IS IT TIME TO #DELETEFACEBOOK?

Birthday reminders, family pictures, memes for that mid-afternoon comic relief, or maybe recommendations for local businesses. However you use Facebook, it’s undeniable that this social network has seeped its way into our lives, into multiple generations, and influences how we see the world.

So when the news comes out that over 50 million users’ private information has been accessed and used to influence the elections, many of us are left thinking … so what now? Who’s viewing my information and how is it being used and protected? And the million-dollar question: Should I get off Facebook?

First, let’s wrap our heads around recent events.

WHAT EXACTLY HAPPENED?

Cambridge Analytica accessed the data of millions of Facebook users. The data included details about users’ personal information, their networks of friends, and their “likes.” From this data, they created profiles of people and then zeroed in on them with digital ads to sway their voting behavior.

WHAT IS CAMBRIDGE ANALYTICA?

Cambridge Analytica is a political data firm that collects data, analyzes it, and then combines that with strategic communication to influence elections. The company has been funded in large part by Robert Mercer, a major Republican donor, and Stephen K. Bannon, former advisor to President Trump. The firm was hired by President Trump’s 2016 election campaign.

WAS THIS A DATA BREACH?

Well, no … and yes. When you create an account on Facebook, you consent to researchers accessing your data for academic purposes. What isn’t accepted is for this data to be given or sold to advertising networks or services such as data brokers. And that’s exactly what happened when Dr. Kogan, a Russian-American psychology professor at Cambridge University, gave 50 million profiles to Cambridge Analytica. In doing so, Dr. Kogan violated Facebook rules.

When Facebook found this out, they deleted Dr. Kogan’s app that allowed him to harvest this data. They received certification that the data was destroyed, but it turns out this was not the case. Investigations are now underway with the FTC, Congress, the British Parliament, and the attorney general of Massachusetts.

SO …SHOULD I DELETE FACEBOOK?

First, ask yourself what you use Facebook for. If it’s just the occasional birthday reminder and funny meme, then maybe you wouldn’t miss it that much. But keep these points in mind.

Cons of deleting

Deleting your profile doesn’t stop them from tracking you, nor does it stop them from using the data they have already collected.
Facebook isn’t the only company that collects your data. Other companies will find ways to collect it and sell it, so in the long run, deleting your account probably won’t do that much for your data security.
Essentially, data security is more an issue of corporate surveillance. How are companies tracking and profiling everyone? Mobile devices are essentially tracking devices, and most of us would have a hard time leading our daily lives without them.
Small businesses rely on Facebook to reach their communities, and Facebook advertising has proven very effective to get new clients and keep businesses prospering. Even if you’re not a small business owner, most of us want to support them over their giant corporate counterpart.
It’s the Internet. Nothing will ever go away completely. A truth we must face in these modern times.
You’ll be out of touch. Whether with your community, family pictures and birthday reminders, you’ll have to make more of an effort to stay connected through other means.
Loss of community. Beyond sharing cute memes and cat videos, professionals and small business owners find each other and help each other on Facebook. I personally belong to a few advisor groups where we advise each other on practice management and financial planning topics.

Then again, life did exist before Facebook, and deleting your account could have its advantages.

Pros of deleting

Those people who really want to keep in touch may find other ways to do so. Deleting Facebook doesn’t mean you have to say goodbye to all your friends, though your circle may grow smaller without it.
According to an experiment, people who gave up Facebook for a week ended up happier, less lonely, and less depressed. We don’t have to constantly compare ourselves to others.
You might waste less time browsing and become more productive.
It’ll give you the temporary satisfaction and illusion of controlling your data, however temporary and illusory that may be.

I WANT TO DELETE FACEBOOK, BUT HOW?

If you’ve made up your mind, but aren’t sure how to go about it, follow these steps. It’s more than deleting just your Facebook account.

Delete all Facebook apps from devices (Facebook, WhatsApp, Instagram, Messenger)
Deauthorize all apps and websites from your Facebook account
Go into Ads and stop all tracking there
Get rid of Facebook’s ability to track you
- Follow the prompts on the Digital Advertising Alliance’s opt-out page
- Delete cookies in browsers for every device
Never use Facebook again

BUT WAIT! IS THERE A HAPPY MIDDLE GROUND?

You can minimize its effect by doing the following:

Don’t use Facebook to sign on to other apps and websites.
Only become friends with people you know.
Don’t use the location tagger.
Be careful of what you like and post.

Articles, talk shows, podcasts, and blogs like this one will abound telling you why you should or shouldn’t delete Facebook. Think about your reasons. Is it just to make a statement to big tech companies, keeping in mind that we live in a surveillance state? Are you okay with that? Only you can make this decision, but hopefully your decision will now be an informed one.

Want to buy a house? Here’s how to save for a down payment

Thinking about buying a house within the next 3 years? Or a bit farther down the road? Timing is everything and it turns out that simple question makes a difference.

According to Zillow, the median home value in Diamond Bar is $697,000. So how much of that should you put down? Down payments vary depending on the loan type, but in general they are:

0% for VA loans
3.5% for FHA loans
20% for conventional loans
Or use this handy down payment calculator to help you

20% is the recommended down payment on a house

You may have heard this before, but we’ll say it again. Try to put at least 20% down. Why? If you finance more than 80% of the home value, you will have to pay Private Mortgage Insurance (PMI). (But if you can take out a VA loan, PMI is not required.)

Even just 3.5% or $24,395 on a home in Diamond Bar, CA is a good chunk of money. And whether you’re fighting the good fight as a small business owner, still paying back those student loans, or just trying to save a bit each month like all of us, it’s hard to know what to do with that money you have managed to save. Which brings us to …

When are you looking to purchase a home?

I want to buy a home within 3 years

If you’re looking to buy sooner rather than later, consider keeping your money in a cash account, like a savings account or something similar. Remember that savings accounts will yield greater interest than a regular checking account. You don’t want to invest this money for such a short period because of market volatility. Just think:

Imagine you’ve built up a decent amount for a down payment and you invested this money in the stock market. A recession comes and you take a 30% hit on your balance. That will likely prevent you from buying your home within your three-year goal.

I want to wait at least 4 years before buying a home

If you’re not in a big rush, investing in the market might be a better option for you. Should you invest, do so with caution and don’t be too aggressive. Be smart, calculated, and balanced with your portfolio picks. Make sure you have a healthy mix of stocks and bonds. And keep in mind that you’ll want to rebalance your portfolio at least once a year. Why?

Imagine that you have a portfolio of 10 different stock and bond ETFs, or Exchange-traded funds. Each ETF is invested at a fixed percentage of your overall portfolio. As the year goes on, the allocations will wander from their targets. Those doing well will become a larger part of your portfolio. Those not doing so well will become a smaller part of your portfolio. When you rebalance, you bring things back in line with your target percentages, so you’re selling high and buying low.

Also keep in mind dollar-cost averaging, or investing a certain fixed amount on a regular schedule. Basically, you buy a larger number of shares when the markets are down and everything is at a lower price, and fewer shares when prices are high. This is recommended over making large, infrequent, lump sum contributions because it will bring the average cost per share down over time.

If these investing ideas are a bit daunting to you, you’re not alone! Speak with a financial planner to help you evaluate your options and navigate these uncertain waters. An advisor can be just the direction you need to reach your goal and buy a house.