Identity theft tips + crypto wallets, retirement & more

Are you a crypto investor??

The recent surge in bitcoin prices is sending more people to crypto wallet recovery firms, as retail investors l ocked out of their digital vaults make frantic calls to regain access to their accounts.

How does something like this even happen? Cryptocurrencies exist on a decentralized digital ledger known as blockchain, and investors may opt to access their holdings either through a locally stored software wallet or a hardware wallet, to avoid risks related to owning crypto with an exchange, as in the case of the former FTX .

To avoid finding yourself without access to your crypto holdings, NerdWallet reviewed storage options.?

Here is what they found .

What does Mother’s Day mean to you?

For all the moms who read this newsletter, I hope you had a fantastic Mother’s Day. Mine included oysters, cocktails, puppies and peonies.

When financial literacy expert Mellody Hobson speaks about her mom , she tells a remarkable story about overcoming money struggles to achieve her dreams.

Hobson, 55, may be best known as a money adviser on TV, but she is also a force in corporate boardrooms, joining Forbes' list of the World's 100 Most Powerful Women in 2020. She is president and co-CEO of money managers Ariel Investments, chairwoman of Starbucks, and a director of banking giant JPMorgan Chase.

She is also the wife of "Star Wars" creator George Lucas.

Hobson's story begins in 1970s Chicago. Her single, no-nonsense mom Dorothy Ashley scrambled to raise six kids in the city's tough South Side by renovating apartments and condos, with little Mellody in tow.

Sometimes those ventures worked. Often they did not, piling severe financial trauma onto Hobson, the youngest kid.?

Here is how those experiences shaped Hobson, who is also a mom.

What financial lessons did you learn from your mom? Write to me at [email protected] .

Was the 401(k) a mistake?

When it comes to saving for retirement, not all companies offer 401(k)s, and millions of private-sector employees lack access to workplace retirement plans.

Availability is just one problem; contributing is another. Many people who have 401(k)s put little if any money into their accounts.

With Americans now aging out of the workforce in record numbers — according to the Alliance for Lifetime Income , a nonprofit founded by a group of financial-services companies, 4.1 million people will turn 65 this year, part of what the AARP and others have called the “silver tsunami” — the holes in the retirement system are becoming starkly apparent. U.S. Census Bureau data indicates that in 2017 49 percent of Americans ages 55 to 66 had “no personal retirement savings.”

Dig into the numbers deeper, and you will find that 401(k)s have arguably become another driver of the inequality that is a defining feature of American life with the affluent profiting the most: That's because the more money you can invest, the more money you stand to make.

This is an important read with commentary from Teresa Ghilarducci , Ted Benna , Andrew Biggs and more.

So was the 401(k) a mistake? Share your thoughts in the comments below or email me at [email protected] .

Side note: Last week, The New York Times devoted its magazine to retirement. I love, love, love Ron Lieber’s interactive story on crafting a r etirement mission statement .

Can Social Security be fixed?

Speaking of retirement: What if the traditional wisdom on how to fix Social Security no longer holds?

The trustees who oversee the U.S. program issued their annual financial forecast recently , predicting that the combined retirement and disability trust fund reserves will be depleted in 2035 – one year later than forecast last year.?

The improvement is due to the recent strong economy and wage growth, which has accelerated payroll tax payments that fund the program. Still, in 2035, the program would be insolvent.

How likely is that to happen? Here is the Social Security fix no one is talking about .

Reuters Poll ??

Our last poll focused on travel challenges. So much for smooth sailing: More than half of you experienced a delayed or canceled flight in the past year!?

I especially appreciated this insight from William Ford : “The biggest thing that's been grinding my gears is the sudden lack of space in overhead bins,” Ford says. “Stop making me check my carry-on at the gate. There's enough space in those overhead bins for everyone to bring one standard-size carry-on. Re-adjust things if you have to.”

Indeed, and I just have to voice this particular pet peeve: I almost always check a bag (I know! I know!). So if I’ve paid to check a bag, can’t I still put something in the overhead bin above my seat? Almost every time I fly, I'm told the overhead bins are reserved for carry-on bags, not backpacks or coats.?

And now for this week’s poll: Was the 401(k) a mistake? Take our poll .

How to fix identity theft

Q. My mother's identity has been stolen – she had done all of the standard procedures to safeguard her accounts, but her cards and bank accounts were compromised. She has shut everything down and reported it to the credit agencies.?

Worse, she discovered that the thief has her Social Security number and has routed replacement cards to other addresses, and breached other accounts that hadn't been compromised yesterday.?

Do you know of anyone or a company who can help her clean this up? ?

Just one note – my mother is in her 80s, but she’s not “old” or doddering. She’s totally with it and somewhat tech savvy.??

If it can happen to her, it can happen to anyone.

?– Andrea, New York

A. “The quicker she acts, the less damage that can be done,” says personal finance expert Kathy Kristof , who edits the SideHusl website. “Waiting even a few days presents significant risks.”

Kristof’s advice? Freeze mom’s credit , which should trigger credit reports from all three major credit bureaus: Equifax, Experian and TransUnion. This will allow mom to see what fraudulent accounts have been opened and where the cards are going.?

The second step is law enforcement. “You often need a police report to cancel cards and clear your name,” Kristof says.?

And contact Social Security to make sure that no one tries to claim benefits on her account.?

Be sure to notify existing lenders that mom’s identity has been breached, so that they can issue new accounts and cancel the old ones.?

In addition, mom should check with her homeowner's insurance provider. Many of them insure against ID theft loss, and they may provide some support, as well as guidance, on what to do next.

Finally, set a red flag alert at mom’s mortgage company, bank and everywhere else immediately, says Pam Dixon , executive director of the World Privacy Forum , a research and advocacy group.?

“A red flag alert creates additional hurdles for thieves to work through and can slow big-ticket problems down while she retains someone for the case,” Dixon says.?

For more tips, several experts I contacted (thank you for the fast responses!), recommend checking out AnnualCreditReport.com and the ID Theft Resource Center .?

A$K Lauren ??

Are you still trying to navigate financial aid? Are you looking for cheaper homeowners insurance? Send questions to [email protected] , and I'll tap my extensive source network and braintrust for expert advice.

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