Today, everyone can be their own investment advisor, but John Joyce, CEO of CRS Technology Consultants, says the biggest risk in DIY investing has little to do with strategy and more to do with security.
Investment advisors and portfolio managers are highly trained financial experts, but they aren’t free.
Now, people try to save money on fees by managing their own 401(k). These providers offer multiple investment options, disclose holdings, historical performance data, and more.
This makes it relatively easy for users to shift holdings from a high-risk tech stock to a conservative bond.
Joyce said every investment is a risk, whether you use a financial advisor or do it yourself. However, digital security is becoming a bigger risk than investment strategy.
Joyce says investment companies have whole IT teams focused on digital security to protect customer data.
DIY investors, though, use their own computer, smartphone, or tablet to control investments, which means your entire retirement savings and financial livelihood could be gone in a flash.
Joyce advises thinking about two things before accessing your online accounts: where you log on and how you log on.
"Do not use public Wi-Fi at Starbucks," he said. "Only use a secure connection at home," Joyce said.
He also emphasized that it should never be as easy as entering your username and password.
"If it’s easy for you to get in, it’s easy for cybercriminals to get in," Joyce said.
To safely access your retirement accounts, Joyce recommends several steps:
2. Install and activate a VPN – this hides your data even if it's exposed
3. Type the provider’s URL rather than searching for it – search results could display an imposter site.
4. Double-check the address bar to make sure it’s secure – https or a lock symbol
5. Use a strong, complex password – not just the minimum requirement of having a combination of letters, a numeral, and a special character
6. Enable multi-factor authentication – text confirmation or facial recognition to confirm identity
You can click here to learn more about upcoming technology and trends through CRS Technology Consultants’ website
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