News Direct

Author: Christy Bieber

  • I spent years building up $27,000 in my 401(k) but lost track of it when I switched jobs — now my old company won’t help me find the account. Is this even legal?

    I spent years building up $27,000 in my 401(k) but lost track of it when I switched jobs — now my old company won’t help me find the account. Is this even legal?

    Imagine working day-in day-out, dutifully contributing money to a 401(k) for years — and then losing track of the money when you leave your job. Mortifying, but also extremely common.

    In fact, in 2023, Capitalize estimated 29.2 million 401(k) accounts were lost or forgotten across America, containing $1.65 trillion in assets.

    Don’t miss

    Some people who forget old 401(k) accounts never remember they exist. But what if you do remember the account — but you can’t remember which plan administrator holds the funds, and the company you used to work for won’t help you?

    Your money, your rights

    Contributions you personally make to your 401(k) are 100% vested. This means the money you put into the account and any growth from investments is yours to keep right away. So, your company can’t withhold your old account from you, even if none of the company’s contributions are vested yet.

    You should be persistent in contacting them to find out where the account is. Start by reaching out to HR, but if that doesn’t work, contact your former manager or even the CEO to get answers. Be polite but firm and insist they provide you with information about your old plan.

    Plan sponsors are “obligated” to stay connected with former ex-employee participants, according to the Society for Human Resource Management.

    But if the company is no longer operational, or if the people working there now can’t or won’t answer, then you have other options, including:

    • Reaching out to old coworkers to see if they know who your plan administrator was
    • Searching through old emails or financial records for statements or account notifications, as most plans send these quarterly or annually
    • Reviewing your old pay stubs for information about 401(k) deductions

    If none of these efforts work, online databases can help you track down the account. For example, while not all companies participate, some businesses register unclaimed 401(k) plans with The National Registry of Unclaimed Retirement Benefits. You can input your Social Security number into the registry to see if your company has your 401(k) listed.

    Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now

    Alternatively, if your company terminated your old plan, or is in the process of doing so, then you may be able to find it in the Department of Labor’s abandoned plan database. Some private sites like Beagle or Capitalize can also try to help you.

    Keep trying these options until you ultimately identify where your 401(k) plan is. Then, contact the plan administrators to confirm they are holding the account and make a plan for what to do with the money.

    How to avoid losing your old 401(k)

    As you can see, tracking down an old 401(k) can be a hassle. Thankfully, you have better options than just leaving your 401(k) behind when you leave a job.

    One solution is to roll the money over into your new company’s 401(k). The biggest benefit of this option is that you can keep all your workplace retirement money in one place. Doing that can make it easier to ensure you have the right mix of assets since you can easily see your overall allocation within one account.

    However, you also have another option, which many people prefer. You can roll the money into a traditional IRA.

    You’ll need to either do a direct rollover so the money moves right from your 401(k) to your IRA, or if your 401(k) company sends the money right to you, you will need to deposit it into the IRA within 60 days to avoid early withdrawal penalties. If you do that, there are no tax consequences to the move.

    Moving your money into an IRA gives you more freedom and flexibility since you can pick your brokerage firm and can choose a broker that allows you to invest in almost anything you want. You also won’t have to keep moving 401(k) money around every time you leave a job, since all the funds you rolled over can just stay in the IRA.

    Whichever account you decide to roll the money into, if you move it with you, then you won’t have to worry about trying to contact old employers to find out where your funds are. You’ll have the money safe and accessible to you to help you build the secure retirement you deserve.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘I was not going to give up’: Colorado couple’s insurer denied claim for $94K air ambulance bill after husband had heart attack, needed life-saving surgery. What to do if it happens to you

    ‘I was not going to give up’: Colorado couple’s insurer denied claim for $94K air ambulance bill after husband had heart attack, needed life-saving surgery. What to do if it happens to you

    When Bob and Marjean Taylor went to stay in a friend’s cabin an hour from the nearest hospital back in 2022, neither expected that Bob would have his second heart attack within four months while they were vacationing. Unfortunately, that’s exactly what happened.

    Marjean took him to the local hospital, but they were told he needed more care than the facility could provide. An air ambulance arrived, transporting him to a medical center where his cardiologist was waiting to repair a stent that had torn. The procedure saved his life, but sadly, Bob’s troubles weren’t over.

    Don’t miss

    Soon after they returned home, the Pueblo, Colorado couple received notice that their insurer, Anthem Blue Cross Blue Shield, was denying their claim for the air ambulance, saying the transport wasn’t medically necessary and sticking the Taylors with a bill totaling around $94,000.

    “It gave me a heart attack, almost,” Marjean told Denver7 Investigates of the unexpected bill.

    Unfortunately, air ambulances have become very expensive, and a growing number of insurers are denying claims for them, leaving Americans who’ve suffered medical crises holding the bag. Here’s what you need to know.

    Air ambulances save lives, but at a huge expense

    Air ambulances are helicopters or planes designed to provide timely transport of patients to medical facilities. They’re often used in rural areas where medical care is scarce.

    With an aging population, more people relocating to remote areas during COVID-19, and the increased prevalence of infectious diseases, the market for air ambulances is growing.

    In fact, according to Technavio, a market research group, the air ambulance market saw 9.63% year-over-year growth from 2022 to 2023 and is expected to increase by $6.77 billion between 2024 and 2026.

    Sadly, prices for air ambulances have skyrocketed, as a growing number of private equity firms have moved into the market.

    Insurance companies often don’t want to pay

    One would think that insurance companies would cover the costs of air ambulance services in most cases, since they’re almost always called in an emergency. Unfortunately, data shows a growing number of insurers are denying claims.

    Part of the problem is that when an air ambulance is called, patients aren’t checking if the company is in-network or not. This may not be a high priority when you’re being airlifted to a hospital during a heart attack or in the wake of an accident.

    It shouldn’t matter if the ambulance service is in-network, as starting in 2022, policyholders were supposed to be protected from unexpected bills under the No Surprises Act.

    This act prohibited surprise bills for:

    • Most emergency services, regardless of whether they’re in network or out-of-network
    • Out-of-network services provided when a patient visits an in-network facility (such as anesthesia administered by an out-of-network anesthesiologist at an in-network hospital)

    Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now

    However, insurers can still pass on out-of-network costs to claimants if the service isn’t considered medically necessary. Perhaps unsurprisingly, insurers now claim that many ambulance trips aren’t needed. In fact, the National Association of EMS Physicians warned policymakers in a February 2024 letter that they have seen a “spike in denials of claims on the basis of ‘lack of medical necessity.’”

    Being transported to a hospital during a heart attack seems pretty necessary — and yet the Taylors were still told they had to pay. They had to go through multiple appeals over two years and ultimately get the press involved before their insurer finally resolved the issue, blaming unclear communication for the problem.

    Not everyone will be lucky enough to get the press involved, though, and the couple faced a lot of stress in the meantime.

    “I just felt like we were stuck in the middle of all these companies and nobody cared,” said Marjean.

    “After I got off the phone, I said, ‘I cannot believe this is done,’ and I started crying. But I wasn’t giving up. I was not going to give up. I was not paying for it.”

    How can you avoid big health care bills?

    Air ambulance costs are a growing issue, but there are other ways you could find yourself stuck with a hefty bill for health care services.

    Here are some steps you can take to protect yourself:

    • Get pre-approval for medical services from your insurer in non-emergency situations
    • Know your rights under the No Surprises Act
    • Shop carefully for the right insurance policy that offers comprehensive coverage from a provider with a good reputation
    • Visit in-network providers whenever you have the option
    • Request itemized bills to understand what you’re being charged for
    • Negotiate with providers and the billing department if you think you’re being overcharged
    • Appeal denied claims, and be prepared to provide documentation
    • Hire a medical bill advocate to help you fight unfair bills

    These steps can help you avoid the financial devastation that comes with big medical bills your insurer should pay for, but does everything possible to avoid.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I’m 43 years old and was forced to spend my entire emergency fund on a sudden home repair and an unexpected medical procedure. How can I rebuild my savings after times of crisis?

    When you’ve worked hard to save up an emergency fund, it can be really frustrating when all the money suddenly disappears. This may be especially true if you’re 43 years old and spent years saving for a sense of financial security.

    The good news is that you were able to use that emergency fund to take care of your unexpected medical procedure and home repairs, so you should feel good about the fact that you were prepared and had the funds you needed when it counted most — without borrowing money.

    Don’t miss

    Of course, now you’re vulnerable if any more surprise financial expenses come along, so you’ll want to take steps to rebuild as soon as possible.

    Here’s why rebuilding is so important, and what you can do to make that happen.

    Why is it so important to rebuild your emergency fund ASAP?

    Since you had to spend your entire emergency fund because of two unexpected costs, you already know that surprises do happen — and they can be expensive. However, data from Bankrate’s 2025 Annual Emergency Savings Report shows just how common it is for people to end up relying on their emergency savings.

    According to the report, 37% of U.S. adults had to rely on their rainy day fund at least once during the last 12 months. Of those who used their emergency money, 80% spent it on unplanned expenses, day-to-day expenses or monthly bills.

    Those who needed to use their emergency money unfortunately ended up spending a lot. In total, 26% spent between $1,000 and $2,499, while 22% spent between $500 and $999 and 18% less than $500. Some spent even more, with 15% pulling at least $5,000 from their account and 14% taking out somewhere between $2,500 and $4,999.

    But this is not a new financial reality. Pew Charitable Trusts data from 2014 also found 60% of households had experienced a financial shock during the year prior to the study, and one third of households had two or more occurrences. The median cost of the most expensive of those shocks was $2,000, and the median household spent half its monthly income on its most expensive shock.

    Unfortunately, since you’ve been forced to spend your entire emergency fund, you may now find yourself among the 37% of adults who the Federal Reserve reports can’t cover a $400 unexpected expense with cash or the equivalent.

    While you may be feeling financially vulnerable because of it, the good news is that you saved an emergency fund before, and you can do it again.

    Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now

    How can you rebuild your emergency fund after an emergency?

    Although it can be devastating to be forced to spend your emergency savings, the first and most important thing is to get your motivation back. Remind yourself of what you accomplished with the money, and of the fact that you were able to build up that fund in the first place — and it served its purpose.

    The success of your past emergency fund can help you stay motivated to do what’s necessary to rebuild.

    So what’s necessary? The first step is setting a realistic, specific goal. You aren’t going to save up six months of living expenses in a few weeks, but you may be able to save up a few thousand dollars for a mini-emergency fund. Look at your budget, see how much money you can free up and set yourself a realistic but ambitious target based on those numbers.

    This may involve recalculating your net worth to see how much you’d need to cover a loss based on the value of your assets, while taking your debts into account.

    The next step is to figure out where you can cut spending to make sure you can achieve your target. Since this is just temporary, you can be aggressive with your cuts. Giving up dining out and cancelling a few streaming services for a couple of months may be annoying, but it’s worth it if you can get your financial security back. You can also consider looking for a side gig to rebuild faster.

    Finally, set up automatic transfers of the desired amount of money to your savings account. If you can make these transfers automatic, you won’t miss one. Have the money come out on payday so you can’t spend it on anything else and you’ll have your emergency account rebuilt in no time.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘We want them back desperately’: US border communities losing millions in sales tax revenue as Canadian shoppers avoid US travel due to Trump’s tariffs and ’51st state’ rhetoric

    There’s a long-standing tradition of Canadians crossing the border to shop at outlets and malls in the U.S.

    This is especially true in Erie and Niagara County, which are located near the border and feature top shopping destinations such as the Walden Galleria Mall and the Fashion Outlets of Niagara Falls.

    Don’t miss

    But unfortunately, things have changed. Cars traveling across the border into the U.S. are down significantly in 2025, and counties like Erie and Niagara are paying the price through a drop in sales tax revenue.

    In February and March of 2025, 35,619 fewer cars crossed the Peace Bridge that connects Canada to Buffalo, NY, compared to the number of cars that crossed the bridge during the same months in 2024. During the same period, 29,537 fewer cars crossed the Rainbow Bridge in Niagara Falls.

    Thanks to President Trump’s ongoing trade war with Canada, Canadians seem to have significantly reduced their interest in traveling to the U.S. and the financial ramifications are hard to ignore.

    Trump’s antics irk our neighbor to the north

    In February, Trump announced a 25% tariff on most goods imported from Canada and Mexico. And although Trump has since initiated a 90-day pause on most of his tariffs, those levied against Canada remain in place.

    In fact, Trump has reportedly floated the idea of increasing the automobile tariff against Canada, saying “they’re paying 25%, but that could go up in terms of cars.”

    And then there’s Trump’s repeated mention of Canada becoming America’s 51st state, a not-so-subtle statement that many Canadians view as a threat. Trump also routinely referred to Canada’s former Prime Minister, Justin Trudeau, as “Governor Trudeau” when the latter was still in office.

    But it’s not just the backlash to Trump’s antics that’s had a negative effect on Canadian tourism in the U.S. In recent months, several foreigners — including a Canadian woman — have been detained while attempting to enter the United States.

    The Canadian government recently issued a warning to citizens, urging travelers to expect additional scrutiny when crossing the border while stating that American border officials have the authority to search electronic devices without justification.

    These electronic devices reportedly include laptops, tablets and mobile phones, and refusal could cause said devices to be seized, travel to be delayed or entry to be denied.

    With all of these factors in play, it’s not a surprise that fewer Canadians are willing to come over to the U.S. to do some casual shopping.

    Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now

    How the loss of cross-border traffic is hurting local communities

    Unfortunately, many local border communities are suffering because of the decrease in Canadian customers.

    “We want them back desperately. They are truly missed,” Sylvia Virtuoso, Town of Niagara Supervisor, shared with 7 News WKBW. “Everybody’s budgets are impacted by the sales tax revenue… The outlet mall to the Town of Niagara is the heart of the town. For all of Niagara County, it provides the majority of sales tax revenue.”

    Sales tax revenue in Niagara County declined an estimated 1% in January and February, but Erie County has been hit even harder, with county executive Mark Poloncarz telling Bloomberg, “The county’s initial sales tax receipts have slipped 7% through mid-February, a $4.9 million reduction in revenue.”

    The effects of this could have far-reaching consequences, as Cheektowaga Supervisor Brian Nowak told 7 News WKBW the decline in revenue would impact “not just the town, but the county too, because you collect county taxes… For our highway department in particular, a lot of the revenue comes to that department from sales taxes, about 75 cents on the dollar.”

    It remains to be seen if the drop in Canadian car traffic over the border will continue, and a lot likely hinges on whether Trump and Canadian officials can come to an agreement on key trade issues. Without that, it may be difficult to restore the strong relationship that the U.S. once shared with its neighbor to the north.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • 23andMe faces major crisis: CEO resigns, stock crashes and bankruptcy sparks fears over user data — what it means for millions of customers

    23andMe faces major crisis: CEO resigns, stock crashes and bankruptcy sparks fears over user data — what it means for millions of customers

    Would you trust a company with your most personal data — your DNA — if it was on the brink of collapse? Millions of 23andMe customers are now facing that unsettling reality as the genetic testing company faces an uncertain future.

    The California-based company offers DNA self-testing kits for users to explore their ancestry. It went public in 2021 with a $3.5 billion IPO but has faced significant challenges in recent years. In 2023, a major data breach compromised 6.9 million users’ information, leading to a financial settlement. Since then, the company has struggled, with all independent directors resigning in September and a 40% workforce reduction in November.

    Don’t miss

    On March 23, 2024, 23andMe announced it was "entering a voluntary Chapter 11 restructuring and sale process." While the company assured users their data remained protected and operations would continue, concerns grew, especially after California Attorney General Rob Bonta urged customers to delete their information.

    "California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” Bonta said. “Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”

    Bonta isn’t the only attorney general to act. Officials from Arizona, South Carolina and New York have all urged consumers to delete their data, providing instructions to do so by logging in, navigating to the Settings section, choosing the 23andMe data option at the bottom of the page and opening the "Delete Data" section to click "Permanently Delete Data."

    However, not all users have been able to successfully remove their information. Here’s what happened when they tried, along with details on the bankruptcy proceedings, their implications for consumers and steps to protect your data.

    CEO steps down and stock plummets as 23andMe enters bankruptcy

    Sunnyvale’s 23andMe reportedly has $214.7 million in debt compared with $277.4 million in assets. It filed for Chapter 11 bankruptcy in hopes of selling "substantially all of its assets."

    Chapter 11 allows struggling businesses to restructure debts while continuing operations, with the goal of facilitating a sale. Board Chair Mark Jensen called bankruptcy "the best path forward," as it could reduce costs and resolve legal and leasehold liabilities. Despite this, the company’s stock lost nearly all its value, now trading below below $1 per share.

    As the bankruptcy was announced, CEO and co-founder Anne Wojcicki also stepped down — but not for the reason assumed.

    "I am supportive of the company and I intend to be a bidder," Wojcicki stated on social media. "I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder."

    The company aims to continue operations, and if Wojcicki successfully acquires the business, it could emerge more financially stable post-restructuring. However, the bankruptcy has severely damaged trust, making recovery an uphill battle for any new owner.

    Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now

    How to protect your personal information

    With 23andMe looking for a buyer, many consumers fear their private DNA data and other details will be sold, such as payment information, could be sold. Their concerns are rightly placed.

    The company has stated that both it and any future owner must adhere to its privacy policy. However, it also acknowledged that in the event of "bankruptcy, merger, acquisition, reorganization or sale of assets, your personal information may be accessed, sold or transferred as part of that transaction." A new owner could also change the privacy policy going forward.

    Sally, many consumers concerned about this issue went to the website to try to delete their data — but so many people tried to take this action at the same time that the computer system struggled to keep up, and consumers got error messages.

    "This has been a nightmare," Pauline Long of Alabama told BBC. Long worried 23andMe would retain her data and attempted to delete it, but she had to wait two hours to speak with a customer service agent before successfully closing her account. She remains skeptical that her information was fully erased.

    The company claimed the technical issues have been resolved, though users may need to provide additional verification before deletion requests are processed. It also noted "some limited information" would remain. Customers facing issues should contact 23andMe’s Customer Care via [email protected] for help.

    If you are concerned about your DNA privacy, follow the deletion steps online, and if you encounter issues trying online first, and then reaching out via email if necessary. This is especially important because, while financial data breaches can be mitigated through measures like credit freezes, there is no comparable sageguard for genetic falling into the wrong hands.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘This is not real’: Wisconsin woman loses $80,000 trying to surprise husband with crypto windfall — only for him to discover she’d been scammed. How to protect yourself from investment fraud

    ‘This is not real’: Wisconsin woman loses $80,000 trying to surprise husband with crypto windfall — only for him to discover she’d been scammed. How to protect yourself from investment fraud

    It was supposed to be the ultimate wedding anniversary surprise, a secret investment that would unlock wealth the couple never knew.

    Instead, a Wisconsin woman ended up more than $80,000 in the hole — the victim of a cruel crypto scam that lured her in with promises of sky-high returns and faked investment dashboards.

    Don’t miss

    "She had a big smile on her face saying, ‘Look what I did,’" Scott Johansson told Fox 6 News Milwaukee about the moment his wife presented the gift, which turned out to be a bigger surprise than either of them wanted.

    “All I thought was, ‘This is not real.’”

    Unfortunately, he was right. Police doubt the money will ever come back, making the couple among a growing list of crypto victims in the U.S.

    How the scam worked

    Johansson said his wife, who chose not to appear on camera with Fox 6 News, first discovered the investment on Facebook and was drawn in by the promise of quick, impressive returns.

    She initially put in $30,000 and was told her money had nearly doubled within weeks. Encouraged by what seemed like a windfall, she ultimately invested a total of $55,000.

    When she tried to cash out her $100,000 in supposed crypto earnings, she was told she needed to pay another $30,000 in taxes and fees. She paid it — bringing her total investment to $80,000, before finally realizing it was a scam.

    Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now

    Fake gains, real losses

    The Federal Trade Commission (FTC) reports that Americans lost $5.7 billion to investment scams in 2024, a category that includes but is not limited to crypto scams. Losses specifically attributed to cryptocurrency as the payment method were reported to be $1.4 billion, which is likely an undercount since FTC figures rely on self-reported consumer data.

    Crypto scams are getting more sophisticated, especially with so-called pig butchering schemes. Pig butchering is a sophisticated, long-term scam that combines elements of romance fraud, catfishing and investment schemes, most involving cryptocurrency. The term comes from the idea of "fattening up" the victim (the "pig") with attention and trust before "slaughtering" them by stealing their money.

    Such scams use a common tactic: fake dashboards that mimic real crypto exchanges, complete with charts, balances and support chatbots. They’re designed to make the victim feel confident and stay invested longer.

    These platforms also often use AI-generated customer service reps who pressure users to add more funds or pay phantom fees to unlock withdrawals.

    Why these scams are hard to stop

    When the couple reported the crime, police offered a grim forecast, their money was likely gone.

    "She has a really hard time sleeping at night," Johansson said of his wife.

    “She now has a lot of trust issues."

    Crypto scams thrive in the gray area between regulation and anonymity. Many of these fake platforms are hosted overseas, registered under shell companies and use untraceable payment methods like crypto-to-crypto transfers.

    How to avoid falling into the same trap

    Unfortunately, stories like this are becoming more common. One analysis suggests that crypto scam activity rose 24% between 2020 and 2024. But there are ways to protect yourself.

    Beware of social media ads. Many scams begin with a flashy ad on Facebook, TikTok or Instagram.

    Check the broker’s credentials. Use the Financial Industry Regulatory Authority’s BrokerCheck or the Securities and Exchange Commission’s Investment Adviser Public Disclosure database to vet any firm.

    Don’t pay fees upfront. Legitimate platforms deduct fees from withdrawals, not before.

    Watch for urgency. Scammers often use high-pressure tactics to get you to act fast.

    Talk to someone. Before investing large amounts, run it by a friend, financial advisor or your spouse.

    Johansson shared the couple’s story to help others avoid the same fate.

    “If it sounds good to be true,” he said, “it’s fake.”

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘It’s outrageous’: Colorado condo owners face $8,341 fee thanks to damage from a hailstorm last year — here’s why HOAs can do that, and what your options are if the same happens to you

    ‘It’s outrageous’: Colorado condo owners face $8,341 fee thanks to damage from a hailstorm last year — here’s why HOAs can do that, and what your options are if the same happens to you

    When a severe hailstorm hit the First Creek Farm condominium complex in Aurora, Colorado, residents of the building had no idea the bad weather could end up costing them thousands.

    Unfortunately, that’s exactly what has happened, as the storm did $4 million in damage to the complex. While there was insurance on the building, the deductible was substantial — and homeowners are going to have to pay the price, as the condo management is now charging a special assessment fee to cover it.

    Don’t miss

    So, why is management able to pass those costs onto homeowners, and how should the homeowners respond? Here’s what you need to know.

    Special assessments not unheard of

    In a condo building, owners and managers are responsible for maintaining common areas and making repairs. However, they charge dues to cover these costs, also known as homeowners association (HOA) fees. Ideally, the regular dues will be large enough to pay for everything the building needs, and some of the money collected will even be put into reserve in case of emergency expenses.

    Sometimes, though, major damage happens and the cost of repairs exceeds the funds available. That’s what has happened in the First Creek Farm complex. The hailstorm did around $4 million in damage, and management now needs to charge a special assessment to pay the insurance deductible to make the repairs needed.

    Special assessments are extra fees that can be charged in situations like this one. These fees aren’t just imposed on condo owners but can happen in pretty much any HOA neighborhood where the neighborhood covenants allow for their collection.

    Accord Property Management manages this particular property, and told 9 News that the fees are necessary. The company said they’ve implemented eight different assessment classes based on allocated interest percentages. All of the 320 homeowners have to pay something, but 72 of them with larger ownership shares are being charged $8,341.

    Jacob Lively, a resident of the condo building, had been planning to sell his property and was shocked when he saw the large assessment from the HOA.

    Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now

    “I don’t see how they can charge that much. It’s outrageous,” Lively told 9 News. “Not everybody just has that amount of money just to throw away.”

    Because he has an interior unit, Lively’s own condo didn’t sustain any damage in the storm. Still, as a resident of the neighborhood who agreed to follow HOA rules when he moved in, he’ll have no choice but to pay the association the money they’re trying to collect.

    What to do when you’re faced with huge HOA fees

    If you’re charged a special assessment fee that you can’t afford, you’re in a pretty difficult situation. The rules of the community typically require you to pay by the deadline the HOA imposes. If you don’t, you could be charged late fees, interest and penalties.

    HOAs also have legal methods of forcing you to pay. They could place a lien against your property, for example, which would mean they’d have an ownership interest in it because of their claim against you. You’d have to resolve the lien before selling or refinancing.

    The association could also sue you for breach of contract, or potentially even initiate a foreclosure on your home to try to force its sale to recoup the unpaid money.

    Now, many HOAs won’t do that and will work with you to create a payment plan that’s within your budget as long as you ask and are acting in good faith.

    Still, you’re going to get stuck paying the fee at some point — and this is something you can’t insure against as your homeowner’s insurance will usually cover only damage to your immediate property and not to the condo building you live in.

    Ultimately, before you buy a condo or move into an HOA neighborhood, you must be aware of the rules in your covenants for when special assessment fees can be charged and how much they can cost. You may also want to research the HOA’s finances, including whether they have a generous rainy day fund to reduce the chances of big bills you’ll have to pay.

    If you feel your condo funds are being mismanaged, your state laws may allow you to request a copy of financial records — or the HOA may make them available voluntarily. Or, you can run for the HOA board yourself in the future to change how it’s being run and try to improve its finances.

    Unfortunately, none of those steps eliminate your obligations to pay fees like the ones these residents are being charged, though. So, residents of First Creek Farm will need to cover the costs.

    If you do decide to live in an association neighborhood and this could happen to you, having a generous emergency fund is essential to ensure you’re prepared if the worst occurs and your building comes to you looking for funds to rebuild.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Federal Reserve just raised the alarm over 1 key economic indicator — signals 12-year high in ‘consumer distress.’ Here’s the big problem crushing American finances (and how to solve it)

    Federal Reserve just raised the alarm over 1 key economic indicator — signals 12-year high in ‘consumer distress.’ Here’s the big problem crushing American finances (and how to solve it)

    While investors worry about the markets, the Federal Reserve Bank of Philadelphia is raising the alarm about another economic indicator: credit-card payments.

    According to the central bank, more than one in 10 Americans (11.1%) paid the bare minimum monthly on their credit-card debt in the fourth quarter of 2024.

    That’s a sign of consumer distress, and it’s at a 12-year high.

    Don’t miss

    Another distress signal? Credit-card accounts that are three months or more past due, which also hit a record high in the fourth quarter of 2024.

    Read on to learn why so many Americans owe so much, what to do if you’re one of them and how to get out and stay out of debt.

    Why are so many Americans in credit card debt?

    It’s no surprise Americans are struggling with debt, given pandemic and post-pandemic inflation.

    The Federal Reserve aims to hold inflation at around 2% annually, but it hit 4.7% in 2021, soared to 8% in 2022; then dipped down to 4.1% in 2023, still double the target.

    Last year, it settled at 2.9% and in March 2025 it fell to 2.4%.

    Unfortunately, Americans’ wallets have not caught up. They’ve been using their credit cards to get by throughout this inflationary era.

    In fact, Debt.com’s 2025 credit card survey reveals that one in three Americans relies on credit cards to make ends meet. Nearly the same number have maxed out their cards in light of rising costs.

    President Trump’s tariffs will likely drive prices up further, which could exacerbate this troubling trend of people turning to cards to cover the basics.

    How to pay off credit-card debt

    If you have consumer debt, don’t skip payments on any of your credit-card balances. That could damage your credit score.

    Mark payment due dates on your calendar and set up reminders to double- or triple-check that the payments go through.

    With the average credit card interest rate coming in at 21.37% as of February 2025, credit card debt is really expensive. Minimum payments barely cover the interest.

    That’s why paying off your credit card balance every month is best, but if you can’t afford that, try to pay more than the minimum.

    To make headway on your debt:

    • Monitor your spending and create a detailed budget that prioritizes paying off debt.
    • Stop charging anything on your credit cards that you can’t pay off immediately.
    • Automate credit-card payments on payday so money goes directly to your creditors.
    • Each month, choose a creditor you want to send additional payments to based on how much you can afford.
    • Once you pay off that creditor’s debt, start sending additional payments to the next debt you want to pay off.
    • Keep going until you are completely debt-free.

    One option — the Snowball Method – is to focus on the debt with the lowest balance first. Finance expert Dave Ramsey recommends this approach. The idea is that you’ll stay more motivated if you score quick wins.

    You could also use the Debt Avalanche system, making additional payments on debt with the highest interest rates first. That means you’d prioritize credit cards over a line of credit, for example. The Debt Avalanche system ensures you’ll stop paying excessive interest sooner.

    You might also consider a debt consolidation loan to pay off your credit-card debt and then pay off the loan (at a lower interest rate) monthly.

    Once you’re debt-free, stay that way by applying the techniques you learned to pay down debt in a new way — building your financial security.

    Keep living on the careful budget you created when you were working on debt payoff — but channel the money you used to pay down debt monthly to build up an emergency fund instead.

    The fund should cover up to six months of living expenses. That will ensure you avoid using credit cards in the event of a layoff or other crisis. If you already have an emergency fund, direct the money toward investing.

    By budgeting, avoiding excessive use of credit cards and being careful about what you spend, you can invest in your future, not your creditors.

    Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Should Canadian retirees own or rent their home? Use this simple ‘5x5x5 rule’ to figure it out

    Should Canadian retirees own or rent their home? Use this simple ‘5x5x5 rule’ to figure it out

    Faced with the rising cost of living, many American retirees are looking to control one of the most fundamental expenses: housing.

    Since the pandemic, the cost of housing has remained stubbornly high. According to a recent report, home affordability slipped further in January, as rising prices raised the income needed for a mortgage in 12 of 13 major markets.

    Moving is not easy at the best of times, but for retirees, deciding whether to rent or own their home will have a long-term impact on their finances and their lifestyle. To help clarify whether renting or owning is your best option, retirement author and YouTube host Geoff Schmidt advises following what he calls the 5x5x5 rule.

    About the 5x5x5 formula

    The 5x5x5 rule is a way to gain clarity on your decision to move by breaking down the pros and cons of renting versus owning both short- and long-term. Most importantly, retirees need to consider where they’ll be — not just geographically speaking — 10 years down the road. Here’s a breakdown of each of ‘five’ in the 5x5x5 rule.

    5 pros of ownership

    The first step in deciding if you want to buy a new home as a retiree is to think about the five big perks of having your own property. For retirees, the pros of owning a home allow you to:

    1. Build equity in your home: Each mortgage payment you make brings you closer to owning your house free and clear with no payments. If you can buy a new home or condo outright by selling your current home, you can still build equity in your new dwelling over time.
    2. Predictability: If you have a fixed-rate mortgage, your mortgage payments will remain consistent for years and you don’t have to worry about a landlord ever making you move.
    3. Tax benefits: While mortgage interest and property taxes are not tax-deductible on a principle residence, you could find tax deductions if you use a portion of your home for a home-based business or to rent out as short-term accommodation or to a long-term tenant.
    4. Customization: You don’t need a landlord’s permission to alter and improve your home.
    5. Home appreciation: Homes generally increase in value, so you can increase your net worth by owning a property.

    5 pros of renting

    Renting also has five significant upsides, particularly for retirees who want greater freedom to travel and to make bigger moves — potentially across the country or even abroad. These include:

    1. Extreme flexibility: You can leave your property after giving notice and go wherever you want much more easily than with an illiquid home you’d have to sell first.
    2. Lower upfront costs: You only have to pay first and last month’s rent and a security deposit to move into a rental, not make a large home down payment.
    3. No maintenance concerns: If something breaks, your landlord is responsible for the cost of fixing it and the actual repairs. You don’t have to build up an emergency fund for maintenance.
    4. Predictable expenses: For the duration of your lease, your monthly housing costs including utilities will remain consistent, even if the cost of energy goes up, for example.
    5. Lack of worry: If you’re in a rental apartment, you won’t have to concern yourself with shovelling snow, mowing grass or other matters of general, external upkeep.

    5 variables that help you make the decision whether to rent or buy

    The last step in the 5x5x5 rule is to consider specific variables that affect you. These include:

    • Financial stability: Considering your current and future Canada Pension Plan (CPP) benefits and retirement income, will renting be more affordable long term, or will owning be more beneficial?
    • Lifestyle preferences: Think about quality of life and what matters to you. Maybe your biggest priority is to be close to family. Perhaps you want easy access to amenities like health care and recreation. Do you want more predictability or more flexibility? Which option — buying or renting — comes closest to matching your desires?
    • Current and future health: Are you in a position to maintain your home and does it have aging-in-place options?
    • Estate planning: Do you want to have a home to leave as an asset to your loved ones?
    • Market conditions: Is it a good time to buy a property? What do you think will be happening in the real estate market in the next decade?

    By asking yourself these detailed questions about your own personal financial goals and lifestyle preferences, it will be easier to decide whether to own or rent now and in the long term.

    This article Should Canadian retirees own or rent their home? Use this simple ‘5x5x5 rule’ to figure it out originally appeared on Money.ca

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I’m in my late 50s with a respectable (not enormous) nest egg — but I’m skeptical of the ‘4% rule,’ so how else can I safely withdraw money in retirement without going broke?

    I’m in my late 50s with a respectable (not enormous) nest egg — but I’m skeptical of the ‘4% rule,’ so how else can I safely withdraw money in retirement without going broke?

    Running out of money in retirement is a huge fear for many people. In fact, research from Allianz Life Insurance found that 63% of Americans are actually more worried about going broke too soon than they are about dying.

    It’s understandable to be worried about this because, when you retire, you most likely have to rely on savings and Social Security, which, on average, replaces only 40% of pre-retirement income. If your savings runs out, you’ll be in trouble, and you don’t want to face this fate.

    Don’t miss

    The worry is even more accurate for people in their late 50s and early 60s, who are entering the final stretch of their working years.

    The good news is, you shouldn’t have to. No matter how modest your nest egg, and no matter how close you are to retirement, you can adopt a smart strategy for withdrawing your funds in a way that makes them last.

    Here’s what you need to know to make that happen.

    Choosing a safe withdrawal rate

    Choosing a safe withdrawal rate is the most important thing you can do to make your money last. This means you limit the amount you take out each year to ensure you leave enough in your account to continue earning returns and avoid dropping your principal balance too fast.

    There are many different ways you can do that.

    The most conservative option is to live on interest alone. If you have $1 million and earn 3% interest, you’d live on the $30,000 annual yield and not touch your actual nest egg.

    The problem is, you don’t necessarily earn a consistent or substantial amount of interest every year since investment performance fluctuates. That’s on top of the obvious fact that if you aren’t planning to draw down the balance at all, you need to amass a pretty large balance to produce an annual sum that you could conceivably live on: having a million dollars at retirement is easier said than done.

    And we haven’t even brought up inflation yet. Hence the second option, what is commonly called the 4% rule, according to which your money should last at least 30 years if you only take 4% out in Year 1 of retirement and increase the amount to keep pace with inflation.

    However, this has some problems too. Most notably, experts now say you must cap withdrawals at 3.7% for your money to last since future projected returns have declined while lifespans have gotten longer. The 4% rule also doesn’t respond to changes in market conditions.

    Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now

    The Center for Retirement Research at Boston College recommends a different approach, which involves letting the Required Minimum Distribution (RMD) rules guide you.

    Retirees with tax-advantaged accounts must take minimum distributions starting at age 73, but CRR said these tables can be a guide even before, and even for those with accounts not subject to RMDs, since they take investment performance, marital status and lifespans into account.

    What’s your risk tolerance?

    No matter which option you pick, it’s smart to consider the level of risk you want to take on. The more risk-averse you are, the smaller your withdrawals should be. You should also have at least two years of liquid, accessible cash you can live on to avoid having to make withdrawals during a downturn and lock in stock market losses.

    If you follow one of these methods, you can hopefully ensure your money lasts as long as you do. A financial advisor can also help you develop a personalized approach to retirement withdrawals tailored specifically to you, if you want the very best chance of making your money last.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.