I’m sure by now you have heard of Equifax’s recent data breach. When faced with situations like this, we like to think about our good friend Carl Richards’ sketch that encourages us to focus on what we can control. With this in mind, we point you toward resources that help protect your data in the post-Equifax-hack world. Also, we’ll share a little backstage information on our own cybersecurity efforts.

What To Do

While there isn’t a magic bullet, below are a few resources we’ve shared with our clients. These resources provide both checklist actions, as well as general information and important questions to consider.

• The Federal Trade Commission (FTC) page is a good start and will likely be kept current over time.
• New York Times “Your Money” columnist Ron Lieber has been covering the beat extensively. Search on “Equifax” and you’ll find his ongoing advice and comments. We like one of his most recent updates from September 21.
• In “Our Thoughts on Security,” Wealthfront provided a helpful overview, including a “What You Can Do For You” list of actions to consider.

As time marches on, the steps you could or should take are likely to evolve. We are staying informed, so keep an eye out for updates in subsequent newsletters.

Here at HIG

While no system is impregnable, we have long been taking strong measures to protect against hackers and identity thieves.

This year, we participated in a 12-week Schwab Cybersecurity Engagement to assess our current readiness, identify room for improvement, and formalize our action plan. Since then, we’ve been upgrading our infrastructure, engaging in ongoing education, and continually implementing checks and updates.

As this wise educator observed in reflecting on the Equifax breach, “Security isn’t a product. It’s a process.” As cybersecurity requirements continuously evolve, so will we. We would be happy to talk with you directly if you would like to learn more about our cybersecurity procedures.

At Hill Investment Group, we love to ask questions – to get to know you upon initial meeting and discover more about you as we go. But what questions should investors be asking? Here are “The 19 Questions to Ask Your Financial Advisor” (or a prospective advisor) according to Jason Zweig of The Wall Street Journal. At the highest level, these 19 questions seek to establish the rhetorical question: Are you paying your advisor to serve YOUR best interests or their own?

“The obligation of those who give investment advice to serve clients, not themselves, is called fiduciary duty. That obligation is far from universal and, in some ways, is in retreat,” says Zweig (emphasis ours).

The challenge, however, is merely asking an advisor if they are a fiduciary may not suffice. Zweig’s queries will help you differentiate fake fiduciary “talk” from a real fiduciary “walk.”

Zweig also provides the answers he feels are most appropriate, while leaving #12 (“What is your investment philosophy?”) curiously blank. We agree wholeheartedly with nearly all of his suggested responses, although there are a couple we would qualify. And of course we have quite a lot to say about that curiously blank one. Here, we’ll simply add the words of Dimensional Fund Advisors’ co-founder Rex Sinquefield, as he describes evidence-based investing: “This investment approach is easy to communicate, is verifiable, and is eminently defensible.”

This and many other great insights are found in Dimensional’s recently published “35 Quotations on a Better Way to Invest.” Want a copy of it, or would you like to know where else we differ on Zweig’s other questions (and why)? Just ask!

Oh, by the way, YES, we are a fiduciary firm – in name and practice.

We were pleased to have Dimensional’s Vice President Apollo Lupescu, PhD at a pair of events we held in Houston and St. Louis. Apollo spoke about the historical context of modern investing, the essence of an evidence-based approach, and the future of our community.

What does history tell us about how the financial future might look? Be on the look-out for a recorded version of Apollo’s St. Louis presentation, which we’ll be sharing soon via our blog/newsletter.

Dimensional Fund Advisors is a hugely important alliance for Hill Investment Group, and yet this is the first event we’ve done with a member of their team conversing directly with HIG’s clients and friends. Despite having a low profile, Dimensional currently manages $518 USD billion across eight countries (as of June 30, 2017). How have they done it? Through sharing ideas that make sense and by creating solutions that reflect their beliefs (and ours).

We also respect Dimensional as a thought leader, regularly publishing content that helps change the way investors think. We like one of their recent pieces, “Lessons for the Next Crisis,” which points out we’re nearing the ten-year anniversary of the beginning of the Great Recession. That’s not exactly an event to celebrate, but it’s important to apply what we learned from it the next time we’re in a bear market, once again feeling like there’s no end in sight. As Dimensional says (and buttresses with evidence-based illustrations):

“Capital markets have rewarded investors over the long term, and having an investment approach you can stick with—especially during tough times—may better prepare you for the next crisis and its aftermath.”

Well said, Dimensional.