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Author: Sarah Sharkey

  • ‘Buyers need to be aware’: North Carolina homeowners upset over half-built homes deteriorating for months in their new developments — how to avoid buying into a permanent construction zone

    ‘Buyers need to be aware’: North Carolina homeowners upset over half-built homes deteriorating for months in their new developments — how to avoid buying into a permanent construction zone

    When Alex Oleksy and his young family moved into an unfinished subdivision in Mooresville, North Carolina, he looked forward to peace, quiet and beautiful surroundings.

    He got quiet all right. Eerie quiet. And the view? Half-built homes with fraying housewrap, rusting construction materials and other eyesores. It’s like a subdivision ghost town.

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    “Very unexpected,” Alex Oleksy told WCNC. "You see rods sticking out. You see tall grass. There’s a roof being held by a 2×4. Looks unstable.”

    It’s the same for other homebuyers who purchased new-build homes from Helmsman Homes and Nest Homes in Mooresville and nearby Statesville. These builders, both connected, ran into financial difficulties.

    That led to work stoppages as subcontractors demanded payment for their work. As work stalled on the subdivisions, unfinished homes were left vacant, and deteriorating, for a year.

    Homes sit unfinished for months

    “Doesn’t look good, does it?” said Dolphus Lee, a Marine veteran and homeowner in a similarly half-built neighborhood in Statesville. “I’m upset, but ain’t nothing I can do about it.”

    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

    Homeowners have heard little from the developers.

    But contractors, including masonry and roofing companies, have filed lawsuits against both Nest Homes and Helmsman Homes, with claims that the developers owe them a combined total of $1.7 million.

    According to Iredell County’s director of building standards, the companies have shuttered and the remaining properties are now owned by mortgage companies and banks.

    That leaves homeowners like Oleksy and Lee — who’ve waited months hoping their subdivisions will be completed — in limbo. Now, there’s light at the end of the tunnel.

    Another developer has stepped in to finish building the homes in Olesky’s neighborhood. Homeowners like Lee hope something similar will happen in their subdivisions.

    Tread carefully when buying a new-build

    The situation is instructive for anyone looking to buy into a new subdivision.

    “Buyers need to be aware of buying into a neighborhood that’s not complete,” attorney and real estate expert James Galvin told WCNC.

    “You can’t treat that purchase the same way as you’re treating a purchase in a finished neighborhood. You’re going to really want to kick the tires.”

    Here are some tips on how to do your due diligence on a new development.

    Seek out reviews of the developer to get an idea of how homeowners like working with them. Consumer review sites like Consumer Affairs often have customer reviews on popular builders.

    Request a copy of the developer’s financial statements. Comb through the details to confirm whether the company can afford to finish building and maintaining the community.

    Be wary if the HOA fees are especially low. That’s because developers own the HOA until the development is completed. Low HOA fees may indicate that construction is stalled.

    Look for lawsuits in the builder’s past, ongoing litigation or signs of financial mismanagement. You might even consider hiring an investigator to dig deeper.

    Take red flags seriously.

    Finally, if you decide to move forward, keep a solid emergency fund on hand. If something goes wrong, you want to be able to rent a place to call home until you sort out any unexpected issues.

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

  • You may want to think twice before clicking this 1 popular link next time you get an unwanted email — plus why good ‘email hygiene’ plays an essential role in your financial health

    You may want to think twice before clicking this 1 popular link next time you get an unwanted email — plus why good ‘email hygiene’ plays an essential role in your financial health

    Keeping your inbox tidy often starts with tapping “unsubscribe.” After all, nobody likes a flood of spammy emails.

    But that simple click can put you at risk. One recent report found that one in every 644 unsubscribe clicks leads to a malicious website. Because most scams target your wallet, good email hygiene is more than convenience; it protects your money.

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    When ‘unsubscribe’ can backfire

    Clicking unsubscribe feels productive, yet it can be dangerous. Even legit-looking messages can hide bad links.

    The FBI logged more than 298,000 phishing complaints in 2023, and bogus unsubscribe links remain a favorite tactic. DNSfilter, a cybersecurity firm, told the Wall Street Journal the aforementioned one in every 644 clicks it tracked landed on a malicious website.

    Even if the page you reach is harmless, the act of clicking tells scammers you interact with links, making you a bigger target down the road.

    "If it’s a bad actor that’s sending this email to you, and the email looks legit, but at the bottom it says, ‘Click here to unsubscribe,’ why would that link be any safer than ‘Click here to see if you won $5,000’?” Heidi Mitchell, a contributing writer to the Wall Street Journal, told WGAL.

    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

    Email hygiene that protects your money

    A single bad link can cost you cash or hours of cleanup. To lower the odds:

    • Skip every link from senders you do not recognize, even ones labeled unsubscribe.
    • Navigate to the company’s real website on your own and change email settings there.
    • If you do not have an account, mark the message as spam so future notes bypass your inbox.
    • Create a burner email for coupons, contests and other signups so your main address stays clean.

    When in doubt, do not click. Your wallet will thank you.

    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.

  • ‘It hurts my heart’: A housing crisis is unfolding in Utah as 27 people found living crammed into 1 house — and advocates say soaring costs mean some families simply ‘cannot afford to live’

    ‘It hurts my heart’: A housing crisis is unfolding in Utah as 27 people found living crammed into 1 house — and advocates say soaring costs mean some families simply ‘cannot afford to live’

    Investigators conducting a search warrant at 4:30 a.m. on May 14 discovered no fewer than 27 people living in a single-family home in Washington, Utah. This included three children under the age of 12.

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    Inside the home, which had undergone many unpermitted remodels, they saw exposed electrical panels, bedrooms without windows and kitchens in many small rooms. Perhaps most startling was the construction scene in the basement, which appeared to be an effort to make more space for even more occupants.

    "Imagine if a fire had started. Most of the windows were blocked, many rooms didn’t even have windows. People wouldn’t have been able to escape," said Jordan Hess, Legislative Affairs Director for Washington City, to KUTV. He added that what drew the city’s attention to the home was neighbors voicing their concerns.

    In addition to the unsanitary and unsafe conditions, police also found fraudulent identity documents and illegal narcotics. Nineteen people were transported to an ICE detention facility and one person was taken into custody on narcotics charges, reports KUTV.

    Police chief Jason Williams told the news network that the landlord is currently under investigation and issued multiple citations for code violations. He claimed he rented the property to five tenants.

    As housing costs in Utah soar, more people could find themselves facing similar overcrowding situations.

    Another similar situation in northern Utah?

    While the sheer number of people living in the southern Utah home is shocking, these residents represent part of a growing crisis across the state, says KUTV.

    It spoke to a northern Utah woman who said a home in her neighborhood may have more than 20 people living in it. She learned about it from an administrator at her child’s school and contacted the Utah Division of Child and Family Services.

    “It hurts my heart,” she said. “We’re so concerned for this child’s well-being.”

    The local police department has also been notified.

    A full house, a fractured system

    The heartbreaking reality of people packed like sardines into an unsafe living situation is not new to Tara Rollins, executive director of the Utah Housing Coalition.

    She told KUTV her organization hears from people in such living situations.

    "When you look at families doubling or tripling up, they’re trying to stay under the radar," she said. "The problem is people cannot afford to live in our community. It’s so expensive."

    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

    Most Utah residents agree that the state is “in a major housing crisis” or “facing serious housing challenges,” according to a Q4 2024 survey by Envision Utah and Utah Workforce Housing Advocacy. This can make keeping a roof over your head without breaking the bank an almost impossible challenge in the state. The causes cited included interest rates, construction costs, developer or landlord greed, too many people moving to Utah, and insufficient housing supply.

    In part, the exploding population of Utah plays a role in the lack of affordable housing. As more people move to and are born in the state, the already limited housing supply is playing catch-up.

    For those looking to buy a house, the median sales price was $559,200 in April, according to Redfin, which was 28% higher than the national median.

    But lower-income renters face the most significant cost burdens. According to the National Low Income Housing Coalition, there is a shortage of over 48,000 affordable and available rental homes for extremely low-income renters, many of whom are seniors.

    This housing stress doesn’t just play out in people’s budgets, it impacts other areas of their lives. For example, studies have found that lower-quality housing conditions can lead to worse healthcare outcomes, in part because most of their income is consumed by housing costs.

    All of these factors make the homelessness crisis in Utah less surprising. In 2023, the number of Utahns experiencing homelessness for the first time hit 9,800, an almost 10% increase from 2022.

    As more people face homelessness, this issue has become a concern for many Beehive State voters. In fact, housing affordability was the top concern for voters during last year’s gubernatorial election.

    With more light shed on the issue of housing affordability, hopefully, things will start to change in the right direction.

    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.

  • Knoxville woman, 79, being evicted from apartment over ill daughter’s ‘excessive noise and disruptive behavior’ — how to handle housing obstacles on a fixed income amid US housing crisis

    Knoxville woman, 79, being evicted from apartment over ill daughter’s ‘excessive noise and disruptive behavior’ — how to handle housing obstacles on a fixed income amid US housing crisis

    Julie Powers, a 79-year-old senior from Knoxville, Tennessee, is facing eviction from her long-time rental apartment.

    The septuagenarian, who is living on a monthly fixed income of $1,900, began experiencing trouble when neighbors started filing complaints about Powers’ 42-year-old daughter, who moved into the apartment over a year ago.

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    Although her daughter had been living there for some time, tensions escalated when residents in the community raised concerns about the daughter’s behavior.

    “She would scream,” Julie Powers told 6 News, “She would say words that didn’t need to be said. But what she said was loud enough for the neighbors to hear.”

    Eventually, the property management company issued an eviction order for Julie Powers. If nothing changes, she’ll be required to leave her apartment within a few months.

    Facing eviction after 25 years

    Powers has lived at the Center Court apartment complex — managed by Freedom Investment Group (FIG) — for more than 25 years. Until recently, everything was going well. But when her adult daughter moved in after a period of homelessness, things took a turn.

    “She called and said, ‘Mom, can I come over?’ I said, ‘Of course.’ So, that was in December of 2023,” Powers said.

    Her daughter, who struggles with unaddressed mental health issues, exhibited behavior that unsettled other residents. As complaints mounted, the property manager issued a notice giving her 14 days to vacate the premises, citing “excessive noise” and the presence of an “unauthorized guest.” Her daughter left within the 14-day window, but returned shortly after.

    In early April, Powers discovered she might be evicted from her apartment after her rent payment was declined. A week later, FIG accepted Powers’ rent payment, but the underlying issue remained unresolved.

    As a result, a formal complaint was filed, and Powers was summoned to court on April 29. From FIG’s point of view, it is “responsible for providing tenants with a peaceful and tranquil living environment,” which includes “limiting excessive noise and disruptive behavior by a tenant.”

    Powers appeared in court with a Legal Aid attorney. As of now, she is allowed to remain in her apartment for two more months — under strict conditions.

    First, Powers’ daughter must leave the apartment by May 1 and remain on the no-trespass list. She cannot return to the property or be invited back. If she shows up, Powers is required to report it to the police.

    Powers is now hoping to find a new place to live within the next month — ideally a single-family home, where her daughter’s presence won’t disturb the neighbors. In the meantime, the Knox County Eviction Program will cover Powers’ rent through June, and Water Angel Ministries is stepping in to support both her and her daughter.

    “With her daughter, we will work hand in hand with her,” said Kathy Oran, program coordinator at Water Angel Ministries. “Do an assessment first of all to find out what her needs are so that she can be somewhere safe, so that she can be successful.”

    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 can seniors on a fixed income protect themselves?

    Julie Powers isn’t alone. Many seniors living on a fixed income face similar challenges — especially during a housing crisis.

    After living in what was presumably an affordable apartment for over 25 years, Powers is now being forced to look for a new home in an increasingly expensive rental market.

    With average rent prices in the Knoxville area hovering around $1,800, it may be difficult for her to find an affordable place to call home with her fixed income of $1,900 per month.

    Along with rising housing costs, older adults often face increased health care expenses. These mounting costs can quickly deplete retirement savings. However, financial assistance programs are available. Seniors may qualify for rental assistance, housing vouchers and emergency rental aid to help cover expenses and avoid eviction.

    The HOPE Hotline (1-888-995-4673) offers free counseling and housing-related education. Representatives can also help connect older adults to local resources that offer financial and housing support.

    According to the National Council on Aging, thousands of public and private programs exist to help low-income older adults pay for essentials like groceries, health care and more. Accessing these resources can help reduce pressure on fixed income.

    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.

  • Georgia woman claims city worker went into her home for 20 minutes while she was at funeral — now she’s ‘furious’ and no longer feels safe at home. But here’s what the city had to say

    Georgia woman claims city worker went into her home for 20 minutes while she was at funeral — now she’s ‘furious’ and no longer feels safe at home. But here’s what the city had to say

    Christina Broadway says she was at a funeral when security cameras captured a city worker walking around her property and entering her home. She says the employee was inside for about 20 minutes.

    “I’m extremely furious, as a single woman. I don’t understand why somebody would just walk straight into my home,” Broadway told WSB-TV Channel 2 in a story published May 14. “I don’t feel safe at home anymore at all.”

    But Marietta, Georgia, city officials say the employee had a right to be at the home and didn’t break any policy or law.

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    Here are the details behind the story, along with ways you can protect your property from unwanted visitors.

    City worker’s observations

    According to a statement from city officials published by Channel 2, a city employee was in the area inspecting a separate site when he “observed strong evidence of unpermitted illegal construction activity,” including construction debris and workers carrying boards inside the property. The employee approached “knowing that this property did not have any active building permits.”

    He “proceeded to the front door,” which was open, and spoke with the workers. The employee noticed “additional evidence of unpermitted illegal construction. He observed structural building modifications, electrical, mechanical and plumbing work, as well as an expanded driveway, all of which require permits.”

    Channel 2 reports a construction worker who says he was there that day described a man entering the home and said he wasn’t sure what was happening.

    The city employee asked to speak with the property owner, according to the city’s statement, but the workers were unable to reach the owner by phone. The employee then “posted a Stop Work Order notification on the front door before walking the construction site for further inspection of illegal construction activities.”

    Broadway indicated to Channel 2 the work being done to her home was cosmetic, which doesn’t always require permits. She also acknowledged receiving a phone call during the funeral. Broadway, an attorney, claims she’s reviewed the case law and city code, and doesn’t believe the city employee had the right to enter her home.

    City officials say two reviews were conducted by police and the city, and the employee was found to have “acted within his official capacity and did not violate any policy or law, as his actions were based on probable cause of unpermitted construction taking place.”

    The full statement from city officials can be read in Channel 2’s story.

    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

    Protect your property

    Generally, government employees are required to obtain a warrant or the express permission of the owner before entering a property.

    For example, Marietta building code 7-4-2-040, under “Right of Entry” for building officials, states, “if such [a] building or premises is occupied, he shall first present proper credentials and request entry. If such [a] building, structure or premises is unoccupied, he shall first make a reasonable effort to locate the owner or other persons having charge or control of such and request entry. If entry is refused, the building official shall have recourse to every remedy provided by law to secure entry.”

    The statement to Channel 2 says the property appeared vacant and unoccupied, and the employee identified himself to the workers inside. The workers called the owner with no response. “The employee made reasonable effort to contact the property owner and proceeded to speak with the individuals present and responsible on the property.”

    Broadway says she plans to fight the allegations regarding her property.

    In order to protect your own property from an unwelcome visitor, consider adding security measures.

    For example, you could install smart locks in order to lock your doors from anywhere, or install cameras and video doorbells to monitor activity around your home. Perhaps even a door alarm.

    If you have contractors in your home at any time, consider asking them to keep the doors locked as often as possible while they work.

    What to read next

    Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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

  • Los Angeles woman tells The Ramsey Show co-hosts that her husband, 53, worries he’ll die young, wants to spend $500,000 to ‘buy his pension’ and retire early — they offered up another option

    Los Angeles woman tells The Ramsey Show co-hosts that her husband, 53, worries he’ll die young, wants to spend $500,000 to ‘buy his pension’ and retire early — they offered up another option

    Faced with a history of family members dying young, Sarah’s husband wants to spend $500,000 to retire early. She called The Ramsey Show to find out if fear is a good enough reason.

    Sarah and her husband, 53, are in a strong financial position. Their house is paid off, they’ve saved millions for retirement and on paper, they’re set.

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    But his family history looms large. With his mother dying at 59 and both of his brothers dying at 55, he’s starting to wonder if he should clock out of work early, just in case. That’s why he’s seriously considering spending the money to buy five years of his pension and retire early.

    The Ramsey Show hosts pushed back on the idea of making a major financial decision based on fear.

    “None of us is promised tomorrow,” said Ken Coleman.

    Buying a pension to retire early?

    At the heart of the matter is Sarah’s husband’s fear of dying young. While she called to ask if they should buy the pension, the Ramsey hosts cautioned against making an emotional decision.

    “I would not sacrifice the future here on the altar of the immediate,” said Coleman. “We have to live in the moment, yes, but also not sacrifice our future based on some emotion that’s not rooted in facts.”

    Jade Warshaw echoed his sentiment.

    “I don’t like that idea,” she said. “Something about that doesn’t feel right.”

    As the hosts dug deeper, it became clear the couple doesn’t need the extra money from the pension to retire early. They own their home outright and have millions saved for retirement. If they spent $500,000, they’d receive about $6,000 per month in retirement income. But given their other assets, they likely don’t need it to live comfortably.

    “You don’t need the money, so I certainly wouldn’t buy it,” Warshaw said. “Now it’s up to you guys to decide: what is this $6,000 a month worth to us?”

    If it’s not worth working for seven more years, he could retire now, without buying the pension.

    Beyond the numbers, Warshaw encouraged the couple to consider using some of their money to assess and improve his health. Lifestyle changes and preventive care could help improve both his quality of life and longevity.

    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

    When does it make sense to retire early?

    Retiring early can be appealing for many reasons. Maybe, like Sarah’s husband, you’re worried about your health. Maybe you feel burned out or want more time to travel.

    Whatever the reason, it’s important to consider the financial side. If you’ve spent your working years saving, paid off your house and built a solid nest egg, early retirement might be an option.

    But if you’re still in debt or have minimal savings, this might be the time to buckle down on your financial goals instead.

    In Sarah’s case, her family’s strong net worth and paid-off house make early retirement a real possibility. If they had called in with debt or little savings, the advice would’ve been different.

    According to a recent Northwestern Mutual survey, Americans believe they’ll need $1.26 million to retire comfortably. Sarah and her husband are already in that ballpark, setting them apart from the average household.

    And if full retirement doesn’t make sense just yet, a gradual approach might. Scaling back to part-time hours — say from 40 to 20 a week — can offer many of the same lifestyle benefits without jeopardizing your financial future.

    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 sorry he did that to you’: Florida man reveals on The Ramsey Show that his dad routinely asked for money after retiring at 49. Now 65, he’s $90K in debt and wants a $1K/month allowance

    ‘I’m sorry he did that to you’: Florida man reveals on The Ramsey Show that his dad routinely asked for money after retiring at 49. Now 65, he’s $90K in debt and wants a $1K/month allowance

    Mike from Florida recently was put in a tough situation by his dad. He called into The Ramsey Show for some advice on how to move forward.

    He revealed that his retired dad recently called up to ask for a loan of around $1,000 per month from Mike to cover some outstanding debt payments. The kicker is that his 65-year-old dad has been retired since age 49.

    “I’m sorry he did that to you,” said Dr. John Delony, a host on The Ramsey Show.

    Delony continued, “Dads aren’t supposed to do that to their boys.”

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    Retired dad racked up debt and now wants his sons to bail him out

    According to Mike, his dad has around $85,000 in personal loans and $5,000 in credit card debt. In total, these come with minimum payments of around $2,500.

    However, he receives only around $4,000 per month from a retirement pension. In addition to his monthly income, he receives an annual bonus of around $7,000 to $12,000 at the end of each year.

    But, understandably, the debts are making it challenging to live out his retirement dreams.

    After a health scare, Mike’s dad shared his account passwords and asked his sons to cover his debts with whatever he had available.

    More recently, he’s asked his sons to help him out financially. Ideally, he wants them to provide $1,000 per month to help cover the debt payments.

    Supposedly, he plans to repay them at the end of the year, after receiving his annual bonus.

    After learning that the dad retired at age 49 and is currently 65, Ramsey hosts pushed back against the idea of Mike handing over cash to his father.

    “I would say you need to go back to work,” said Jade Warshaw.

    Recently, Mike visited the family home and suggested that his father sell off some of his assets, specifically a paid-off farm.

    Unfortunately, his father didn’t take that suggestion well. “He said that was his dream when he retired to be able to have that land,” said Mike.

    “But was his dream also to go hit up his sons for money?” responded Delony.

    Ultimately, the Ramsey hosts suggested Mike skip loaning his dad any money. Instead, they believe the dad should head back to work to fund his own dreams.

    “My thing is like he can work. He’s not 85, he’s 65,” said Warshaw, “He for sure has six good working years in him.”

    Warshaw suggested telling his dad, “This is not my burden to carry.”

    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 dangers of retiring too early

    Retiring early is a dream for many. But retiring too early comes with significant financial dangers, specifically around the possibility of outliving your savings.

    When you choose to retire around age 50, instead of a more traditional retirement age, your nest egg needs to last significantly longer. After all, you have a longer timeline for covering your costs. But you’ll have a shorter timeline to build the nest egg you need.

    If you leave work early, you’ll miss out on years of retirement contributions from you and your employer. Additionally, your portfolio won’t have as much time to grow in the lead-up to your retirement years.

    Beyond your own nest egg, if you choose to take Social Security benefits early, you’ll face a smaller monthly check. For retirees with a pension option, retiring early often cuts down on your annual income.

    Healthcare costs are another overlooked factor for early retirees. Without an employer-sponsored health insurance plan, you’ll need to pay for your own until you’re eligible for Medicare at age 65. Many early retirees are shocked to discover their new healthcare costs are significantly higher, which can throw a wrench into their retirement plans.

    While retiring early seems to receive a lot of attention in the press, it’s not a common choice to retire before age 60. In fact, just 18% of Americans retire before age 60, according to the LIMRA Secure Retirement Institute. And 13% of retirees are leaving the workforce between the ages of 55 and 60. Only around 2% of retirees opt out of work before age 55.

    Early retirement isn’t too common. And likely for good reason, few Americans have enough savings to comfortably retire early. On average, households aged 55 to 64 have $537,560 in retirement savings. But the median household retirement savings for the same age group is $200,000.

    Although the actual amount required for a retirement varies, estimates suggest that retirees need to leave the workforce with around $1.2 to $1.5 million for a comfortable retirement. The gap between actual savings and suggested savings puts many retirees at risk of running out of money, even when leaving the workforce at a traditional retirement age.

    What to read next

    Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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

  • My mom bought life insurance for my toddler as a birthday gift — but I want to decline it. How do I do that without offending her?

    My mom bought life insurance for my toddler as a birthday gift — but I want to decline it. How do I do that without offending her?

    Picture this: you’re in the throes of raising a child, spending your day managing a playful toddler, when your mom sends you a text message asking for the baby’s Social Security number. Without giving it much thought, you text back and give it to her.

    But then a week later, you’re shocked to receive an invitation for a life insurance policy that your mother recently purchased for your baby. That’s the strange and troubling situation that one new mom found herself in.

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    As you may understand, the life insurance policy left this woman in tears. After all, the basic idea of life insurance is that if the named insured passes away, the beneficiaries would receive a cash payment — and no one wants to think about their toddler’s potential death.

    After taking some time to think about the situation, the new mother has decided to decline this life insurance policy, but she’s not sure how to proceed without hurting the grandmother’s feelings.

    Here we’ll take a look at life insurance policies, and how this concerned mother can go about kindly rejecting the grandmother’s gift.

    Types of life insurance policies

    Life insurance policies are broadly categorized into two main types: term life or whole life.

    A term life insurance policy includes paying a premium for a specific period of time — say 10 to 30 years — with the understanding that if you pass away during that period, your beneficiaries would receive a cash payment. However, if you were to pass away after the term expired, your beneficiaries would not receive a death benefit.

    For many, a term life insurance policy is an appropriate way to provide financial security for family members. But when discussing life insurance for a child, a term life insurance policy may not be the best option since it will only cover the insured for the first several years of their life.

    As the name suggests, a whole life insurance policy covers the named insured for their entire life, assuming that the premiums are paid. If the name insured were to pass away at any time, the beneficiaries would receive a death benefit.

    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

    Pros and cons of life insurance for a child

    The advantages of a whole life insurance policy don’t just end with a death benefit. Whole life insurance policies often include a cash value savings component, which allows policyholders to build up cash value over time. That cash value can be used for several purposes, including withdrawing cash from it, offering tax-deferred growth and providing financial stability for the named insured.

    Additionally, locking in a life insurance policy at a young age means the child can always carry life insurance even if they develop a condition later in life that would preclude them from purchasing a new policy.

    A whole life insurance policy could be a valuable tool for providing financial stability for the named insured, but if that’s the goal, life insurance may not be the right choice.

    One of the drawbacks of a whole life insurance policy is that the cash value of these plans often include relatively low investment returns. Insurance companies invest a portion of your premiums to give your life insurance policy a cash value, and “the rate of return used to build your cash value might not be comparable to the rates of return of other savings alternatives,” according to the Government Employees’ Benefit Association.

    Investing alternatives

    This grandmother likely had the best of intentions in setting up a life insurance policy for her grandchild, but there are other ways to go about creating a bright financial future for the baby.

    For example, the baby’s mother and grandmother might consider opening a 529 plan, which allows them to tuck away funds for the child’s future education.

    They may even consider placing money in a low-cost index fund, which would likely yield better results than the cash value of a life insurance policy — and you don’t have to contemplate things like the potential death of a grandchild with such an investment.

    How to move forward

    If the grandmother has set up the life insurance policy for the baby with no plans of keeping up with the payments, the simplest solution is to just let it slide. The mother can simply stop making payments, or never start making them in the first place, which will eventually lead to a cancellation of the policy.

    However, if the grandmother intends to keep up with the payments, the mother can consider broaching the issue with her child’s best interests at heart.

    As she navigates what could be a touchy conversation, the mother can share her thoughts on why the idea of a life insurance policy is upsetting, while also mentioning some of the other investing options mentioned above as an alternative.

    The mother should do her best to communicate her gratitude for the grandmother’s intentions, while also trying to avoid pointing out all of the flaws in the life insurance plan. Instead, try to make it a team effort in moving away from the life insurance policy in hopes of pooling resources effectively for the child’s future.

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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 public is the loser’: Arizona houseboat owners say ‘no-bid’ management company has failed to maintain their marina — despite reportedly raking in hundreds of millions

    ‘The public is the loser’: Arizona houseboat owners say ‘no-bid’ management company has failed to maintain their marina — despite reportedly raking in hundreds of millions

    Lake Powell sits on the border of Arizona and Utah. The massive reservoir attracts vacationers each year, while some own houseboats docked at the Wahweap Marina on the south side.

    Although the costs to store a houseboat here are high, the upkeep of the facilities leaves much to be desired.

    “Once we became a houseboat owner here on the dock, I started noticing a decline in services,” Kari Handley told Fox 13 Salt Lake City in a story published May 20.

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    Rotting wood, screws poking out of the decking and a general lack of maintenance at the marina have left many feeling frustrated.

    “We started having to bring our own toilet paper,” Handley said. “If you have to go to the restroom, chances are you’re not going to have any toilet paper.”

    Contractor raking in the cash

    Aramark, a Philadelphia-based company, operates Wahweap Marina, including its docks, boat rentals, gas station, restaurants, lodging and all the restrooms within, per the broadcaster. The company also operates Bullfrog Marina, at the northern end of the lake, and most of its services. Both marinas are part of the Glen Canyon National Recreational Area, which is governed by the National Park Service (NPS).

    Hundreds of millions of dollars have flowed Aramark’s way. Fox 13 reports it obtained and verified documents from boaters that show, from fiscal years 2014 to 2023, the company received $684 million in gross revenue — money paid by the leisuring public — from its Lake Powell contracts. In addition, the NPS has paid Aramark around $100 million since 2018 for structures it has built, such as docks, parking lots and employee dorms.

    But here’s one number that might startle regular visitors: 1969. According to Fox 13, citing public records, that’s the last year the NPS issued a bid for its Wahweap and Bullfrog Marina contracts. Aramark took over after purchasing the company that held those contracts in 1989. The NPS has been extending the deals annually.

    “It’s a form of no-bid contract,” Charles Tiefer, a professor emeritus of the University of Baltimore School of Law, told Fox 13. “Since they’re not afraid of losing the contract, their incentive is to maximize their profits.”

    A company has little reason to improve its performance if it knows it’s going to be retained every year.

    “The public is the loser when there’s no competition,” Tiefer 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

    The cost of stagnant services

    The broadcaster reports it received a statement from Aramark Destinations, the division of the company that’s responsible for the Lake Powell contracts, which said in part: “Our commitment to high standards ensures a memorable experience for all.”

    But regular visitors, like Handley, claim to have experienced subpar standards. On top of the maintenance issues, there may be a staffing shortage as well. Handley told the broadcaster it recently took days for her to reach Aramark employees at Wahweap Marina to update her credit card information because nobody answered the phone.

    “NPS needs to hold Aramark more accountable,” she said. “And not just to slip holders or houseboat owners but to the general taxpaying public.”

    Michelle Kerns, NPS’s superintendent for Glen Canyon, told Fox 13 new requests for bids are in the works, but she didn’t specify when they would materialize.

    “We have capacity issues, quite frankly, in our Washington office to get to all of these contracts that need to be renewed annually,” she said.

    In the meantime, houseboaters like Handley continue to pay their dues — which she says includes $1,100 per month for a slip fee and $464 annually, plus boat registration fees with the state and a national park pass to enter and exit the marina free of charge.

    “It just feels like we’re not getting any of the things we ask for in return,” Handley said.

    Here’s the full statement Fox 13 says it received from Aramark Destinations: “We work closely under contract with the National Park Service to ensure the best experiences for guests during every visit to Glen Canyon National Recreation Area, where we’ve provided hospitality and recreational services for nearly 40 years. We encourage guests to share feedback through various channels, including in-person at our marina offices, via our website, or through customer service hotlines. All feedback is promptly reviewed and addressed to ensure visitor satisfaction and continuous improvement of our services. Our commitment to high standards ensures a memorable experience for all, and we are excited to welcome visitors during the heavy summer travel season.”

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  • Sleepless Santa Monica residents say they’re fed up with ‘incessant’ beeping noises from nearby Waymo charging stations keeping them up — but is it simply the cost of regulatory compliance?

    Sleepless Santa Monica residents say they’re fed up with ‘incessant’ beeping noises from nearby Waymo charging stations keeping them up — but is it simply the cost of regulatory compliance?

    When the self-driving ride service Waymo moved two of its charging stations into a residential neighborhood in Santa Monica, no one anticipated a problem.

    But as KTLA 5 reports, local residents are complaining about the incessant noise coming from the driverless robotaxis every time they back up.

    “I can’t even keep my windows open, only during the day,” Michael McCoi told KTLA 5.

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    It’s a safety mechanism, but it’s driving some people crazy — one reportedly blocking robotaxis from entering a charging lot with his own body.

    “I want the noise stopped,” another resident, Darius Boorn told the Los Angeles Times. “I thought it was cool, and then those freaking noises started. And then I thought, ‘Oh no, this can’t be happening.’”

    Residents are looking to the city and Waymo to resolve the problem.

    What’s happening?

    Local resident Christopher Potter launched an online petition stating that the “constant beep-beep-beep” was hindering “our tranquillity during the day and our peace during the night.”

    He demands that Waymo — owned by Google’s parent company, Alphabet — operate the vehicles more quietly and only during “appropriate hours.”

    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

    Like all electric vehicles, Waymo’s cars must charge from time to time. The company has established multiple charging stations around the city for these robotaxis to stop and recharge, but the two in this residential area are causing the most uproar.

    Residents claim they can no longer sleep due to the constant noises emanating from the electric vehicles as they come and go from the lot.

    Sleep-deprived neighbors have complained to city council. Some have gone further by attempting to block Waymo cars from entering the lots with plastic traffic cones or — in one case — their own bodies. Waymo called for police to intervene and issue a restraining order in that situation.

    The burden of regulatory compliance

    Unfortunately, the solution is not as simple as turning off the noises on the electric vehicles.

    Federal regulations require these vehicles to make noises when backing up, in hopes of alerting pedestrians of the vehicle’s movement.

    Meanwhile, Waymo told the Santa Monica Daily Press that the city’s enforcement staff confirmed the noise levels did not violate its noise standards.

    But it also told KTLA 5 that it is “in ongoing conversation with the City’s Department of Transportation” and was looking at ways to address neighbors’ concerns. Waymo said it had planted trees and other greenery to block the noise and light from their neighbors.

    Additionally, the company has instructed employees to avoid loud music or using the vacuums between 9 p.m. and 9 a.m.

    For now, the mitigations implemented by the company haven’t created a solution.

    Of course, one option is to move the charging stations to a more suitable location away from residential areas. But that’s a costly decision for the company.

    Another solution might include rearranging the flow of the parking lot to allow for the vehicles to ‘pull through’ instead of backing in and out.

    If the neighborly complaints stem mostly from one residential building, perhaps Waymo could assist in soundproofing the residents’ apartments from the unavoidable noise of the electric vehicles.

    Ongoing communication between the company and the residents could help both sides reach a suitable solution.

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