small business is out of business from a hack. So we gotta talk what, what should you be doing because, as a small business person, you cannot have your own data. Department, you can't have your own security department, and the irony is that even these big companies and big governmental agencies will have their big IT departments. They still get hacked. What chance you think you have as a small business? So instead, you need to take precautions to protect what you've worked so hard to build with your business. In the event that you are a target and you get hacked, and they try to ransom your data back to you. So what do you do? Number one, you need to have backup of your data every night backup data every night is something that kind of like a dentist telling you to floss your teeth. You probably nodding. Yeah, I should do that. But she don't. Right. It's cheap. You can at a minimum have a hard drive that your data's backed up to every night. But generally, what's considered to be better is to have a backup service like dropbox or Google service. That's called Google Drive. There are a number of mouth, they're they're not expensive. And what it does is it means the most you're gonna lose if a hacker. Invade your system will be twenty four hours of data because you can say, fine, you can have our system and you start over, and you have not disrupted your business in any major way. But if you did get disrupted in a major way even taking those kind of precautions. What can you do? Then. That's why so strongly, I want you at your business to have cyber insurance cyber insurance is not foolproof, but it is really key for a small business where whoever writes, any liability coverage for your business or anything like that. You got them to quote you a cyber insurance policy. So that if your business is disrupted is damaged by a hacker, a ransomware that you have insurance to protect what you've worked to build up because I'm telling you, you don't take precautions you're at risk that somebody destroys, what you've worked night, and day in many cases, seven days a week to make happen your business. Kristen's with us on the car coward show. Hi, kristin. Kristen what's going on with you? Well, I had a question about opening a Roth IRA 'cause they pretty talk about different options, and one of my coworkers also listened has mentioned, you know, like a low like a hundred dollar one to start versus like a thousand dollars which I know or other ones that are out there, and I just wanted to if that particular one at the company is worth starting just to start or shy wait to open one of the ones that, you know, require about a thousand dollars or so to open. I love for you to get started. As soon as you can the sooner you get started the better and you get in the habit of putting the money in. Yeah. Month by month and doing automatic deposits to it. So if you're at a point, you can do a hundred dollars. Thank Schwab, allows the one that I that my coworker my coworker had told me you mentioned before, so. Vanguard which is the I think, in the second largest financial group in the world at this point something like that, you know, they have done that with all tra- low costs, Schwab offers a lot of funds that are very low cost and then betterment, is another group that I've talked about. From what's your show, and, you know, my co workers, and parents, and I just want to start somewhere. You know, like you said, getting the habit of contributing, though. Do it one step at a time. I find that when people say, well, I'm gonna get to that the get to that keeps pushing further and further in the future. And if you start with wherever you can in Kristen you just keep adding to it bit by bit. It's amazing over time how much money you will have. AM twenty-five. I've heard you speak. You know on how much growth can happen over, you know, four or five decades and, you know, like you said, you gotta start somewhere so yeah. Figured I'd ask and see what start we'll fantastic. And I think you'll really like the platform on betterment is a place. Geico look into that. Thank you so much. Thank you. Have a great day twenty five and already saving for the future. Zan is with us on the Clark Howard show. How you doing? Doing clark. Here's taking my call. Absolutely you're interested in building money for your future. Good job baby steps. But my question is, so I know use betterment for, you know, number two, thanks. But one of the things they offer is kind of more short term savings and a no, there's been a lot of talk about, you know, the market is due for a decline at some point and this, and that's what your thoughts were on. These nine no, they're they tend to be more heavy in bonds with betterman and things like that. But what your thoughts where for, maybe if you're saving for a car, and three years or engagement rings or short term, wonderful question, those kind of thing. So when you're looking at a goal that is seven years or less it changes the strategy about what you're up to. And when you move under five years, you're no longer an investor for those. Those things you're only a saver. Because there's too much risk. If you're looking at let's say you mention buying a car. Let's say in three years. By car in three years in a three year window you could have a stock market decline of as much as fifty percent. And that's that's common and is not a bad thing. It's how it works is that markets overshoot on the upside, the overshoot on the downside. So in shorter windows, you the markets can be really volatile and some money like that just needs to be like putting into an online savings account. We just keep building up so that you have the money for it. You're not gonna earn much you can earn like one and a quarter percent. One point three five percent, but the money's there. And when you need it, you have it on two days notice. When you start looking out past seven years, then you're absolutely in investment territory, and the difference is if you're looking twenty thirty years down the road and more your overwhelmingly in stock type choices as you get shorter and shorter time, periods from seven let's say to twenty years, then there's a more conservative portfolio that you want. But it would also have a lot of stocks in it. Ama start talking to you about the difference between these like the stocks and bonds. I mean the bonds they Justice fluctuate fluctuate as much as stocks or what store. No binds are historically less. Volatile bonds are significantly historically less volatile than stocks. You know, if you were to go heavily into a bond portfolio for shorter term goals, there'd still be downside risk with it. Gosh. So there are things. People do is an example, people will go in what's called a short or an ultra short, which is a bond fund that isn't gonna earn as much as a normal bond fund, but has much less downside risk than a normal bond portfolio. So there are ways that people can stay at least invested somewhat and lower the risk. But it's mine do a little work, but it still has a little risk. You gotta decide now I am someone willing to take more risks than most people, and I have tax issues. So I do a short municipal bond fund, where I take the risks that could in the short term lose a little bit of money, not any significant amount, but earn more than I would in any Candice savings account or CD. Stephanie's with us here on the Clark Howard show. Hi, stephanie. Hi, how are you Clark? Great. Thank you. Stephanie, you get to go to fund nominal place really excited, Where're you headed Thailand, and Indonesia, I've never been to Indonesia into Thailand twice in my life, and it's just the most magnificent place. Very heavily excited about seeing where are you going to spend more of your time? Most of our time in Thailand in Bangkok. Okay. We are going to take her excursion, or two outside of it Bangkok is not like the rest of Thailand, it'd be like, going to the United States and only seeing New York and thinking that was the United States. So Bangkok is a city that used to be heavily polluted very dirty and run down. And I was there the first time twenty five years ago. And then back last year, I guess it was the change. There is extraordinarily. Yeah. It really is a marvel to see how much they've done in a little more than one generation excellent. But if you go somewhere down to any of the islands and the end and see the pictures that you see that, look impossible, what you'll see with your own eyes is prettier than any publicity photo. You've seen I believe it. Well, I'm really looking forward to my trip and tune. But my question for you, and I thank you for taking my call. Because my question is I I've listened to you for many years. And I know that, you know, make sure use a credit card with no foreign transaction fees. So I've got that all set. I've got a debit card to get cash out when I'm there in both countries that has no ATM fees into foreign transaction fees. But I'd like to get some cash for both countries so that as soon as I hit the ground, I have something, don't worry about it when you who's I you land, and Bangkok. Plenty of ATM's right in the airport terminal really. Yeah, you'll be fine. No chase. Make sure that the provider of your ATM card knows what countries are going to visit when if they have a travel you have to do. Yeah. And you'll have no problem at all. And the worst nightmare of all you just take some. American money with you. And if you just can't get your ATM card to work, you accept the lousy change rate, you get at one of the airport money changers. Okay. Better not to change anything. Absolutely not change a head of time, because the exchange rates that we get in the United States on any foreign currency are probably the worst in the whole world. That's what I was noticing 'cause I was going to do it through my Bank, and I compared the rate, they were showing with the rates that were on the, you know, the app that shows you current currency rates. And there was a huge difference. Yeah. The, you know, we're, we're different than if you think about being in a part of the world where people frequently cross borders, the beauty of the is, as is how incredibly large our country is. But it means we don't interact routinely with other countries, other countries money. And so that's an area we haven't really developed in the United States. And that's why you got. Couched. I see. Okay. So just wait till you land. Okay. Sounds great. Thank you will be very jetlag just get ready. It takes to get there. It's a long trip. It'll be wonderful. And I gotta get into nesia been there yet. Kevin is with us on the Clark Howard show. Hello, Kevin Clarke today. Great. Thank you, Kevin. You want to avoid getting a virus? What do you worry about something from the flu? To, to see what your opinion is on anybody snakes provided by internet service providers. You consume provide the same protection as the paid sweets. I have an opportunity to download one and replace the one I'm paying ninety dollars a year and volley McKay. She hits very good. But I want to get your opinion on that and see what you think. Yeah, if your internet service provider is offering you a free suite of anti virus software. Absolutely find us it, but the thing about any virus software is, there's now, a number of products that are completely free to use. And in fact, I have a list on my free and cheap guide of free, antivirus. But if you are happy with your internet service provider, you're not looking to make a change anytime soon. And they've got free, any virus just take it and use it. Okay. Great. And by the way. For you do that go shop your internet service, provider, and see if maybe you should be making it change to ever their competitor is okay. Well, I did kind of a review about four weeks ago, and I was actually able for the same price pay actually deuce part, I was actually able to bundle my phone and my internet. So this, and it dropped forty dollars off price in my actually increased by internet ban with a thirty percents. I've been through that. Thank you that tip. And so what you just did is a perfect example of what other people should be doing, which is you get comfortable with whoever you're with the Bill, you're paying, and if you go shop your internet service with, you know, if you're with the phone company go shop cable company with cable company, go shop the phone company because right now we pretty much just have this shared monopoly in the country, but they're still. Some competition where you can go shop one from the other. You did it, it safety money and good for you. It's my pleasure to welcome you here, the Clark Howard show is about you learning ways to save more and spend less and don't let anyone ever rip you off earlier. I alluded to the fact that federal stats from the bureau labor statistics show that roughly a million people each year now in the strongest employment economy, we've had forever or still being laid off, and that's because companies will fail, they'll close an office any number of reasons why you might face away off the good news and a really bad news scenario if you are suddenly laid off is that the market is the strongest is been for you. Finding a new job that I can remember in decades. So it's a brutal thing to suddenly find yourself. Being. I love the British expression. Being found redundant. How did they come up with that when they do layoffs in Britain they call it? Redundancy. Who wants to be known as being redundant? But anyway, the thing is, is that, when that happens, it can be a terrible terrible event in your life or in today's job market. It can open up a whole new world to you that you never thought about I really want you. If you are subject to a layoff, or family member spouse, partner is laid off. Let 'em. Go through the shock and the grieving. And then when it's like, what's next, that's when you really come up with a positive way of looking at it, you yourself, or as you talked to somebody you care about, and that is the opportunities it may be there for you using your interests, your skills. Your experience your education. Maybe you've been doing the same thing for a long, long time and you'd like to do something else. Well, draw on what you already know and have done for that fresh start or if what you really love is what you've been doing, and it's what you see is your life's work, and it's what you wanna do know that your years of experience in a really strong job market. Like we have now. That's really positive for you. Finding that next opportunity. You know, we're not gonna have. This strong job market forever. This things go inside goals. And this is an unusual time with the availability of work. So this is your time if you happen to be an unlucky one in this lucky job era to not jump into something else, but take the time to think through, what would really be a step up for you. What would bring some real joy to you is what you do so many hours each and every week? PJ is with us on the Clark Howard show and PJ. Congratulations. You just got married. That's exciting. Isn't it? Well, how can I be of help? Well, I have a crash in the mix between Wales and beneficiaries my husband and I, we don't have any kids together. He has two girls fourteen and eleven and I have a son he fifteen, and we are getting ready to change or beneficiaries on both of our policy at or jobs. Whether it's our insurances or for one ks and I have one child, so I was just going to do everything fifty fifty, but then he has two kids, and I'm a little bit unsure as how or what's the fairest way food that the aid or beneficiaries on our policy? Okay. So there is no right answer to that. There is not a right answer. Sorry, but I'm gonna give you scenarios, and I want to congratulate you for being aware that the beneficiary designation and retirement plan at work and insurance policy through work and insurance policy. You have just on your own, anything that has been officially designations, those matter so much, and they Trump whatever you would put no will. Yeah. So if you let's say in a will you said, well, I want this to go to 'em and I want this go to her, and this go to this person on that, none of that matters, if it something that has within it beneficiary designations, that you've made those are superior to what you put in the language of a will. So is to what's fair, gosh. I mean. I think that what he would decide to do on his beneficiary designations, and what you would do need to work for both parties. And you could either do everything a third to each or fifty percent to your child and fifty percent to be split among his two children. And it's really just a matter of what feels right to both of you. The big thing, though, is hopefully both of you are going to live a long, long, long time. Walk, hopefully so what does feel fair right to you? I don't know. I'm, I'm flit. I I'm split between what feels right to the honest they in my because I only have one child, I just assumed I was going to do mine fifty percent. Fifty percent between my husband and my child, but he has two kids and I think he's mentioned maybe doing his one third one third one third. So you could do something going back to the original establishment in the US constitution. Do a big state, small-state compromise. And that would be where you kind of blend those and your child gets forty percent in each of the other two kids gets thirty percent. They end up with sixty percent of the money and your child would end up with forty and that could be a compromise. You were saying fifty fifty and he was saying. Third third third. So you'd boost what your child was getting or you could do it this way as well. You could do fifty fifty and then he does a third third third. So, in other words, there is no rule book, what's the right way to do it? But don't focus so much just on how you're going to handle each of your retirement accounts because it's a bigger overall picture. And with blended families with minor children. My favorite thing for the two of you to do is go sit down for an hour of time with a lawyer who specializes in Wilson states and trusts. Because there's so many things that the two of you haven't thought about that are issues that could come up over the ears that somebody who this is what he or she does for a living. They're going to help you think through those things. They're all minor children, right? Yeah. All minor children. You said eleven fourteen and fifteen is that what you said. Okay. So with all minor children, there are special issues involved, and that's why seeing a warrior may be having him or her prepare wills for each of you would be extra important in a case like this. So, again, congratulations on your marriage, and this should be a positive thing, looking forward to how you're going to make sure each person's kids your kid and his two that they're a okay if something tragic happened either view and that's why you go see a lawyer and get that done. But again, I'd like you to see one who what he or she does is strictly, the area wills estates and trusts. And Michael is with us on the Clark Howard show. Hello. Michael clark. Great. Thank you. Michael, you're changing jobs. I have changed jobs, and I left a 4._0._1._K at my existing job and I got a new 4._0._1._K at this job also have a business I have on the side that got nice little nest. Egg in the fading in southern give me any interest. So I want to invest that. So I'm contemplating my old job, four one K. If I should take it to like a fidelity account. Or a rollover into the 4._0._1._K here and just my business savings into an fidelity. Okay. So that makes sense. Yeah, let's talk about a couple of things. The old employers for a one K do you happen to know if it's a low cost, moderate cost or high cost for a one K, it's low cost if it's low cost, I mean you have the option of just leaving it there. Okay. But I'm not invest putting into. That's all right. That's all right. You want with the money that you've worked to save and you sacrifice current spending to be able to have money down the road. You wanna have invested as officially as possible. If your new employer has a low cost for a one K you can move the money from the old employers for a one K the new one, and that's a strategy and that way, you don't have all these accounts all over the place. I didn't want different accounts when it comes, you know, something happens to me, or retirement as trying to figure out which I wanna take from sure Roth, none of them are Roth either. So at the thing, I was thinking about if I had a put my 4._0._1._K if shift put into a Roth just to get that out of the way you can't without paying a lot of tax. That was my question I E mail, if I did that what I have to pay besides paying taxes. What other things do have to worry about in something like that. So you'd have to do. So if you take your 4._0._1._K from your ex employer. Into an IRA you then can reclassify or whatever they call, it recapitalize it as a Roth and then you have to pay tax. No penalty, you pay tax on all that money. So if you're in a position, you can afford to pay the tax Bill, then that's a great strategy for the long term. How old are you? Michael. Fifty two. No. I wouldn't bother with that wouldn't bother would not. I would not go through the expense of moving it to a Roth if you just you can leave it at the old company, you can move it to your current employer. You can move it to your own IRA. But what you do with your side business. Extra income putting that in a Roth IRA of your own you who stat. So that's a real advantage to you. See, you have the money you're contributing with your new employer. You have the money from the old employer, and that's all money. They'll be taxable when you retire. And then you do this other pile, the you do the sixty five hundred each year in the Roth IRA Helen work till, you're sixty what? Eight I believe it is the number. That's the goal. But my side business if you'll be I'm an architectural designer. So I can sit this and do this. So I'm eighty years old. You know, if I'm still saying, wonderful also have the option. Let's say you save in the 4._0._1._K at work. You do the Roth IRA. You are also allowed to do a Sep if you wanna put a sad, even more money. I mean you got gloss options here a what sept- simplified employee pension. Okay. Yeah. Okay. That. And so with the set that's perfect. When you have side income, where you can put money in it, because you're being paid independent contractor on what you're doing architectural design was, yes. Yes. Family's going to take a chunk of that, right? Someplace. Right. So the sap allows reduced taxable income. Is that through my employer is that through how you do that on your own? You can go to fan guard, or you can go to Schwab fidelity not Rowe price in either low cost companies. Okay. And you can set up a sap, the paperwork takes about ninety seconds. The sets you can say an enormous amount of money on a flexible basis. Twenty five percent basically this shorthand, but it's twenty five percent of your self employed. Income can go into a south each year. Okay. So let my own pension plan for my company. Exactly. So you can you can have the money from your old 4._0._1._K moved to your new 4._0._1._K, and keep contributing debt, you can do Roth, you can do the sap and reduce your income from your self employment on the side. I mean you have endless options to build up money over the next sixteen years. That's so great everything you've got going for you is an option because you're doing the hard work saving the money living on less than what you make France's joins us on the Clark Howard show Francis. I hope you're having a wonderful day. I am beautiful day Francis. How may I serve you today? Coercion wanna get out some answers to. I wanted to find out about my ancestors and to find out the best possible site to look for. So there's a lot of discussion about how accurate people feel the various databases are, but the one that for finding out ancestors, that's most respected probably is ancestry dot com. On ancestry dot com. And the way they make their money is you pay a subscription for access to different levels of information. And depending on what subscription you get the more you pay. And you'll find I found when I did my ancestry dot com that I had a zillion relatives at never heard of and didn't know takes you down to like fourth cousin level. And then I saw people, I did know that were in there, but it is part of the whole process of putting together the puzzle of your family background, and you can go beyond just that and I have done. So with site called twenty three and me where you can find out based on DNA analysis, where exactly you're from is best. They have been able to analyze your DNA. They're able to tell. Tell you what makes up your heritage ancestry dot com. Does that as well? They, but my numbers for both of those were almost a dental and where they said, I was from, but twenty three and me goes beyond it. Another step and will analyze your risk level for various illnesses. Based on your DNA. And if you wanna know it'll tell you something else. If you have children, it'll tell you what they are at risk from what illnesses, they have heightened risk from for having had you as a mom. My poor kids, I had to tell them what they had risk from because a me. So the information available from these sites is pretty extensive, and where twenty three and me is more about health ancestry dot com is more about your family history. Prices for both about the same. No, the well all depends. What services you buy from either you actually spit samples into these tubes? These test tubes, you send him off their analyzed, and you get back a report that tells you a whole bunch of stuff that you never would have thought of, and it takes about four to six weeks. There are specials offered on these from time to time, but go to both websites and see what you're interested in. I have one question for you. What are the odds that your family background is mysterious enough that you may be shocked at what you find. A lot then. You're going to love it, if you get into it, you might wanna do both like I did. And in my case at cost me, a hundred ninety eight dollars to do the test with both that may be more money than you wanna spend suggest you, one of them and see what you can find out about yourself. You're listening to the Clark Howard show. Thanks for joining us today. The Clark Howard show is produced by Kim. Droves, Joel LARs guard Debra Reese, and gem airs and remember, twenty four hours a day where there to serve you at Clark dot com and Clark deals dot com.