MTTM Podcast Episode 462 – Phone theft advice, best performing funds & life insurance oversight

Listen to Episode 462

On this week's show we discuss what to do if your phone is stolen and how to protect yourself from further financial fraud. We discuss how active funds can outperform the market over extended periods of time but how a winner can quickly turn into a loser. Finally, I explain the importance of life insurance for stay-at-home parents.

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Podcast Summary

Phone Theft and Security

The first main topic addresses the increasing issue of phone theft in London, prompted by an incident involving a friend of Damien’s whose wife had her phone stolen. They discuss the growing trend of phone thefts, especially in busy urban areas, and offer comprehensive advice on how to protect oneself. Key recommendations include:

• Setting up strong passcodes, facial, and fingerprint recognition.
• Activating the "stolen device protection" feature on iPhones, which includes a one-hour wait period and a second face or touch ID if the phone is not at a trusted location.
• Utilising the "Find My" feature on both iPhones and Android devices to track, lock, or erase data from a stolen phone.
• Making notifications private to prevent thieves from viewing sensitive information on the lock screen.
• Setting the phone to auto-lock after 30 seconds of inactivity to minimise the time a thief has access to it.
• Using unique PINs for different apps, particularly banking apps, and enabling two-factor authentication.

Fund Performance

The second segment covers the performance of actively managed funds versus passive funds. Damien provides insights into the variability of fund performance over time, using the example of the Marlboro Special Situations fund, which performed exceptionally well from 2009 to 2019 but significantly underperformed in the following five years. He emphasises the importance of consistency and regular monitoring of actively managed funds, highlighting that past performance does not guarantee future results. See the 'Resources' section below for the article on best performing funds for more information.

Life Insurance for Stay-at-Home Parents

The final segment addresses a misconception about life insurance for stay-at-home parents, sparked by a joke from Joel Dommett on social media. Damien stresses the economic value of stay-at-home parents, arguing that their contribution is often underestimated. He explains that life insurance for stay-at-home parents is crucial as it covers the cost of childcare and other services they provide, allowing the main breadwinner to continue working. Damien encourages listeners to seek professional advice to ensure adequate coverage for all family members

Podcast quiz questions

Here are five multiple-choice questions to test yourself after listening to this week's episode.

1. What was Damien’s reaction a social media joke about stay-at-home parents and life insurance?
   1. He found it funny
   2. He was indifferent
   3. He highlighted its ignorance about the value of stay-at-home parents
   4. He told a better joke
2. What should you set your phone’s auto-lock feature to for enhanced security?
   1. 1 minute
   2. 30 seconds
   3. 5 minutes
   4. 10 minutes
3. How does Damien suggest dealing with email access if your phone is stolen?
   1. Forward all emails to another account
   2. Disable email access from the stolen phone
   3. Delete all emails
   4. Change your email provider
4. What guidance did Damien give about the performance of actively managed funds over the long term?
   1. They always outperform passive funds
   2. They may outperform for certain periods but not consistently
   3. They are not worth the investment
   4. They have no tracking errors
5. What was the total return for the FTSE 100 between 2009 to 2019?
   1. 121%
   2. 424%
   3. 207%
   4. 142%

Answers

1. He used it to highlight ignorance about the value of stay-at-home parents
2. 30 seconds
3. Disable email access from the stolen phone
4. They may outperform for certain periods but not consistently
5. 121%

Resources:

• MTTM Deals Page
• Th best performing funds to invest in right now
• MTTM Ep 246 - Why feminist economics is important
• Speak to a life insurance expert
• Take out a free trial of 80-20 Investor