Dear Karen: Yikes! My bank informed me that my credit card was breached. I wish I could say it was the Neiman Marcus one but it was plain old Target. I was really stressed out until I got my next statement. But there was nothing odd about it – no weird names, no unexpected charges. Am I in the clear? What about next time? – Targeted

Dear Targeted: For the current breach, the most important action item is to cancel any card you might have used at Target during the time of the breach: November 27-December 15, 2013. Then you can reestablish new accounts. It may be less likely that your information will be abused as time goes by, but I’d use this warning to take positive steps in managing your financial security. Reassess which cards you really need, reducing them to the minimum needed for transacting your life. One caveat: reducing your credit may marginally affect your credit score, but just consider the trade-offs.

I was glad to see your follow-up question about next time, as these breaches are increasingly common. If you still plan to use credit and debit cards (it is hard to get by in today’s society without them!), I recommend these ways to protect yourself against the effects of hacking:

1. For your debit cards, set a very low amount that can be removed in cash. I set mine for $50. That way, if someone steals your card, they can’t get away with much. Depending on the company, there is a limit to your liability, but we are looking to reduce the hassle as well as the cost.
2. Check your credit card balance frequently – like every other day. You can generally do this by automated phone call, but even easier is checking online.
3. Change your passwords frequently. That doesn’t mean you have to change every password every week. Your local library access and accounts that aren’t attached to any financial account are not a big deal. But for any account which is tied to financial institutions, or ones that store your Social Security number, make it a practice to change every month or so. That way, if a list of passwords is stolen, a break-in attempt on your account will more likely fail.
4. Finally, check your credit report a few times per year. By law you can access three in a year without cost. There are three main companies (Experian, Equifax, and Transunion), so you can, for instance apply for the Experian score in January, Equifax in May, and Transunion in September.

If you’re checking your credit reports, you’ll find out if someone has stolen your identity early on, before too much damage is done. My sister-in-law’s identity was stolen years ago, before it became commonplace. It took her hundreds of hours over five years to clear her name.

Your credit report likely wasn’t compromised with this Target break-in, since this account-opening information apparently was not the subject of the Target breach. On that score, you’re lucky -- this time. Please continue to check!

Dear Karen:  I’ve set aside the maximum in my employer’s retirement plan all along. I think I’m doing okay, but now I’m worried about everyone who hasn’t saved. Who’s going to support baby boomers in retirement? – Worried about the “other guy”

Dear Worried: The 2008 Great Recession was a wake-up call for everyone who has a stake in the upcoming generation of baby boomers entering retirement. Which is to say, everybody from the federal government to employers to employees both young and old. According to the 2013 Trends & Experience in Defined Contribution Plans, employers are boosting their match and relaxing their eligibility requirements for 401(k)s and other plans. They are trying to make it easier to understand investment options, and giving lower cost options like index funds and ETFs. They are also changing default elections, so that employees who don’t like to think about it are defaulted into “saving” rather than “not saving.”

Whether or not one’s employer helps in these ways, it is incumbent upon the individual to take control of their retirement saving. It’s a good idea to visit a fee-only financial planner ideally by the end of your 40s but for sure now that you’re over 50. She or he can help determine whether you’re on the right path or need to jack up your savings in this last decade or so.

Social Security will add a boost, but was never intended to replace retirement savings.