Business, Careers, & Money Articles

Article / Updated 03-24-2023

As a cyber threat intelligence business, you continually face the challenge of reaching potential clients in today’s highly competitive landscape. In this article, we’ll discuss: The marketing challenges cybersecurity companies face Why a B2B marketing strategy is critical Why content marketing works so well The cyber threat intelligence industry’s continued expansion Market analysts report that in 2022, the size of the global cyber threat intelligence market was about $4.24 billion (USD). The industry is projected to grow to approximately $18 billion by 2030, according to Fortune Business Insights. This growth is great news, but it also means stiffer competition. Your cyber threat intelligence business needs to find effective ways of reaching potential customers to show what your company can do for them and why it stands out among the competition. B2B marketing in the cybersecurity industry is complex, yet crucial As technology continues to evolve and new products and services emerge, the problems and solutions are more complicated than ever. At the same time, buyers of cyber threat intelligence services are doing more research and taking longer to make decisions on their spending. So, how do you spotlight what your company can do and how it shines brighter than your competition? The best way is through engaging, customized, content marketing. Reaching your audience with custom content Content marketing involves producing and distributing high-quality, educational content that your audience finds valuable and interesting. This can include blogs on your website, videos, podcasts, white papers, books and e-books, as well as email marketing campaigns and regular social media posts. These strategies help establish your company as an authority, get the attention of potential clients, and strengthen connections with your customers. Why does content marketing work for cyber threat intelligence businesses? More than ever before, companies are seeking more knowledge about the best ways to handle their cyber threat intelligence needs and decisions. Educational content written in a straightforward and no-nonsense way answers their questions, builds brand awareness, and fosters confidence in your industry experience. Dummies Custom Solutions: Great Value for Boosted Recognition Social media, blogs, and email marketing campaigns are important tools to stay on top of, but if you’re looking for an additional way to distinguish yourself in today’s crowded marketplace, consider Dummies Custom Solutions, a Wiley offering. You know Dummies — everybody does. People around the world turn to Dummies books and e-books when they want Learning Made Easy. We’ve been around a long time, and our brand awareness and book sales continue to grow. That’s because with Dummies, people trust they will get straightforward, accurate information presented in an easy-to-understand way. Working with the Dummies Custom Solutions editorial team, you get a fully customized Dummies book for your company or product that you can distribute in a variety of ways, including: Sign-ups on your website Webinar attendance Trade shows and other events Email marketing campaigns Dummies Custom Solutions distinguishes your business among the noise in the marketplace with something unique — increased exposure through the Dummies network of properties and a book/e-book that helps you: Boost awareness of your company or product Nurture relationships with current clients Establish your company as an authority/expert/thought leader Generate leads We help you make that all-important connection to your audience in ways that build confidence in your brand and deliver results for you. What’s more, Dummies is a brand of Wiley, a multinational publisher and global leader in research and education. You can boost your sales, leads, and recognition as an authority by co-branding with Dummies and Wiley. a.drops-article-callout.callout-mobile{display:none}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic{padding:35px 0 40px 0;margin-bottom:35px;border:0;border-bottom:1px solid #d8d8d8;background:#fff;width:100%}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic:focus-visible{outline:none}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic img{margin-bottom:0}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe]:after{content:"";display:block;margin:40px 0 35px}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout{background:none;border:none;padding:0}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout img{max-width:100%;height:auto}@media only screen and (max-width:1023px){[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic{padding:32px 0 30px 0;margin-bottom:28px}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe]{padding:0!important}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe]:after{margin:32px 24px 27px;border-color:#d8d8d8}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout{background-color:#f2f2f2;width:100%}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout img{width:66.7%}}@media only screen and (max-width:767px){[data-v-d27f2bfe] a.drops-article-callout.callout-desktop{display:none}[data-v-d27f2bfe] a.drops-article-callout.callout-mobile{display:block}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic{background:#ffd200;padding:0;margin:22px 0 60px;position:relative}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic:after{display:block;border-bottom:1px solid #d8d8d8;position:absolute;padding-bottom:35px;width:100%;content:""}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout{padding:0 16px}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout.callout-mobile{width:100%}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout.callout-mobile img{width:414px}} Case Study: Thron Key objectives: Increase awareness of Content Intelligence and the THRON brand, thanks to the proven authority of the Dummies books Become recognized experts on Content Intelligence, thanks to the easy way to explain difficult things that characterizes the Dummies books Find new companies interested in our Intelligent DAM How were the assets used? Free e-book to download from our websites to inform and develop people on CI Free promotional materials for events to widen the audience and make them aware of the topic Gift for our clients and THRON employees to strengthen engagement What results did you see? 8,000 e-books downloaded 750 print books given out How have your customers reacted to the book and what feedback have they shared with you? The book was really welcomed. It helped the customers to improve their usage of the software; on the other hand, it speeded up the onboarding process of new clients. Some of them even chose Content Intelligence For Dummies as their summer reading! “The proven experience of Dummies was a great lever for us to spread the voice about an increasing strategic topic, like Content Intelligence.” –Nicola Meneghello, founder and CEO of THRON, author of Content Intelligence For Dummies

Article / Updated 03-24-2023

The global hybrid cloud computing market size was valued at $85 billion in 2021 (USD), and it’s expected to reach $262 billion by 2027, according to market analysts. As the industry grows, companies seeking hybrid cloud solutions will find expanded services to choose from, which makes marketing your hybrid cloud services business more important than ever. You need to reach potential clients to show what you can do for them and why your business stands out among the competition. The surefire way to do this is through high-quality, engaging content. Reaching your audience with custom content Content marketing involves producing and distributing engaging, educational content that your audience finds valuable and interesting. This can include blogs on your website, videos, podcasts, white papers, books and e-books, as well as email marketing campaigns and regular social media posts. These strategies help establish your hybrid cloud computing business as an authority, get the attention of potential clients, and strengthen connections with your customers. Why does content marketing for hybrid cloud services companies? Educational content written in a straightforward and no-nonsense way allows you to address topics that you know your audience is interested in. It answers their questions, provides insight into your firm’s core values, and is an excellent way to establish your expertise. Dummies Custom Solutions: Great Value for Boosted Recognition Social media, blogs, and email marketing campaigns are important tools to stay on top of, but if you’re looking for a truly unique to stand out in today’s crowded marketplace, consider Dummies Custom Solutions, a Wiley offering. You know Dummies — everybody does. People around the world turn to Dummies books and e-books when they want Learning Made Easy. We’ve been around a long time, and our brand awareness and book sales just continue to grow. That’s because with Dummies, people trust they will get straightforward, accurate information presented in an easy-to-understand way. Working with the Dummies Custom Solutions editorial team, you get a fully customized Dummies book for your company or product that you can distribute in a variety of ways, including: Sign-ups on your website Webinar attendance Trade shows and other events Email marketing campaigns Dummies Custom Solutions distinguishes your business among the noise in the marketplace with something unique — increased exposure through the Dummies network of properties, a book, and other materials that help you: Boost awareness of your company or product Nurture relationships with current clients Establish your company as an authority/expert/thought leader Generate leads We help you make that all-important connection to your audience in ways that build confidence in your brand and deliver results for you. What’s more, Dummies is a brand of Wiley, a multinational publisher and global leader in research and education. You can boost your sales, leads, and recognition as an authority by co-branding with Dummies and Wiley. a.drops-article-callout.callout-mobile{display:none}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic{padding:35px 0 40px 0;margin-bottom:35px;border:0;border-bottom:1px solid #d8d8d8;background:#fff;width:100%}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic:focus-visible{outline:none}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic img{margin-bottom:0}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe]:after{content:"";display:block;margin:40px 0 35px}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout{background:none;border:none;padding:0}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout img{max-width:100%;height:auto}@media only screen and (max-width:1023px){[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic{padding:32px 0 30px 0;margin-bottom:28px}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe]{padding:0!important}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe]:after{margin:32px 24px 27px;border-color:#d8d8d8}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout{background-color:#f2f2f2;width:100%}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout img{width:66.7%}}@media only screen and (max-width:767px){[data-v-d27f2bfe] a.drops-article-callout.callout-desktop{display:none}[data-v-d27f2bfe] a.drops-article-callout.callout-mobile{display:block}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic{background:#ffd200;padding:0;margin:22px 0 60px;position:relative}[data-v-d27f2bfe] a.drops-article-callout.drops-callout-generic:after{display:block;border-bottom:1px solid #d8d8d8;position:absolute;padding-bottom:35px;width:100%;content:""}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout{padding:0 16px}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout.callout-mobile{width:100%}.drops-callout-col.has-drops-callouts[data-v-d27f2bfe] a.drops-article-callout.callout-mobile img{width:414px}} Case Study: Thron Key objectives: Increase awareness of Content Intelligence and the THRON brand, thanks to the proven authority of the Dummies books Become recognized experts on Content Intelligence, thanks to the easy way to explain difficult things that characterizes the Dummies books Find new companies interested in our Intelligent DAM How were the assets used? Free e-book to download from our websites to inform and develop people on CI Free promotional materials for events to widen the audience and make them aware of the topic Gift for our clients and THRON employees to strengthen engagement What results did you see? 8,000 e-books downloaded 750 print books given out How have your customers reacted to the book and what feedback have they shared with you? The book was really welcomed. It helped the customers to improve their usage of the software; on the other hand, it speeded up the onboarding process of new clients. Some of them even chose Content Intelligence For Dummies as their summer reading! “The proven experience of Dummies was a great lever for us to spread the voice about an increasing strategic topic, like Content Intelligence.” –Nicola Meneghello, founder and CEO of THRON, author of Content Intelligence For Dummies

Cheat Sheet / Updated 03-22-2023

Let’s face it. Although the term diversity, equity, and inclusion (DEI) may be common knowledge, it’s not commonly understood. Moreover, as the workforce continues to be redefined by demographic shifts, this adds additional layers of complexities and responsibilities for leaders. You already have a lot on your plate, and with DEI becoming a greater focus for many companies, it can be daunting to be expected to know all that you should in demonstrating new behaviors and practices and making decisions. The following sections provide a quick reference to give you food for thought, best practices, and strategies on some key DEI considerations, as well as guidance on how to perform an aspect of DEI effectively.

Article / Updated 03-22-2023

Once you have built a direct sales team and a large list of customers, relocating can be very challenging. You are dealing with a lot of emotions and the feeling that you have to start over. The key is to stay positive and look at it as a new opportunity in a different area. You actually have the opportunity to expand your business. But no matter what, relocating can be difficult. So you will need some reassuring to happen: Reassure your team. An important first step you will want to take when you decide to relocate is to reassure your team that you will still be there for them and will not abandon them. Let them know everything is going to be fine and put in place some concrete systems for staying in contact. The best thing you can do is find someone who is either a leader or close to promoting and give them some ownership of that area. Train them on what it means to be a leader and instruct them on how to handle your monthly meetings. A lot of times when someone is suddenly given this responsibility, they rise to the occasion and become the leader you always knew they could be. Make sure you choose wisely and talk with them so that everyone on your team is clear of the change and expectations. Phone and video conferencing — for example, Skype — are good ways to stay in touch with your team. If you don't have one already, creating a Facebook Group for everyone in your downline is something you will want to start. Posting training tips, news, and recognition in your Facebook Group will build confidence in your team that you have not abandoned them or have lost interest. Reassure yourself. Some people go through a feeling of depression, and have a tendency to feel like they don't even know where to begin. This is and can be daunting, so first things first. Take it in small steps. Reassure yourself that you can continue to grow your team back home and expand your business in this new area. Try to set simple daily goals, like meeting one new person per day or making five phone calls a day. Don't feel like you have to build a new business in a new location overnight. Also, depending on the level of leadership you are at and the size of your team, you may have been more in the leadership or managing mindset — meaning less personal business. Pretend you're new. Perhaps the easiest way to start over is to start from the beginning. This can be challenging to wrap your head around, but acting as if you are a new representative is the easiest way to start your business in a new location. Pretend you are a new representative and continue to re-promote yourself through the ranks of your company. Aside from needing to do it because of your relocation, this exercise can challenge you and get you excited about your business again. This time around, you will find yourself achieving promotions much faster than you did when you actually started your business. Provide excellent customer care to existing clients. With the Internet and social media, running a business far away from your clients is very doable. And not only doable, but can still be very successful. The key is to maintain your relationships with your customers through phone, email and social media. Continue to service them as you would in your previous local area and they will order from you again and again. And don't forget to ask your existing clients if they know anyone in the area you are moving to who would be interested in your product or service.

Article / Updated 03-22-2023

One thing you need to learn quickly in the direct sales business — in any business, for that matter — is that people are going to tell you no. There are people who will not like or want your product. They won't want to book a party, and they won't think direct sales is for them. And that's okay. You can't let them bring you down, because getting a no actually means you are closer to getting a yes. When someone tells you no, remind yourself that they aren't saying no to you because they don't like you as a person. They are saying no to the experience or to the product, maybe even because they don't understand it. Sometimes people are so fearful they're going to get a no that it prevents them from getting a yes. The truth is, to get a yes, you need to get a number of no's. If you ask ten people and one says yes, that means nine say no. So, when you get the no, be excited about it — because you know that a yes is just around the corner! Many tend to take rejection personally and let it affect the way they think about their business. The first few times you hear no from your friends, family, or coworkers, or if no one shows up to your launch party, you may want to abandon your dreams. You will want to lose your positive attitude. You will start convincing yourself of things like these: Well, I really just wanted the products in the kit anyway. I guess it wasn't meant to be. I'm actually too busy with my other job. I've earned back the cost of the kit, so it's no big deal. In fact, many people talk themselves out of the business before it even starts. This is why you need to remain positive and committed to your goal. To get the results you want your for business, you have to stay focused, give your business the time and attention it deserves, and don't let the no's bring you down. As with any new job, there are going to be times when you feel uncomfortable and unsure, especially at the beginning. But as long as you remain positive about your business — even through the no's — you will find yourself attracting people you want.

Article / Updated 03-22-2023

Filling out a check may seem completely foreign to you if, like most people, you use an ATM card, check card, or debit card with a security pin to pay your bills. Despite the convenience of online bill paying and the conveniences of modern banking, most places still accept paper checks today, and you probably need to know how to write (and read or interpret) checks. Simply follow these easy steps to fill out a check correctly the first time, every time. Clearly write the name of the recipient in the "Pay to" or "Pay to the order of" space. Fill in the date in the "Date" space provided. Fill out the amount you wish to write the check in the "$" box and "Amount" line provided. In the "Memo" space, indicate why the check is being written. Sign the check so it is valid and cashable. All checks have the same information on them so that banks know what to do with them when they cash them. You will find preprinted information or fields to supply the following basic information on all paper checks: Account holder Recipient Date Amount Memo Signatures Account, routing, and check numbers Checking account holder The account holder information is usually preprinted in the top left corner of the check. If it's your checking account, this information will be your name, address, and phone number. If you are cashing the check, the account holder info will be of the person or business that issued you the check. If you recently opened a new bank account, often they will provide you with temporary checks until the official ones are sent to you. These checks do not have preprinted account holder information and can sometimes be difficult to cash. Recipient information Just below the account holder information is a blank line that you would use to clearly fill in the name of the person or business to whom you are writing the check. Usually labeled as "Pay to" or "Pay to the order of." If the check is meant for you to cash it, your name will be written or typed in this space. You can give your checks more than one recipient. If you put the word "and" between two names, both people will need to sign the check to cash it. If you put the word "or" between the two names, either person can sign and cash the check. Most banks no longer accept checks made out to "Cash" as the recipient due to recent identity theft concerns. Date field on checks An empty date box can usually be found right and slightly above the recipient line. If the check was issued to you, the "Date" box will already be filled in. Checks can be pre-dated, current-dated, or post-dated. No matter what date you select, just make sure the funds were/are available on the date indicated to avoid a returned check for insufficient funds also known as a bounced check. Depending on the bank, insufficient fund fees are exorbitant and can range from $25 up to $40 per returned check; this can add up quickly! Banks often offer bounce protection if you link your checking account with a savings account. Checks that are returned, if several occur, may become part of a check fraud investigation, resulting in possible jail time. Only write checks that you have money in your account to cover. You can keep track of your spending through online statements or by manually filling out the check register in the back of the checkbook. Amount of check All checks have two spaces for the amount. The first amount space is a blank line labeled "Amount." The second space is a box labeled with a dollar sign "$." On the blank line, write out the amount in word format. In the box write the same amount in number format. For example: $2,456.34, Two thousand four hundred fifty-six dollars and thirty-four cents. OR $2,456.34, Two thousand four hundred fifty-six dollars and 34/100. Usually people use the fraction for cents because the space provided for all this writing is never large enough. Memo line on checks Found in the bottom left corner, a blank space is provided labeled "Memo." This space indicates what the check's intentions are. Although most people leave this area blank, it is a good idea to fill in why you are writing the check. If the check is a gift, make sure to indicate it by writing gift in the memo line. Same goes for bill pay. If the money/check is a loan, always indicate that it is a loan. Indicating a loan ensures that the person accepting the money will pay it back and not claim it was a gift. Signature lines on your check Usually one signature line is provided on the bottom right corner of the front of the check and one space is indicated on the back of the check. These are the most important spaces. If no signatures are present, no bank will cash the check. The front of the check must be endorsed by the account holder, and the back of the check must be endorsed by the check recipient. Never endorse a blank check. Signing your name to a blank check is irresponsible; it provides an easy way for criminals to wipe-out your bank account. Checking account and routing numbers The account number links the check to a specific bank account. The routing number is the number assigned to the bank from which the check was issued. Both numbers need to be on the check for the bank to know from where to secure the funds. These numbers are always along the bottom of the check so machines can read them. Sometimes a third set of numbers follows the account and routing numbers. This set of numbers is for the account holder and indicates the check number for easier tracking and bookkeeping purposes. Cashier's checks, money orders, payroll checks, and traveler's checks have all this information. The layout may be a little different form one check to another, but the concept is basically the same. Keep in mind, with nonpersonal checks usually the "Amount" spaces are already filled in for you.

Article / Updated 03-22-2023

Writing a resignation letter really isn’t as hard as it sounds. No matter how you quit your job, or what your reason is for leaving, your exit should be treated like a business transaction. Keeping your resignation and your resignation letter professional will make the leap to your dream career more successful. All resignation letters should be written in block style (no indentations) and should follow these steps: Compose the heading.The heading of your letter will be your first and last name [press Enter/Return], address [press Enter/Return], city, state, zip [press Enter/Return], phone number [press Enter/Return] and date written [press Enter/Return twice]. This heading of the letter is usually right-justified, meaning the text will be found in the top right corner of the document.For example: John Smith 1234 Main Street Chicago, IL 12345 123-456-7890 January 1, 2020 Keep in mind, formal resignation letters are never handwritten. Add the inside address. The inside address is the formal name of your boss/supervisor (Mr., Mrs., Miss, Dr.) [press Enter/Return], the address of your employer [press Enter/Return], and the company phone and fax numbers [press Enter/Return twice]. The inside address is always left-justified, meaning it will be found just above the greeting on the left-hand side of the document. For example, it might look like this: Mr. Smith 1234 Left Street Chicago Il, 12345 987-654-3210 567-000-1234 Next, include the greeting (salutation).The greeting normally begins with the words “Dear” or “To” followed by the full name of your supervisor/boss and ending with a coma [press Enter/Return twice].For example, Dear Mr. John Doe, To Mrs. Jane Doe, Avoid cliché words or phrases such as “To whom it may concern.” Write the body of the letter.The body of the document is where you would explain the details of why you’re leaving. Include information such as: Your intention for leaving: “I hereby submit,” “Please accept,” “It is with great regret…” followed by the words “resignation” and your position or job title. Your expected end date: The end date must be at least two weeks after the date indicated at the top on of the letter. The reason you are leaving: The reason can be personal, or to accept a better opportunity. You might explain how it is time to move or offer a reason for accepting a different job. Gratitude: This part of the letter is positive and explains how you are sad to leave and how the company has benefited you. Thank your employer for the experience and offer to help find your replacement. Add the close (valediction).The close is a complimentary short phrase that closes the resignation letter. Usually the words “Sincerely,” “Thank you,” or “Best regards” are used, ended with a coma [press Enter/Return twice]. Include your signature.The signature area has both your typed name typed and signed in ink at the bottom of the letter, making the final document legal and binding. Be professional! Do not use overly emotional or inappropriate words or statements anywhere in your letter. Letters of resignation go into your personal file. If you leave a negative impression by writing a nasty letter, it may come back to haunt you later. When your letter of resignation is complete, personally deliver it to your supervisor or boss and ask him/her for a letter of recommendation. Remember to be positive. Good luck with your next employment adventure! If you need more help, tons of sample resignation letters can be found online.

Article / Updated 03-22-2023

Copyright © 2020 by AARP. All rights reserved. Something about Social Security stirs the popular imagination. Rumors and phony stories have attached themselves to the program from the start. Sometimes you can identify the grain of truth that sprouts into a tall tale. Other times you can’t. Before Social Security got off the ground in the 1930s, newspapers in the Hearst chain spread the story that people would have to wear dog tags stamped with their Social Security numbers. (The dog tag idea actually was proposed but never approved.) Many people continue to believe that Social Security maintains an individual account with their contributions in it. The reasoning is easy to see, but the story isn’t true. Rumors swirl about the state of Social Security’s finances, hidden meaning in the numbers, and other topics that find fertile ground on the internet and are spread through social media. Unfortunately, myths can be harmful because they undermine public understanding of Social Security and confidence in the program at a time when the nation needs a constructive, fact-based discussion. Myth: Social Security Is a Ponzi Scheme This is a claim made by critics of the program who really are saying that Social Security is inherently unbalanced and doomed to fail. Their charge is based on a superficial comparison of Social Security with a type of fraud associated with Charles Ponzi, a charismatic con artist in the early 20th century. Ponzi’s infamous scheme involved speculation in international postal coupons. He lured his victim investors by promising returns of 50 percent at a time when banks were paying around 5 percent interest. Early investors were paid with money from later investors, a hallmark of Ponzi schemes. Such frauds may work for a little while, but inevitably they collapse. (Just ask Bernie Madoff.) The misleading comparison of Social Security to a Ponzi scheme is based on the fact that Social Security does require one group (workers) to help support another group (retirees and other beneficiaries). This system is sometimes described as a pay-as-you-go system. The Ponzi label falls apart, however, when you think it through. For one thing, Social Security doesn’t rely on a soaring base of contributors, as Ponzi schemes do. Instead, it requires a somewhat predictable relationship between the number of workers and beneficiaries, along with adequate revenues. A lower U.S. birthrate starting in the 1960s and increasing life expectancy that has resulted in an aging of the population are significant causes of Social Security’s expected shortfall. Social Security has other fundamental differences from a Ponzi scheme. Importantly, it’s transparent. Each year, the Social Security Administration (SSA) releases information about its financial state in exhaustive detail, along with projections 75 years into the future, based on different economic assumptions. Scams, by contrast, thrive on secrecy and deception. And unlike a Ponzi scheme, the money not used to pay current benefits has built up a surplus of $2.9 trillion. Another basic difference between Social Security and a Ponzi scheme is in the goals. A crook hatches a Ponzi scheme to get rich at others’ expense. Social Security provides social insurance to protect people. Money goes from one generation to help support another generation. Your tax contributions help support your parents. One day, the contributions of future generations will help support you. Myth: Your Social Security Number Has a Racial Code in It The nine-digit Social Security number has long fascinated people, because it is a unique, personal identifier in a nation that cherishes individuality. One myth is that the number contains a code that identifies the race of the cardholder. According to the myth, the code can be found in the group number, the fourth and fifth digits, in the middle. In one version of the rumor, a person’s race could be determined by whether the fifth digit in the Social Security number is even or odd. (Group numbers range from 01 to 99.) One explanation for this myth is that people have misinterpreted the meaning of the term group number, wrongly assuming that it referred to race. This rumor has caused some people to worry that their Social Security number makes them vulnerable to discrimination by potential employers or others who may spot the racial code in an application. According to the SSA, however, the term group number refers simply to an old system of numerical grouping that traces back to Social Security’s early days, when everyone’s records were stored in paper files. Employees used the two-digit group number to help organize the files. If you want to find possible meaning in your Social Security number, look to the first three digits — the area number. Before 1972, the first three digits were based on the state where the card was issued; after that, they were based on the mailing address on the application. This is no longer true, however. In 2011, the agency began assigning the first three digits randomly, as part of a strategy to protect people from identify theft. Myth: Members of Congress Don’t Pay into the System This myth gets its strength by combining two rich symbols, Social Security and Congress. Variations of the myth include the idea that lawmakers get a special break on Social Security payroll taxes and that they’re allowed to collect benefits at an earlier age than the rest of us. In the past, Congress and the rest of the federal government were covered under the Civil Service Retirement System, which was created years before Social Security. Under a 1983 law, however, all three branches of the federal government were steered into Social Security. As a result, since 1984, members of Congress, the president, the vice president, federal judges, and most political appointees have been required to pay taxes into the Social Security system like everyone else. And the same rules apply to them as apply to you. Vestiges of the old setup endure for some federal employees. Those hired before January 1984 aren’t required to participate in the Social Security system. All federal employees hired since 1984, however, make Social Security payroll tax contributions like everyone else. That includes lawmakers. Myth: Social Security Is Going Broke People have heard so much talk about Social Security’s finances that it’s easy to see why they may think the program is going off the cliff. That’s not the case, however. Social Security can pay full benefits until about 2035 — and it can continue to pay about 80 percent of benefits thereafter, according to the program’s trustees. The gap is caused by the fact that a relatively smaller number of workers will be supporting a relatively higher number of retirees. The large number of Baby Boomers retiring, combined with the smaller number of individuals paying into the system through the payroll tax (because of lower birthrates), has caused Social Security benefits to surpass the amount of payroll taxes coming in. To make up for this shortfall, Social Security will increasingly draw down its trust funds of $2.9 trillion to supplement the revenues that will continue to pour in (primarily through payroll taxes). The funding gap can be closed through a combination of modest tax increases and/or phased-in benefit cuts for future retirees. Although it has been difficult for lawmakers to make a deal, various policy options show that it’s possible. Assertions that Social Security is running out of money erode the confidence of younger people, who will need Social Security one day. Polls have shown, for example, that substantial numbers of future beneficiaries — as high as 80 percent — worry Social Security won’t be there for them when they reach old age. This undue pessimism helps reinforce the next myth. Myth: The Social Security Trust Funds Are Worthless Social Security revenues stream into U.S. Treasury accounts known as the Social Security trust funds. One trust fund pays benefits for retirees and survivors; the other pays benefits for people with disabilities. (The revenues come from the payroll tax and some of the income tax paid by higher-income retirees.) Most of the trust-fund money is used quickly to pay benefits. But a big surplus has developed over the years — about $2.9 trillion. Under the law, Social Security is required to lend the surplus funds to the federal government, which is then obliged to pay the loan back with interest. This lending takes place through investment in special-issue, medium- and long-term Treasury securities that can always be redeemed at face value. This sanctioned lending, by the way, is the reason you may sometimes hear claims that the government “raids” the Social Security trust funds. Those who contend that the trust funds are worthless are really predicting that the federal government won’t make good on that debt — even though the bonds are backed by the full faith and credit of the United States, just like other Treasury bonds held by the public. Investors throughout the world retain confidence in this nation to make good on the debt it owes, as demonstrated by the ongoing demand for U.S. Treasury bonds, even at a time of government deficits and budget battles. In the coming years, Social Security will rely increasingly on income from bond interest and actual bond sales to pay benefits. That means the U.S. government faces a large and growing bill to pay Social Security back for the money it has borrowed over the years. There are no recommendations here on how the government should pay its bills. But if you consider those matters, just remember that Social Security isn’t the cause of the nation’s current deficits. Myth: You’d Be Better Off Investing in Stocks You hear this myth more often during boom times, but for the average person, it’s highly dubious at any time. To be clear: It’s important for people to save as much as they can, and stock investments may be an important element in your savings. But the notion that you’d be better off without Social Security usually doesn’t hold up. For one thing, Social Security and stock investing aren’t substitutes for each other. Unlike stocks, Social Security provides broad protections for you and your loved ones, including benefits for disability, survivors, and dependent family members. These benefits may be payable if tragedy strikes at an early age, before you’ve had the many years needed to build up a nest egg. Also, Social Security shields retirement income from risks that are inherent in the financial markets. Although stock returns may be greater, stocks are more volatile. If a market collapses at the wrong moment, your holdings can be hammered. Social Security, by contrast, provides a guaranteed benefit. If you truly want to save for yourself, it helps to consider how much of a nest egg you need to match the protections you get from Social Security. You could buy an annuity to provide monthly income under certain circumstances. But what would it cost? Suppose you were trying to equal the average Social Security retired worker benefit (about $1,500 a month in 2020). You would need hundreds of thousands of dollars to purchase a survivor annuity that matched the benefit, starting at age 66 and protected for inflation. A higher-paying annuity meant to equal Social Security’s family maximum for top earners (more than $4,500 a month) would cost nearly a million dollars. Annuity price tags vary as interest rates change; also, insurance companies charge different amounts, so you can’t find one lasting dollar figure. Neither of the products described here equals Social Security’s protections. They don’t cover family members while you’re alive, including a spouse or children, nor do they offer child survivor benefits when you die. Could you save half a million bucks? Suppose you had 40 years to build up the nest egg. At a 3 percent rate of return, you’d have to set aside about $6,500 per year. Most people don’t save that much. Many people have nothing left over by the time they pay the monthly bills. Of those who do save, many could set aside more. Also, many people take money out of their nest eggs when needs arise. Unfortunately, such withdrawals can do lasting harm. Saving requires long-term discipline and possibly short-term sacrifice. About one in four adults who have yet to retire report no retirement savings or pension, according to a Federal Reserve study in 2019. While savings do increase with age, millions of older workers lack adequate nest eggs. Imagine how much more insecure your retirement would be if you had to depend completely on yourself to save for retirement. Maybe you could pull it off, but most people are better off with the guarantees of Social Security. Myth: Undocumented Immigrants Make Illegal Social Security Claims Tales that undocumented immigrants are soaking up Social Security benefits pick up steam periodically. As one popular version has it, Congress is about to consider a bill making benefits legal for workers who are in this country without authorization. This notion makes a lot of people angry. It’s also possible that the myth is spread when people stand in line at a Social Security office and make assumptions about others around them. Whatever the cause, the myth isn’t true. Plus, the myth obscures an irony: Undocumented workers actually add revenue to the system through the Social Security taxes that are taken out of their pay, while most never claim benefits. Under the law, undocumented immigrants are prohibited from claiming Social Security, as well as most other federal benefits. (Certain exceptions to this ban are allowed, such as for emergency medical treatment and emergency disaster relief.) In reality, some undocumented workers use fake Social Security numbers to get jobs. Payroll taxes are then deducted from their pay, just as they are from everyone else’s, and credited to the Social Security trust funds. Generally, these workers don’t collect benefits. In fact, SSA estimates that undocumented immigrants contributed $12 billion net — that is, revenue paid into the system over benefits paid out — into the Social Security funds in 2010. Myth: When Social Security Started, People Didn’t Even Live to 65 This observation shows how the “facts” can be misleading. Its underlying point — that Social Security was designed to pay little in benefits because people wouldn’t live long enough to collect them — isn’t true. Back when Social Security was created, life expectancy was shorter; a high rate of infant mortality meant that many people didn’t reach adulthood, and life expectancy at birth was especially low. (In 1930, it was about age 58 for men and 62 for women.) If you survived childhood, though, you could expect to live many more years. Among men who lived to 21, more than half were expected to reach 65. If you reached 65, your life expectancy came to about 78. (Women lived longer than men, as they still do.) Life expectancy at 65 has increased since the 1930s, to be sure, but much less dramatically than life expectancy at birth. The architects of Social Security knew the program would serve many millions of beneficiaries as time passed. They concluded that age 65 fit with public attitudes and could be financed through an affordable level of payroll taxes. The notion that Social Security was designed to cost little because people died early is simply not true. Myth: Congress Keeps Pushing Benefits Higher Than Intended Commentators sometimes assert that, over the years, generous lawmakers have hiked Social Security benefits far beyond the intention of the program’s founders. These heaped-on benefits, the story goes, explain why Social Security faces a future shortfall. It’s true that Congress has enhanced benefits on several occasions since the program’s initial approval in 1935. But such changes were consistent with the intent of Social Security as a social insurance program for all Americans. By the important measure of replacement rates (how much of your pre-retirement income you get back in benefits), Social Security has been stable over the decades. In fact, replacement rates are now declining because of the gradually increasing age for full retirement benefits that Congress approved in 1983. When Social Security first began, benefits were limited to payments to retirees. The intent of the program, however, was to provide meaningful social insurance for certain risks in life and to extend such protections to dependent family members. Family benefits (including for survivors) were added in 1939, followed later by coverage for disabled workers and their dependents. Automatic annual cost-of-living increases took effect in 1975 to replace the ad hoc approach to inflation adjustments that had been followed previously. The fallacy is that these reforms undermined Social Security’s long-term stability. Studies have shown that the addition of survivor and auxiliary benefits was offset to some degree by slower growth in benefits paid directly to workers. The anticipated shortfall reflects the fact that relatively fewer workers (because of a lower birthrate since the 1960s) will be supporting a bigger population of longer-living retirees in the coming years. Myth: Older Folks Are Greedy and Don’t Need All of Their Social Security As some tell it, most older Americans spend their days being pampered in posh retirement villas or country clubs. According to the stereotype, these misers have no concern for young people — they prefer to take advantage of Social Security benefits they don’t need. Talk about myths! Over half of older Americans depend on Social Security for at least 50 percent of their retirement income. The benefits keep more than one-third of older Americans out of poverty, often by a thin margin. Are benefits too generous? The average monthly payment for a retired worker is about $1,500 (as of 2020). That’s about $18,000 a year. Not only do many millions of people struggle with poverty and near poverty, but recent estimates paint a bleaker picture than had previously been thought. A U.S. Census Bureau alternative poverty measure in 2018 found a 13.6 percent poverty rate among Americans age 65 and up. Without income from Social Security, the poverty rate for older Americans would nearly triple — soaring to nearly 40 percent. Such figures make clear what common sense may tell you: A great many older people rely on Social Security to survive. The myth of greedy seniors is further contradicted by the interdependence of generations, which may be growing. An increasing number of older people are helping to support their adult children and grandchildren, and studies have shown a big rise in the number of interdependent, multigenerational families. A U.S. Census survey found that slightly more than 7 million children — nearly 10 percent of all kids — live in families that include a grandparent. Sometimes commentators try to argue that retirees and young people are at odds economically, as if older Americans are grabbing benefits they haven’t earned and don’t deserve. Think of the older people you know personally, people in your own family, and ask yourself: Does that ring true?

Article / Updated 03-22-2023

Copyright © 2020 AARP. Selecting the right time to begin Social Security benefits is a personal matter. Only you know what makes sense for your family. But you should keep in mind some key points when you make this critical choice: Make sure that you know when you qualify for full benefits, but remember, you have broad discretion about when to claim. Refer to the table. Full Retirement Age Based on Year of Birth Year of Birth* Full Retirement Age 1937 or earlier 65 years 1938 65 years and 2 months 1939 65 years and 4 months 1940 65 years and 6 months 1941 65 years and 8 months 1942 65 years and 10 months 1943–1954 66 years 1955 66 years and 2 months 1956 66 years and 4 months 1957 66 years and 6 months 1958 66 years and 8 months 1959 66 years and 10 months 1960 and later 67 years * If you were born on January 1, refer to the previous year. Full retirement age may be slightly different for survivor benefits. Know your benefit. By using the Social Security retirement calculators, you can quickly get an idea of the benefit you’d receive before, at, and after your full retirement age. Each year you wait to collect beyond your full retirement age will add 8 percent to your benefit. Each year you begin collecting before your full retirement age will reduce it between 5 percent and 7 percent. In other words, the earlier you retire, the less Social Security you get each month. For many people, that’s a powerful argument to hold off claiming benefits. Be realistic about your life expectancy. If you don’t like to think about how long you’ll live, get over it. Your life expectancy, and the possibility that you may exceed it, should be factors when you make plans for Social Security and retirement in general. Of course, no one knows how long you’ll live. But there’s plenty to consider: Do people in your family tend to live long? How would you grade your own lifestyle in terms of fitness, exercise, diet, and other personal habits that affect health? How healthy are you? Do you suffer from a chronic condition that is likely to shorten your life? Do you have a lot of stress? If so, do you have ways of managing that stress that make you feel better? Do you lug around a lot of anger and worry? If so, can you do anything about it? Think about all your sources of income and your expenses. Consider your savings, including pensions, 401(k)s, IRAs, and any other investments. Make realistic calculations about how much money you need. Look at several months of statements from your checking account and credit cards to review what you spend on and look for waste, while you’re at it. Ask yourself: Do you have the option to keep on working? Are you physically up to it? Think about your spouse. If you die first, it could determine how much your spouse gets for the rest of his or her life. Consider your spouse’s life expectancy and financial resources. Does he or she have a chance of living for many more years? If so, what are the household finances (beyond Social Security) to support a long life? Does the spouse have health issues that could cost a lot of money in the future? Husbands should bear in mind that wives typically outlast them by several years, because wives are typically a few years younger and because women have a longer life expectancy than men. Is that the case in your marriage? Talk it out if necessary. Couples should discuss this topic together, even though, in many marriages, one person may be the one who makes most of the financial decisions. You also may want to discuss your finances with a financial planner, especially if you’ve built up a nest egg and you have questions about how Social Security income will fit in. Be clear on the trade-offs. You can choose between a smaller amount sooner or a bigger amount later. It often makes sense to talk with a financial advisor, especially if you have investments to help support your lifestyle in retirement. Your decision about when to start retirement benefits will affect your family income for the rest of your life. Experts agree that it is often unwise to claim Social Security retirement benefits as soon as possible (age 62). But that is not always the case. Early claims may make sense for individuals who need the income for necessities and lack other financial resources to pay for them or who do not expect to live much longer. Social Security becomes more important the older you get You can’t make the stock market go up or control whether someone will give you a job. You can’t make your house jump in value if the whole neighborhood is sinking. You can’t go back in time and start an early nest egg if you spent like crazy when you were younger. You can’t make your employer keep a pension plan. And you can’t prevent the cost of living from rising. But you do have some influence over the size of your Social Security benefit, based on when you claim it. This matters for a little-recognized reason: The older you become, the more likely you are to depend on Social Security. The more years pass, the more you need Social Security’s protection against inflation, known as the cost-of-living adjustment. This provision is a big deal (even if the adjustment is small some years) because the effect of inflation over time can be drastic. At a rate of 3 percent inflation, the buying power of unprotected income plunges by half over a 20-year period. Even if you’re fortunate enough to get a private pension, it’s probably not shielded against inflation, and rising prices erode it over time. Other resources can boost your retirement security but are far from a sure thing. Earnings from even part-time work may go a long way. But work may become undesirable or physically difficult in later years. Older Americans have the highest rates of home ownership. But older people still may have mortgages and other debts to consider — their debt levels have actually risen over the years. Social Security benefits compare favorably with many other sources of income, because they’re protected partially from taxation. Most seniors don’t have to pay a penny on their benefits. Even the most affluent pay income taxes on 85 percent of their benefits, not 100 percent. A 2019 report by the Economic Policy Institute found that nearly half of working families have no savings at all. Findings like that help explain why so many people are afraid they’ll last longer than their money does. If their fears are borne out, Social Security will play a critical role in filling the vacuum.

Article / Updated 03-22-2023

Investing in rental real estate that you’re responsible for can be a lot of work. Think about it this way: With rental properties, you have all the headaches of maintaining a property, including finding and dealing with tenants, without the benefits of living in and enjoying the property. Unless you’re extraordinarily interested in and motivated to own investment real estate, start with and perhaps limit yourself to a couple of the much simpler yet still profitable methods discussed here. Find a place to call home During your adult life, you need to put a roof over your head. You may be able to sponge off your folks or some other relative or friend for a number of years to cut costs and save money. If you’re content with this arrangement, you can minimize your housing costs and save more for a down payment and possibly toward other goals. Go for it, if your friend or relative will! But what if neither you nor your loved ones are up for the challenge of cohabitating? For the long term, because you need a place to live, why not own real estate instead of renting it? Real estate is the only investment that you can live in or rent to produce income. You can’t live in a stock, bond, or mutual fund! Unless you expect to move within the next few years or live in an area where owning costs much more than renting, buying a place probably makes good long-term financial sense. In the long term, owning usually costs less than renting, and it allows you to build equity in an asset. Think carefully before converting your home into a rental If you move into another home, turning your current home into a rental property may make sense. After all, it saves you the time and cost of finding a separate rental property. Unfortunately, many people hold on to their current home for the wrong reasons when they buy another. Homeowners often make this mistake when they must sell their homes in a depressed market (such as the one that existed in many areas in the late 2000s). Nobody likes to sell their home for less than they paid for it, so some owners hold on to their homes until prices recover. If you plan to move and want to keep your current home as a long-term investment property, you can. But turning your home into a short-term rental is usually a bad move for the following reasons: You may not want the responsibilities of a landlord, yet you force yourself into the landlord business when you convert your home into a rental. If the home eventually does rebound in value, you owe tax on the profit if your property is a rental when you sell it and you don’t buy another rental property. You can purchase another rental property through a 1031 exchange to defer paying taxes on your profit. Real estate investment trusts Real estate investment trusts (REITs) are entities that generally invest in different types of property, such as shopping centers, apartments, and other rental buildings. For a fee, REIT managers identify and negotiate the purchase of properties that they believe are good investments, and then they manage these properties, including all tenant relations. Thus, REITs are a good way to invest in real estate if you don’t want the hassles and headaches that come with directly owning and managing rental property. Surprisingly, most books and blogs that focus on real estate investing neglect REITs. Why? I’ve come to the conclusion that they overlook these entities for the following reasons: If you invest in real estate through REITs, you don’t need to read a long, complicated book on real estate investment or keep coming back to a blog. Therefore, books often focus on more complicated direct real estate investments (where you buy and own property yourself). Real estate brokers write many of these books. Not surprisingly, the real estate investment strategies touted in these books include and advocate the use of such brokers. You can buy REITs without real estate brokers. Blogs and websites aren’t much better as they are often run by folks selling something else like a high-priced seminar or other direct investment “opportunity.” A certain snobbishness prevails among people who consider themselves to be “serious” real estate investors. These folks thumb their noses at the benefit of REITs in an investment portfolio. One real estate writer/investor went so far as to say that REITs aren’t “real” real estate investments. Please. No, you can’t drive your friends by a REIT to show it off. But those who put their egos aside when making real estate investments are happy that they considered REITs, and have enjoyed annualized gains similar to stocks in general over the decades. You can research and purchase shares in individual REITs, which trade as securities on the major stock exchanges. An even better approach is to buy a mutual fund or exchange-traded fund that invests in a diversified mixture of REITs. In addition to providing you with a diversified, low-hassle real estate investment, REITs offer an additional advantage that traditional rental real estate doesn’t: You can easily invest in REITs through a retirement account (for example, an IRA). As with traditional real estate investments, you can even buy REITs, mutual fund REITs, and exchange-traded fund REITs with borrowed money. You can buy with 50 percent down, called buying on margin, when you purchase such investments through a non-retirement brokerage account.