It can be hard to conceptualize this wonder, especially when the brilliance of it isn't immediately appreciated in our world of instant gratification. Often referred to what Einstein called, "The 8th Wonder of the World," compounding interest is an amazing thing. Although, I believe the audience of readers will be well-versed on this concept because we have lived it and experienced the results of saving and investing for many years.
What may be lesser known is how to measure it using The Rule of 72. I use this calculation on my own financial tracking, and this link explains it perfectly. Why Einstein Considered Compound Interest the Most Powerful Force in the Universe | Inc.com
So, why are you protecting all your accumulated earnings - your cache, nest egg, treasures, investments, with a 5-cent password?
New Year's Eve 2022, I got an e-mail that my website-building account had 16 failed login attempts and 3 lock-outs. Actually, I had received several of these notifications. It was like an auto-dialer hacker (called brute force) attempting to crack my password.
My website is all my own, there's no one to call to just fix it. I knew I had to reduce the number of login attempts and lengthen the amount of time to lock someone out. I also found another e-mail in my Junk mail - ALWAYS check your Junk mail folder before you delete it - that gave me an IP address. I searched on how to look up an IP address giving me several sites to enter it.
The hacker was located in a northern VA suburb and had AWS (Amazon Web Services) Internet Service. I went to AWS's website, and they provided an e-mail to report abuse, which I did. However, AWS sent back a list of additional information they needed which I had no idea how to find. Back to researching where I entered the exact wording and over the course of 3 days was able to figure out with AWS's help how to find that information. In that time, the hacker had also figured out my IP address and Internet Service Provider and attempted to hack into that account which has 2-factor authentication on it.
After that nerve-wracking start to the new year, my website is no longer a target for brute force attempts. I learned a lot in those 3 days and this, exactly this, is what I mean by staying one step ahead.
The illustration below shows how long it takes for a hacker to crack a password in 2024 depending on the number of characters.
Cyber Press ®
I converted these times to monetary values for more impact.
I still have 5-cent passwords for accounts like Pinterest where there is no value. Any account that has value, whatever form, should have a higher value password and even more so for the significant value ones. Is My 401(k) Safe from Hackers? (investopedia.com)
However, you are not alone.
If you hire someone to manage your retirement accounts, make sure they are protecting you, their client, in the best possible way. How Wealth Managers Can Protect Clients From Cyber Threats (kitces.com)
Apparently, Einstein also said, "He (or She) who understands it, earns it; he (or she) who doesn't, pays it." Make sure you (and your passwords) fall into the first category.
