What I’ve Been Up To

This Week In Your Wallet: How To Protect Your Internet Of Things

Last week, my team was invited to a lunch to learn how to protect ourselves from being hacked through the many devices that make up the Internet of Things — baby monitors, DVRs, anything in fact connected to WiFi. We figured we’d write it up in the next few weeks. But given what happened last Friday, when Twitter, PayPal, Spotify, Netflix, The New York Times and The Wall Street Journal, among others, were involved in a widespread hack — through hundreds of thousands of Internet-connected things like closed-circuit TV cameras, routers, and, yes, DVRs — we decided sooner was better.

The Internet of Things is proliferating almost faster than consumers are learning the terminology. Smart thermostats, refrigerators, toasters and even toothbrushes are available for purchase. Unfortunately, as our reporter Hayden Field learned from Jerry Irvine, CIO of Prescient Solutions, at a home hacker lab hosted by Hartford Steam Boiler, many of these gizmos aren’t very secure. Here’s what you can do to protect yourself.

• Separate your normal WiFi network from your Internet of Things WiFi network. Virtual LAN (or VLAN) is a way to create two separate WiFi networks from the same machine or router, and since they’re separate networks, if hackers gain access to one, they don’t have access to everything. Then, a virtual private network (VPN) creates a sort of encrypted communication tunnel between your PC and your Internet of Things. If you’re not sure how to do this, the “geek squad” from a local IT store like Best Buy or hhgregg can come and do it for you for about $75. Just tell them you’d like a virtual LAN between your two networks and a VPN.
• Don’t use public WiFi. Ever. If you absolutely must use public WiFi and there’s no avoiding it, you can pay for a subscription to a VPN — a secure connection from your device through another provider. Favorites from PC Magazine include IPVanish VPN, which bills at $62.31 per year, andAnchorFree Hotspot Shield Elite, which costs $29.95 per year and has a free version.
• Don’t broadcast the name of your wireless network. You can select to “hide” your WiFi network’s name in your settings. This way, people can only access your network (and know it’s there) if they type in the name and the password. Be sure to change the default username and password if you haven’t already.
• Check your insurance policies closely. Theft is usually covered, but restoring systems compromised in an attack (smart refrigerator, camera systems, etc.) usually isn’t. Many insurance companies don’t offer cyber insurance because of the frequency and steep costs of recent hacks, but it’s never a bad idea to call and check.

The Cost Of A Break

Moving on. If you’re planning on taking a career break anytime in the near future, it could cost you — wait for it — up to $1.3 million, according to recent research by Financial Finesse Inc. About 40 percent of women (and 10 percent of men) take extended time off to care for children or parents, pursue a passion or find a new direction for their career. The earlier the break in a career, the more you’ll have to save for retirement to make up for it (since money saved sooner has more time to grow), according to Liz Davidson — who recently appeared on my HerMoney podcast — and The Wall Street Journal. Example: A woman who takes 10 years off early in her career must save 25 percent of annual pay over the remaining 30 years of her career to reach recommended retirement savings, according to the findings. It’s something to keep in mind when you’re considering a career break — and another reason to save as much as you can right now.

Farewell, Unknown Fees

Here’s one way to make up for some of that lost cash: Watch your investment fees. A median-income couple, both of whom work, may pay nearly $155,000 in investment fees over 40 years, according to NerdWallet and public policy organization Demos. That’s based on average contribution rates, 401(k) fees and plan costs — and it could be close to one-third of total retirement savings returns.  How can you cut those costs? NerdWallet suggests:

• If you don’t trade frequently, research your fund’s annual inactivity fees and maintenance costs (which can range from $50 to $200 combined). If you see that type of fee adding up in your case, it might be time to change funds. (You can compare funds’ fees and expenses using FINRA’s fund analyzer tool or Morningstar.com.)
• Check your 401(k) plan’s “summary plan description” or email HR to find out if you or your company foots the bill for its administrative fees. If the fee is high, invest enough to max out your matching dollars, and consider putting the rest of your savings in an IRA.
• Do you have a fee-only financial planner? It’s important to know whether the fee is charged per hour, by task, as a percentage of the assets the planner manages for you or a combination. NAPFA has a list of tough questions to ask your financial advisor — pay close attention to the “compensation” section.

Airfare Hack

Finally, here’s a hack of a different kind: The kind that saves you money. Just in time for the holidays, Google Flights has a new tool that uses historical pricing data to give you automatic notifications if prices are expected to increase for flights, routes and itineraries you’re interested in. It’ll let you know when prices will rise and if you could get a better deal by being more flexible on the days you’re willing to travel or your choice of airports.

Have a great week,

Jean