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Author: Maurie Backman

  • I’m 32 and want to invest in stocks but don’t know where to start. How can I make the most of my money for long-term growth?

    I’m 32 and want to invest in stocks but don’t know where to start. How can I make the most of my money for long-term growth?

    If you haven’t started investing in the stock market, you’re not alone.

    Nearly half (48%) of American adults don’t have any investment assets, according to a 2024 report by asset management firm Janus Henderson. The reasons why included a preference for more accessible assets like cash, being in debt or not understanding how to invest.

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    Furthermore, while a poll by CNBC and Generation Lab in 2024 found 63% of Americans aged 18 to 34 believe the stock market offers great opportunities to build wealth, many are not participating, and 61% are not saving for retirement each month.

    If you’re 32 years old and haven’t begun investing yet, you may have spent the first decade of your career missing out on a great opportunity to generate wealth. But it’s not too late to get in on the action. Here’s why it matters if you start investing early, and how you can get started.

    The importance of investing early

    One reason many people end up with little savings by the time they retire is that they don’t start early enough. But at 32, you have one huge thing going for you — time. The sooner you start investing, the more time your wealth has to grow. So, it’s important to take advantage of your age.

    Let’s imagine you start contributing $500 a month toward retirement at age 32, and you continue to do so until age 67. Let’s also assume that your portfolio generates a yearly 7% return, which is a bit below the stock market’s average performance.

    After 35 years of compounded returns, you’d be looking at a nest egg worth about $830,000. That’s over four times the median retirement account balance among Americans of that age group, according to Federal Reserve data.

    But if you had waited to start investing at age 42, for example, generating that same yearly 7% return, by age 67 you’d have about $380,000. Even though you contributed $60,000 less income over 10 years, that missing $450,000 is the cost of lost time compounding gains.

    It’s also important to invest at a young age in order for your savings to outpace inflation. As the purchasing power of a currency erodes over time, it helps to earn more than any value lost.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Investing for the first time

    Investing for the first time? You’ll want to find the right home for your investments, and your best bet is to first exhaust tax-advantaged accounts before moving on to taxable accounts.

    If you have access to an employer-sponsored 401(k) retirement plan, at age 32, you can contribute up to $23,500 of your salary, pre-tax. Furthermore, if your employer offers a contribution match program you should take advantage of it as much as you can, as it’s essentially free money. These plans generally come with investment options so you can choose from a list of where to invest your savings.

    You may also want to put any savings into an individual retirement account (IRA), which has a contribution limit of $7,000 if you’re 32 years old. Traditional and Roth IRAs have distinct tax advantages, but funds in either type can be invested in the market.

    If you’re able to max out an IRA or 401(k) and have funds to invest beyond that point, you can turn to a taxable brokerage account. There are no annual contribution limits associated with taxable brokerage accounts, however, any contributions are made with after-tax funds.

    From there, it’s a matter of figuring out your risk tolerance and where to put your money. But one thing even the experts agree on is the importance of maintaining a diverse mix of assets within your portfolio so you aren’t as vulnerable if any investments go south. You can achieve this by buying stocks across a range of industries, or even blending in non-stock options such as bonds.

    One way to make things a little simpler is to invest in index-tracking exchange-traded funds (ETFs). These can give you access to a range of publicly traded companies. For example, an S&P 500 index fund can give you a piece of each of the top-performing companies on the U.S. market. Legendary stock-picker Warren Buffett himself recommends index funds for everyday investors.

    Keep in mind, however, the stock market has both good years and bad years. Even though, historically, the S&P 500’s average annual return rate is above 10%, past returns don’t guarantee future gains. But the longer you’re invested in the market, the more time you have to realize gains and recover from losses, which is another reason youth works in your favor.

    If you’re still unsure, it’s not a bad idea to talk to a financial advisor, especially if you don’t know much about investing and are worried about making poor choices. An advisor can help you make the most of your portfolio so it grows enough to allow you to meet your financial goals.

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

  • My aging parents just moved to Portugal and gave me their house — fully paid off. My husband and I aren’t wealthy: Should we rent it out, sell or move in?

    My aging parents just moved to Portugal and gave me their house — fully paid off. My husband and I aren’t wealthy: Should we rent it out, sell or move in?

    It’s natural for parents to want to help their adult children financially if they have the means to do so. Half of parents with kids 18 and over provide them with some financial support, a recent Savings.com survey found.

    But it’s one thing to get the occasional $300 check to help with groceries or car payments. It’s another thing to get a paid-off house.

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    Say your parents gifted you and your spouse their home because they’ve decided to move to another country. This could be a game-changer — especially if, as a couple, you’re earning a modest $100,000 salary combined and have $15,000 in credit card debt hanging over your heads.

    What should you do with this incredible gift? Rent it out for income? Sell it for a lump sum? Or move in and live rent-free? All options are good, but they’re not all equal.

    The pros and cons of renting it out

    If you can charge enough rent to more than cover the cost of property taxes, insurance, utilities and general maintenance, that’s extra money for you to pocket each month.

    Depending on how much rent you’re able to demand, that income could help you whittle down your credit card debt in a short period of time. Plus, most homes tend to appreciate in value over time.

    During the first quarter of 1995, the median U.S. home sold for $130,000, per the Federal Reserve. During the first quarter of 2025, the median U.S. home sold for $416,900. If you hang on to the house and rent it out for a decade or longer before you sell, you’ll likely be well ahead on total profit compared to selling right away.

    On the other hand, renting out a home means you’re taking on the potential hassle of being a landlord. Sure, you could get lucky and end up with a steady stream of wonderful tenants who pay their rent on time every month and never cause problems. Or, you could get stuck with tenants who damage the property, complain about issues constantly and force you to chase them down for rent.

    When you rent out a home, there’s also the risk of having it sit vacant in between tenants. If you earn a combined $100,000, you may not make enough money to comfortably cover your own bills plus the cost of maintaining the gifted house.

    If you’re trying to get out of credit card debt, you may feel more comfortable selling the home and taking the money right away.

    Remember, too, that rental income is income the IRS gets a piece of. That introduces not only a tax liability but the hassle of reporting the earnings. While you can potentially deduct some of the costs related to that home on your taxes, you may need an accountant to figure out how to handle that aspect. That’s yet another expense.

    The pros and cons of selling

    Selling a paid-off home is a good way to pocket a potentially large sum of money in one fell swoop. The National Association of Realtors put the median existing-home sale price at $414,000 for April 2025. That represents 22 consecutive months of annual price increases.

    Put another way, the housing market is still hot, and sellers are still commanding high prices. So, even if the home you’ve been given isn’t worth as much as the median U.S. home, you might still end up with a nice sum. That’s money you can use to easily pay off your credit cards and invest for your future.

    Plus, if you sell the house now, you won’t have to worry about ongoing costs like property taxes and insurance.

    Remember, because it wasn’t your house initially, you don’t know what issues may be lurking in the walls or beneath the floorboards. If you don’t want to risk the cost of repairs, unloading the house immediately could be a safe bet.

    On the flipside, we just saw how much home values rose over the past 30 years. If you were to hang on to the home for the long haul, you might be able to sell it for a much higher price than what you can get today.

    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

    Depending on where the home is located, keeping it could also give you more options for retirement. Say the home is located in an area you feel is nicer than yours but less accessible to jobs. You may not want to move into the home now. But it could be a great place to move into once you retire and are no longer working.

    You’ll lose that option if you sell it now. And while you could always seek to buy in that area once you’re actually retired, at that point, you’re taking the risk of home prices rising and not being able to afford one.

    Before making the decision, make sure to speak to an advisor who can inform you about the tax implications of selling. Receiving a house for free and then selling right away could come with a substantial tax penalty, and you may be able to reduce the pain with a few smart decisions.

    The pros and cons of moving in

    The nice thing about a mortgage-free home is that you only have to pay for property taxes, insurance, utilities and maintenance.

    If taxes and insurance aren’t so high and the maintenance is something you can manage yourself, it could be far less expensive to move than to stay in your current home — especially if you’re renting. That’s money you can use to pay off your credit cards.

    Keep in mind, if you’re trying to pay down your credit cards, the expense of a move might put you deeper in debt temporarily.

    Consider whether the home you were given is in a more desirable area with more amenities. Will it leave you with a longer commute or put you farther away from friends, or would moving there improve your quality of life? Some benefits can be hard to put a dollar figure on.

    Finally, if you’re renting now, remember that while you’re responsible for paying your landlord every month, maintenance is not your problem. If you move into the house, you’ll have to deal with everything from mowing the lawn to fixing the faucets when they leak.

    If you have a busy schedule or a demanding job, homeownership may not be a good fit for you. You’ll need to be honest with yourself about your ability to take care of a house before making the decision to move in.

    What to read next

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

  • ‘Nobody should have to go through this’: Knoxville family falls victim to ‘self-showing’ scam after finding a rental on Facebook Marketplace — now they’re out $1,800 and have nowhere to live

    ‘Nobody should have to go through this’: Knoxville family falls victim to ‘self-showing’ scam after finding a rental on Facebook Marketplace — now they’re out $1,800 and have nowhere to live

    When Alex Todd, his sister-in-law Natalie Ryffel, and their spouses needed a home to rent in Knoxville, Tennessee, they found a listing on Facebook Marketplace that was within their budget.

    They contacted the landlord and asked for a showing, but they were told it was a self-viewing home — meaning the landlord didn’t meet Todd and Ryffel at the property to show them around.

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    Rather, the landlord sent them the lockbox code for the property and told them to let themselves in and see if the home met their needs.

    Once Todd and Ryffel confirmed they wanted the home and the move-in fees had been paid, the landlord once again sent them the lockbox code so they could move in. But it turned out to be a scam.

    Todd and Ryffel are out $1,800, in addition to not having a place to live. "Nobody should have to go through this," said Ryffel to WATE 6 News.

    Too good to be true

    When Todd and Ryffel found a home on Facebook Marketplace, they didn’t spot any red flags throughout the process of seeing the home and moving in, they told WATE. It was only once they’d moved in that they learned they’d been victimized.

    The landlord, Buh-laal Mustafa Hatim, spoke with Todd by phone and text message once he responded to the Facebook listing. Hatim allegedly wanted $850 a month for rent and sent Todd a contract that looked official.

    "Every time I would talk to him and we would send money to him, he would shortly after send receipts via email," Todd said, adding he didn’t think anything was amiss. “He wanted payment through Chime. I figured, okay, he may not have an actual bank account."

    Todd and Ryffel paid Hatim $1,800 — $850 for rent, $850 for a security deposit, and a $100 application fee.

    “We paid him what we were supposed to pay him,” Ryffel told WATE. “We moved in the day before Easter.”

    But a few days later, they received a notice from the realty company in charge of the property: “You are illegally residing at this property without the consent of the owner. You are instructed to vacate the property immediately.”

    Now, the Todd and Ryffel families don’t have anywhere to go. And, as WATE discovered, the rental property was listed on another website for $1,350 a month, not $850.

    As a gesture of goodwill, the actual realty company is giving Todd and Ryffel a free week-long stay at Woodspring Suites, an extended stay hotel. They plan to use that time to find a new rental. But the chances of them getting their $1,800 back are slim.

    "You have people who work hard for that money, only for it to be gone," Ryffel said.

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

    What is a self-showing scam?

    In 2024, the FBI received 9,359 complaints related to real estate fraud, and total losses for those types of scams totaled more than $173 million.

    That number isn’t broken down by specific scam type, so it’s hard to know how many of those fraud reports stemmed from rental scams versus something else related to real estate. However, scammers are getting better and better at taking people’s money. So it’s important to know how to spot a rental scam so you can avoid it.

    In a self-viewing rental scam, fraudsters find legitimate property listings on rental sites. Then they pretend to be working for the realty company in charge of renting the house out. They gain access to the lockbox by signing up for an account.

    Then, they give prospective tenants access to the lockbox so they can do a self-guided tour, and then take their money once the tenant decides to move forward with the rental.

    That’s why you should be very wary of any rental where a landlord or property manager won’t meet you in person.

    What to look for

    When you come across a listing, double-check to see if it appears on other sites. Zillow highlights some other red flags for renters to be mindful of:

    • Money first: The property manager asks for the money up front, even before seeing the house.
    • Too good to be true: If a one-bedroom goes for $1,500 a month in your area, and you see one listed for $900, it’s highly suspicious.
    • Untraceable payments: If you’re being asked to send payments through an unconventional means that are untraceable, such as cash, crypto or gift cards, then move on.

    In Todd and Ryffel’s case, they might have protected themselves by looking for a listing on other websites. Of course, a self-showing rental may be legitimate, but your best bet is to cross-reference the “for rent” sign and to call the available number posted so you can speak to the realty company in charge.

    Even then, it’s not unreasonable to ask someone to meet you at the property, with their ID, so you can feel safe.

    What to read next

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

  • ‘Ruthless and heartless’: Texas woman allegedly caught trying to sell land she doesn’t own — as she and her husband face $1 million lawsuit over dozens of other cases of real estate fraud

    ‘Ruthless and heartless’: Texas woman allegedly caught trying to sell land she doesn’t own — as she and her husband face $1 million lawsuit over dozens of other cases of real estate fraud

    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.

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

    How to protect 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.

    What to read next

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

  • I’m 34 with $80,000 in savings and I want to buy a $400,000 house to rent out. But as a first-time investor, would it be too risky to carry a mortgage on a property I won’t occupy?

    I’m 34 with $80,000 in savings and I want to buy a $400,000 house to rent out. But as a first-time investor, would it be too risky to carry a mortgage on a property I won’t occupy?

    Buying a home is a pricey prospect, even if prices are trending downward. According to the Canadian Real Estate Association, the national average home price sat at $668,097 in February 2025, a 3.3% decrease from the year prior.

    If you’re 34 with $80,000 saved, you may be thinking of using that money to buy a home. That amount would allow you to put up to 20% down on a $400,000 home.

    Now, it’s one thing to use all of your money to buy a home you’ll be living in. But if you’re thinking of buying an investment property, it can be risky — even if you’re confident you can charge enough rent to cover your mortgage costs. So, it’s important to weigh your options carefully.

    The pros and cons of rental properties

    There are a number of benefits to owning a home you rent out. First, the amount you charge can be put toward the home’s mortgage, all while you get to be the one who builds equity in the home.

    Eventually, you might walk away with a large profit or end up with a home that is fully paid-off in time for retirement.

    As the landlord, you’ll have the right to not renew tenant leases and occupy the home if you so choose. You may not need to live in the home you’re buying now because you have a cheap rental elsewhere, or you live with a romantic partner. But if your situation changes, your home is something you can fall back on.

    Furthermore, if you’re renting out your home, you can deduct certain costs on your taxes — these include maintenance expenses and repairs.

    On the other hand, buying a rental property potentially means taking a big risk — especially in the situation described above. If you use all of your savings to purchase a home, you risk landing in debt the next time an emergency or unplanned expense arises.

    Speaking of expenses, there are numerous costs associated with owning a home, and there are many you can’t plan for. Property taxes can rise, your insurance costs might increase or an expensive repair might become necessary. Plus, the possibility of a non-property emergency still exists. So, it’s not a good idea to leave yourself without a financial cushion.

    Another thing to consider is that when you own a rental property, you’re not guaranteed steady income. You could wind up with a tenant who doesn’t pay, or you could end up going months in between tenants if one leaves.

    In addition, if you rent out your home, you’re obligated to address tenant concerns as they arise. That could mean interrupting your plans to address any issues. And while you could hire a property manager to do those things for you, that’s yet another cost you’d bear — one that will eat into your profits.

    Being a successful property investor

    While owning a rental property can be risky, there are steps you can take to set yourself up for success.

    Be sure to leave yourself with a solid emergency fund when buying a home. Or, to put it another way, don’t empty your savings completely for a down payment. This can be a life-saver if things go sideways.

    Research the market you’re buying in to see what homes typically rent for and what local vacancy rates are. Talk to a real estate agent if you can’t find the data you need yourself. The more information you have, the better you can price and market your rental units.

    Look for certain neighborhood features, like good schools and access to amenities. If you buy a home in a desirable location, you may be more likely to have it continuously occupied.

    Talk to people who own rental properties and find out what their experience is like. You might think that being a landlord is a role you can handle only to learn that it’s more than what you’ve bargained for. And if so, you’re better off knowing that from the start so you can factor the cost of a property manager into your budget.

    Finally, if you want to take maximum advantage of the tax perks of owning a rental property, you may want to consult with a financial adviser or accountant to ensure you’re getting the most out of your investment.

    Sources

    1. Canadian Real Estate Association: National Price Map

    This article I’m 34 with $80,000 in savings and I want to buy a $400,000 house to rent out. But as a first-time investor, would it be too risky to carry a mortgage on a property I won’t occupy?originally appeared on Money.ca

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

  • This Miami senior, 76, can’t prove she was ever born in America — and her segregation-era birth has trapped her in driver’s license limbo. What to do if you miss the Real ID deadline

    This Miami senior, 76, can’t prove she was ever born in America — and her segregation-era birth has trapped her in driver’s license limbo. What to do if you miss the Real ID deadline

    Janette Gantt Palmer was born at home in 1949, during segregation in Aiken County, South Carolina. Because of this, she was never issued a birth certificate.

    Now, at 76 years old, Gantt Palmer is trying to renew her driver’s license, and she’s hitting a roadblock.

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    The reason? To comply with the new Real ID program, which takes effect on May 7, she needs a birth certificate or passport to prove her identity. But Gantt Palmer doesn’t have either document.

    "After waiting two hours in the line, I said, ‘I’d like to renew my driver’s license.’ ‘Oh no, you need this and you need that,’" Gantt Palmer told CBS News Miami. "For what, what reason? I never had it before."

    An ongoing issue

    This isn’t the first time Gantt Palmer has tried to get a birth certificate. She told CBS she’s been trying to get her hands on one her entire life.

    Without a birth certificate, she can’t get a passport or new license, meaning she doesn’t have the necessary documents for Real ID compliance.

    "Back in those days, we were born at home," she said. "The lady came to your house and helped your mom have the baby."

    Still, the absence of a birth certificate didn’t stop Gantt Palmer from building a career. She worked as a postal worker for 42 years and drove school buses. Her postal worker ID helped her obtain a driver’s license in the past.

    She’s since returned to the DMV multiple times, bringing various documents to prove her identity, including her Social Security card. She also has a letter from the State of South Carolina confirming it found no record of her birth after searching decades of archives.

    The Aiken County Office of Vital Statistics told CBS News Miami it can provide a delayed birth certificate, but it’s a lengthy process. Gantt Palmer would need to gather her school records from the 1950s. She also has the option to go to court and get a judge’s order.

    Florida State Rep. Ashley Gantt — Gantt Palmer’s niece — has been trying to help. She secured a 90-day extension and plans to reach out to a colleague in the South Carolina legislature to see if the process can be expedited..

    Gantt Palmer is also working with U.S. Congressman Mario Diaz-Balart’s office to try to obtain a passport. Regardless of the outcome, she needs to be able to drive.

    For now, she remains hopeful.

    "God’s gonna work it out though," Gantt Palmer told CBS News Miami. "I don’t know how, but I need my driver’s license, I know that much."

    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 the Real ID program works

    Beginning May 7, the REAL ID Act — passed by Congress in 2005 — will finally be enforced. Its goal is to establish minimum security standards for driver’s licenses and other forms of identification.

    A big part is to improve national security and prevent acts of terrorism. But why the nearly 20-year delay? Several factors have contributed, including states arguing they lacked the funding to implement the changes. As a result, extensions were granted over the years.

    In recent years, it seemed the enforcement of REAL ID was ready to move forward. However, in late 2022, the Department of Homeland Security postponed the deadline again, citing significant delays caused by state licensing agencies dealing with backlogs from the COVID-19 pandemic.

    Starting May 7, Americans will need a REAL ID-compliant license to access certain federal facilities, board commercial airplanes and enter nuclear power plants. All states are now issuing REAL ID-compliant driver’s licenses.

    To get one, visit your state’s licensing agency website to check if you need an appointment and what documents are required.

    At a minimum, you’ll need:

    • Proof of your full legal name and date
    • Your Social Security number
    • Two documents showing your current address
    • Proof of lawful status (e.g. immigration documents if you were born outside the U.S.)

    Some states may have additional requirements.

    Without a REAL ID, you won’t be able to board a domestic flight unless you have a passport, passport card or another TSA-accepted form of identification. (This rule doesn’t apply to children under 18.)

    A standard, non-REAL ID driver’s license won’t suffice. You may also be denied access to certain federal buildings or nuclear facilities.

    The TSA said it will use a "phased enforcement" approach starting May 7, though what that looks like remains unclear. To avoid issues, it’s best to have a compliant ID before the deadline.

    What to read next

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

  • ‘Chaotic and confusing’: How the latest ‘emergency message’ from Social Security will impact beneficiaries who were overpaid — plus what you can do to protect yourself from future shocks

    ‘Chaotic and confusing’: How the latest ‘emergency message’ from Social Security will impact beneficiaries who were overpaid — plus what you can do to protect yourself from future shocks

    Think Social Security is a sure thing? Between 2015 and 2022, the government mistakenly shelled out nearly $72 billion, and now it wants that money back, even if the error wasn’t your fault.

    To that end, the Social Security Administration (SSA) is going after overpayments more aggressively. In March, it announced plans to withhold 100% of benefits, if needed, to recoup overpaid funds. Previously, that withholding rate had been capped at 10%.

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    The SSA later issued an emergency message in late April to give interim guidance on the new rule. In that message, it said the withholding rate should be limited to 50%.

    The higher rate applies to old age, survivors and disability insurance benefits. For Supplemental Security Income overpayments, the withholding rate remains 10%. Still, this change could throw many Social Security recipients for a major loop.

    How the new rules hurt the most vulnerable

    The SSA won’t withhold benefits without warning. In its emergency message, it explained that recipients are sent a notice requesting repayment of the overpaid benefits. That notice also explains the right to appeal.

    Beneficiaries have 90 days to request a lower withholding rate or ask the agency to reconsider. After that window closes, the SSA can withhold 50% of benefits until the overpayment is recovered. These notices began going out on April 25.

    Kate Lang, director of federal income security at the advocacy group Justice in Aging, welcomed the shift from 100% withholding, but said she was disappointed the agency didn’t revert to 10%. Lang called the agency’s conduct “chaotic and confusing.”

    “It creates more work for SSA — more people calling with questions, more errors being made that need to be corrected, more confusion and uncertainty about what is going on,” Lang said.

    According to KFF Health News, the SSA has been actively trying to claw back overpayments from disability benefit recipients for years.

    In fiscal year 2022 alone, the SSA recovered $4.7 billion in overpayments. It’s estimated that many of those affected were people on disability benefits who couldn’t afford to pay.

    KFF Health News and Cox Media Group reported on individuals harmed by the SSA’s aggressive tactics. One 64-year-old Florida resident was forced to live in a tent after his Social Security benefits were garnished and he could no longer afford rent.

    “Social Security overpayments are wreaking havoc in people’s lives,” Jen Burdick, an attorney with Community Legal Services of Philadelphia, told KFF Health News. "They are asking the poorest among us to account for every dollar they get.”

    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

    The impact of withheld Social Security checks

    In April, the average monthly benefit was about $2,000 for a retired worker and $1,582 for a disabled worker.

    Many people who receive Social Security rely on those benefits for nearly all their income. Among recipients age 65 and older, 12% of men and 15% of women get 90% or more of their income from Social Security, according to the SSA.

    When those benefits are suddenly reduced due to overpayment recovery, it can lead to extreme financial hardship.

    Some may have to rely on credit cards to cover essentials. But with interest rates still elevated, that could lead to a vicious cycle of debt. Even when rates aren’t high, relying on credit is risky.

    For others, a loss of even part of their Social Security check could mean missing rent and facing eviction. Homeowners could risk foreclosure. And some might not be able to afford basics like utilities, food or medication.

    How to avoid future financial shocks

    Having your Social Security benefits reduced because of an overpayment on the program’s part can be a devastating financial blow. Even if you haven’t received an overpayment notice yet, that doesn’t mean one isn’t coming.

    Right now, the SSA is limiting its withholding rate to 50%, but that could change. If you depend heavily on Social Security, it’s wise to take steps to protect yourself.

    One option is to try building an emergency fund. That’s not easy if you’re already retired, but if you’re physically able, consider a part-time job to boost your income.

    According to Pew Research, 19% of Americans ages 65 and over are working. If a set schedule doesn’t appeal to you, the gig economy may offer more flexible options. You can also look for ways to cut back on spending and save more. If you already live on a tight budget, this won’t be easy, but temporary sacrifices — like moving in with a grown child to avoid rent — could help.

    It’s also important to maintain good records of everything Social Security pays you. Keep all SSA documents in a safe place, and consider scanning them for digital backups.

    If you get an overpayment notice you believe is incorrect, don’t hesitate to appeal it. The SSA could have made a mistake.

    Before you panic, try calling the agency to speak with someone, or make an appointment at your local office to sort things out in person.

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

  • I just inherited $10,000 — but all I’m hearing these days is the US is headed for a recession. Should I use the cash to pay off my $9,000 credit card debt or keep it for my emergency fund?

    I just inherited $10,000 — but all I’m hearing these days is the US is headed for a recession. Should I use the cash to pay off my $9,000 credit card debt or keep it for my emergency fund?

    If you’re worried about a near-term recession, you’re certainly not alone. According to an April survey conducted by business outlet Chief Executive, American CEOs revealed their take on the current economy, and it found that 62% now anticipate a slowdown or recession in the next six months — up from 48% in March.

    Part of the reason for this concern stems from uncertainty around tariff policies. As it is, tariff announcements have managed to wreak havoc on the stock market. It’s not such a stretch to think that they might lead to a broad pullback in consumer spending, especially if they lead to higher costs.

    Don’t miss

    If you’re worried about a recession and recently came into, say, a $10,000 inheritance, you may be wondering whether you should use that money to pay off a $9,000 credit card balance or put the money into an emergency fund.

    The truth is that paying off debt and boosting savings are both smart moves at a time like this. Let’s dig into the pros and cons of paying off debt versus increasing savings so you can decide what to do.

    Paying off debt

    The longer you carry debt, the more it can cost you. So, if you use your $10,000 inheritance to pay off your credit card balance, you’ll potentially save yourself a boatload of money on credit card interest.

    Plus, if a recession hits, it could result in more widespread layoffs. And if you end up losing your job, not having credit card minimums to meet could make that situation a lot less stressful.

    On the other hand, if you use your $10,000 inheritance to pay off $9,000 in credit card debt, you’ll only be leaving yourself with $1,000 for savings purposes.

    The fact that you owe $9,000 on credit cards means you may not have much in the way of savings to begin with. But a mere $1,000 cushion isn’t likely to get you very far if you lose your job and are unemployed for months. So, while paying off your credit cards solves one problem, it could open the door to another.

    Keeping the cash as an emergency fund

    A $10,000 emergency fund could be extremely handy if you were to lose your job in a recession.

    Generally speaking, it’s a good idea to have at least a three-month emergency fund to get through a layoff without having to resort to more debt. If you keep that $10,000 in your savings account, it could spare you from having to add to your credit card balances and rack up even more interest charges.

    Also, it happens to be that savings accounts are paying generously right now because interest rates are up.

    If your $9,000 credit card balance happens to be on a 0% interest credit card with a good number of months until that 0% rate goes away, you could keep the money in savings for a bit, earn some interest, and see how economic events shake out.

    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

    Of course, the downside of this approach is that if you’re not looking at a 0% APR on your credit card debt, keeping the money in savings could mean racking up extra interest needlessly.

    If your credit APR is 24% — which is roughly the average APR on new credit accounts these days — and it takes you three years to pay off your balance, it could cost you around $3,700 in interest alone.

    Plus, the reality is that even if a recession hits, you’re not guaranteed to lose your job, so you may not need the extra emergency savings immediately. On the other hand, you know for a fact that your credit card balance is there, and that the longer it takes you to repay it, the more money you stand to lose to interest.

    Taking a balanced approach

    A $10,000 windfall gives you a lot of leeway to better your financial situation ahead of a recession. One thing you could do is split that money between your credit card debt and your emergency savings.

    The upside of this approach is that you get more protection in case your job disappears, but you also whittle down your credit card balance to a point where your minimum payments should shrink and your interest charges should be reduced.

    The downside, though, is that you may feel like you haven’t fully tackled the goal of paying down your debt completely or building your emergency fund completely.

    Putting $5,000 toward your debt still leaves you with a $4,000 balance, which is not a small sum. And while $5,000 is a nice emergency fund, it’s probably not enough to float you for three months either.

    Then again, 40% of Americans can’t cover a $1,000 emergency expense from savings, according to U.S. News & World Report. With $5,000 in savings, you’re in a much better place than people in that boat, even if you don’t have a “complete” emergency fund.

    Ultimately, all of the choices above are financially responsible ones. You’ll need to think about how vulnerable your job and industry might be to layoffs in the event of a recession. You’ll also need to consider what your credit card debt is costing you before you can make a choice that’s right for you.

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

  • ‘The face of homelessness has changed’: This Florida woman, 78, lives out of her car and eats just 1 meal a day — why more and more seniors in the Sunshine State are facing homelessness

    ‘The face of homelessness has changed’: This Florida woman, 78, lives out of her car and eats just 1 meal a day — why more and more seniors in the Sunshine State are facing homelessness

    South Florida resident Carolyn is 78 years old — and at a time in her life when she should be enjoying life’s comforts, she’s instead living in her car because she can’t afford a home.

    “I look at it as a journey. I’ve had many journeys in my life,” she told WSVN 7News in a story published May 13.

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    Carolyn isn’t the only older American in that boat. A growing portion of seniors in parts of Florida are grappling with homelessness — and the problem is projected to keep getting worse.

    Homelessness is hitting older Floridians

    Carolyn had been living in her vehicle for two months at the time, and 7News reports she has only Social Security for income. She doesn’t share her monthly benefit, but the average retired worker today collects about $2,000 a month.

    Carolyn has sold many of her possessions, but simply doesn’t have enough money for housing. In the absence of a bed, she sleeps upright in her car instead of lying down.

    “I sleep here in this seat, scrunched down. My ankles and legs are swollen from having to sit all the time,” she said. “I buy jug water, it’s cheaper. And I eat one meal a day, for $2.02.”

    Thanks to her Medicare plan, Carolyn has free access to a gym where she can shower, per 7News. But she still needs a home.

    Cassandra Rhett, the Housing and Social Services Manager for the City of Pompano Beach, is trying to help find her one. Rhett was inspired to help knowing that anyone could end up in a situation like Carolyn’s.

    “It could be my aunt, it could be my mother. It just breaks my heart just how humble Carolyn is,” she told 7News with tears in her eyes.

    Rhett blamed the situation on skyrocketing rents.

    Ron Book, chairman of the Miami-Dade County Homeless Trust, says that homeless seniors are incredibly vulnerable and in need of help.

    “We know if you put vulnerable elderly on the street, they’re going to die earlier,” he told 7News. “The face of homelessness has changed. I want people in our community to think about their mothers, and their grandmothers, and their grandfathers being homeless for the first time.”

    In 2019, people aged 65 and older made up nearly 8% of the homeless population in Miami-Dade County, according to 7News, citing data from the Homeless Trust. By 2024, that number reached 14%, and it’s projected to climb to 22% by 2030.

    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

    Meanwhile, Carolyn’s car recently started to leak following a period of rain. Rhett says the city has put Carolyn up in a hotel for now — while she works to find the senior permanent housing.

    Carolyn hopes sharing her story sheds light on the problem at hand.

    “It can happen to anyone. Don’t think it can’t,” she warned.

    Homelessness among seniors is a major problem

    Americans aged 50 and over are the fastest growing group of people who are going homeless in the country, according to the U.S. Interagency Council on Homelessness.

    The National Alliance to End Homelessness, meanwhile, reports that in 2023, roughly 138,000 Americans aged 55 and older experienced homelessness on a given night, representing 20% of all homeless individuals.

    The organization also noted, in 2020, that 5 million Americans aged 65 and over lived below the poverty line, which at the time was $12,760 for a household of one, per HHS data.

    There are a few reasons why older Americans may not be able to afford housing. First, many people who reach retirement have only Social Security to live on.

    A 2024 AARP survey found that 20% of Americans aged 50 and over had no retirement savings. As noted earlier, the average retired worker Social Security benefit is about $2,000 a month. But Zillow puts the average U.S. rent for a one-bedroom unit at just under $1,600 per month.

    In addition to worrying about rent, health costs tend to rise with age. And those with limited incomes sometimes have to choose between paying for medical care and medication versus other bills.

    It’s important that seniors at risk of homelessness know how to get access to the support they need. The Department of Housing and Urban Development, for example, has an online tool to help people seek out emergency shelter, as well as food pantries and health clinics. You can also use this list of resources to find homeless assistance programs in your state.

    What to read next

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

  • 43% of Canadians are delaying retirement due to financial pressures — is your plan still realistic at age 63?

    43% of Canadians are delaying retirement due to financial pressures — is your plan still realistic at age 63?

    Many people look forward to retirement and can’t wait to kick off that chapter in life. But for some people, that part of the story isn’t appealing.

    If you’re 63, you’re at a time when it is reasonable to consider your financial stability during retirement. Even though you haven’t hit 65, you’re still old enough to collect the Canada Pension Plan (CPP) benefit, although you’ll be looking at a reduced monthly sum since each year you delay, until age 70, the more you’ll earn.

    If you have a decent amount of savings or a pension, you could retire at 63 or shortly thereafter without worry. But it’s not just the financials you’ll need to think about. There’s your mental health and loneliness to consider — aspects of retirement that should not be overlooked.

    Learn More: Tired of juggling multiple payments? Simplify your debt with one easy monthly payment. Apply for a consolidation loan today and take control of your finances.

    Forever young

    It’s easy to imagine retirement as being carefree. However, the hard truth is that retirement has the potential to be unfulfilling.

    In a 2024 Statistics Canada survey, 61.5% of Canadian aged 65 and older described themselves as satisfied with their lives, compared to 48% for those under 65. However, StatsCan also estimates that between 19% and 24% of those aged 65 and up feel isolated from others, wishing that they could participate in more social activities, illustrating how isolating retirement can be without the community a career may bring to someone.

    There’s also the feeling of purpose. Many find that their identities are tied to their jobs, so when they retire a part of themselves disappears. StatsCan found that of all working Canadians aged 65 to 74, 21% were employed in 2022, with 9% doing so by necessity and 12% doing so by choice.

    A work schedule also provides structure. In the absence of habit, it’s easy for retirees to shut themselves in their homes, thereby adding to their isolation and boredom.

    That’s why experts argue it’s smart to avoid sunsetting a career. Aside from the financial stress and a lack of a steady income, the mental and emotional toll can make retirement unpleasant, even when money isn’t a concern.

    Inflation, scarcity and how to invest

    Although some might delay retirement due to social or emotional concerns, many delay retirement due to financial woes.

    CPP Investments reported that 61% of Canadians worry more about running out of money during their retirement. Delaying retirement allows them to boost their savings and leave their nest egg untapped.

    That same CPP Investments survey reveals how high cost of living due to inflation have Canadians concerned about their savings.

    Given that CPP benefits only make up about 33% of a person’s pre-retirement income, it’s easy to see why many of them would opt to postpone retirement and keep plugging away at their jobs in order to get ahead of economic hurdles.

    There’s also a general lack of savings to consider. A 2023 Healthcare of Ontario Pension Plan (HOOPP) survey found that 44% of working Canadians have not set aside money for retirement that year, with 32% never having set aside money for retirement at all. Delaying CPP boosts monthly benefits by 8.4% per month for each year until 70. But it’s hard to stave off CPP when you don’t have a paycheque.

    Some steps can help alleviate the financial burdens that cause Canadians to delay retirement. Boosting savings can address scarcity fears, as can working with a financial advisor to establish a safe withdrawal rate.

    Investing strategically can help combat those inflation fears. A portfolio of income-producing assets like bonds and dividends can help retirees keep up with inflation, even when it’s higher than usual.

    Stick to your vision

    Retirement doesn’t just have financial implications, it can have an emotional impact. One of the best ways to stave off existential dread is to figure out what you want to do with your life after work.

    Maybe you’d like to volunteer for a charitable organization, or maybe you’d like to move closer to your adult children to help take care of your grandkids. The key is to stick to your vision and keep yourself occupied.

    Having a support network is also important. Before retirement, see what community resources are available to you, whether through a senior centre or a place of worship. If you can’t find one within your vicinity, you may want to consider moving to a senior community that can nurture your social needs, if you can afford it.

    One final thing to consider cutting your hours of work back through a part-time job or consulting position; maintain some semblance of a work schedule for as long as your body can handle it. You get the best of everything: time to yourself, an opportunity to get out, socialize and earn a paycheck to alleviate your financial stress.

    Sources

    1. Statistics Canada: The older people are all right (Sept 24, 2024)

    2. Statistics Canada: Employment by choice and necessity among Canadian-born and immigrant seniors (Apr 24, 2024)

    3. Healthcare of Ontario Pension Plan: 2023 Canadian Retirement Survey

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