In today’s increasingly connected world, protecting your information is arguably more important than ever. Your credit report consists of a slew of personal details, such as your financial activity, credit accounts, loans, and payment history. Because of the importance of your credit report, credit bureaus such as Equifax, Experian, and TransUnion offer credit locks to help protect consumers in the event of identity theft or fraud.

Will a Credit Lock Help?

Although a credit lock will freeze your credit report and score temporarily, there are some potential downsides as well. One of the biggest concerns is that a credit lock applies only to the selected credit bureau. So, if you want to protect your credit fully, you’ll need to place a lock on all three main credit reports.

While the initial lock may be free, some credit bureaus may charge a fee to remove or temporarily lift the lock, depending on their terms and conditions. In addition, each bureau’s service agreements clarify that they don’t guarantee error-free operation or uninterrupted service.

Here’s the scoop on what the three main credit bureaus are currently charging for their credit lock services:

• Equifax’s free credit lock product is called Lock & Alert, and the company says it will be free for life.¹
• TransUnion’s free product, administered under the company’s TrueIdentity brand, offers the lock/unlock option and other features, but they may charge a subscription fee to maintain the lock.²
• Experian bundles its credit lock with other services, including identity theft insurance and alerts about when information changes on your report at all three bureaus. This service costs $24.99/month.³

Any companies mentioned are for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Also, products, services, and prices can change without notice.

Should I Accept a Free Credit Lock?

Whether or not you should accept a free credit lock offer depends on your individual needs and circumstances. A credit lock may be a good choice if you’re concerned about identity theft or fraud. It provides an extra layer of protection that can help prevent unauthorized access to your credit report.

How to Protect Your Credit

In addition to credit locks, there are other things you can do to protect your credit:

• Monitor your credit report regularly for any suspicious activity.
• Sign up for fraud alerts either through your bank or with all 3 credit bureaus, which will notify you if suspicious activity is detected on your credit report.
• Use strong, unique passwords for all your financial accounts and change them regularly.
• Regularly review your bank and credit card statements for any unauthorized transactions.
• Be careful about sharing personal information online or over the phone, and only provide it to trusted sources.

1. Nerdwallet.com, September 6 2022
   2. Equifax.com, 2023
   3. Transunion, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Among the many considerations to ponder when forming your estate strategy, intellectual property (IP) is among the more important and misunderstood. The phrase itself may be somewhat confusing, as people may not know whether it applies to them or their assets. To clear things up, let’s start by defining what exactly is meant by intellectual property.

IP embraces four distinct areas of consideration: patents, trademarks, copyrights, and trade secrets. Let’s look at each of these in a little more detail:

• Patents are any property rights registered through the U.S. Patent and Trademark Office for an original invention, such as a process or machine. When the office deems an invention to be patentable, inventors are awarded a patent that helps to protect their investment. These include design patents (think of the distinct shape of a sports car or Coca-Cola bottle), utility patents (for things such as software, applications, and pharmaceuticals), and patents for new varieties of plants (e.g., a new variety of rose or a fruit tree with unique properties).¹
• Trademarks cover many of the items used to identify a product or service, including service marks and trade dress. Trademark owners may assign their ownership or bequeath the rights. What counts as a trademark? Think of McDonald’s Golden Arches or the symbols associated with Amazon, Netflix, Disney, and other media companies. Trademarks can also extend to colors, fonts, and even specific words associated with a product or service.¹(Companies are mentioned for illustrative purposes only and not as a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.)
• Copyrights as defined by copyright law protect and guard the rights of creators of original works. This does not cover your idea for a mystery novel, but, if you write that novel, you automatically have copyright to your work. A copyright extends to poetry, works of fiction and nonfiction, music, the visual arts, podcasts, and most tangible works of expression. Creators hold what is called the original work of authorship, which entitles them to the copyright, and they have the option to register it with the U.S. Copyright Office. While registration is not required, it can strengthen the author’s rights. Copyright assets can be transferred under an estate strategy, but the protection doesn’t last forever (see below).^1,2
• Trade secrets belong to a company and may be defined as confidential business information that provides a competitive edge; this nonpublic knowledge has monetary value and provides information. You can probably think of a few famous trade secrets, such as the formula for Coca-Cola or Colonel Sanders’ eleven herbs and spices for KFC. The company that owns a trade secret must take steps to maintain it, because it’s no longer protected once it becomes publicly known. Unlike copyrights, trade secrets can be tangible or intangible. For programmers, for instance, the biggest secret in the tech business is probably Google’s search algorithm. If you own a company, your trade secrets will need to be factored into your estate strategy. You can require beneficiaries to sign confidentiality agreements and make provisions for the continued preservation of trade secrets.¹(It bears repeating that the mention of any company is for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of its securities.)

With all that in mind, it’s clear that IP represents a considerable amount of work on the part of you or the company that you run. For that reason, it’s important to incorporate it into your estate strategy in a way that continues to create value and meet your personal expectations.

IP can be one of the more valuable assets in an estate, but it can also be difficult to value and manage. Your estate professionals should take an inventory of IP assets and consider having IP counsel assess their scope. It’s also important to consider creators’ personal preferences for the ongoing treatment of their IP to ensure it’s managed according to their wishes. For instance, they might not want a song they wrote to be used to sell products.

Before including IP in an estate strategy, it’s important to confirm ownership, as the original inventor or creator may not be the sole owner of the rights to the invention or creative work. Joint inventors or creators may have agreed on various percentages of ownership. Additionally, the IP may have been assigned to another person or entity, transferring some or all rights. Employment agreements should also be reviewed to determine which rights can be passed on to beneficiaries.³

The value of IP also depends on the remaining life of the asset. Patents have a fixed term of either twenty years (for utility patents) or fourteen to fifteen years (for design patents). Copyright protection lasts for the author’s lifetime plus seventy years, but, for older copyrights, there is a different cutoff. In 2024, all works from 1928 and earlier entered the public domain. Trademarks and trade secrets can last indefinitely if they continue to be used or have commercial value.³ Keep in mind that IP rules change constantly, and there is no guarantee that they will remain the same in the years ahead.

While the value of IP may be in flux, certain benchmarks can be considered. Past licensing agreements can provide insight into the value of the IP as well as whether the rights granted were exclusive or nonexclusive. Non-exclusive rights allow for potential expansion of licensing opportunities, whereas exclusive rights have a fixed value and timeline. Other valuations for IP assets, such as for sale, taxes, or business transactions, should also be reviewed. The absence of a valuation can negatively impact the value of the IP assets.³

Certain types of IP, such as copyrights, are valued based on potential future revenue. Hiring a professional expert or appraiser in the specific field of the IP can determine present and future value. Descendants of copyright owners can terminate assignments of copyrights to regain bargaining power for creative works. Also, court decisions can render patents invalid, making them financially worthless. It’s important for your estate professionals to consult with IP counsel to assess the risk of invalidation for patent assets.³

Overall, protecting creators’ personal legacies requires careful consideration of their wishes for their IP rights. By including specific instructions in the estate strategy, you can ensure that their work is handled in a way that aligns with their personal preferences and helps preserve their legacy.

When factoring your IP into your estate strategy, you must carefully consider a number of factors to pass this legacy on to your heirs. Working with your financial team, you’ll be able to determine how best to incorporate your IP into that strategy so as to continue providing for your beneficiaries.

1. StFrancisLaw.com, August 22, 2023
   2. Copyright.gov, August 22, 2023
   3. AmericanBar.org, August 22, 2023

 believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Money Draining Food Myths

The road to better health may sometimes involve an extra expense here and there, but you should be careful about wasting money on diet ideas with promises that are more based on myth than fact.

Identified below are four diet strategies that may be ineffective and financially expensive.

Vitamins and Supplements

Americans spend $53 billion a year on vitamins, minerals, and other similar products every year. But is that money well spent? There is no scientific consensus about the efficacy of many supplements, including multivitamins. In fact, supplements often promise more than they can deliver and may even be harmful to your health.^1,2

Some supplements may be of some use to some people, but determining the right supplement for your age, gender, and personal health status is best left to you and your medical professional.

Gluten-Free

The growth of gluten-free products has been explosive. And, in many cases, consumers are paying a higher premium for them. Gluten is a protein found in wheat, rye, and barley, and is more beneficial than detrimental. Gluten is harmful to individuals with celiac disease and can cause gastrointestinal discomfort in individuals with a gluten sensitivity.

However, there is no evidence to suggest that a gluten-free diet helps with other health issues or losing weight. Unless you are one of the minority of Americans who truly need to avoid gluten, you may be wasting money on gluten-free products.³

Detoxing

Body detoxification using special juices has been touted as a way to lose weight, rid the body of “poisons,” and treat or prevent any number of diseases. These expensive juices, however, don’t live up to their billing. Indeed, detoxing may be dangerously unhealthy for some people.⁴

Your body already does a wonderful job of detoxing, thanks to your liver, kidneys, and intestines. Save the money and let your body do what it’s ideally designed to do.

Superfoods

There is no generally accepted definition of a superfood, and it certainly has no meaning among nutrition scientists. Superfood is more marketing than it is science. Before you spend good money on the latest superfood, find out if the claims are backed by any independent qualified research. If there is none, you may want to help your pocketbook and stick with a balanced diet.

If you’re considering a diet, you should consult your physician to determine the best approach for you.

1. Statista.com, 2023
   2. NCCIH.gov, 2023
   3. Harvard T.H. Chan School of Public Health, 2023
   4. WebMD.com, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Preparing your estate can be complicated, and if you’re a part of a blended family, estate decisions can be even more complex and nuanced. Blended families take on many forms but typically consist of couples with children from previous relationships. Here are a few case studies to help illustrate some of the challenges.

Case Study #1: Children From Previous Marriages

Simple wills often are structured to leave all assets to the surviving spouse. If your estate strategy relies on this type of will, you could risk overlooking children from previous marriages. Also, while it’s unsettling to consider, the surviving spouse can end up changing a will without proper measures put in place.¹

When new children join a blended family, estate strategies can get even more complicated. But with a well-structured approach, you can direct how to distribute your assets.

Case Study #2: When One Partner Has Significantly More Assets

While the divorce rate has been trending lower, the number of remarriages (2nd or more marriages) has increased. One person entering into a new marriage may have more assets than their spouse, given that 40% of all new marriages are remarriages for one or both spouses. An estate strategy can help ensure that your assets pass down according to your wishes.²

Case Study #3: Traditional Trusts May Not Be Enough

In blended families, a traditional trust is a good start, but it may not go far enough. One possible solution is to create three trusts (one for each spouse, in addition to a joint trust) to help address different scenarios.³

Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional familiar with the rules and regulations.

Starting the Process

Blended families are pretty common these days. If you’re in that position, it’s important to remember that you can create an estate strategy to address your specific situation. The first step may be an estate document review.

1. Investopedia.com, April 30, 2023
   2. Forbes.com, August 8, 2023
   3. Investopedia.com, March 31, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Does Your Credit Score Affect Your Insurance Rates?

While the vast majority of insurance companies use credit-based insurance scores to help determine the price of insurance, it is banned in the states of Massachusetts, Michigan, Hawaii, and California. Some states only allow it as a factor for property insurance like auto and homeowners insurance. Other states allow it to be used with any type of insurance.¹

Several Factors

Generally, an insurance company will use a credit-based insurance score as just one factor in its underwriting process. Other factors may be considered, depending on the type of insurance. For example, with auto insurance, other factors could include your zip code, the age of the driver, the make, model and age of the car, and the number of miles you drive annually.

The use of credit scores to determine insurance rates is rooted in research that has shown individuals with lower credit scores tend to file more claims.²

You can ask your insurance company if a credit-based insurance score was used to underwrite and rate your policy, and in which risk category you were placed.

If you want to improve your credit-based insurance score, you should consider taking the same steps you would to improve your credit rating: make timely debt payments, clear up past disputes, and keep credit card balances low.

1. Forbes, November 23, 2023
   2. ValuePenguin.com, May 30, 2023

A Decision Not Made Is Still a Decision

Whether through inertia or trepidation, investors who put off important investment decisions might consider the admonition offered by motivational speaker Brian Tracy, “Almost any decision is better than no decision at all.”

This investment inaction is played out in many ways, often silently, invisibly, and with potential consequences to an individual’s future financial security.

Let’s review some of the forms this takes.

Your 401(k) Plan

One of the worst decisions may be the failure to enroll. Not only do non-participants miss out on one way to save for their retirement, but they also forfeit any potential employer-matching contributions. Not participating can be a costly decision. But under the SECURE 2.0 Act, employers will be required to automatically enroll employees in retirement plans starting in 2025.¹

The other way individuals let indecision get the best of them is by not selecting the investments for the contributions they make to the 401(k) plan. When a participant fails to make an investment selection, the plan may have provisions for automatically investing that money. And that investment selection may not be consistent with the individual’s time horizon, risk tolerance, and goals.

In most circumstances, you must begin taking required minimum distributions from your 401(k) or other defined contribution plan in the year you turn 73. Withdrawals from your 401(k) or other defined contribution plans are taxed as ordinary income, and if taken before age 59½, may be subject to a 10 percent federal income tax penalty.

Non-Retirement Plan Investments

For homeowners, “stuff” just seems to accumulate over time. The same may be true for investors. Some buy investments based on articles they have read or based on the recommendations of a family member. Others may have investments held in a previous employer’s 401(k) plan.

Over time, we can end up with a collection of investments that may have no connection to our investment objectives. Because of the dynamics of the markets, an investment that may have once made good sense at one time may no longer be advantageous today.

By not periodically reviewing what we own, which would allow us to cull inappropriate investments – or even determine if the portfolio reflects our current investment objectives – we are making a default decision to own investments that may be inappropriate.

Whatever your situation, your retirement investments require careful attention and may benefit from deliberate, thoughtful decision-making. Your retired self will be grateful that you invested the time … today.

1. Investopedia.com, January 6, 2023. The auto-enroll feature does not apply to companies with 10 or fewer employees. Also, new companies in business for less than three years are exempt from the rule.

AI Tools Changing Retiree Entrepreneurship

Artificial intelligence (AI) tools have become a game changer in various industries, and they are also proving incredibly useful for retirees looking to start consulting or a small business venture. These tools can simplify tasks, streamline processes, and help retirees navigate the world of entrepreneurship more efficiently.^1,2,3

One of the biggest challenges retirees may face when starting a business is writing tasks. Writing can be difficult and tedious for some, but AI tools can help alleviate this burden. AI-powered writing assistants can generate content, proofread, and even suggest improvements. These tools use advanced algorithms to analyze text and offer better sentence structure, grammar, and vocabulary. Retirees can rely on these tools to produce high-quality written content without spending hours perfecting it themselves.

Another area where AI tools can significantly assist retirees is budgeting and bookkeeping. Managing finances can be overwhelming, especially for those unfamiliar with accounting principles. AI-powered tools can automate budgeting processes, track expenses, and generate financial reports. They can also provide real-time insights into cash flow and identify potential cost-saving opportunities. By utilizing these tools, retirees can ensure that their financials are in order and that they can make informed decisions regarding their business.^1,2,3

Furthermore, the constant development of new AI tools means that retirees should keep an eye on emerging technologies. Entrepreneurs can now access tools that were previously only available to large corporations. For example, AI chatbots can handle customer inquiries, reducing the need for additional customer service staff. AI-powered marketing tools can analyze data and create targeted advertising campaigns. These advancements in AI technology enable retirees to streamline their operations, save costs, and potentially compete with larger businesses.

Right now, AI tools exist to assist you with the following tasks:

• Book meetings
• AI image generation
• Voice generation
• Text-to-speech conversion
• Creating videos with lip-syncing AI video technology
• Generate voice-overs
• Analyzing and improving grammar usage
• Offering rewrite suggestions for clarity, conciseness, and readability
• Colorize black-and-white photographs
• Enhance photo quality
• Transcribe live meetings or audio files
• Automate data collection from websites
• Finish an article of 1,500 words in just over 15 minutes
• Integrate with third-party platforms to enhance forms and workflows
• Converting text into natural-sounding speech
• Identify multiple languages and convert scanned printed text to audio
• Conduct keyword research

Retirees must stay up-to-date with the latest AI tools that can benefit their businesses. Regularly exploring new tools and technologies can help retirees discover innovative ways to improve their productivity, automate tasks, and expand their capabilities. Retirees can stay ahead of the curve and leverage AI tools to their advantage by keeping a finger on the pulse of what’s coming.

Artificial Intelligence tools offer numerous benefits for retirees entering consulting or starting a small business. These tools can simplify writing tasks, assist with budgeting and bookkeeping, and provide opportunities to automate tasks that typically require additional staff. With new tools constantly being developed, retirees should embrace the potential of AI and stay informed about the latest advancements to optimize their business operations. By harnessing the power of AI, retirees can enhance their productivity, save time, and make their business endeavors more successful.

1. TRO, April 19, 2023
2. Unite.ai, July 14, 2023
3. Clickup.com, June 21, 2023

Buying vs. Leasing a Car

Some people approach buying a car like they approach marriage, “’til death do us part.” Others prefer to keep their options open, trading in every few years for the latest make and model, the most cutting-edge technology, or the highest horsepower. Whichever describes you best, we all face a similar decision when it comes to acquiring a car: finance, lease, or pay cash.

When shopping for new vehicles, about one-quarter of consumers choose to lease, while the majority choose to finance. From an investment perspective, which choice is best? That depends on your lifestyle, cash flow, and personal preferences.¹

For many, paying cash for a car is the simplest way to get one. When you drive off the lot, you own the vehicle outright and are free to do whatever you want with it. You face no penalties or mileage restrictions, and you have no monthly payments. However, you have paid cash for a vehicle that is expected to depreciate over time.

Financing a new car requires a smaller initial outlay of money, usually 20% or more of the vehicle’s value, in the form of a down payment. When you drive off the lot, the bank owns the car, not you. As with most loans, you make monthly payments of principal and interest with the promise of eventual ownership. The amount of your payment depends on a variety of factors, including the value of the car, the length of the loan, and the interest rate offered by the lender. Car dealers sometimes will offer “no money down” or low annual percentage rate loans, which can make financing more manageable.²

If you like to have a new car every few years, leasing is an approach to consider. Leasing a car is like renting an apartment. You pay a monthly fee to use the car for a specific amount of time, usually three to four years. Monthly payments are typically lower than when you finance since you are paying for the depreciation on the car while you drive it. In certain situations, lease payments may also have tax considerations. However, there are caveats to leasing. For one, a lease typically stipulates the number of miles you are permitted to drive during the course of the lease. At the end of your lease, you may face penalties if you have exceeded the total number of miles in the contract.^3,4

Whatever your relationship with your car, it may eventually come time for a new one. Familiarize yourself with your options. You may find that changing your strategy makes sense in light of your lifestyle or financial situation.

1. Experian.com, June 1, 2023
   2. Investopedia.com, January 9, 2023
   3. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
   4. Bankrate.com, June 1, 2023