Featured entries from our Journal

Details Are Part of Our Difference

Embracing the Evidence at Anheuser-Busch – Mid 1980s

529 Best Practices

David Booth on How to Choose an Advisor

The One Minute Audio Clip You Need to Hear

Category: Education

In Your Cyber-Corner: Are Your Passwords Properly Empowered?

In the good old days, online security used to be more nicety than necessity. For years, I had one 8-digit random password to serve every login need. With developments in hacking technology, the standards for passwords have changed, and a one-size-fits-all password no longer makes the cut. In this piece we’ll challenge our old beliefs about passwords and introduce you to five new powerful password procedures to help you stay secure.

  1. Make it unique. Each of your online accounts should have a unique password. Otherwise, if a cyberthief breaches one account, they’ve effectively breached them all. Don’t make it easy for them.
  1. Stay sane with a password manager. Unless you are a master memorizer, assigning unique passwords to each login is a tall order indeed. Solution: install a top-of-the-line password manager. This handy tool will help you to store, and even generate strong passwords. Here’s an independent review of available providers to get you started.
  1. Lead with length. Remember those 8-digit passwords we talked about? There are random generators out there that will decode 8 characters in a computerized heartbeat. Instead, passwords should be 16 or more characters long.
  1. Words are welcomed. It used to be a no-no to use dictionary words in a password. This is now considered okay, as long as the string meets the 16-character suggestion. Bonus points if you include a sprinkling of numbers, symbols and cases. For example, a semi-legible password like April48+greenGoose12% is probably equally as strong as an entirely random string like F8*tjE#378FpP6Jm#@4.
  1. Change it up, often. Once your password game is strong, it’s best to routinely change them. Quarterly is ideal, and the password manager can help. Schwab conveniently prompts you when it’s time to change theirs, as do many other financial institutions.

How else can we assist you with your cybersecurity? Send me your questions … I’m on patrol!

You Need a Therapist (So Do I)

Matt Hall and Marilyn Wechter, MSW — “Money Talk” in Houston

If money could talk, what would it have to say about you and your family? Would it be a happy participant at your dinner table, or more like an uninvited guest?

Back in 2009, I was incredibly lucky to meet Marilyn Wechter, MSW, a financial therapist and wealth counselor who has dedicated her career to helping families create healthier relationships with money and among themselves. Former colleague Mont Levy introduced the two of us, and I distinctly remember what he said to me then: If there was ever an investment professional who would be comfortable taking advice from a therapist, I was the guy.

Mont was right. Meeting Marilyn was not only one of the most important events in my life, it also has directly influenced our approach here at Hill Investment Group, helping us facilitate many otherwise-challenging financial conversations among families.

Sorry if it seems like I’m gushing, but it’s hard to overstate my enthusiasm for Marilyn’s work. Most recently, we hosted a mid-February client event with her in Houston: “How To Have the Money Talk With Children of Any Age.”

Together, we explored:

  • How can we give generously to our children or others without undermining their self-determination?
  • How can we normalize money discussions, so “wealth” doesn’t feel so otherworldly?
  • What are good, conversation-generating questions to ask intended heirs, so you can better connect the potential wealth with their higher goals?

Marilyn has a way of helping you connect dots. Once the new mental and emotional connections are made, it feels impossible to ever unknow the new story or frame. If I’ve whetted your appetite for more, you may enjoy reading my more extensive description of the impact she’s had on my own life. You’ll find that by picking up a copy of Odds On and turning to page 179.

I’ll close with a teaser excerpt from the book:

I started bringing Marilyn into our office four times a year to speak to Hill Investment Group’s employees. Her insight and guidance helped us take our approach to another level. She’s taught us how to be better listeners and how to pick up emotional cues. … It might sound simple, but it made an incredible difference in how we were connecting with clients. Before we met Marilyn, we didn’t keep tissues around our office. Now, we have a box of tissues on the table for every meeting. We’re not trying to make our clients cry, but we often end up touching on memories from childhood, key relationships in their lives, and their hopes for the future.

Intrigued? Let us know if we can arrange an introduction.

Should You Use Your 529 Plan To Pay K-12 Costs?

Among the many reforms found in the new tax law, one last-minute change allows families to begin using their 529 Plan savings to pay for their children’s K-12 tuition (up to $10,000 per beneficiary, per year). Until now, 529 Plans could only be used to pay for qualified higher education costs.

Since private schooling is expensive, you may be tempted to tap into this new, tax-sheltered funding source as soon as you’re able.

But should you?

The answer is: It depends.

What’s the highest, best use of your 529 plan assets?

The main reason you squirrel away money in a 529 plan is to protect your investments against taxes, and the debilitating effect they have on your end returns. With their tax-preferential treatment, your 529 plan savings are expected to grow bigger and faster than if you held that same money in a taxable account.

Thus it stands to reason, the longer you keep your money invested in a 529 account, the better you’re leveraging its tax-sheltering benefits.

In this context, among the best applications for a 529 plan remains the same as before: to start setting aside money when your kids are in diapers, in anticipation of that bittersweet day they head off to college.

That said, life doesn’t always go as expected. The new K-12 spending allowance may be ideal if you end up with “extra” funds in a 529 plan. For example, what if your firstborn decides to attend an in-state university instead of Harvard? Or what if she earns a full scholarship to her first-choice institution! It may make sense to use up the leftover 529 money on her younger brother’s high school tuition, especially if he already has a fully funded 529 plan of his own.

Where do you live?

There’s an added wrinkle to consider before taking money from a 529 plan for K-12 tuition. As this Forbes article describes, qualified 529 plan withdrawals for K-12 tuition may now be tax- and penalty-free on your Federal tax return (thanks to the 2017 Tax Cuts and Jobs Act). But your state tax laws may differ.

Which brings me back to my initial answer. Should you spend your 529 plan assets on K-12 costs? It depends.

Featured entries from our Journal

Details Are Part of Our Difference

Embracing the Evidence at Anheuser-Busch – Mid 1980s

529 Best Practices

David Booth on How to Choose an Advisor

The One Minute Audio Clip You Need to Hear

Hill Investment Group