If you’re an Oregonian, you’ve probably heard by now about the giant data breach at the Oregon Department of Motor Vehicles. The personal information of approximately 3.5 million Oregonians was stolen by a Russian cyber-extortion gang called CL0P.
The DMV holds information such as first and last name, driver’s license or identification card number, date of birth, address, height, weight, eye color, and the last four digits of Social Security numbers. Photos were not part of the breach, nor was any financial information.
Experts are concerned the data could be used to apply for things such as credit cards, loans, or unemployment benefits. Official notification letters are on the way, but since about 90% of card holders are affected, it’s recommended all state residents should assume they’re one of the victims.(1)
And even if you weren't one of the Oregonians impacted, it’s a good idea to consider the following ways to protect yourself:
1) Request a free copy of your credit report.
Since no financial data was compromised, ODOT is not offering any special assistance. Instead, they are recommending the following (2):
Under federal law, you have the right to receive a free copy of your credit report every 12 months from the three consumer credit reporting companies. A credit report can provide information about those who have received your credit history. You may request a free credit report online at www.annualcreditreport.com or by telephone at 1-877-322-8228.
When you receive your credit report, check for any transactions or accounts that you do not recognize. If you see anything you do not understand, call the telephone number listed on the credit report or visit the Federal Trade Commission’s Web site on identity theft at http://www.consumer.gov/idtheft/. Additionally, you may wish to ask each of the three credit monitoring agencies to freeze your credit files.
2) Place a fraud alert on your credit report.
Fraud alerts make it harder for someone to open a new account in your name as a business must verify your identity first. They’re free, but only last for one year. Contact one of the bureaus and they’re required to tell the other two to place an alert on your account.(3)
3) Freeze your credit report.
A credit freeze prevents any new credit accounts from being opened. It’s free, but you have to contact each of the credit bureaus. You can lift the freeze if you’re applying for new credit, but otherwise it stays in place.
4) Credit monitoring service
Credit monitoring services track activity on your credit reports and alert you to any issues. They’re very convenient but will cost between $7-$40/month.
We certainly wish we had better news, but the best ways to protect yourself will either take time (contacting credit bureaus), or money (hiring a monitoring service). If you have any questions, please give us a call and we’ll do our best to help.
Until next week,
Your Eagle Wealth Team
3 Facts About Capital Gains
When you sell a capital asset, like an investment or a piece of property, the sale can result in a capital gain or loss. The Internal Revenue Service (IRS) defines a capital asset as “almost anything you own for personal use or own as an investment.”
Here are three facts to keep in mind:
- A capital gain or loss is the difference between what you originally paid for the asset (your basis) and the amount you get when you sell an asset.
- The IRS may allow you to deduct capital losses on the sale of an investment or piece of property.
- If your total net capital loss is more than the limit you can deduct, you may be able to carry it over to next year’s tax return.
Check out this capital gains article if you’re interested in diving deeper.
And as always, please call us if you have questions. Between our tax team and financial planning team, we’re always monitoring capital gains and losses for our clients, working to minimize taxes.
*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional. Tip adapted from IRS.gov7
The Week on Wall Street
Stocks climbed last week as reassuring inflation data boosted investor hopes that the rate-hike cycle was nearing an end amid fresh economic data pointing to continued economic resilience.
The Dow Jones Industrial Average rose 1.25%, while the Standard & Poor’s 500 picked up 2.58%. The Nasdaq Composite index gained 3.25% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 2.42%.(5,6,7)
Stock market momentum gathered steam last week, blowing past the 4,300 and 4,400 thresholds in the S&P 500–a remarkable feat considering the time it took to break the 4,200 resistance level.
Optimism was high to begin the week, with expectations that fresh evidence of cooling inflation would provide the Fed room to pause on further rate hikes. The data cooperated as consumer prices rose 4.0% year-over-year (the lowest 12-month number in two years), and producer prices increased 1.1% from a year ago.(8)
The Fed’s “hawkish pause” briefly unsettled investors, but after some reassessment and aided by healthy economic data, stocks rallied before slipping on Friday as the market digested the week’s gains.
More Rate Hikes To Come?
Federal Reserve officials kept rates steady at last week’s Federal Open Market Committee (FOMC) meeting. However, a majority of committee members indicated at least two more quarter-point rate hikes were likely before year-end.(8)
Fed Chair Jerome Powell commented that he saw progress in fighting inflation and that no decision was made regarding any future rate increase, saying that members will assess the economic impact of the cumulative rate hikes before the July 25-26 FOMC meeting.(9)
The Fed raised its 2023 economic growth forecast to 1%, up from its March forecast of 0.4%. The Fed also lowered its unemployment projection to 4.1% from its earlier estimate of 4.5%.(10)
THE WEEK AHEAD
KEY ECONOMIC DATA
Tuesday: Housing Starts
Thursday: Existing Home Sales, Index of Leading Economic Indicators, Jobless Claims
Friday: Purchasing Managers' Index (PMI) Composite
Source: Econoday, June 16, 2023
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
COMPANIES REPORTING EARNINGS
Tuesday: FedEx Corporation (FDX)
Friday: Darden Restaurants, Inc. (DRI)
Source: Zacks, June 16, 2023
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance
(4) IRS.gov, January 26, 2023
(5)The Wall Street Journal, June 16, 2023.
(6) The Wall Street Journal, June 16, 2023.
(7) The Wall Street Journal, June 16, 2023.
(8) AP News, June 14, 2023.
(9) CNBC, June 14, 2023.
(10) CNBC, June 14, 2023.
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Please consult your financial professional for additional information.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. 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 is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Copyright 2023 FMG Suite.