Author: Maurie Backman

When Cumming, Georgia, homeowner Venkat Garikapati’s roof sustained heavy wind damage in 2021, he filed a claim with his home insurance company, State Farm, to have it fixed.

However, State Farm only approved the replacement of 38 shingles and estimated the cost at $1,422.15 — less than Garikapati’s $2,500 deductible — and closed the claim without paying, according to Atlanta News First. But Garikapati’s roofer, David Garner, disputed the insurance company’s assessment.

"It was torn all to pieces," Garner told the local broadcaster of the roof’s condition. "More than 70 shingles were creased or missing."

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Garner, along with a public adjuster, spent years trying to prove to State Farm that Garikapati’s roof needed a full replacement to avoid further damage and leaking, reports Atlanta News First. State Farm kept denying the claim before finally approving a full roof replacement on April 25, 2024 — more than three years after the original claim.

"They are never shy on collecting the monthly premium at all, but to get this approved took quite a long time," Garikapati said.

Garner went ahead and did the work. But after the initial "actual cash value" check cleared, State Farm refused to pay the replacement cost in full, citing a clause in Garikapati’s insurance policy that stipulates a repair or replacement must be completed within two years of the date of loss to receive additional payments. As a result, Garner is out $12,000 — and he blames State Farm fully.

Local roofer in the lurch

When a contractor does work on a home and isn’t paid for it, they may be able to place a lien on the home. However, Garner doesn’t want to do that to Garikapati.

"It’s not the homeowner’s fault that this is taking place," Garner said.

Despite the clause in Garikapati’s insurance policy, Atlanta News First reports an attachment to State Farm’s approval estimate stated: "Replacement cost benefits will be issued contingent completed of roof replacement and submission of photos, submission of photos, certificate of completion and or signed contract agreement with service provider."

But when Garner submitted the paperwork, he said State Farm wouldn’t pay up.

"What am I supposed to do?" Garner asked. "I’ve already built the roof. I paid for the materials. I paid for the labor. Everything’s done."

Garikapati filed a complaint with the Georgia Office of Insurance and Safety Fire Commissioner in January, per Atlanta First News, but that went nowhere.

“The whole reason this claim took a long time to get approved is because deny and delay, deny and delay,” Garner said.

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Atlanta News First says it looked at recent complaints filed with the commissioner’s office and found that State Farm, the state’s biggest insurer, had 892 complaints in 2024, up 126% from 2022. It also found that Allstate had 770 complaints, up 77% from 2022, while Progressive had 557, up 49% from 2022. The office did not supply information about the results of complaints.

Garner feels like he’s out of options — he doesn’t think it would be financially feasible to sue State Farm, and he’s not interested in holding Garikapati responsible.

"He was operating in good faith, just like I was," Garner said.

A spokesperson for State Farm told Atlanta News First "we believe we have provided every benefit available to the customer within their policy."

What to do if your insurance company comes up short

So, what can you do if your home insurance company comes up short on funds or doesn’t pay?

First, you should read the terms of your policy carefully. What happened to Garikapati above wasn’t exactly his fault, but it seems the fine print of his policy provided the insurance company with an out. Familiarizing himself with those details may have prevented the situation above from occurring.

One thing you’ll want to check your policy for is exclusions. There are certain things your insurer may not pay for, which should be outlined in your policy agreement. It’s also important to read the terms of your claim approval carefully to make sure you and your contractor are in compliance.

But from there, if you believe an insurer isn’t paying out like it’s supposed to, you should collect evidence. Document all of the work that was done so you can show if it was in accordance with what your insurer approved. That means taking pictures and getting a write-up from your contractor detailing the work performed.

Your insurer may have tools in place for claims and payment denials. Follow those once you’ve gathered your documentation. If that doesn’t work, you can try to file a complaint with your state’s insurance agency. If that doesn’t work, you may want to seek legal guidance.

To be clear, there’s a difference between your insurance company denying a claim and refusing to pay following an approval. There should be no expectation your insurer will pay out on a claim that’s been denied.

Also keep in mind that any contractor you hire may not be as understanding as Garner, and you don’t want yours to come after you for their money. So, you should do all that you can to ensure everything is above board.

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

Being a stay-at-home parent can often be a thankless job.

From the moment you get up in the morning to the moment you go to bed, you’re either chasing after a child, preparing meals or doing some sort of household task — many of which involve scrubbing food particles off of a surface or item of clothing.

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And the worst part? At the end of the week, there’s no paycheck to look forward to.

That’s what inspired Amber Aubrey, a mom of two, to start charging her husband for the unpaid labor she performs around the house. She documented her decision in a hotly debated TikTok video that has since racked up over 4.2 million views.

"Ultimately, it does kind of make me the breadwinner in my household," Aubrey said in the video.

Why this stay-at-home mom wants a paycheck

The work stay-at-home parents do has real value — and researchers have actually put a price tag on it.

Beike Biotechnology found that stay-at-home parents of two children do about 200 combined hours of unpaid labor each month. The estimated cost? Between $4,000 and $5,200.

For Aubrey, charging her spouse for her stay-at-home duties boils down to feeling like she deserves financial recognition for the work she contributes. That’s why she bills her husband $2,700 a week for the work she does.

"If he wants to save money, he can help me do any of these tasks," she said.

Here’s a breakdown of Aubrey’s workload and the amount she charges:

• $20 per load of dishes (two to three times daily, five days a week)
• $140 for weekly laundry
• $120 for weekly bathroom cleaning
• $100 per floor cleaning (two to three times daily, five days a week)
• $800 weekly homeschool instruction for two kids
• $150 for weekly pickups and drop-offs
• $75 per weekly grocery run
• $50 for five weekly lunches and dinners
• $200 for weekly breastfeeding
• $50 weekly for sweeping

Many TikTok viewers were quick to applaud Aubrey for her bold stance.

"Know your worth, then add tax," wrote user K Briggs.

"I 100% support this," added another user named Niklovin. User Sharna Louise chimed in: "This is the best video I’ve seen on the internet; ever!"

Aubrey’s video even resonated with some male viewers. A TikTok user named gesseppiimuhseppe said, "Listen, as a guy, I’m here for this. I think most [of] these men need to be aware [of] how much their wives do."

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How couples can address “invisible labor”

Invisible labor is something stay-at-home parents take on regularly — and issues can arise when that work goes unacknowledged.

It’s not just the physical tasks that matter. There’s also the mental load — the planning, scheduling and decision-making that comes with managing a household and raising children.

Of course, not every household follows the traditional gender roles. But data from the University of Wisconsin-Madison finds that women still spend twice as many hours doing physical housework as their male partners.

Weight of the world

It doesn’t stop there. Allison Daminger, an assistant professor of sociology, found in her research that in 80% of opposite-sex couples, women shoulder most of the cognitive labor — things like managing family calendars, planning meals and checking on homework.

According to Bloomberg, economists at the Levy Economics Institute examined data in 2021 and found that for every $100 households spend on commodities, there’s about $65 worth of unpaid work involved — often done by the stay-at-home parent.

That same data set found that nearly 80% of all unpaid household work is done by women, with a total estimated value of $3.6 trillion annually.

That’s why couples need to have open discussions about how to financially support and recognize the stay-at-home role. That doesn’t have to mean every household needs to itemize tasks like Aubrey does.

But working partners should start by acknowledging the value their stay-at-home counterparts bring to the table. There are practical ways to make things more equitable.

For example, the working partner could contribute part to a spousal IRA to help the non-working partner save for retirement.

They should also consider the opportunity cost of a partner stepping away from their career. Resume gaps can add challenges when trying to re-enter the workforce and often lead to lower pay.

For couples with one stay-at-home parent, open communication is key — and so is gratitude. Even if a weekly paycheck isn’t in the cards, a regular and sincere thank you can really go a long way.

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

Planning for retirement is something that’s best to do throughout your career, not just when you’re approaching that milestone and have a year or two left to work.

Only half of Americans have tried to calculate how much money they’ll need in retirement, according to a 2024 survey by the Employee Benefits Research Institute (EBRI).

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However, among those workers who did the calculation, 52% were inspired to save more. Even if you feel confident in your ability to cover your retirement expenses, it’s important to be mindful of hidden costs that could impact your retirement finances. Here are three to keep on your radar.

Healthcare expenses not covered by Medicare

Fidelity Investments expects the typical 65-year-old to spend $165,000 on healthcare during retirement. That may sound surprising, but even with Medicare coverage, several expenses could arise.

For one thing, Medicare isn’t entirely free. Most enrollees don’t pay a premium for Part A, which covers hospital care. However, Part B, which covers outpatient care, charges a monthly premium, as do some Part D drug and Medicare Advantage plans. Plus, higher earners risk surcharges on their Medicare premiums.

Premiums aside, there are a number of expenses that original Medicare (Parts A and B plus a Part D drug plan) does not cover, which retirees commonly need. These include dental care, eye exams, prescription glasses and hearing aids.

You’ll also face copays and coinsurance under Medicare that you must pay out of pocket. If enrolled in original Medicare, you can buy supplemental insurance known as Medigap to help offset those costs. But then you’re looking at premiums for Medigap, too.

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Long-term care

It’s a big misconception that Medicare will pay for you to live in a nursing home or cover the cost of a home health aide. Medicare’s scope of coverage is typically limited to medical issues only. So while Medicare might pay for rehab or physical therapy because you broke a hip, it won’t pay for a home health aide because you’re getting older and need help dressing yourself and using your kitchen.

Meanwhile, the cost of long-term care can be astronomical. According to Genworth, here are the annual median costs for certain long-term care services in the U.S. for 2024:

Home health aide: $77,792

Assisted living: $70,800

Shared nursing home room: $111,325

Private nursing home room: $127,750

One option for defraying these costs is to buy long-term care insurance. But that might bust your budget, too. The American Association for Long-Term Care Insurance says an average $165,000 policy with no inflation protection purchased at age 55 by a single male costs $950 a year. For a 55-year-old female, that policy costs an average of $1,500. And for a 55-year-old opposite-gendered couple, the average price is $2,080 combined.

Of course, the actual cost of long-term care will depend on factors such as where you’re located, your age at the time of your application and the state of your health. But all told, you might spend a lot of money to put that coverage in place.

Inflation

In recent years, retirees and working Americans alike have experienced their share of rampant inflation. But even when inflation isn’t as aggressive, it’s still a hidden cost that can upend your retirement budget.

Social Security benefits are, thankfully, designed to keep up with inflation. They’re eligible for an annual cost-of-living adjustment tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, a subset of the more widely known Consumer Price Index.

But ensuring that your savings can keep up with inflation is also critical. One way to do this is to avoid eliminating equities from your portfolio in retirement. You need some growth in your portfolio to make up for rising living costs. You can work with a financial advisor to develop an appropriate asset mix based on your income needs and risk appetite.

A financial advisor can also help set you up with assets in your portfolio that generate income. These could include dividend stocks, bonds and real estate investment trusts (REITs).

It could also be a good idea to delay your Social Security claim past your full retirement age, which is 67 for anyone born in 1960 or later. For each year you do, until age 70, your benefits rise 8%. And that boost is guaranteed for life.

Having a larger monthly benefit gives you more leeway to tackle not only inflation, but also surprise medical and health-related expenses. So it’s a move worth considering if you don’t need to sign up for Social Security sooner.

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

It’s natural for some people to want to be as charitable as they can afford. But at what point do we stop helping ourselves and invest in others?

Daniel from Oklahoma wrote to The Ramsey Show to explain a dilemma he was having. He claimed his church told its members not to focus on investing in retirement but on investments toward the church instead, and was wondering if it was a good idea.

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"If they said this, this is not biblical," co-host Ken Coleman responded in a clip posted April 13.

"Change churches if someone’s doing this," Dave Ramsey added.

Both of them, however, emphasized the "if" in their responses. Here’s what Ramsey, an evangelical Christian himself, had to say about tithing to the church.

When the concept of charity goes too far

Ramsey stated he supports tithing to the church — the practice of donating one-tenth of a person’s income to a religious organization.

However, according to Ramsey, you can’t tithe more than 10%, because the word itself means "tenth."

"Anything above that is called an ‘offering’ to support … the community work that the church is doing," he said. "There’s nothing wrong with that."

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Ramsey also pointed out that it’s perfectly fine to save for our own needs, including retirement.

"Wise people save money," he insisted was a biblical lesson.

Ramsey cautioned that Daniel may have misinterpreted his church’s message. However, if his description was accurate, Ramsey says it sounded like a money grab.

How to balance savings and charity

There’s a lot of pressure on Americans today to save for retirement. Ramsey Solutions suggests that workers aim to save and invest 15% of their gross income for their golden years.

But it’s hard to do that and donate 10% of your income while also covering your needs at a time when living costs are so high.

That’s why it’s important to strike a balance. After all, faith and finance don’t have to be at odds. Ensuring your needs are taken care of before being charitable with your money doesn’t make you selfish — it makes you practical. It can be a good idea to set up a budget that prioritizes your needs but also leaves room for charitable giving.

Often, you can give to charity without hurting yourself financially or causing undue stress. If you’re compromising your financial security or well-being, then you may need to rethink your approach to charitable giving and scale back.

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There’s nothing wrong with selling a property you own. There’s something very wrong with forging documents to transfer a property to your name, selling it, and pocketing the proceeds.

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The latter is exactly what Alba and Jarin Martinez are accused of doing.

The Texas husband-and-wife duo are accused of falsely claiming ownership and selling properties they didn’t own, according to an April lawsuit filed by the Harris County Attorney’s Office.

The couple is being sued for more than $1 million in damages and is said to have falsely claimed ownership of at least 35 properties in Harris County, reported ABC13.

A judge signed a temporary injunction to prevent the Martinezes from filing documents related to these properties, according to KPRC 2.

But Alba Martinez has been accused of violating the court order in two instances, including one reportedly caught on camera, and the county is asking that she be held in contempt of court.

Caught on camera?

KPRC 2 says it got surveillance video footage of Alba signing a contract on May 22 to sell a property in the Acres Homes neighborhood to Sasser Land Group, a land acquisition company.

Court records show that the property in question was owned by a couple who passed away and left it to their heirs. The Martinzes allegedly used a fake warranty deed and affidavit of heirship to attempt to pass the property off as their own.

Kenneth Sasser, who runs Sasser Land Group, said he was suspicious from the start, when Alba offered up the property for just $25,000.

“She kind of framed it as she was strapped for cash, that she was going to lose her property,” Sasser told KPRC 2 News. “She claimed that she was behind on her taxes.”

Eventually, Sasser agreed to pay $132,000 and prepared a contract for Alba. He said she had a chain of title, warranty deed and a receipt for a recently paid property tax bill.

But once Sasser and his team visited the property, spoke with neighbors and saw news coverage of the Martinezes, they realized the transaction may be fraudulent. Martinez told Sasser’s team the property was an inheritance from her late stepfather, but attorneys said there is no supporting evidence to back up this claim, according to KPRC 2.

Sasser, meanwhile, is happy he did his due diligence.

“It could have damaged the reputation of my business," he told KPRC 2 News, describing Martinez’s actions as “ruthless and heartless." And he hopes the Martinezes are held accountable for their actions.

Sasser’s company has since filed a report with the Houston Police Department. No charges have been filed yet, but investigators are working on the case.

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How to protect your property from real estate fraud

In 2023, the number of real estate fraud complaints filed totaled 9,521, according to the FBI’s Internet Crime Report.

Unfortunately, it appears all too easy for criminals to forge documents that make them appear to be the rightful owners of a property, allowing them to potentially sell it out from under you. It’s important to be vigilant to avoid becoming a victim.

First, never leave your property empty for long stretches of time. Properties that don’t seem to be lived in can be easy targets. If you own a second home, have a neighbor check in from time to time, or hire a property manager.

It’s also a good idea to set up a Google alert for the address of your property if it’s not one you live in full-time. That could alert you to a fraudulent listing of your property.

In this regard, be sure to monitor property records in the county where your property is located. Some counties even offer a title alert system you can sign up for so you’re notified of filings right away.

You may also be able to purchase title insurance that protects you from home title theft. Usually, though, these policies only protect you from theft that occurred before purchasing your property, not after.

Consider placing your home in a trust, which can also be a beneficial move from an estate planning perspective. This way, the trust becomes the property’s owner. Forging documents can be more challenging and complicated when a trust is involved, which may offer you some degree of protection.

Finally, ensure that you safeguard your personal information to prevent both property and general identity fraud. Never give out your Social Security number unless absolutely necessary (such as when filling out paperwork for a new job), and regularly monitor all your financial accounts, including bank accounts and credit cards.

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

Owning a small business is no easy feat. And there may come a point when you’re ready to close it up and retire, or even retire from any other career that sustained you throughout your life.

Of course, that doesn’t mean it’s always easy to walk away. And that’s certainly not the case for Mike Kaage, who owns a beloved newsstand in Chicago’s Edison Park neighborhood. But as CBS News reports, Kaage has finally decided he’s had enough and will be closing shop at the end of June.

“I’ve been doing this way too long,” Kaage told CBS News. “It’s time to end the era."

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A neighborhood staple customers will be sad to see go

Kaage intends to close down his newsstand at the end of the month.

Kaage’s Newsstand first opened its doors on March 8, 1943 and has served Chicago patrons for 82 years where it’s located, at the corner of Northwest Highway and Oliphant Avenue (right near the Edison Park Station).

Mike Kaage has been around for 64 of those 82 long years, working from 4-9:00 a.m. in the morning every day. No illness, vacation or death in the family kept him from his work. He started working there in 1961 at just five years old for his father, Irv Kaage, earning $0.25 per hour.

At the time, newsstands like his peppered every corner. But Mike understood that it was important to keep the tradition alive even as they slowly disappeared, taking over his father’s business in the 1990s.

Kaage recalls fond memories as well as some challenges. He recalls working at the newsstand in frigid temperatures (seven degrees below zero), but also remembers joyous events, like the day after the Cubs won the 2016 World Series.

Kaage treats his 75 daily customers like family. He remembers all of their names and knows which newspaper each customer gets. But now, it’s time to say goodbye so he can dedicate more time to his family — specifically, his grandchildren.

"My wife passed away in February and previous to that, for three years we were babysitting our granddaughter two days a week," Kaage told CBS News. "Now with her gone, it’s really up to me."

Kaage’s customers, meanwhile, are shocked and saddened by the news. "I thought he would just die here one day," said customer John Evanoff.

Kaage said the newsstand should have closed decades ago, but his loyalty to his community and father drove him to keep it open. "I’ve paid my dues," Kaage told CBS News. "I know I’m going to miss it, but it’s a new chapter in my life."

Kaage told CBS News he doesn’t plan to sell or give away the newsstand, so its future is unclear, but what is certain is that holding on to a single job for this long is uncommon these days. Kaage is talking to the local chamber of commerce to discuss options.

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Factors that can impact the timing of retirement

Pew Research reports that in 1987, 11% of Americans ages 65 and older were working. As of 2023, 19% of those 65 and over were still employed.

Several reasons could explain this trend. First, many Americans might not have the option to stop working by 65 because they lack sufficient savings to retire comfortably. The Federal Reserve put median retirement savings among Americans ages 65 to 74 at just $200,000 as of 2022, the last year for which data is available.

More recently, in 2024, Vanguard put the median 401(k) balance among Americans 65 and over at $88,488 (by contrast, the average amount is $272,588).

While the Fed’s data may be more applicable broadly (since Vanguard is only looking at its own retirement plan data), the end result is the same. With the new “magic number” to retire comfortably being $1.26 million, many older Americans just don’t have enough saved and need to work longer to make up the difference.

However, working longer can also be advantageous from a Social Security perspective. People born in 1960 or later reach full retirement age at 67, which is when they can claim their monthly benefits without a reduction.

Those who choose to delay Social Security past full retirement age can grow their monthly benefits by 8% per year until they turn 70. Here too, many people need to keep working in the preceding years to make this strategy work.

Then there’s also the fact that some people derive a lot of personal purpose and meaning through their work and just plain love their jobs. And we now know having that routine can be good for mental and physical health.

In a February 225 University of Michigan National Poll on Healthy Aging, those who continued to work past 65 were more likely to say that having a job had a positive effect on their wellbeing and health.

How to know when it’s time to retire

So when is it time to call it quits? Dreading going into work is definitely one sign. Another is if work starts to be tough on your body and contributes to health problems instead of staving them off.

You might also reach the point where you feel you’ve saved enough money to be able to retire without worrying about how to pay the bills, month to month. This might especially hold true if you’re able to delay Social Security for larger monthly benefits.

Finally, if your job starts to get in the way of doing the things you want to do, that’s a good reason to retire.

In Kaage’s case, he wanted to be there for his grandchildren. You may decide you want to retire to spend more time with loved ones or help out with childcare if you’re able, like Kaage.

But if you’ve worked hard all your life, there should be no guilt in acknowledging that you’re done and ready for that next chapter.

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

At 60, if you have $1.2 million saved for retirement, you have more than double as much as most of your peers, according to Statistics Canada.

But even though that’s a lot of money, it’s important to manage your sizeable nest egg carefully. You could try to live off of dividend income from your portfolio, or draw down your total portfolio over time.

Living off of portfolio income alone

A 2024 CPP Investments survey found that 61% of Canadians are more worried about running out of money during retirement.

The nice thing about living on portfolio income in retirement is that you aren’t touching the principal, meaning it should, in theory, hold steady or grow rather than shrink.

But it takes a lot of principal to generate sufficient income to live on, especially when dividend yields are as low as they are today.

The average S&P 500 dividend yield is currently just 1.27%. Even if you assemble a portfolio of individual stocks with higher dividend yields, you may only be looking at 5%.

For a portfolio worth $1.2 million, that’s $60,000 in annual income, which may or may not be enough to maintain your lifestyle.

Of course, it’s not a good idea to keep your entire portfolio in stocks. A safer bet is to split your assets between stocks and bonds, which could produce a little under a 5% return. It is doable, but whether the income suffices depends on your income-related needs.

Keep in mind you’ll have CPP benefit, as well. With the average retired worker collecting about $808 per month or up to $1,433.00 if you delay receiving it, you could be looking at up to $17,200 in benefits annually.

When you combine these government pension earnings with your investment portfolio income that works out to just over $77,000 in retirement income, each year.

But there’s one big caveat: While living on your portfolio income allows you to preserve your principal investment portfolio, to a degree, neither growth of that portfolio nor income generated from the portfolio are guaranteed.

Market volatility means your stocks could fall in value, eroding your principal. Stock dividends aren’t guaranteed the way bond interest and principal are guaranteed, assuming you hold the bonds to maturity.

The other risk of an income-only approach is that you could lose purchasing power over time due to inflation, which drives living costs upward. Assuming the income you earn from your portfolio holds steady at $60,000 per year, this may be adequate when you start retirement, but find it doesn’t stretch far enough a decade or two into retirement.

The “total return” approach

Another option is to live on income and principal from your portfolio — the “total return” approach — as you whittle down your principal while enjoying dividends.

This is a more flexible approach. You can sell principal assets and take advantage of market gains. As your portfolio grows, a total return approach gives you access to more annual income, making it easier to keep up with inflation.

Here’s how this might work. Say you have $1.2 million and you decide to follow the 4% rule, drawing down 4% of your principal annually to ensure your savings last 30 years. In your first year of retirement, you’d receive $48,000 of annual income. If inflation then rises 2% the next year, you’d withdraw $48,000 plus another 2%, or $960, for a total of $48,960.

As your portfolio gains value, you can keep adjusting your withdrawals for inflation, making it easier to keep up with the cost of living.

The 4% rule is just a guideline. There are other factors to consider as you determine your withdrawal rate: market conditions, your investment mix, and your life expectancy.

For example, Morningstar found that a 3.3% withdrawal rate was optimal for retirement savings in 2021; 3.8% in 2022; and 3.7% in 2024.

This means that while the “total return” approach offers more flexibility, it requires an ability to constantly adjust to market conditions and your personal needs. It’s a good idea to enlist the help of a financial adviser who can help you adjust your withdrawals as needed.

In this approach, too, if your portfolio loses value, you may have to withdraw less temporarily until the market settles. It’s wise to have one to two years’ worth of living expenses in the bank so you can leave your portfolio alone for a period of time if need be.

It’s also important to have income-producing assets in your portfolio that help it gain value from year to year. Dividend and interest income could help offset market losses.

So all told, no matter which approach you take, the right investment mix is crucial.

Sources

1. Statistics Canada: Assets and debts held by economic family type, by age group, Canada, provinces and selected census metropolitan areas, Survey of Financial Security (Oct 29, 2024)

2. Y Charts: S&P 500 Dividend Yield

3. Government of Canada: CPP Retirement pension: How much you could receive

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

On June 18, NBC 10 reported that prosecutors are investigating a Burlington County, New Jersey car dealership.

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Autosmart on Route 73 in Palmyra was served a search warrant and investigators took license plates from the company’s garage and boxes and computers from the office.

Prosecutors could only confirm that the dealership is under investigation and did not speak to specific charges. They did, however, tell the news station that they’d received several complaints that customers were scammed at the dealership.

What’s interesting, though, is that NBC 10 was already looking into Autosmart after a viewer reached out with a problem she is facing. And the recent investigation could be related to it.

What happened?

Susan Noble asked NBC 10 to investigate an issue related to a car she bought and financed last September through Autosmart.

"I bought a used car from Autosmart in Palmyra," Noble told NBC 10. "They said they would work with me to get the monthly payment that I wanted at the price I wanted … they said, ‘You can buy the car and in a couple of months you can refinance with us.’"

Noble said she financed the purchase with American Credit Acceptance (ACA) and went back a few months later as planned to refinance.

“They said they sent the payoff check to the first company that I financed with,” said Noble. Payoff amount is the total needed to satisfy a debt, including interest and fees.

But then ACA started texting Noble saying her monthly payment was due or late. She also couldn’t get the title to her car.

Noble said ACA told her they never received the payoff payment for her loan from Autosmart.

“They didn’t actually do it, but they continued to make monthly payments on my behalf,” she explained.

That left Noble with two car loans in her name totaling over $50,000.

This, she said, is hurting her ability to buy a home.

"They know how hard I work. They know that I’m a nurse, they know I’m a single mom … for them to do this to me is just unconscionable," she told NBC 10, getting emotional.

NBC 10 reached out to Autosmart to find out why Noble’s original loan wasn’t paid off when she refinanced through them. A representative from SmartSource, who said they were a consultant for Autosmart, responded and blamed the financial institutions involved.

On June 3, that representative said the payoff payment would be processed and take 10 days to be paid in full. But Noble said that didn’t happen.

"I would like to see them, you know, held accountable," she told NBC 10.

The news station was not able to get an answer about that or the investigation into Autosmart. ACA and Autosmart also did not respond.

The Burlington County Prosecutor’s Office issued a statement on the Autosmart investigation saying, "No charges have been filed. Members of the public who wish to speak with an investigator concerning their experience with this dealership should contact us at [email protected]."

It’s worth noting that Autosmart also has an “F” rating on Better Business Bureau with 27 complaints filed against the business.

One complaint from April 2025 says, "I traded in my 2021 Kia Seltos in December of 2023 and that car loan has not been settled. We signed a contract stating the they would pay the loan off. The company has been paying monthly until January 2025. I have been calling and seeing why that loan hasn’t been paid. The loan has defaulted which has severely damaged my credit score along with the loan company seeking the vehicle and or payoff."

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Auto loan refinancing scams

What Noble says happened to her may be an honest mix-up or a sign of a serious mismanagement of funds and fraud. Auto loan refinancing scams are common enough for the Federal Trade Commission to have a page dedicated to them.

Scam refinancers either promise they’ll get you lower payments on your auto loan, but ask for an advance payment, or they tell you to make your loan payments directly to them and say they’ll pay your lender for you while they negotiate a deal.

“In reality, scam refinancers aren’t negotiating with your lender or anyone else,” says the FTC. “If you make your monthly car payments to the refinancer instead of your lender, those payments will likely go straight into the scammer’s pockets — not to repay your loan. You may only find out about the fraud when your lender contacts you about missed payments, or your car is repossessed.”

These scams hurt borrowers and can make their financial situations even worse. For one thing, falling behind on an auto loan could put you at risk of having your car repossessed. It could also damage your credit score, making it harder to borrow money the next time you need to.

For this reason, it’s important to be careful when dealing with refinancing companies.

Dealer tactics to look out for

Auto dealerships have different ways of luring in credit-challenged buyers. They can promise low vehicle prices and low financing rates only to hit you with surprise costs.

One good way to avoid getting taken for a ride is to read the fine print on your loan documentation. Sometimes, auto dealerships will offer a seemingly attractive interest rate on an auto loan but hit you with hidden fees that drive your costs up.

Another popular tactic is the yo-yo scam, where you’re told your auto loan is final and you’re allowed to drive the car away. Then, days or weeks later, you’re told that your financing didn’t come through, and that your only option is to sign a new loan with less favorable terms or give back the car.

You should know that any time you’re pressured to sign a car loan quickly, it should be considered a red flag. Another thing you should know when you’re shopping for a car is that you do not have to finance it through or from the dealership.

It pays to shop around for your own auto loan to compare rates and there may be advantages to dealing with a lender directly.

It’s also a good idea to research dealerships before moving forward with a car purchase. Look at the Better Business Bureau, as well as sites like Yelp, to check for complaints and reviews.

However, if you do get scammed, file a report with the FTC as well as your state attorney general’s office.

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

Personal finance expert Suze Orman didn’t grow up wealthy — she worked her way through a number of challenging jobs and learned how to invest before becoming the success she is today.

Orman is a firm believer that everyone deserves to live without financial stress — both during their working years as well as in retirement. To achieve that goal, Orman is a fan of living below your means, always having a financial safety net, and working toward financial independence.

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But doing that takes time and effort.

As Orman says, “Financial independence is not something we snap our fingers and have materialize right then and there. It is the result of a process that we create and then commit to seeing through.”

If your goal is to achieve financial independence to the point where you’re able to retire early, the right tools could set you up for success. To that end, here are three accounts Orman recommends putting in place as soon as possible.

An emergency fund in a high-yield savings account

You never know when you might face a surprise expense or a period of financial hardship. That’s why it’s important to have an emergency fund — money in savings to cover unplanned bills, or to take the place of your paycheck for a while if that becomes necessary.

Unfortunately, an early 2025 U.S. News & World Report survey found that 42% of Americans do not have an emergency fund. In addition, SecureSave, a fintech Orman co-founded, reported in August of 2023 that 63% of workers do not have enough emergency savings to cover an unplanned $500 expense.

At the very least, it’s a good idea to save enough money in an emergency fund to cover three to six months of essential bills. However, Orman would prefer that you save more.

“You know that I want you to have far more than three months of living costs set aside. One year is my sweet spot advice for being prepared for major financial setbacks,” she said.

An emergency fund could also be an important component of your early retirement strategy. If you retire before you can access your IRA or 401(k) penalty-free, you can potentially dip into your cash reserves to pay bills (though ideally, that money should be saved for unplanned expenses).

You can also use your emergency fund to cover expenses during periods when the stock market is down and it’s a bad time to tap your portfolio.

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A retirement account

The number of Americans who are nearing retirement without savings is alarming. AARP found last year that 20% of Americans 50 and older don’t have any money socked away for their golden years.

In addition, the Federal Reserve puts median retirement savings among Americans 65 to 74 at just $200,000 as of 2022.

Orman says the key to building a strong retirement nest egg is to start saving when you’re young — ideally, in your 20s. The sooner you fund your retirement account, the more time that money has to grow.

Orman also thinks people should save at least 15% of their income for retirement when they’re younger (and beyond). And if you want to retire early, you may even want to aim higher.

If you have access to a 401(k) plan, it can be particularly advantageous to participate — and max out if possible. This year, that means contributing $23,500 if you’re under 50, $31,000 if you’re 50 or older, or $34,750 if you’re between the ages of 60 and 63.

One easy way to boost your 401(k) savings is to claim your employer match in full. If you’re not sure what that entails, ask your benefits department.

You should also know that your employer match won’t count against your contribution limit. So if you’re 29 and want to contribute $23,500 out of your paycheck, and your employer matches your first $2,500 in contributions, you can put in $26,000 this year.

An investment portfolio

The nice thing about retirement plans like IRAs and 401(k)s is that they give you a tax break on your money. With a traditional IRA or 401(k), for example, your contributions go in tax-free and investment gains are tax-deferred.

The problem with these accounts, though, is that you’re required to wait until age 59 and 1/2 to take distributions. If you take an earlier withdrawal, you’ll typically face a 10% penalty. And a penalty like that could easily eat away at your savings.

That’s why it’s important to invest in a taxable brokerage account if you think you’d like to retire early — though you won’t get any IRS benefits, your account will also be unrestricted. You’ll be able to take withdrawals whenever you want and contribute as much as you want in any given calendar year.

Orman says it’s important to be strategic with your investments — and to be mindful of your asset allocation at different stages of life.

"For many people, as they near retirement, it can make sense to reduce their reliance on stocks if they want a smoother ride," she said. "But just because you had 80% or more invested in stocks when you were 40 doesn’t mean you need or must keep that much invested in stocks when you are 65 or 75."

To be clear, you shouldn’t reduce your stock exposure at a certain age so much as at a certain point before retirement. Generally speaking, the five-year mark is a good time to start moving out of stocks and into bonds, which tend to be more stable.

This doesn’t mean you should dump your stocks completely as retirement nears. But you may want to limit your portfolio to 50% or 60% stocks so you’re not overly exposed to market volatility at a time when you’re ready to start tapping your investments for income.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those 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
• 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

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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