What To Fear And Not Fear This Halloween

It’s that time of the year again. The weather is beginning to cool, apples and pumpkin recipes abound, and the kids (and big kids) are all excited for the thrills of Halloween! This year's Halloween may feel different, and on top of that, for some of us, this time of the year can get scary…really scary! Here are 3 things to fear and not to fear this time of the year and beyond:

1-Do not fear the market turmoil. Do fear the power of emotion:

The financial markets are a roller coaster ride of information, emotion, and uncertainty. From politics to crisis and everything in between, there is plenty to keep our heads turning and guess what? All of this is normal.

In fact, it’s part of the process of growth and development. As far as the economy goes, booms and busts have historically happened in about 7-10 year cycles. As the world grows and develops, so do the markets and therein lies the key to facing and defeating these fears and joining the greats in investment success. Here are 3 tips to help you through:

1)     Have sufficient emergency savings. The standard financial planning guidance is 3-6 months of necessary expenses. Some individuals seek to save enough based on how long it takes to replace their income if they were to lose their job. Whichever number or standard you go with, having this safety net will help you get through market turmoil because the money you need is safely set aside in an FDIC-insured account.

2)     Invest according to your time line and your tolerance for risk. First, take a temperature on your tolerance for risk and how your money should be split between stocks, bonds, and cash by talking with your advisor. Money needed in the next 0-3 years could be invested in very safe assets such as cash, CD’s, and high-yield savings accounts, which are all FDIC-insured. Money needed in the next 3-7 years could be invested in higher interest/income type investments like bonds and money needed in 7+ years could be invested in growth-oriented investments like stocks. Now the key is to make this your own and apply an investment process, like this one that fits your investment style.   

3)     When things get scary, remember Steps 1 and 2 and/or contact your trusted financial advisor. Sometimes you just need to get the emotions off of your chest and have someone you can review your goals and investment strategy with. Remember, if you are invested according to your goals and at the appropriate level of risk, then you should feel confident that sticking to your strategy will increase your probability of success! Simple, right? You can do it!

2- Do not fear celebrating Halloween. Do fear busting your budget over it!

1)     Consider costume sharing. Hit up your neighbors on the neighborhood Facebook page (Don’t have one? Create one!) or on an app like Nextdoor.

2)     Get crafty and make your own costume or even better, get creative and make your costume a play on words. For example, one year I taped two large pillows around me, wrapped myself in different color sheets and colored the pillow covers light brown. I was a hero, get it?!! It cost me $5 (for the washable color markers) and the whole family got a chuckle!

3)     Wait to buy your candy until the week of Halloween. Right about this time, the stores are all trying to get rid of their inventory. I get candy for up to 50% off or more. Also, some treats are good for over a year. Consider stocking up for next year and take advantage of the deals!

3- Do not fear using technology. Do fear not being properly protected!

With more and more security breaches making the headlines, let alone the ones that do not, I can’t blame anyone for being fearful of doing anything online. But to let fear overtake you and not take advantage of the amazing technologies that exist to make our lives easier would be time-wasting shame. Here are some ways to secure your technology so that you can keep reaping the benefits with a lot less anxiety and fear:

1)     Invest in a VPN. Whenever you are using your phone or any other device such as a hot spot or when accessing public WiFi, it pays to have a little extra security. A VPN will make your connections more secure by adding layers of encryption to your Internet connectivity, reducing online tracking and keeping most of your browsing private. You can use a VPN service that is economically priced and known for being transparent and trustworthy. Whichever service you choose, just be sure to pick a device that has the aforementioned and comes with end to end encryption, which is WAY more secure.

2)     Buy a webcam cover for your devices. You can do an Internet search for “best webcam covers” and find a wide variety of choices. It doesn’t have to be fancy or expensive. It just has to work. I’m currently using one given to me by a hotel chain that I frequent.

3)     Invest in a password manager. Most people can’t remember the various passwords that are required for all of their online accounts, which is why they tend to just have one or two that they keep using. The problem is if one gets hacked, the hackers could theoretically have access to any accounts with the same password. If this sounds like you, then you are much more prone to a security breach.

Enter the password manager. You pick one password to access the password manager and then you can generate and store all of your passwords. One password to rule them all. Check out a paid service like 1Password or a free one like LastPass Free.

As you can see, there are a lot of things that judging by its cover, can conjure a lot of fear and make us want to hide under the covers or in a secret bunker in Nevada. But don’t fret. As we discussed, there are some great ways to calm the market jitters, come out of Halloween with our faces and pockets smiling, and protect our digital identity. It just takes a little help from our friends (i.e. me, your trusted financial advisor, or a personal financial coach through your financial wellness benefit!) so go ahead and have a happy (and fearless) Halloween!!

Juan Carlos Medina Contributor