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Author: Jessica Wong

  • The Family Service of Rochester was supposed to help support older, disabled Americans — then it lost $650,755 and forced folks to move out. But someone followed the money

    The Family Service of Rochester was supposed to help support older, disabled Americans — then it lost $650,755 and forced folks to move out. But someone followed the money

    Moving is hard under the best of circumstances, but imagine being an older or disabled person and given less than two weeks to pack up and leave.

    That’s what happened to residents of the Enriched Housing Program in Rochester, New York, operated by the nonprofit Family Service of Rochester. The program was set up to help older and disabled people live in apartments independently.

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    “All I can tell you is it’s very stressful. Very stressful for all the residents,” resident Bonnie Allsup told News10NBC in a story published May 28. “They were made to move in 10 days without any kind of knowing why.”

    According to the local broadcaster, New York’s Department of Health found Family Service’s care had deteriorated so badly that it posed a risk to the health and safety of residents. Participants had trusted with program with their Social Security and disability checks in exchange for support services and rent payments.

    So, what exactly happened, and how can Americans prepare for the unexpected?

    Behind on rent

    Family Service’s latest IRS 990 tax filing paints a troubling financial picture. The organization ended its 2024 fiscal year $650,755 in the red, News10NBC reports, raising serious questions about whether residents’ benefits were properly handled. The program was also $400,000 behind on rent payments.

    News10NBC says it reached out to the CEO listed on Family Service’s 990 form, Neil Cavalieri, along with the entire board of directors, and all declined to comment.

    Earlier in the week, days after the program’s closure, News 8 WROC reported it received a statement from Family Service: “The programs are being closed to ensure the continued health and safety of the resident participants. Residents in the programs are receiving assistance from both the Department of Health and Family Service in finding appropriate/safe alternative housing and health services.”

    If federal funds were misused, oversight of any investigation would likely fall to the U.S. Attorney’s Office, per News10NBC. The broadcaster says it contacted the U.S. Attorney for the Western District of New York but did not immediately receive a response.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    How to plan for the unexpected

    Sudden shifts in things like housing and care services can leave many vulnerable folks scrambling. Families are often left with tough financial and personal decisions including:

    • Hiring private caregivers: Without affordable community-based services, families may have to turn to private in-home care, which can eat through savings quickly.
    • Working adults cutting hours: Adult children may need to leave the workforce or reduce working hours to become caregivers for their aging relatives, resulting in lost wages and stalled retirement contributions.
    • Tapping into retirement savings: Those in a fixed income may find themselves withdrawing from 401(k)s or IRAs prematurely, increasing the risk of outliving their savings.
    • Rising household debt: To cover these costs, some households may be taking on credit card debt, personal loans or second mortgages, putting their long-term financial stability at risk.

    Despite these challenges, there are strategies older Americans and their families can consider:

    • Medicaid and public aid: Some may qualify for Medicaid long-term care coverage or other government-funded programs. Check eligibility and get guidance on these programs.
    • Community-based services: Nonprofits and local agencies might offer subsidized services such as meals, transportation and part-time caregiver relief.
    • Long-term financial planning: Work with financial advisors who specialize in senior care and benefits, like the VA’s Aid & Attendance program.

    What to read next

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

  • ‘He clearly is an unmotivated slug’: Atlanta surgeon tells Dave Ramsey her actor boyfriend ‘doesn’t want to work’ — but statistics show more and more men share this ‘deal breaker’ trait

    Forty-year-old Jenny is a surgeon earning nearly half a million dollars a year.

    She called into The Ramsey Show to ask a hard financial and emotional question: “My boyfriend doesn’t want to work. Is that a deal breaker?”

    While Jenny is projecting to earn $500,000 this year, her 51-year-old actor boyfriend earned less than $23,000 last year. He has worked just two days in the past 12 months.

    The show’s hosts, Dave Ramsey and co-host Rachel Cruze, didn’t mince words.

    “Is that attractive to you? Are you like, ‘What a winner’?” Cruze asked bluntly.

    The red flag isn’t just the difference in income. Ramsey emphasized it was the lack of drive that Jenny should watch out for, “I don’t care if he makes as much money,” he said. “I care that he doesn’t work.”

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    ‘An unmotivated slug’

    The hosts doubled down on the lack of ambition. Cruze pointed out, “I’m not mad that he doesn’t have a job as an actor every week, but at least he’s like, hey, I’m still busting my butt and I’m part-time here, I’m waiting tables here and I’m trying to make this dream work… but the fact that there’s nothing in between that that’s happening, right? As a woman who works and all of it, that’s not attractive to me,”

    Jenny also added, “We want to continue our relationship and keep moving forward and eventually get married and live together.”

    But the surgeon also clearly had apprehensions about some of the proposed arrangements: “[H]e says because the house will be under my name, he shouldn’t pay for any part of the mortgage.”

    Ramsey was direct, saying, “He clearly is an unmotivated slug.”

    Jenny continued, revealing she has repeatedly asked him how he gets by without steady work.

    “He’s 51 and I’m not sure how much things are going to change,” she said.

    When Ramsey asked whether Jenny had children and she said no, he countered by asking her, “If you had a daughter that asked you this question, what would you tell her? You already have made this decision. You just wanted someone else to say it out loud. And I’ll tell you, if you go forward with this guy, you’re going to get increasingly resentful and increasingly bitter.”

    The co-hosts also pointed out that in modern relationships, the traditional roles can be reversed, with many women today being the primary breadwinners. But what’s non-negotiable is effort.

    “It’s 2025,” Cruze said. “There’s some stay-at-home dads. So, even if that was the case and he’s like, hey, we’re having to support kids and you have a demanding job, I’m able to do this and this and this, you know what I mean? But there’s like effort involved. There’s none of that.”

    The final verdict from Ramsey followed: “We think it’s a deal breaker and so do you. And you just wanted someone else to say it out loud.”

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Shifts in the job market mean fewer men are working

    A large number of American men are not working. In 2024, that number was almost at 7 million, though April 2025 U.S. Bureau of Labor Statistics data now finds a total of 7.2 million Americans (male and female) unemployed. The reasons range from labor market disruptions to mental health struggles, but the ultimate impact is that the male workforce is steadily declining.

    Back in 1970, obtaining a high school diploma was almost always enough to get a spot in the workforce. Nearly 98% of young men with only a high school education were either working or actively looking for work. Fast-forward to 2013 and that figure had slipped to 88%. In 2024, that number was even lower with just 87% of young men with a high school diploma participating in the labor force, reflecting a long-term shift in the job market and what it takes to stay employed.

    But it’s not just about education. So why is this happening?

    Manufacturing, construction and other traditionally male-heavy sectors have shrunk dramatically. These industries have been hit by automation, offshoring and economic restructuring, leaving fewer stable, high-paying jobs for men without college degrees.

    In fact, a Pew Research Center study found that “men who are not college-educated leave the workforce at higher rates than men who are. At the same time, fewer younger men have been enrolling in college over the past decade,” according to CNBC.

    Mental health challenges, including depression and substance abuse, are also reasons contributing to the lower number of men in the workforce.

    There is also a growing sense of disconnection and purposelessness among young men. An Economic Strategy Group report found that men are increasingly disengaged from work, education and relationships. Instead, they are turning to online entertainment, gaming and internet communities. This increased isolation then further limits employment prospects due to a narrowing of social networks.

    On the other hand, women have steadily increased their share of college degrees and professional employment. According to a Women in Academia report, women earned almost 67% of all Master’s degrees awarded in 2021-2022 in the U.S.

    The consequences are massive. A shrinking male workforce means knock-on effects like lower tax revenue, heavier demand for social services and lower homeownership rates.

    As to how to remedy this drop in participation, Economic Strategy Group recommends:

    • ensuring those who want to enter college after pandemic-related disruptions are able to do so
    • restoring pathways to economic security outside of the college pipeline
    • equipping young men with the social and emotional support to navigate this period in their lives

    In Jenny’s individual case, Ramsey argued that the lack of ambition is not sustainable in a long-term partnership — that this lack of effort would carry over to other facets of their life together. In a culture that values contribution and equity in relationships, a lack of initiative can be a serious deal-breaker — and should be.

    What to read next

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

  • Lawmakers say mega-landlords are buying up the American dream — and leaving renters like this Florida woman struggling to keep up with rising rents and locked out of the housing market

    Lawmakers say mega-landlords are buying up the American dream — and leaving renters like this Florida woman struggling to keep up with rising rents and locked out of the housing market

    Rebecca Jove, who has rented the same home in Middleburg, Florida for 10 years, says what once felt like a secure place to live has turned into a money pit. Jove’s rent has nearly doubled since she started living there, and she says she’s stuck in the "rental trap."

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    Her struggle with rising rents and mounting maintenance issues is putting a spotlight on corporate landlords.

    “You can’t cook, you can’t do laundry. The floors are sticky. It’s hotter in the house than it is outside,” Jove told News4JAX. Mold and a hole in the wall left unpatched for “three or four years” have only added to the frustration.

    “We started off at a fair price and ended up paying far too much,” Jove said. “It has impacted our ability to actually get out and buy a house.”

    ‘It’s been a very, very long road’

    Jove rents from Invitation Homes, one of the country’s biggest players in the single-family rental market. The real estate giant owns over 80,000 properties nationwide, hundreds in Northeast Florida alone, and is now at the center of an inquiry led by Georgia Senator Jon Ossoff.

    Launched in May, Ossoff’s investigation also includes other corporate landlords – Main Street Renewal, Tricon Residential, and Progress Residential – that he says are inflating rental markets, outbidding families, and locking out would-be homeowners in Georgia.

    His office told News4JAX it has already interviewed more than 160 witnesses, including renters, realtors, policy experts and local officials.

    “More and more Georgians who are renting instead of buying are facing mistreatment or abusive practices by corporate landlords,” Ossoff said at a press conference. “Since 2009, public reports and research have identified an increase across the country in large national firms buying up single-family homes in bulk to convert them into rental properties.”

    Jove’s experience in Florida mirrors what Ossoff describes happening across the U.S.. And while her family is finally preparing to purchase a home, she says the rising rent delayed their dream for years.

    “It’s been a very, very long road,” Jove said.

    News4JAX reached out to Invitation Homes for comment on Jove’s experience and the Senate investigation. A company spokesperson issued the following statement:

    “It is always our intent to provide high-quality homes and a professional leasing and property management experience for our residents. We remain in contact with Ms. Jove after installing a new HVAC system in her home earlier this month.”

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Is Wall Street buying the American dream?

    In cities from Jacksonville to Atlanta, and across Sun Belt suburbs, Wall Street-backed landlords are rapidly changing what it means to rent or buy a home in America. Since the 2007-2009 financial crisis, big investment firms have snapped up single-family homes, turning the nation’s neighborhoods into rental portfolios.

    Mega-landlords, or those with at least 1,000 properties, own 3% of the 15.1 million total single-family properties available for rent nationwide, according to a study by the Urban Institute.

    These properties are concentrated in certain areas. Six cities — Atlanta, Phoenix, Dallas, Charlotte, Houston, and Tampa — together contain 45% of these mega-operators’ total holdings.

    “… large institutional investors have several advantages in competing for homes over individual homebuyers, especially first-time buyers: deep pockets and ready access to capital markets allow them to outbid individuals. This can lead to crowding out in geographic submarkets where institutional investors are seeking to expand their portfolios,” said Jenny Schuetz, a Senior Fellow at Brookings Metro.

    Legislation aimed at reining in the corporate landlords, like the recent Strengthening Home Ownership in Florida Act, has come before Congress before and fizzled.

    “Owning a home isn’t just about real estate; it’s about freedom, stability, and the right to build a future in your own community. With this bill, we’re making it clear: Florida belongs to Floridians,” said its sponsor Rep. Berny Jacques, reported Florida’s Voice.

    Currently before lawmakers is the Homes for Every Local Protector, Educator, and Responder (HELPER) Act of 2025, a bipartisan effort sponsored by Rep. John H. Rutherford in the House and by Sen. Ashley B. Moody in the Senate. Both politicians represent the people of Florida.

    It would introduce zero-down FHA loans for first responders including teachers, cops, and firefighters and is a shot at leveling the playing field for essential workers priced out by Wall Street-backed buyers.

    As corporate landlords tighten their grip on the U.S. housing market, political pressure may mount. The fight over who gets to own the American dream continues.

    What to read next

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

  • ‘My whole account is messed up’: Student loan chaos ensues, borrowers face soaring payments, uncertainty as repayment system unravels

    ‘My whole account is messed up’: Student loan chaos ensues, borrowers face soaring payments, uncertainty as repayment system unravels

    Student loan borrowers face steep increases in their monthly payments as court rulings and Department of Education staff cuts disrupt the repayment system.

    A February ruling from a federal appeals court expanded an existing injunction, blocking the Biden administration’s Saving on a Valuable Education (SAVE) Plan, which was one of four income-driven repayment (IDR) plans. Its goal was to calculate monthly payment amounts based on income and family size.

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    As a result, millions of borrowers who rely on these repayment options are unsure if they will be able to manage their monthly payments, and their chances of achieving loan forgiveness are in jeopardy.

    To make matters worse, the Department of Education recently announced it would cut its workforce by nearly 50%, leaving many borrowers in the dark about their repayment options and unable to get support during this critical time.

    Looming deadlines, higher payments

    The court’s ruling specifically blocked the SAVE plan, one of four IDR plans designed to help borrowers manage their monthly payments based on income. This decision halted access to the program.

    Borrowers enrolled in SAVE are now stuck in forbearance, which pauses payments and sets interest rates to zero. However, time stuck in forbearance does not count toward loan forgiveness, including Public Service Loan Forgiveness (PSLF), which many borrowers in nonprofit or government jobs rely on.

    The ruling also casts doubt on the legality of student loan forgiveness after 20 or 25 years for borrowers enrolled in Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans. However, these two older plans remain accessible. The ruling did not block the Income-Based Repayment (IBR) plan, another IDR option created in 2007, or PSLF, which remains available for some borrowers.

    Despite this, the Department of Education has stopped all IDR applications, including for the unaffected plans. As a result, borrowers cannot update their income or switch to alternative repayment plans, leading to delays and payment spikes. The inability to recertify income has become a major issue for those enrolled in ICR, IBR, and PAYE.

    Each year, borrowers must update their income with their loan service providers, which recalculates monthly payments. But since the Department of Education halted the application process, recertification is impossible. This has resulted in higher payments and, in some cases, triggered interest capitalization — meaning borrowers could owe even more in the long term.

    Some borrowers have been shocked by the increases in their monthly payments. According to Forbes, one PAYE borrower whose income recertification was delayed saw her payments jump from $600 per month to $3,400 under a Standard Repayment Plan. Others are being pushed into Graduated or Extended repayment plans, which are often unaffordable and usually don’t count toward forgiveness.

    “I’m supposed to recertify by the 10th, and my payments are going up by $1,000 in May,” one borrower shared on Reddit. “I wasn’t asked to recertify, and now my account shows I owe $2,411.11, due today.”

    Meanwhile, the Department of Education’s recent layoffs have left its borrower services division stretched thin, making it difficult to dispute issues or receive guidance on their repayment options. The Department of Education has also failed to update its guidance to reflect recent changes, forcing borrowers to navigate an increasingly complex and inaccessible system.

    As the Department of Education struggles to get its systems back on track, borrowers are left grappling with an uncertain future, rising payments and delays in forgiveness programs.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    How to tackle rising student loan payments

    With the student loan landscape in flux, managing repayments can feel like navigating a maze. However, there are steps borrowers can take to stay on track and protect their finances during these uncertain times.

    If you’ve been relying on an IDR plan like the Biden-era SAVE plan, you may have already noticed disruptions.

    First, if your loan repayment schedule changes, contact your loan servicer immediately to understand your options.

    While the future of these plans is in limbo, it’s important to explore alternative repayment options. Standard, Graduated and Extended repayment plans may offer some relief if your income-driven plan is no longer available. Stay informed by regularly checking official Department of Education updates and trusted financial news sources.

    Prepare for potential increases by adjusting your budget. With a larger portion of your income going toward loan payments, you may need to cut back on discretionary spending to prioritize essentials like housing, utilities and transportation.

    Although financial experts typically recommend setting aside at least 15% of your annual income for retirement, higher student loan payments may make that seem out of reach. If saving for retirement or an emergency fund feels out of reach, consider starting with small contributions to maintain financial stability.

    Some borrowers may consider loan consolidation or refinancing or private student loans to secure a lower interest rate or more manageable payments. However, refinancing federal loans may result in the loss of key benefits, such as IDR options or student loan forgiveness, which could prove costly down the line.

    If you’re struggling to make payments, explore available loan forgiveness programs, but be sure to review their strict eligibility requirements. Meanwhile, a group of Democratic attorneys general has filed a lawsuit against the Trump administration, arguing the sudden firing of half the Department of Education’s workforce is unlawful.

    As legal battles and administrative uncertainty continue, millions of borrowers remain in limbo.

    What to read next

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

  • Houston man faces narrow escape after ‘bank juggers’ followed him home, smashed his car window — here’s what you need to know to protect yourself against this alarming trend

    Houston man faces narrow escape after ‘bank juggers’ followed him home, smashed his car window — here’s what you need to know to protect yourself against this alarming trend

    What was supposed to be a routine ATM stop turned into a near-tragedy for one Houston man.

    The man had withdrawn cash from an ATM and made the short 5.5-mile drive home, unaware he was being tailed. Not by one car. But two.

    Security footage from the family’s home captured the chilling moment. The man had just stepped inside when two vehicles pulled up, one right into the driveway. One suspect served as a lookout while another smashed the passenger window of his car, presumably looking for cash, which the man had already taken inside.

    “They could’ve took his life over $200,” said a woman speaking on behalf of her son-in-law, who was targeted outside a Bank of America branch on Houston’s south side on May 5. For safety reasons, she asked not to be identified when she spoke to KHOU.

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    ‘Bank jugging’ on the rise

    When the woman shared the footage and story online, the response was immediate. Dozens of Houstonians reported similar experiences, some even saying they were targeted after using the same bank branch.

    “They left empty-handed,” the woman said. “He was frustrated about it, but I mean, a window can be replaced. Even the money could be replaced. His life — it can’t be replaced.”

    The crime is known as "jugging,” a growing concern in Texas where thieves stalk victims from banks or ATMs.

    The term "jugging" refers to the act of "juggling" cash. These are the steps the criminals take:

    • Surveillance: Criminals watch bank or ATM locations, looking for individuals withdrawing substantial amounts of cash.
    • Targeting: Once a potential victim is identified, the perpetrators discreetly follow them, often using multiple vehicles.
    • Theft: At a later location, like the victim’s home or a parking lot, the criminals rob the individual of their cash.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    What lawmakers are doing

    House Bill 1902, signed into law recently, officially creates the criminal offense of jugging under Section 29.04 of the Texas Penal Code. It makes jugging a state felony and takes effect Sept. 1, 2025.

    Previously, suspects could only be charged with burglary or robbery. Now, jugging is its own crime and can carry steeper penalties if the offense escalates.

    “There are steps that banks themselves can do to help protect their customers,” said Nichole Christoff with Houston Crime Stoppers. “And the first is by having good surveillance cameras inside and outside of the bank to capture people’s comings and goings and potentially spot suspicious behavior — and also be good evidence.”

    How to protect yourself from jugging

    To reduce the risk of falling victim to bank jugging, here are some important safety tips that :

    • Be discreet: Put your cash away immediately after withdrawal. Don’t count your money in public or leave it visible in your car.
    • Stay alert: Be aware of your surroundings, especially if something seems unusual as you enter or leave the bank.
    • Vary your routine: Change the times and locations of your banking transactions so that you don’t have a predictable routine.
    • Use drive-through services: Choose drive-through ATMs or bank tellers when possible to minimize your exposure.
    • Secure your car: Lock your doors and keep valuables out of sight when leaving your vehicle.
    • Report suspicious activity: If you notice anyone acting suspiciously near your bank or following you, report it to the authorities immediately.

    The family hopes their frightening experience will be a wake-up call for others to stay vigilant when withdrawing cash.

    What to read next

    Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

  • ‘I heard my son screaming’: California handyman dealing with severe financial strain after massive city-owned tree fell on his truck — trapping his 4-year-old son inside. What now?

    ‘I heard my son screaming’: California handyman dealing with severe financial strain after massive city-owned tree fell on his truck — trapping his 4-year-old son inside. What now?

    What started as a regular, hot afternoon turned into a nightmare for San Mateo handyman Humberto Montoya and his 4-year-old son, Ysander. They were relaxing in the shade when a massive valley oak tree suddenly crashed down on their pickup truck, trapping the child inside and leaving both injured.

    The valley oak is the largest oak tree variety in North America, and these trees can reach over 100 feet in height.

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    Montoya recalled the terrifying moment speaking with KTUV FOX 2 San Francisco, saying, “I heard the tree snapping, and I looked up … I heard my son screaming for help, ‘Papa, help!’”

    Montoya, who was standing outside the truck, says he pushed heavy branches off himself after falling to the ground. His son was pinned inside with the steering wheel pushing down on his legs as the boy cried out in pain.

    A nearby construction crew sprang into action to get the boy out. The superintendent of the crew, Andrew McManus, described their quick rescue, “I just heard a little child crying and it got to me … It was smashed. I think If that truck was a little forward by a foot, it would’ve been a completely different story.”

    Medical bills and missing tools

    The shocking story doesn’t end there. Ysander was rushed to the hospital where his leg was put in a cast. He ended up needing surgery to repair his leg, according to a Go Fund Me started to help the Montoya family.

    “We are asking the community to help contribute to medical bills, time off work and new vehicle for work as Humberto is the sole provider for his family of 4,” says the page, which has so far raised $11,300 out of a $20,000 goal.

    As the family reeled from the trauma, there was one more heartbreak for Montoya. When he returned to the crash site two days later, his tools, which he needs for his work, had been stolen from the wreckage.

    City negligence?

    Montoya and his son weren’t the only ones who were affected. Another car was damaged and another individual was trapped under branches from the same tree.

    The fallen valley oak stood on a public sidewalk and was pushing up the pavement, according to the Montoya family.

    “A lot of people in the community have reported that the tree was already rotten and they have called the city to let them know,” said Diana Navarrete, Montoya’s wife and Ysander’s mother, to KTUV. "They’d seen the pavement lift so they should have taken action."

    The city of San Mateo confirmed the tree was a valley oak and told KTUV they’re reviewing records for any complaints.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Green Fashion Nursery owner Berto Heredia, whose property also suffered damage, confirmed there had been warnings to city officials.

    "This is something we’ve called the city about before. We informed them that this tree is old," Heredia told KTVU. "When you call, you get a city clerk who says they’ll be back to you in a day or two. And unfortunately, you know, nothing was caught in time before things like this happen."

    His nursery lost roughly a third of its inventory in the collapse.

    According to the city of San Mateo website, they are responsible for the maintenance of trees that are on city property, including scheduled pruning, removal of dead and hazardous trees and responding to resident concerns about dangerous trees.

    If the city’s investigation finds that the tree was not properly maintained or that resident complaints about its condition were ignored, it’s possible it could be held liable for damages resulting from the tree’s fall.

    As for the Montoya family, they are grappling with recovery and financial strain, relying on their community and strangers to help turn this tragedy around.

    What to read next

    Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

  • NYC man confesses to Dave Ramsey he put an $11,000 engagement ring on a 0% interest credit card

    NYC man confesses to Dave Ramsey he put an $11,000 engagement ring on a 0% interest credit card

    One New York City man thought he’d gamed the system when he bought an $11,000 engagement ring using a 0% interest credit card offer from Bank of America.

    With $25,000 sitting in a high-yield savings account earning 4%, Nick figured he could carry the balance for two months, earn a little interest, and make the most of the promo window.

    “I have no intention of putting anything else on the credit card,” he explained on The Ramsey Show. “It’s just a cash outflow question as far as managing my monthly payment.”

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    But personal finance guru Dave Ramsey wasn’t impressed.

    “Write a check today and pay off the card,” he said bluntly. “You did a sweet, good thing in a dumb, bad way.”

    Don’t play games with debt

    Ramsey’s point? The math simply doesn’t work out. The interest earned over 60 days would barely cover a fast-food lunch.

    “You made enough to buy a biscuit,” Ramsey quipped. “You don’t beat Bank of America. The only way to beat them is to stay away.”

    Nick’s hesitation came from the fact that dipping below $25,000 in his savings account would drop his interest rate from 4% to under 1%. But as Ramsey calculated, 4% of $10,000 is just $400 a year, less than $40 a month. “You can’t buy a pizza [with that],” he added.

    “You’ve spent hours screwing with this in your mind,” Ramsey explained. “It paid you about $1.16 an hour.”

    The Ramsey Show co-host John Delony chimed in with a dose of real-world forecasting. Once the wedding planning starts there will be unexpected expenses, some of which may require cash deposits, and it’ll be all too easy to “float” just one more month. That’s exactly how banks make their money, by getting people comfortable with debt.

    At the end of the call, Ramsey wasn’t sure if Nick was fully convinced.

    “You don’t want to put that ring on her finger and say, ‘Thank you, Bank of America,’" Ramsey said. “That’s gross.”

    Nick may have had good intentions, but Ramsey’s message was clear, when it comes to major life moments, avoid playing games with debt — no matter how sweet the introductory offer sounds.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Hidden risks with 0% APR

    While 0% APR (annual percentage rate) offers can seem appealing, they can come with hidden risks.

    Many of these offers are deferred interest promotions. This means that if the balance isn’t paid in full by the end of the promotional period, interest is charged retroactively from the purchase date.

    So, let’s say you make a $4,000 purchase on such a card and only pay $2,000 of it off. Consider that average APR on retail store credit cards, for example, is close to 30%, that’s $50 a month simply in interest. You could end up owing hundreds of dollars in interest over time.

    Relying on 0% APR offers can also encourage overspending. The temptation of ‘free’ financing might lead consumers to make purchases they can’t afford, thinking they have more time to pay. Without a clear repayment plan, this can result in accumulating debt.

    To be safe, it’s critical to read the fine print of any credit card offer.

    Make sure you understand whether the offer is truly 0% APR or if it’s a deferred interest deal. Have a solid repayment plan in mind to pay off the balance before the promotional period ends.

    And if you can’t commit to paying off the full balance in time, it might be better to rethink the purchase or consider other financing options.

    In Nick’s case, Ramsey advised paying off the credit card balance immediately and cutting up the card to avoid future temptations. It’s a reminder that even ‘free’ financing can come with hidden costs.

    What to read next

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

  • ‘I’m within my rights’: This NYC business owner erected a 50-foot steel fence on his property, cutting off the sidewalk and 10 parking spots. Now it’s causing a neighborhood nightmare

    ‘I’m within my rights’: This NYC business owner erected a 50-foot steel fence on his property, cutting off the sidewalk and 10 parking spots. Now it’s causing a neighborhood nightmare

    In a move that’s angering local businesses and neighbors, a longtime business owner in Astoria Heights has put up a massive steel fence that cuts off a public sidewalk and roughly 10 parking spaces.

    Anthony Della Vecchia, who runs Michael Della Vecchia & Son General Contractor on Hazen Street, paid about $25,000 to install the permanent fence in April along 19th Road. He says years of illegal dumping and a recent fall that landed him a lawsuit are justification enough, according to Fox 5.

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    The fence spans 50 feet of sidewalk and stretches several feet into the street.

    Della Vecchia sees no issue with it, pointing to a city tax map that he says proves the sidewalk and part of the roadway fall within his property lines.

    “I’m within my rights,” he told Queens Post.

    ‘That fence is only going to make things worse’

    The city isn’t on board with Della Vecchia’s logic, however.

    The Department of Transportation (DOT) issued him an encroachment notice of violation on April 17, giving him 30 days to get rid of the fence. Della Vecchia said he is not taking the fence down before his court date.

    It’s not the first time Della Vecchia has been involved in local controversy. He put up temporary barriers and “No Standing” signs after a woman reportedly tripped on the sidewalk and sued his business in January 2024.

    This time, things aren’t much different. Della Vecchia’s neighbors and nearby business owners have concerns.

    Former City Council Member Costa Constantinides, who lives nearby, called the fence dangerous and ridiculous.

    “He’s creating a traffic issue,” Constantinides told Queens Post, pointing out that the fencing makes turning onto 77th Street more dangerous. “I’ve seen some terrible car accidents on that corner. That fence is only going to make things worse.”

    The fence has also created headaches for drivers. The day it went up, several parked cars were trapped inside the enclosed area.

    A Reddit post showing at least three boxed-in vehicles went viral, with residents claiming they received no proper notice. One commenter said they parked their car two days earlier, only to find it fenced in with no way out. Della Vecchia says that he posted signs in advance and placed barrels along the curb.

    The digital uproar has spread on social media, where users are calling for city action and criticizing what they see as a selfish move that puts private concerns over community welfare.

    But Della Vecchia pushed back against this sentiment.

    “Why do I have to consult people to do something on my own property?” he said.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Bad for local business?

    The impact of the fence has the potential to hit small businesses in the area hard.

    Foot traffic is important for nearby stores, as without sidewalk access, casual shoppers might just avoid the area. Less pedestrian flow can mean lost sales, accessibility issues for customers and a less inviting streetscape, which can be damaging for mom-and-pop shops that already operate on thin margins.

    The dispute could open the floodgates and spark legal battles over public right-of-way, drain city resources or even lead to financial pressure on nearby tenants if customer numbers drop.

    Constantinides emphasized that the community would have been more understanding if Della Vecchia had talked to his neighbors before taking action.

    “There could have been a resolution here had he come to us and worked with the neighborhood and tried to say, ‘Look, here are my grievances. Here are the things I need fixed,’” he told Queens Post.

    Instead, the situation has become a neighborhood nightmare.

    As of May 17, Della Vecchia had to either take the fence down or take his fight to court.

    For now, the fence remains — and so does the controversy.

    What to read next

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

  • This Houston man found out his ‘funny’ vanity license plate had been illegally cloned — leaving him being charged almost daily for another driver’s habits

    This Houston man found out his ‘funny’ vanity license plate had been illegally cloned — leaving him being charged almost daily for another driver’s habits

    Jason Sung thought it was all fun and games when he bought a custom license plate "5.0 GPA" for his white Ford Mustang.

    "I’m not a good student, or I don’t have a good grade, but I just thought it’s a funny plate," Sung told ABC13 News.

    "I really liked it."

    But what started as a lighthearted joke turned into a frustrating financial headache.

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    Sung noticed his Harris County Toll Road Authority (HCTRA) account auto-replenished unexpectedly, even though he rarely uses toll roads. Diving deeper into his account, Sung was shocked to find dozens of toll charges, many racked up during a period when he was out of the country and his white Ford Mustang was parked safely in his garage.

    Someone had a duplicate plate, down to the exact phrase, and had slapped it on a black Ford Mustang.

    Toll charges ‘pretty much every day’

    Sung found toll charges dating back to at least January that he knows he is not responsible for.

    "It’s just pretty much every day," he said.

    When he contacted HCTRA for answers, he said the toll authority checked transaction photos. A representative asked him if his vehicle was black with yellow lightning bolts on the back, but Sung’s response was immediate: “No, my car is completely white.”

    The photo HCTRA sent him showed a different vehicle altogether, but it had the same "5.0 GPA" license plate.

    "Even a person who doesn’t even have a driver’s license can tell you that’s not a Texas plate," Sung said.

    The photo included the other driver’s Instagram handle. ABC13 tracked down the individual behind the duplicate plate via social media.

    The driver admitted that the plate was a fake, ordered online from Arizona. He told reporters that he had no idea the plate phrase was officially registered and said he had been pulled over multiple times for the bogus tag. When asked if he would consider obtaining a legal plate, he instead asked if Sung might change his.

    Eventually, the driver said he would remove the fake plate from his vehicle.

    Meanwhile, Sung filed a report with the Harris County Precinct 4 Constable’s Office. Authorities told ABC13 the case is still under investigation.

    As for the wrongful charges, HCTRA confirmed to the news channel that they are reviewing all the transactions linked to Sung’s account and will issue him a credit for tolls incurred by the other driver.

    For Sung, it’s an expensive lesson in how a vanity plate can make you stand out, even to the wrong people.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    How to protect yourself from license plate cloning

    License plate cloning is becoming a growing problem in the U.S., where criminals copy legitimate license plates to commit illegal activities, leaving innocent vehicle owners, like Sung, on the hook for fines, tolls and even criminal offenses.

    In New York City, the police impounded more than 4,000 vehicles with fake plates in the 12 months after a task force was established in March 2024, while nationwide scams, like one in Tampa involving more than 1,000 cloned cars, have racked up losses exceeding $25 million, according to the FBI. States like Virginia and Texas are seeing rising thefts and enforcement efforts, with automated license plate readers (ALPRs) recovering hundreds of stolen vehicles.

    Victims of license plate cloning may have to deal with problems like toll charges, parking and traffic fines, wrongful administrative fees, and in severe cases, the issues can impact credit scores.

    So, what can you do to protect your vehicle from cloning? Here are some strategies you can use:

    • Regularly monitor toll accounts. Log into toll authority portals, like TxTag and E-ZPass, monthly to review trip logs and check for unauthorized trips.

    • Use antitheft screws. Install tamper-resistant screws to make it harder for thieves to remove your plates.

    • Don’t overshare online. Don’t post images of your license plate on social media or public forums.

    • Be careful where you park. Choose well-lit areas with security cameras to help avoid theft.

    • Use plate-monitoring services. Consider services that alert you if your plate appears in enforcement databases or is flagged.

    Regular monitoring and taking proactive steps like these can help protect you from the financial and legal repercussions of license plate cloning. If you do run into a stolen plate, report it to authorities immediately.

    What to read next

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

  • ‘I was misinformed’: Washington State man just found out he owes the IRS $140,000 after withdrawing funds from his 401(k) to buy a house — how The Ramsey Show hosts advise he tackle it ASAP

    ‘I was misinformed’: Washington State man just found out he owes the IRS $140,000 after withdrawing funds from his 401(k) to buy a house — how The Ramsey Show hosts advise he tackle it ASAP

    Marty from Spokane, Washington, thought he was taking a smart step toward debt-free homeownership. But pulling $400,000 from his 401(k) to buy a house left him with a staggering $140,000 tax bill.

    “I just recently found out that when I go to file my taxes, I am going to owe roughly $140,000,” he said, calling into The Ramsey Show. “I really don’t want to do a payment plan with the IRS, but I just don’t know the best path forward.”

    Marty thought he had paid all the fees and taxes when he withdrew the money, but said, “I was misinformed that it had been paid… and I didn’t realize it hadn’t been done until I went to file my taxes.”

    The Ramsey Show says it’s better to owe a bank than the IRS

    Marty has a few ways to come up with the money: He could use a line of credit like a HELOC or credit card, dip into his $60,000 in savings, or take out a personal loan from a bank. But The Ramsey Show co-hosts Jade Warshaw and Rachel Cruze were clear: some of those options could make things worse. They advised against using a home equity line of credit (HELOC) or a credit card.

    “I would not do a HELOC,” Cruze said. “I would not put your home at risk. With HELOCs, the interest rates are sometimes insane.” As for credit cards, the interest rates tend to be even higher and more volatile, and the debt can spiral fast. That’s a dangerous mix when dealing with a large IRS bill. Instead, Warshaw and Cruze recommended pulling from Marty’s savings and using a personal loan from a bank to cover the remainder.

    “Use your savings, then get a personal loan to pay the IRS off as quickly as possible,” Warshaw advised.

    “Because I’d rather owe a bank than the IRS at this point,” Cruze added.

    IRS debt can lead to aggressive penalties, interest and long wait times when trying to resolve issues — which is why they emphasized handling it quickly, cleanly, and without risking other key assets like retirement accounts or home equity.

    “You’re already in the hole,” Cruze said, adding “…be in the hole with a bank.”

    The consequences of tapping into your 401(k) early

    Marty’s story serves as a reminder to avoid dipping into retirement accounts, especially if you don’t fully understand the tax implications.

    As Warshaw concluded, “No more leveraging very important things for debt.”

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    In a financial emergency, your 401(k) might look like a tempting source of fast cash, especially when you see a hefty six-figure balance just sitting there. But taking money out of your 401(k) before age 59½ can come with serious consequences that extend far beyond the immediate tax year. You’re typically hit with a 10% early withdrawal penalty and ordinary income tax on the total amount that you’ve withdrawn.

    For example, let’s say you withdraw $20,000 from your 401(k) before age 59½:

    • $2,000 goes straight to the IRS as a penalty (10%)
    • Assuming a 22% tax bracket, you’ll owe another $4,400 in income taxes
    • Total cost in fees and taxes: $6,400, or 32% of your withdrawal
    • The amount you’ll actually keep: $13,600

    Aside from the fees and taxes, there are long-term implications, too.

    Lost investment growth: Money withdrawn from your 401(k) isn’t just taxed, it’s no longer growing. A $20,000 withdrawal today could have grown to $80,000 or more over 25 years with compounding returns (assuming an average of 7% annual growth).

    Tax time shock: Many people think taxes and penalties are deducted automatically. But if you don’t withhold the right amount when you take the distribution, you may owe thousands when you file, with penalties and interest if you can’t pay on time.

    When a 401(k) withdrawal might make sense

    There are some exceptions where tapping into your 401(k) early may be the only option:

    • Avoiding foreclosure or eviction
    • Job loss with no savings or access to credit
    • Disability or death (in which case, penalties may be waived)
    • Hardship withdrawals, like for terminal illness (may be exempt from the 10% penalty, but you’ll still owe income taxes)

    Before dipping into your retirement funds, consider other options:

    • Emergency savings
    • Personal loans or credit union options
    • Home equity loans, if your income supports repayment
    • Selling non-retirement investments, like brokerage accounts

    Pulling from your 401(k) early can feel like a quick fix, but with taxes, penalties and lost future growth, you could lose 30% to 40% of what you take out, so it should be treated as a last resort rather than an easy solution.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

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