Author: Jessica Wong

In a heartbreaking scam that’s left a Naples couple reeling, two fraudsters tricked the 72-year-old couple into handing over more than $2 million worth of gold.

The ordeal has left the elderly couple shattered. The gold is nearly impossible to trace, making it unlikely they will get their stolen assets back.

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“They took money from their accounts and purchased gold,” Lt. Bryan McGinn of the Naples Police Department explained to Gulfcoast News Now, “Once they had the gold, the fraudsters sent a courier to pick it up, telling the victims that the gold would be safely stored and eventually returned to them.”

For several months, the couple was under the impression that the gold was being safely held and stored. Later, they discovered they had been duped and contacted local authorities for help. By then, the fraudsters had vanished with their precious assets.

Couple duped into believing gold was safely stored

According to McGinn, the scam began when the couple was contacted multiple times by the fraudsters.

The scammers claimed they had a warrant for the couple’s arrest and threatened they would be detained unless they purchased gold and handed it over. They were instructed to buy gold in coins or small bars, with the promise that it would be safely stored and returned later.

Authorities intercepted Soyeb Rana, one of the suspects, as he arrived to pick up gold from the couple. He faces several charges, including conspiracy, scheme to defraud, fleeing and eluding, and possession of marijuana.

“This is a sad situation,” McGinn said, offering advice to others who might find themselves in similar circumstances. “Law enforcement is never going to request money. There’s never going to be an exchange of assets for your freedom or anything like that in this country. Just take a second, take a breath, contact local law enforcement. And we don’t mind figuring out together whether something is legitimate or not.”

The arrest is a step forward in the case, but the recovery of the gold remains unlikely.

With precious metals frauds like this on the rise, here are some tips to keep your assets protected.

Top red flags to look for with precious metal frauds

The precious metals sector has become a magnet for scams. Gold, silver and other precious metals often bring out the worst in fraudsters who target unsuspecting investors. Whether you’re a seasoned investor or just beginning to explore this market, stay vigilant so you don’t fall for scams. Here’s how you can spot the warning signs of potential fraud and take steps to safeguard your investments.

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

Be wary of high-pressure sales tactics

If you’re being rushed into making a decision without time to think, that’s a huge red flag. You might hear phrases like “this deal won’t last long” or “you need to act now.” Legitimate dealers, on the other hand, will give you time to research and consider your options. Be wary of any dealer or salesperson who guarantees profits or pitches an investment opportunity that seems too good to be true. While precious metals can be an effective hedge against inflation and market volatility, no investment is risk-free, and no one can guarantee returns. If someone claims they can, it’s almost certainly a scam.

Avoid unlicensed or unregulated dealers

Before you buy, ensure the company or individual you’re dealing with is properly licensed and regulated by government bodies like the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC). Research the company thoroughly, check reviews on trustworthy sites like the Better Business Bureau (BBB) and consult a financial advisor before you make big decisions.

Always ask for documentation

Every precious metals transaction should include a receipt, contract, or invoice. Be sure to read everything carefully and never sign anything you don’t fully understand. Some scams also involve too much focus on the physical possession of metals. While it’s common for investors to want to hold their gold or silver, some shady dealers push the idea that physical possession is the only way to safely store your investment. Legitimate dealers typically recommend secure, regulated storage options to ensure your assets are well-protected.

Steer clear of unsolicited calls

If you’ve received an unsolicited call, email, or social media message offering an "exclusive" investment opportunity, that’s another potential red flag. Scammers often reach out cold, offering deals that seem too good to pass up, or in the case of the Naples couple, scaring them into acting in a hurry. Scams like this are unfortunately on the rise, but the more you know, the better equipped you’ll be to avoid being a victim.

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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.

The 39th annual Forbes billionaire list is out, and it’s a jaw-dropper.

The number of billionaires has surged to 3,028, a record. Together, these individuals hold a staggering US$16.1 trillion in wealth, up US$2 trillion from last year.

More than 100 Forbes reporters dove deep into financial data to assemble this list, including stocks, investments and cash flows, along with more eccentric billionaire purchases such as yachts, art collections and even dinosaur bones.

The U.S. holds first place with 902 billionaires, followed by China and Hong Kong (516), and India (205). The wealthiest are led by Elon Musk, with US$342 billion, followed by Mark Zuckerberg at US$216 billion, and Jeff Bezos at US$215 billion. Rounding out the top 10 are heavyweights including Warren Buffett, Larry Ellison and LVMH’s Bernard Arnault.

In short, the billionaire game is booming. Want in on the action? You may want to take notes from the world’s richest.

‘It’s a great time to be a billionaire’

According to Forbes senior editor Chase Peterson-Withorn, the rise in billionaire wealth isn’t just about tech giants and luxury brands; it’s about how much power these individuals hold.

“It’s a great time to be a billionaire,” Peterson-Withorn recently told NPR’s Morning Edition.

To arrive at these figures, Forbes determines the annual list by tracking every asset, minus any debts. And if a billionaire doesn’t spill the beans themselves, Forbes digs through legal filings, offshore accounts and leaks to get the scoop.

This year, 288 new names have joined the ranks of the world’s billionaires. Among them are celebrities such as Bruce Springsteen (US$1.2B), Arnold Schwarzenegger (US$1.1B) and Jerry Seinfeld (US$1.1B).

Also on the list are crypto mogul Justin Sun (US$8.5B), along with AI entrepreneurs from companies including Anthropic, CoreWeave and DeepSeek. The food world is well-represented, with moguls behind popular chains such as Cava, Chipotle, Jersey Mike’s and Zaxby’s.

Topping the list of newcomers is Marilyn Simons, who inherited a US$31 billion fortune following the passing of her husband, hedge fund legend Jim Simons, in 2024.

But not every billionaire had a good year.

Over 100 names dropped off the 2024 list, no longer rich enough to make the cut. Some notable exits include Lisa Su, CEO of semiconductor giant AMD, Sara Liu, co-founder of server company Supermicro and Nicholas Puech, heir to the Hermès luxury brand, who says his fortune has disappeared.

"A lot of billionaires don’t have great reputations these days," Peterson-Withorn said, "but on the other hand, they’re more powerful than ever."

There may be some backlash against the billionaires on the Forbes list, but that doesn’t mean there aren’t some lessons to be learned about investing from some of the world’s wealthiest individuals.

How to invest like a billionaire

You don’t need unlimited wealth to invest like a billionaire. The ultra-wealthy use strategy, smart decisions, as well as balancing risk and reward to get ahead. Here’s how you can do the same.

Diversify across asset classes

Ultra-high-net individuals spread their wealth across everything from stocks and real estate to private equity and bonds; in other words, diversifying is key. This reduces risk while increasing the chances for steady, long-term growth. For regular investors, diversifying with exchange-traded funds (ETFs) or mutual funds covering domestic and international markets is a good start. And don’t forget bonds for stability during market ups and downs.

Consider real estate investing

Real estate is another billionaire favourite. While they may invest in expensive commercial or luxury residential properties, you can get in the game through real estate investment trusts (REITs) — here are the best in Canada.

Keep a long-term mindset

The super wealthy don’t chase trends — they think decades ahead. Want to build wealth? Max out contributions to retirement accounts such as TFSAs and RRSPs. These tax-advantaged accounts let your money compound over time.

Manage your risk

While billionaires love high returns, they’re pros at managing risk, and you can do the same by building an emergency fund. Having liquid cash in your account ensures you’re not forced to sell investments during a market slump. A simple buffer can keep you secure while you wait for the market to bounce back.

Leverage AI-powered investing tools

Wealthy investors leverage technology by using AI-powered predictions, algorithmic trading and cutting-edge tools to stay ahead. You don’t need billions to tap into this power. Robo-advisors can help automate your portfolio management based on your goals to help you make smarter investment decisions — here are the best robo-advisors in Canada.

Invest in alternative assets

Many high-net-worth individuals invest in alternative assets such as commodities and fine art to round out their portfolios. Commodities such as gold and silver can be hedges against inflation and market volatility. And while not highly liquid, collectibles, artwork or vintage cars can offer diversification and the potential for substantial returns.

Bottom line

Investing like a billionaire isn’t about having a billion-dollar portfolio. It’s about following the basics, diversifying across asset classes and thinking long-term. Leverage technology, manage your risks and stay patient. Whether it’s real estate, stocks or commodities, billionaire strategies can help set you on the path to financial success. Of course, always consult a financial advisor and do the proper research before you dive into any new investment.

Sources

1. Forbes: Forbes World’s Billionaires List 2025: The Top 200, by Chase Peterson-Withorn (Apr 1, 2025)

2. NPR: More billionaires than ever ranked in Forbes’ annual list. Here are the top 10, by A Martínez, Obed Manuel (Apr 1, 2025)

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

Some homeowners in Marietta, Georgia, got more than they bargained for after moving into their picturesque neighborhood across the street from a private country club, dealing with tens of thousands of dollars in property damage over the years.

The culprits? Rogue golf balls from the course across the street.

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“I came out with my baby in the garage and glass was all over my car,” Jewel Montgomery recalled to Atlanta News First about a golf ball previously shattering her garage door window in a story published May 21.

On top of damage like broken windows and dented vehicles, neighbors shared with the broadcaster they’ve had close calls with golf balls nearly hitting them while mowing the lawn or simply sitting on their deck.

“All of a sudden, a ball hit the bill of my hat,” Ronnie Pope told Atlanta News First, adding the hat protected his face.

“If they hit my daughter. I’m not going to tolerate it,” Montgomery said, referring to her 9-year-old daughter who sometimes plays in the backyard.

Montgomery and Pope have lived across from one of Marietta Country Club’s par-4 holes for nearly 25 years, per Atlanta News First. Both were aware of the nearby golf course when they moved in, but they “didn’t have a clue of what was going to be happening after,” Pope said.

“I’m scared to go out in my yard,” Montgomery said.

Who foots the bill for the damage?

Montgomery and Pope say the Marietta Country Club’s insurer paid for the very first broken windows over a decade ago, but nothing else since, the broadcaster reports. Montgomery alone says she’s paid over $70,000 out of pocket to replace multiple windows because she doesn’t want her home insurance premiums to go up for filing claims.

“The biggie was the picture frame window and my office windows again,” Montgomery said. “I called and called; I sent a certified letter, and then I got a voice message on Dec. 20, 2024, saying they’re not responsible.”

Atlanta News First says the club did not respond to multiple inquiries about their protocols.

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

Laws vary by state, but “Georgia recognizes the assumption of risk doctrine,” Ronnie Miles, senior director of advocacy with the National Golf Course Owners Association, told Atlanta News First. This means if you knowingly buy a home near a golf course, you do so understanding the risks involved.

Miles advises homeowners in this situation to reference land records called easements, which can spell out legal rights attached to the land around a golf course.

“There’s an easement that goes around the perimeter so many feet out from the property line of the golf course,” he said. “So balls can penetrate and travel into that area.”

Atlanta News First reports it found documents stating Marietta Country Club’s easement from 1989 protects it from ball-related liability within 30 feet of the property. Montgomery and Pope’s properties, however, are more than 60 feet away. Montgomery says she’s called lawyers but was told they’ll only take on a case if there are injuries.

“They need to pay now,” Montgomery said of the club. “They need to move the tee box. They need to put up a net and not have the balls coming over here in this neighborhood because we don’t live on the golf course.”

What to do if you live near a golf course

Finding yourself on the receiving end of a barrage of golf balls? Here’s how to protect your investment if your home is near a golf course:

• Look into land records: Check county deeds for any easements that could affect your rights.
• Track any incidents: Keep photo evidence and records of property damage.
• Seek legal counsel: Especially if the golf ball frequency has escalated or caused injury.
• Ask the club to act: Netting, tee box realignment or tree buffers are options, though not always welcomed by neighbors who live on the course.

The National Golf Course Owners Association reminds golfers it’s possible they can be held liable for property damage from errant shots.

Whether you’re buying near a course, teeing off on the weekend or watching balls fly through your deck screen, the financial and legal stakes can be very real. If you’re a homebuyer eyeing that fairway view, read the easement and understand the risks.

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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.

Andrea, a wife and mother from Philadelphia, recently found herself in a high-stakes financial and emotional crossroads, caught between family loyalty, cultural expectations and a commitment to financial stability.

“I am in a really tricky situation,” Andrea shared during a recent call to The Ramsey Show. “My brother and my mom are asking me to [lend] my brother $3,000.”

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The purpose of the request was to cover her brother’s business expenses.

But Andrea and her husband have been saving that money to try to pay down debt.

Here’s what Ramsey had to say to Andrea.

Grandma wants to take money from grandkids’ accounts

Ramsey Show Co-host Jade Warshaw posed an alternative suggestion.

“Why doesn’t she lend him the $3,000?” she asked the caller, referring to Andrea’s mother.

“Because she doesn’t have the money,” Andrea replied.

Dave Ramsey’s response? “Neither do you. You’re broke and in debt.”

But the plot thickened when Andrea revealed her mother’s solution: tapping into Andrea’s children’s savings.

“I talk to my mom sometimes, telling her we save money for the kids, right? So her idea was to take the money from the kid’s savings account to give my brother the $3,000,” she said.

“She has a lot of ideas about what you should do with your money,” Warshaw noted, “Do you feel like you have to listen to what she’s asking you to do?”

Andrea hesitated, noting her brother once helped her early in her marriage, but that support came in the form of small items for her kids.

“That was not $3,000. That was a hundred dollars,” Ramsey said. “Because I got to tell you in my world, when grandma asked for the kids’ money for the brother, that means grandma needs to be smacked.”

Originally from Ecuador, Andrea noted that extended family support is a common expectation in her community.

Ramsey responded, “In your culture, it is more normal to share with extended family … but this is your household. And your household is separate.”

Cultural norms can shape financial habits, but limits are limits. Even with that understanding, Andrea expressed hesitation.

“My brother is more … resentful. If you tell him something that he doesn’t like … then he’s not going to talk to me,” she told the hosts.

She feared that saying no would lead to tension or silence.

“There’s no consequence here other than adults choosing how they’re going to behave next. If your brother gives you the cold shoulder, that’s not something you can control,” Warshaw said. “All you can control is your response.”

Andrea admitted that her mom would likely try to persuade her.

Ramsey’s response was simply, “No is a complete sentence.”

He suggested that Andrea tell her mother, “Mom, I love you. I love him. That’s not in question. But this money is set aside for my children. And the answer is going to be no, no matter how long we talk.”

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 to do when money comes between family

Financial experts emphasize the importance of setting clear boundaries in similar scenarios. According to a survey by Ipsos for BMO, 34% of partnered Americans report that money is a source of conflict in their relationships. Money issues with extended family can add to that stress.

Here are some tips to navigate tricky situations like these:

• Start with an open conversation. Schedule time to sit down and talk about your concerns without placing blame. For instance, Andrea could say, "I understand your situation, but I need to prioritize my children’s future savings."

• Establish firm boundaries. Don’t be afraid to set your limits and let your family know that they need to respect them.

• Offer different types of support. Look for other ways to help, such as recommending resources or financial counseling services that may be useful.

Finally, if the conversation doesn’t seem to be progressing, consider involving a neutral third party, such as a financial advisor, to help facilitate.

It can be tough, but by approaching the situation with firm boundaries, it’s possible to maintain family relationships while also protecting your financial well-being.

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• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

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.

Imagine living in your home for nearly three decades, only to be told that you owe $10,000 to a homeowners association you didn’t even know existed.

That’s what Lucille North says happened to her while living in Houston’s Inwood Forest subdivision. And now, the fear of foreclosure is looming large.

“I’m trying to figure out what is going on,” North told FOX 26 Houston.

North is one of several homeowners stunned to discover the Inwood Forest Village Homeowners Association (HOA) is alive, active — and demanding money.

“And I was really confused because I didn’t understand how they could foreclose on my home when we didn’t have an HOA,” she said.

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‘It seems like people are being targeted…’

Some residents believe there’s a pattern to who’s being hit hardest.

“They would have tried to foreclose on my house, because I owed so little on it,” said Danicia McCray, who avoided foreclosure by entering a payment plan. “I wasn’t going to let them do that.”

In 2023, Jonathan Spence shelled out $5,000 just to keep his home.

“It seems like people are being targeted who don’t owe a lot of money on their homes,” Spence told FOX 26 Houston. “I have under $20,000 to pay my house off and listening to some of the people here, they are targeting people with low balances.”

The HOA is managed by Crest Management, which oversees 105,000 homes across Houston. Company rep Bill Higgins told FOX 26 Houston, “We try to work with homeowners to avoid foreclosure,” he said, noting that only two foreclosures have occurred among their entire portfolio.

He says that Crest doesn’t have access to mortgage payoff information: “We have no way of knowing that information,” Higgins stated.

Homeowners say they’re being blindsided by fees and foreclosure threats, claiming they never received warning letters.

“Most of our neighbors have the same problem where they don’t receive that mail letting them know that fines are being accumulated on top of fines,” said Manuel Mazariego.

Crest insists their process is by the book, sending two letters via first-class mail followed by a certified notice, all in line with the Texas Property Code.

But residents want to know what they’re actually paying for. “The money they are collecting from the people that are paying their dues, where is that?” asked Cinda Jones.

“Since I’ve been here, the pool has never been open,” added Danicia McCray.

According to Crest, they’re in “recovery mode” after taking over a year ago and funds are now being directed toward improvements, including opening that long-shuttered pool.

Crest Management says, “The board of directors works very transparently to govern the community… They’ve worked with individual homeowners to provide solutions for delinquent assessments and extra time when needed.”

Many residents’ mistrust stemmed from a 2019 scandal when the HOA’s then-president was criminally charged for stealing funds. That left homeowners like North questioning whether the HOA still even existed.

As the community waits for answers and overdue repairs, what is clear is that the homeowners of Inwood Forest are no longer staying silent.

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 fight back shady HOA practices

Buying into a neighborhood with a Homeowners Association (HOA) might promise clean sidewalks and sparkling pools, but it also means signing up for fees and rules.

Across the U.S., the median monthly HOA fee is $125, but in Houston, it’s about half that at $67 — one of the lowest among major U.S. cities. But not all communities are created equal and fees are far from consistent across the city.

According to ABC13, at Piper’s Crossing in Houston, residents are shelling out as much as $550 a month and still dealing with broken sidewalks, dim lighting and a pool the city shut down for health violations.

“Where is the money going?” asked homeowner John Seckar, who has taken his concerns to the city. The pool was closed after the Houston Health Department found it unsanitary and that’s after residents paid thousands in fees.

HOAs in Texas can foreclose on your home for unpaid dues or violations. But homeowners are not powerless. Here’s how savvy residents are fighting back:

• Read and understand the paperwork: Make sure you read and understand the HOA’s governing documents, like bylaws and Covenants, Conditions & Restrictions (CC&Rs). If the board isn’t following them, you may have legal grounds to push back.

• Demand transparency: Texas law requires HOAs to provide financial statements and meeting records. If yours refuses, that is a red flag.

• Advocate: HOAs must hold open board meetings. Show up, speak your mind and bring neighbors with you.

• Seek legal counsel: Mediation or arbitration can help resolve disputes faster and cheaper than a court. If needed, hire a real estate attorney, especially if foreclosure is on the table.

• Report the HOA: If your HOA isn’t following rules, report them to the Texas Attorney General or local officials.

Groups like the HOA Reform Coalition of Texas are working to rein in what they call “excessive fines and runaway fees.”

According to Lifetime HOA Management, over 20% of homes in Texas belong to an HOA. They have a lot of power, often with minimal state oversight.

If you’re buying into an HOA neighborhood, read the fine print, ask the tough questions and don’t assume your fees are working for you. And if it isn’t adding up, take action as early on as possible.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

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.

California drivers are bracing for a double-whammy at the pumps as stricter clean air regulations and an increase in the state’s gas excise tax are set to take effect on July 1, which could send fuel prices soaring.

A last-minute push by state lawmakers to stop what some say may result in an enormous price hike fizzled out as Senate Democrats unanimously shot down Senate Bill 2, which aimed to halt sweeping changes to California’s Low Carbon Fuel Standard (LCFS).

“I gave my Democrat colleagues the opportunity to protect Californians’ wallets, their constituents, and they chose not to,” Sen. Brian Jones, who authored the bill, told CBS 8 San Diego in a story published June 6.

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• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

New rules, new prices?

The California Air Resources Board (CARB) has greenlit new LCFS regulations aimed at reducing carbon levels in fuels while outlining penalties against refineries that produce high emissions.

Analysts are wary of how much increased production costs might be passed on to consumers. One report from the University of Pennsylvania’s Kleinman Center for Energy Policy estimated the price of gas in the state could spike $0.65 per gallon in the “near term” and $0.85 per gallon by 2030. However, the report emphasized these were “upper-bound” estimates and the price impact could end up being a lot lower.

Adding a pinch of salt to this potential wound, California’s excise tax on gas is set to increase from 59.6 cents to 61.2 cents per gallon the same day the new regulations are scheduled to take effect.

For working families, high fuel costs are already squeezing their wallets.

“It’s a struggle. It’s a struggle,” San Diego-based driver Michael told CBS 8.

“You’ve got to have it! If this car doesn’t roll, we can’t go to work. And if you don’t go to work, you’re homeless,” his wife, Cynthia, explained to the local broadcaster.

Others, like Tino Cebrero, have switched to electric vehicles to beat the squeeze.

“For a full tank, what is it? $60 or $70? For a full charge, I only pay $15 or $20,” he told CBS 8. “So, it’s a big difference.”

As of June 19, according to AAA, California had the highest average price of gas in the country at around $4.65 per gallon.

CARB says it will monitor gas prices and may consider making changes if there are significant concerns, according to CBS 8.

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

Tips to beat the gas hike

Looking to protect your wallet at the pump? Here are some strategies you can use:

Fuel rewards programs: Sign up at stores like Costco or Safeway for discounts on gas.

Use gas price tools: Find the cheapest gas near you using apps like GasBuddy, which uses crowdsourcing to list fuel prices across the country.

Carpool and rideshare: Share a ride with friends and split the cost.

Stay on top of car maintenance: Consistent vehicle upkeep, including proper tire pressure and regular oil changes, can help boost fuel efficiency.

Try public transportation: If you live in a city with public transit options, you can utilize them to rack up serious savings.

Consider switching to electric or hybrid: If you need to buy a new set of wheels, purchasing an electric or hybrid vehicle may save on fuel costs in the long term.

Plan smart: Figure out a game plan to combine errands and avoid peak traffic.

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

A federal judge has ordered the city of McKinney to pay almost $60,000 plus interest to 81-year-old Vicki Baker.

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Why the big payday? Baker’s home was torn apart by a SWAT team during a 2020 police standoff.

Baker took the city to court after her house became the battleground for a high-stakes manhunt, reported WFAA. McKinney police unleashed tear gas, explosives, and tactical vehicles on the property while chasing a fugitive who had barricaded himself inside.

Insurance plans do not cover “acts of the government” and the city refused to pay for the damage, so Vicki joined forces with the Institute for Justice (IJ) to file a lawsuit in March 2021.

“I’ve just learned that my battle with the city of McKinney is coming to an end,” Baker said in a statement on June 5. “Judge Mazzant has, once again, ruled that I am due just compensation under the Texas Constitution.”

‘…Vicki is finally going to be made whole’

According to the WFAA report, it all started on July 25, 2020, when Wesley Little, a man Baker had hired for repairs, broke into her home and held a teenager hostage. Baker was in Montana, but her daughter, who was living at the property, escaped and called 911.

After Little released the teen but refused to surrender, a SWAT team fired roughly 30 tear gas canisters shattering windows, smashed doors, and tore down a fence with an armored vehicle. Once inside they found Little had died by suicide.

The incident left more than $50,000 in damage to the house, according to Baker, with her insurance covering only the destruction caused by Little, not the police’s tactical incursion.

The city of McKinney initially refused to pay, citing sovereign immunity, a legal shield that often protects cities from liability unless waived or overturned by a judge.

Baker, a cancer survivor who had recently invested $25,000 to ready her home for sale, didn’t back down. “It was more devastating because of everything that was happening to me at the time,” she said. “I felt like this was a case that would help not just me, but a lot of people. That’s why I wanted to fight.”

With legal help from the Institute for Justice, Baker argued that the government’s destruction amounted to an uncompensated taking of her property under both the U.S. and Texas Constitutions.

“It took five years, but Vicki is finally going to be made whole,” said Jeffrey Redfern, senior attorney at the Institute for Justice. “She’s fortunate that Texas has strong protections for private property rights, but people in much of the rest of the country aren’t so lucky.”

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There were many setbacks, including losing at the Fifth Circuit and the U.S. Supreme Court declining to hear the case, but a favorable ruling grounded in the Texas Constitution was ultimately handed down by U.S. District Judge Amos Mazzant this month.

WFAA has covered similar cases in Texas since 2020, highlighting the ongoing legal battle over police damage during raids, with cities repeatedly invoking sovereign immunity. Michael Lamson, a Houston trial lawyer, said to WFAA, "If you’re taking their property and you’re not paying them for it, you’re doing a very good job as a government."

Redfern reportedly pointed in court to a 1980 Texas Supreme Court ruling in Steele v. City of Houston, where the city was held liable after police allowed a home to burn following tear gas explosions, as a crucial precedent.

McKinney officials stated they are “evaluating options for appealing” the ruling.

As for Baker, now living in Montana, she says the city’s legal fees ended up being more than what it owed her. “They have paid hundreds of thousands of dollars in legal fees,” she said. “And they could have gotten off with paying me $60,000.”

What is sovereign immunity?

In Texas and other states, sovereign immunity protects state agencies, counties, and cities. Sovereign immunity is meant to shield public agencies from endless lawsuits that could drain taxpayer dollars and gum up government operations. Unfortunately, this means when a homeowner sues a city for damage caused during police raids or other government actions, city governments can pull out the sovereign immunity card.

The may ways this can hurt homeowners include: Limited legal recourse: Most can’t sue cities for property damage unless there’s a rare exception. Financial strain: Repairs from police or government damage can run tens of thousands of dollars. Legal fights: Challenging sovereign immunity is complex and expensive, and can be lengthy. Unfair burden: Citizens pay the price, while cities walk away free and clear.

The Institute for Justice is taking on similar cases in California, Indiana and North Carolina awaits a U.S. Supreme Court decision in Martin v. United States, involving an FBI SWAT raid that damaged another family’s home.

For now, Baker’s victory could become a powerful blueprint for others fighting back against government damage.

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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.

Picture this: You own a home, along with $130,000 in cash savings and $40,000 in your 401(k), and you’re not even 30 years old yet.

On paper, this is a great financial situation. But after years of pinching pennies, turning down dinner invites and putting fun on layaway, was the sacrifice worth it?

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Welcome to the emotional hangover of hyper-saving, a side effect of the FIRE (Financial Independence, Retire Early) movement.

If this sounds like you, we’ve got some strategies for how to be fiscally responsible and still enjoy your life.

Full bank account, blank social calendar

The FIRE movement is a financial movement that is made up of intense saving and budgeting to support an early retirement.

Saving 50% to 70% of your income sounds glamorous on paper, and for the ultra-disciplined, it’s a path to fast-track financial goals. But when your social life takes a back seat to spreadsheet life, the returns may not always be what they seem.

According to Federal Reserve data, as of 2022, the median net worth for American households under 35 years old was just $39,000. So, if you’re in your late twenties with six figures saved and real estate in your name, you’ve already lapped this figure several times over.

But while your bank account may be full, what can you do if your social calendar is blank?

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Is there a middle ground?

Once you’ve nailed the basics, like establishing an emergency fund, bolstering your retirement savings and acquiring some equity, it could be time to rebalance. Financial stability should be your launch pad to life, not the finish line.

Here are some ways to reclaim your social life:

The “Yes Month”: Say yes (within reason) to social invites for a month. Go to that concert. Grab rooftop drinks. RSVP “yes” to life. Giving yourself permission to live a little can revitalize your emotional well-being.

Create a “Fun Fund”: Set aside a guilt-free allowance for everything you used to say “no” to, such as weekend getaways, dinners out, shopping or even grabbing a coffee.

Book a short trip: Whether it’s a road trip or something more exotic, a short, reasonably priced escapade can reset your perspective and your priorities and give you time for self-reflection.

Talk to a professional: A financial advisor can help you pivot from survival-mode saving to intentional living. Think of it this way, you take your car in for service regularly, right? So consider these meetings to be a tune-up for your money mindset.

You may also want to ask yourself: “What does ‘enough’ look like — for me?”

This can be used as a baseline for your saving mindset. Defining what’s “enough” — whether it’s a certain amount of savings or a paid-off mortgage — can help you figure out how much room you have to enjoy other things while you work toward achieving that goal.

Saving aggressively in your 20s is a powerful move. But financial independence isn’t just about escaping work; it’s about designing a life you actually want to live.

If you’re sitting on a growing bank account and a shrinking social life, maybe it’s time to rebalance the books, not just financially, but emotionally.

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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.

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.

Dylan Handy did everything right — or so he thought.

Two years ago, when he was 33, Handy tried to roll over his $114,000 401(k) after switching jobs. Instead of a secure digital transfer, Paychex sent paper checks.

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Unfortunately for Handy, those checks were intercepted and fraudulently cashed.

“This outdated and insecure method remains standard practice in the retirement industry,” Handy told The New York Times. The kicker? Handy wasn’t even told electronic transfer was an option. And more importantly, he may now owe taxes on a stolen account.

So why are retirement plan administrators still using physical checks? And how can you protect your money and avoid ending up in a situation similar to Handy’s?

The risks of paper-based rollovers

A 2024 survey by Capitalize revealed just how many people still deal with paper checks during rollovers — a whopping 43%.

Americans are running out of patience. More than 80% of savers say rolling over a 401(k) should be as simple as making a bank transfer. But for those stuck with the manual process, it often means phone calls, long wait times and a lot of uncertainty.

So why are plan administrators holding on to this outdated method?

Physical checks persist because of legacy systems, regulatory concerns and a lack of standardized digital options.

In Hardy’s case, he’s now in federal court suing Paychex after months of getting nowhere with banks and no reimbursement for the bulk of his lost savings. His lawyer argues Paychex is responsible.

Paper checks in 401(k) rollovers expose savers to serious risks, including:

• Fraud and theft: Physical checks are easier to intercept, alter or cash without authorization.
• Delays and inconvenience: Mailing checks, waiting for them to clear and making sure they reach the right hands can take weeks — sometimes months. Capitalize found that 42% of savers experienced rollovers that took two months or more.
• Lack of transparency: Tracking paper checks and resolving problems can be a nightmare. In fraud cases, figuring out who’s responsible and recovering money is often a complex, drawn-out process.

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

Limited protections: How to stay safe

While protections like the Employee Retirement Income Security Act (ERISA) exist, they are limited.

There’s only so much liability coverage. If a check is stolen and cashed by someone else, blame may fall on the issuer, the accepting bank or the account holder. Sorting that out can take a long time.

And even when a claim is valid, banks may take up to 90 days to respond. That you could be without your retirement funds for months.

With check fraud and scams on the rise, protecting your money during a 401(k) rollover is more important than ever. Here are a few smart steps to keep your savings safe:

• Work with a qualified advisor: Make sure any financial advisor you consult is a Certified Financial Planner™ who’s legally required to act in your best interest. The right advisor can help you avoid shady products and high-pressure sales tactics.
• Opt for direct transfers: Whenever possible, ask your 401(k) provider to transfer funds directly to your new retirement account. It’s faster and more secure.
• Use secure mail: If a paper check is your only option, request certified mail with tracking. This cuts down the chance of interception.
• Monitor your accounts: Check your accounts regularly for suspicious activity. If something looks off, report it immediately.
• Stay informed: New scams pop up all the time — from fake self-directed IRAs to bogus investment platforms. The more you know, the easier it is to spot red flags.

Check fraud isn’t going away, so it’s up to people saving for retirement to stay alert and take action. Even though some protections are in place, being proactive is your best defense.

Your retirement money deserves better than a risky, outdated process, it deserves your full attention.

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• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

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.