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Equifax Cyber Security Incident

by | Sep 14, 2017 | The Ship's Wheel


On September 7, Equifax – one of the largest American credit agencies – announced a data breach by cyber criminals that may affect you.  The criminals gained access to millions of Americans’ personal information, including Social Security numbers, birth dates, addresses, and similar information.  Those affected are vulnerable to identity theft.

Price Wealth Management is vigilantly monitoring money flows of every client account entrusted to us.  Thankfully, no suspicious activity has occurred.  We also want to make sure you are aware of resources to ensure the protection of your personal and financial information.  Please follow the steps below to determine if you or anyone in your household was impacted by this incident:

  1. Go to https://www.equifaxsecurity2017.com
  2. Click on the “Potential Impact†link, and you will be asked to provide your last name and the last six digits of your Social Security number.
  3. Based on that information, you will receive a message indicating whether your personal information may have been compromised by this incident.
  4. If your information has been compromised, Equifax is offering free identity theft protection and credit file monitoring through Tuesday, November 21, 2017.

You play a vital role in keeping your information secure.  Here are some things you can do to protect yourself:

  • Protect passwords, PINs and answers to any security questions by not sharing them with anyone you don’t want to have access to your accounts. Avoid easily guessed passwords (e.g. family members’ names, birthdates, Social Security numbers, etc.).
  • Keep security software up to date, and use encryption software on your computer.
  • Use your personal computer for financial transactions, avoiding public-use computers.
  • Do not give out vital information over the phone, by email, or through in-person requests. Type in the address of the internet site you want rather than clicking a link provided in an email.
  • Check your financial accounts regularly to ensure no unauthorized activity is taking place. Contact your credit card company or financial account institution immediately if you notice anything suspicious.
  • Monitor email, social media, and online financial accounts for unauthorized changes. If you receive an email that changes have been made to one of your accounts (e.g. new contact details, new addresses, etc.) that you did not authorize, follow the instructions provided by your service provider to protect your accounts.
  • Only click on links or open attachments that you expect and are from sources you know and trust. Even if an email is from someone you know, if it looks suspicious, play it safe and confirm with the sender before opening.
  • Use public WI-FI thoughtfully, as your data, traffic, and identity could be completely exposed.

A cartoon of a man with a hat and glasses.

Printable pdf version available - Equifax Cyber Security Incident

Am I eligible to Convert my Traditional IRA to a Roth IRA?

Converting your Traditional IRA to a Roth IRA can be one of the best financial decisions made when saving for retirement if done correctly. Prior to 2010 there was an income limit that restricted the conversion to a Roth IRA if your (AGI) was over $100,000. As of 2013, the income limitation does not exist for a conversion, but it still exists for contributions. This does not mean it will not come back in the future, but for 2013 and beyond anyone can convert an existing Traditional IRA to a Roth IRA regardless of income.

For example, someone has a Traditional IRA with $350,000 invested, that IRA can be converted to a Roth and all the taxes need to be paid for the tax year the conversion was completed. After converting to a Roth, the money grows tax-free. Paying the taxes on this money now might sound like a tough pill to swallow, but the potential tax savings down the road can be significant. Wouldn’t you rather pay taxes on $350,000 now than pay taxes on $1,000,000 in the future? One of the keys to doing this correctly is paying the taxes with funds outside of a qualified plan. Paying the taxes with money from the IRA defeats the purpose and will negate the full tax saving potential.

This is just one example of completing a Roth conversion. You can do partial conversions as well. This means you do not have to convert the entire account. You could develop a strategy of doing partial Roth conversions over multiple years. The key is to consult with your tax advisor or accountant to make sure the conversion will not put you into another tax bracket. Every dollar you convert is taxed at your ordinary income tax rate. This strategy works best for younger investors who have longer to allow the money to grow and compound. It can also work well for an older investor who is in a low tax bracket. Another reason to convert to a Roth is that Roth IRAs are not subject to the Required Minimum Distribution after you reach age 73. For those of you out there that do not plan to use your IRA money to live this can be a huge advantage when it comes to passing along your IRA to your beneficiaries. Roth IRAs continue to grow tax-free after the conversion and after you die. There are distribution requirements for the beneficiaries, but the distributions are tax-free as well.
This strategy might not be right for everyone. I would advise you to consult with a Certified Financial Planner™ or your tax advisor prior to taking advantage of this potentially large tax savings. One of the best times to complete a Roth conversion is when the value of your Traditional IRA has fallen due to a market correction like we experienced in 2022. If you have questions on this article or would like to schedule a free financial review. Please contact Jay Chapman at 772-320-9658 or email [email protected].

Jay Chapman| CFP®

Jay Chapman| CFP®

Founder

Jay Chapman, CFP®, is founder of Chapman Capital Advisors, as a member of the advisory team. He has over 20 years of experience in the Financial Services industry.

Will Thompson | CFA®, CFP®, AIF®

Will Thompson | CFA®, CFP®, AIF®

Advisor

Will provides the in-house expertise of CFP®, CFA®, and AIF® that is uncommon for boutique firms.


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