Author: Vawn Himmelsbach

Memphis can be downright steamy. The average high in June is 89°F, climbing to 92°F in July.  In these conditions, air conditioning isn’t just a luxury, it’s a necessity. And not having it could render a home uninhabitable.

In the midst of such heat, one Memphis mother and her four-year-old son have been waiting weeks for her air conditioning to be fixed. She was cooling off in her car when WREG News Channel 3 Memphis spoke to her.

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When a home is uninhabitable

“My car feels way cooler than it does in my apartment,” Jada Robinson told the news outlet, adding that her efforts to have the apartment complex fix her air conditioning have gone nowhere. “They said they would fix [it], but nobody has [come].”

She’s been staying in hotel rooms but can’t afford to keep that up.

“I paid my rent for the month, I shouldn’t be going through this,” Robinson told WREG. “So I will have to go stay with my family.”

When her lease ends in July, she plans to move out so she can improve her son’s living conditions.

Robinson didn’t discuss her means, but if she’s like many Americans, she may find that an emergency expense — like having to stay in a hotel — is a strain on her finances. After all, six in 10 (59%) of Americans can’t pay a $1,000 emergency expense out of their savings.

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America’s housing affordability crisis

This isn’t surprising, given that residual income (the amount of money households have left over after paying rent and utilities) has fallen to record lows for some renters.

In 2023, renters with an annual household income of less than $30,000 had a median of $250 per month in residual income — down 55% from 2001 — and households earning $30,000 to $74,900 saw a 10% drop to $2,700, according to The State of the Nation’s Housing 2025 report from the Harvard Joint Center for Housing Studies (JCHS).

“Nearly two-thirds (65 percent) of working-age renters cannot cover their non-housing necessities,” the report stated, which means “many households are forced to make tough trade-offs to pay the rent, spending less on healthcare and food or relocating to unsuitable housing or neighborhoods far from transit, employment or social networks.”

This drop in residual income is driven by the ongoing housing affordability crisis in the U.S. This, in turn, is leading to a growing number of Americans having to pay more than 30% of their income for housing and utilities — making them what the U.S. Department of Housing and Urban Development (HUD) refers to as “cost-burdened.”

In 2023, 83% of renters earning less than $30,000 were cost-burdened and two-thirds (67%) of these households were severely cost-burdened, spending 50% or more of their income on housing.

But it’s not just low-income earners who are struggling with housing costs. “Burdens have risen most dramatically for renters toward the middle of the income scale,” according to the report.

In 2023, 70% of renters with incomes between $30,000 and $44,999 were burdened, as were 45% of those with incomes between $45,000 and $74,999. And while renters are particularly hard hit, nearly a quarter (24%) of all homeowners were cost-burdened in 2023.

Tenants have rights to a liveable home

While Robinson plans to move, some renters in a similar situation may be stuck in substandard housing. Still, no matter how much they earn or how much they pay in rent, tenants do have rights.

Knowing and exercising your rights can help make your housing situation more tolerable.

Your rights as a renter vary by state, so you may want to familiarize yourself with what repairs your landlord is responsible for in your area and the time limit for completion. Websites such as iPropertyManagement.com can help get you started.

If you’re uncomfortable advocating for yourself or find your landlord to be unresponsive, you may want to seek legal help. Many cities have organizations that can provide advice and advocacy, even if you can’t afford to pay.

A good place to begin your research is USA.gov, which has a tenants’ rights page that provides links to organizations in each state. After all, nobody should have to live in an uninhabitable space.

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

Mildred has worked as a manufacturing engineer at an auto parts company for the past 19 years.

Over time, Mildred has become indispensable to her company. She possesses in-depth knowledge of several of the company’s manufacturing processes that few others have. She loves her job, her coworkers and her manager, but she’s worried about remaining healthy enough to travel in her golden years.

So, at age 68, she’s decided to retire. And while she has a solid nest egg and a budget for retirement, she’s discovered there’s one thing she didn’t plan for: She’s not sure how much notice to give her employer.

Mildred is concerned that if she announces her retirement too early, she’ll be given last-minute "grunt work" to take it off the plates of staff members adapting to new responsibilities while keeping her tied to the company for training purposes.

Deciding when to let your employer know about your retirement plans can be a difficult decision, so let’s get into Mildred’s options.

The pros and cons of giving advance notice

According to several online resources, three-to-six months’ notice ahead of your retirement is still considered the standard, but your workplace and your position should be considered when making this decision.

The good thing about giving advance notice is that it can benefit you just as much as it can your employer. For your employer, advance notice gives your company time to hire a replacement and manage the transition. It also gives you plenty of time to help with training the new hire and passing on any valuable knowledge you may have, which is another win for your employer.

As for yourself, giving advance notice gives you plenty of time to get your personal finances in order while you mentally prepare for leaving the workforce. It also increases the chances of leaving your job on good terms, which could be important if you ever decide to go back to work after you retire.

But there are drawbacks to giving advance notice ahead of your retirement. For example, you can find plenty of stories online where people describe the backlash they received at work when announcing their retirement, and no one wants to be harassed by their boss or their coworkers for three-to-six months before bowing out of the work force.

There’s also the potential for the grunt work that Mildred was worried about. While most people who are ready to retire are happy to help train their replacement, no one wants to watch a disgruntled boss drop an influx of repetitious, boring assignments on their desk in retaliation.

You could also potentially find yourself in a situation where your employer is pushing you out the door ahead of your planned retirement date, which could impact late contributions to your retirement savings.

The case for giving less notice

One thing Mildred is also worried about is that announcing her retirement could highlight her age and subject her to increased ageism during her remaining time at the company — and these concerns are justified.

In a survey from 2023, 48% of Canadians admitted to have experienced ageism in either a workplace, public or healthcare setting, with a further 70% believing that ageism has increased since the pandemic. In another survey from Women of Influence, 80% of women reported facing ageism at work.

The more time that Mildred gives to that period between announcing her retirement and actually retiring, the greater the chances that she could be subjected to unfair treatment in the workplace.

It’s also worth considering the potential for Mildred to be pushed into retirement sooner than she had planned as a potential form of retaliation.

So, let’s say Mildred were to give three months’ notice and she’s relying on that income for her retirement savings. Meanwhile, her employer is less than thrilled with Mildred’s announcement and decides to show her the door two months early. That means Mildred has just lost two months of income that she was depending on for her retirement.

What should Mildred do?

The type of position that you have will be an important factor in deciding how much notice to give. In Mildred’s case, she possesses sophisticated knowledge that will need to be passed on, so she likely needs to give a longer notice period in order to leave a good impression with her employer.

However, if your role consists of rote, repetitive work that a new hire could quickly learn, four-to-six weeks’ notice may be adequate. If your retirement planning includes the income from your notice period, you may want to give shorter notice. As we discussed earlier, some employers may decide to let you go early once they’ve been informed of your retirement plans, and that could impact your retirement finances.

It’s also worth considering your relationship with your boss. If you and your boss get along well, you may feel more comfortable giving more notice with the expectation that you won’t be prematurely let go.

In Mildred’s case, she may want to give a slightly longer notice period than four-to-six weeks — given her importance to the company, her appreciation for her coworkers and a presumed intention to leave the company on good terms.

A notice period of two-to-three months might be just right, as this gives her employer ample time to find a replacement while giving Mildred sufficient time to help with training the new hire. And since she loves her manager, she likely doesn’t need to worry about getting let go ahead of her retirement date, allowing her to collect two-to-three months’ of income before calling it a career.

In this scenario, her employer has time to take advantage of Mildred’s extensive knowledge and training capabilities, while Mildred gets two-to-three months’ of income and ample time to mentally prepare for her retirement. Everybody wins!

Sources

1. Washington Post: Work Advice: How much notice should I give before retiring?, by Karla L. Miller (Nov 16, 2023)

2. Reddit: Messed up by giving 6 months retirement notice

3. Government of Canada: Consultations on the social and economic impacts of ageism in Canada: “What we heard” report (Dec 2023)

4. Women of Influence: New survey reveals that almost 80 per cent of women face ageism in the workplace (Feb 26, 2024)

This article I’m 68 and retiring in June after 19 years at my company — should I give many months of notice or just 4-to-6 weeks to avoid a last-minute ‘grunt work’ dump? 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.

Imagine this scenario: Samantha is retired at 69, but a few years back she took out a reverse mortgage. Now, she’d like to be done with it, especially since the loan comes with a hefty interest rate of 6.75%.

She currently has about $375,000 in home equity while her reverse mortgage loan is close to $250,000. She also has about $300,000 in savings, but she’s wondering if she should use a chunk of those savings to pay off her reverse mortgage and live on her Social Security (about $2,500 a month) instead.

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Or, does it make more sense to stick with the status quo?

How does a reverse mortgage work?

A reverse mortgage allows homeowners who are at least 62 to borrow money based on the equity in their home. (Your equity is based on how much you’d get if you sold your home, minus how much you have left on your mortgage.)

Unlike a traditional mortgage, you don’t make monthly loan payments. Instead, the lender pays you, using your house as collateral.

“Reverse mortgage payments are considered loan proceeds and not income. The lender pays you, the borrower, loan proceeds (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home,” according to the IRS.

Because it isn’t considered income, the money is tax-free and won’t generally impact your Social Security or Medicare benefits. But, you still have to pay property taxes and insurance.

Interest accrues on the loan balance, meaning the amount you owe goes up over time. If you have a high interest rate, that can add up — and fast.

It increases your debt while decreasing your equity, and the interest added to your balance each month can “use up much — or even all — of your equity,” explains the Federal Trade Commission about the risks of a reverse mortgage.

The total (including interest) must be repaid either when you move out and sell your home or after you pass away, in which case it must be repaid by your estate.

If you sell your home, you can use part of the proceeds of the sale to pay off the loan. This could make sense if you want to downsize or move in with family, or if you need to move into an assisted living facility.

However, if you continue living in your home until you pass away, your heirs will inherit the house — and the reverse mortgage.

The loan would have to be paid in full, if they decide to keep the home. If they instead decide to sell, “they must repay the full loan balance, or at least 95 percent of its appraised value if the loan balance owed is more than the home value,” according to the Consumer Financial Protection Agency.

Typically, they would have 30 days to repay the loan after receiving a notice from the lender (or turn over the home to the lender), although it’s possible to get an extension if they’re actively trying to purchase or sell the home.

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Options for paying off a reverse mortgage early

Maybe Samantha wants the peace of mind of owning her home, or maybe she wants to leave the house to her children without burdening them with debt. Whatever the reason, she does have a few options.

One of those options is to do nothing. She could choose to remain in her home, with enough money coming in from Social Security and her retirement savings to enjoy a comfortable retirement.

When she passes away, her children could sell it and use the proceeds to pay off the reverse mortgage. It’s a trade-off: Samantha lives more comfortably and leaves less to her children, or she lives a more spartan lifestyle to leave more to her children.

If Samantha does decide to pay the loan off early, she could consider refinancing (turning a reverse mortgage into a regular mortgage), though that may not make sense in a high interest rate environment.

She could also consider paying it all off in one lump sum, making a partial payment (such as paying off $50,000 to $100,000 now while preserving some of her savings) or making loan payments to reduce her interest over time. Or, she could keep the reverse mortgage and invest that money conservatively as part of her long-term retirement plan.

Even if Samantha can live off her Social Security and savings, she’ll still be responsible for paying property tax, insurance and maintenance on her home. Plus, she may not want to drain her savings in case she needs that money for an emergency or future medical care.

If you’re considering paying off a reverse mortgage early, it’s a good idea to sit down with a qualified financial advisor to model various scenarios based on your Social Security income, retirement savings, withdrawal rate and taxes — and how different scenarios would play out if you paid it off (either in a lump sum or with smaller payments over time).

This could help you make an educated decision based on calculations instead of emotion.

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

Johi called into the The Ramsey Show from Cincinnati, reeling from a week in which her boyfriend of 14 years deserted her — right after she discovered she was pregnant with their second child.

“He was just not ready to take on that responsibility, so he left,” she said.

They already have a 12-year-old child together.

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“I feel like I’m too old to be having these problems,” Johi, 32, confessed.

While she deals with the emotional fallout of her breakup and the prospect of being a single mom, Johi sought Dave Ramsey’s advice on her next steps financially.

The good news is that she’s been using the debt snowball method to get her finances in order and only has one debt left: a $14,000 car loan.

She was ready to “attack it” and pay $1,600 a month “to wipe it out by the end of this year.” But with a baby coming, she doesn’t know if that’s the best plan — especially now that she finds herself in the position of being a single mom.

“Now I’m just confused on where to go from here,” she said.

Preparing financially for a new baby

After taxes, Johi makes about $4,500 a month, though a few months ago she started taking on side hustles so she now brings in about $5,500 a month. She’s not sure that’s sustainable as her pregnancy progresses.

Normally Ramsey recommends paying off debts first. But with a baby on the way, he says to “stop your debt snowball and pile up cash” for a baby budget.

“I want you to get the biggest possible pile of cash you can get between now and baby,” he told Johi. “Treat it like you’re paying off debt,”

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With her side hustle, she could save about $3,000 a month for over five months. She may need to slow down her side hustle as she nears her delivery date, but could save $15,000.

Fortunately, Johi has health insurance, though she’ll need to contact her provider to find out what her out-of-pocket costs will be for obstetric appointments, labor and delivery.

Generally for someone with health insurance, those add up to $2,854 — including your health insurance deductible, copayments and coinsurance — according to the Peterson-KFF Health System Tracker..

If Johi didn’t have health insurance, she’d be looking at $18,865 in out-of-pocket costs.

Low-income single moms without health insurance can apply for Medicaid or CHIP (Children’s Health Insurance Program) to see if they’re eligible for free or low-cost health coverage. They may also qualify for certain subsidies or tax credits.

What to do once baby has arrived

If Johi does as Dave Ramsey advises, she could have up to $20,000 saved when she comes home with her new baby. That gives her options.

Ramsey told her that if she doesn’t have other expenses, she could write a check for $14,000 and pay off her car.

“You don’t really lose any ground on your get-out-of-debt plan,” he said.

From there, she can restart her financial goals. Ramsey’s baby steps include building out an emergency fund, paying off all debt (except your mortgage) using the debt snowball method and investing 15% of your household income for retirement, among other things.

Johi should also consider contacting her state’s child support agency, which is responsible for child support enforcement. USA.gov offers resources to help.

Child support could help Johi supplement her income if she’s unable to continue her side hustle in the latter part of her pregnancy or after she gives birth. And it holds her deadbeat partner accountable, Ramsey added.

“Most states have a law that if you make a baby, you get to help pay for it,” he said.

The level of child support depends on where you live, according to Custody X Change. The national average is $721 a month but can range from $402 to $1,187 a month.

Judges can adjust the levels based on evidence, and sometimes parents agree on the amount of child support a partner will pay.

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

Florida has long been a magnet for Americans looking for a better life. Low taxes, affordable housing, a low cost of living and pleasant winter weather have made it a popular move — and not just for retirees.

Young people seeking economic opportunities have come in search of jobs in technology, health care and tourism — and stay for the laid-back lifestyle and entrepreneurial atmosphere.

But now, the number of Americans moving to the state has slowed.

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And one hot spot has been hit particularly hard.

A slowdown in domestic immigration

Although Florida’s population continues to grow, fueled by international immigration, net migration from within the U.S. has fallen sharply.

Miami and Fort Lauderdale, which had net outflows in 2023, saw these outflows increase while Orlando saw net domestic migration drop from 16,357 new residents in 2023 to just 779 in 2024.

But the greatest year-over-year drop in migration was seen in a city that US News once ranked as the fourth best place to retire in the U.S. and was rated among the top 10 American cities to move to by both millennials and Gen Z.

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In 2024, Tampa saw its domestic immigration drop to 10,544 new residents from 34,920 in 2023, a decline of 70% — and “the biggest slowdown in domestic migration of the 50 most populous U.S. metros,” according to Redfin, which based its analysis on U.S. Census Bureau data.

Redfin found that migration to the Sun Belt in general is declining, citing the rising cost of living in the area, the prevalence of natural disasters and the associated costs of insurance, the decline of remote work, the high cost of moving and economic uncertainty.

Here are 3 reasons why fewer Americans are moving to Tampa.

1. Housing has become more expensive

In past years Tampa has offered an affordable housing alternative to more expensive cities such as San Francisco and New York, but this gap is closing. Housing prices in Tampa have been outpacing the national average for close to a decade and have risen substantially faster since the start of the pandemic.

In February 2020, the median home price in Tampa was $264,995 — about 27% that of New York City.

By February of this year, the median price sat at $449,950 after peaking at $499,900 in June 2024.

That means the cost of living in Tampa is now higher than cities such as Minneapolis and Indianapolis, making a move less appealing than it once was.

2. Natural disasters

There’s also evidence that the frequency of major natural disasters is increasing in the U.S. In 2024, the greater Tampa Bay region was hit by Hurricanes Debby, Helene and Milton over a span of just 65 days.

Major storms can affect the cost of home and flood insurance — and even the ability to obtain it.

Although reforms to Florida’s insurance industry in 2023 have led to slower increases in insurance premiums, they still rose 43% from January 2018 to December 2023.

This makes it hard for many Floridians to find affordable insurance, with non-renewals by insurance companies on the rise and some insurance companies exiting the market altogether. As a result, some homeowners are under-insuring their properties due to the cost.

3. Return-to-office policies

A return to the office is another factor driving the decline in immigration. During the height of the pandemic, many people left coastal job centers such as New York and San Francisco to work remotely from lower-cost cities with a better lifestyle. Now, many employers are instituting a return to the office, meaning fewer people can move to places like Tampa.

Redfin suggests that high home prices and mortgage rates have kept people from moving in general across the U.S.

It’s also likely that the uncertain economic environment is putting major decisions on hold — after all, it’s difficult to relocate, buy a new house and commit to a new job when there’s so much uncertainty around employment, inflation and interest rates.

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Joe Subach was just trying to send some money to a friend. But one phone call later, with a woman named ‘Daisy,’ and his financial situation was forever changed.

Subach was the victim of two back-to-back scams — one that even involved him handing over his precious metals to money mules — that drained him of a whopping $1 million.

“I worked 43 hard years for that,” he told NBC10 News Philadelphia.

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It started out with a simple online search for Apple’s customer support number to get help sending money to a friend via Apple Pay. When he called the number, a woman picked up and said her name was Daisy, from Apple.

What he didn’t realize until later — when it was too late — is that he called a phony number and Daisy was a fraudster.

How the back-to-back scams worked

In this case, Subach was the victim of a double fraud, starting with a customer service scam and then progressing into a romance scam.

When he first called the number, he says ‘Daisy’ told him that his account had been hacked and his identity had been compromised. She then told him he needed to buy gift cards, scratch off the backs and send her the numbers, which was part of the process to protect his money.

But the scam didn’t end there. Daisy told Subach that they’d have to monitor his phone 24/7.

“And so, her number was scrolling at the top of my phone the whole time,” he told NBC10.

Over the next few months, the customer service scam evolved into a romance scam where the two would text every day — even cooking meals at the same time and sharing photos of their food.

After earning his trust, ‘Daisy’ took the scam one step further by offering to protect all of his assets.

“I told her I have gold and silver with Equity Trust Company,” Subach told NBC10. ‘Daisy’ then told him to take all of his gold and silver out of his depository and she’d have someone come to his house and pick it up. Subach said he loaded his own gold and silver — valued at $780,000 — into the back of the vehicle.

The person driving the vehicle was likely a money mule, a person who is recruited to transfer stolen or illicit funds (or, in this case, precious metals).

“We look at the money mule dynamic in two different buckets,” Nicole Senegar, the FBI assistant special agent in charge in Philadelphia, told NBC10, explaining that sometimes they are in on the scam, taking a cut, but in other cases they can be unwitting victims.

According to the United States Attorney’s Office, “Fraudsters rely on money mules to facilitate a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams and grandparent scams.”

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How to protect yourself

To avoid being scammed by a fraudster like ‘Daisy’ and handing over your hard-earned cash to a money mule, be aware of red flags.

For starters, keep on the lookout for fake or lookalike websites, warns the Better Business Bureau, and fake customer service support numbers. If the domain name of a website has a minor error (say, two letters are swapped), then it could be a fake. And, never click on links or call phone numbers in unsolicited emails or text messages.

A classic warning sign is if someone asks you “to wire them money, send cryptocurrency, send money by courier, send money over a payment app, or put money on a prepaid card or gift card and send it to them or give them the numbers on the card,” according to the Consumer Financial Protection Bureau.

So, for example, if you call a customer support number and the person on the other end of the line asks you to send numbers on gift cards, that’s an immediate red flag. If something seems off, hang up and check that you’re going to the actual company’s website. You can also try using a website checker, such as Google’s Safe Browsing tool. And, never hand over cash or precious metals to a stranger.

But you also want to avoid becoming a money mule as part of a larger scam. According to the FBI, criminals approach people looking for work or romance and try to turn them into mules.

“Criminals recruit money mules to help launder proceeds derived from online scams and frauds or crimes like human trafficking and drug trafficking. Money mules add layers of distance between crime victims and criminals, which makes it harder for law enforcement to accurately trace money trails,” says the FBI.

Don’t accept jobs that require you to use your own bank account to transfer money, a legitimate company wouldn’t ask you to do this, the FBI warns, adding that people should also “be suspicious if an individual you met on a dating website wants to use your bank account for receiving and forwarding money.”

Another warning sign, says the FBI, is if you’re asked to “process” or “transfer” funds through a wire transfer, automated clearing house or money service business — and, for your efforts, you can keep a portion of the money you transfer.

If caught, you could face federal charges such as mail fraud, wire fraud, bank fraud, money laundering and aggravated identity theft. And, that’s the case even if you aren’t aware you’re committing a crime.

As for Subach, he realized he’d been scammed after his money was gone — and so was Daisy. So far, no arrests have been made.

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

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

The U.S. is not in a recession — yet.

But with policy uncertaintly around tariffs, mass deportations and Department of Government Efficiency (DOGE) cuts, some economic observers believe the odds are rising.

“We’ve got a real uncertainty problem, it’s going to be hard to fix that,” former Treasury Secretary Lawrence Summers said in an interview on Bloomberg Television’s Wall Street Week with David Westin.

“We’re looking at a slowdown relative to what was forecast, almost for sure, and a serious, near 50% prospect of recession.”

J.P Morgan’s chief economist Bruce Kasman predicts a 40% chance of a U.S. recession this year.

“If we would continue down this road of what would be more disruptive, business-unfriendly policies, I think the risks on that recession front would go up,” he told reporters.

Of CFOs polled in the latest CNBC CFO Council Survey, the majority (95%) said government policy is impacting their ability to make business decisions. Three-quarters expected the economy to enter a recession in the latter half of this year or in 2026.

So what exactly defines a recession?

In the U.S., recessions are officially declared and dated — often retroactively — by the National Bureau of Economic Research (NBER) Business Cycle Dating Committee.

The committee defines a recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.”

In wider practice, two consecutive quarters of negative gross domestic product (GDP) growth point to a recession.

Though there hasn’t been an official declaration, there are three warning signs all pointing to a potential recession:

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The yield curve is signaling a recession. One predictor of a recession is when the yield on 10-year Treasury bonds falls below that of the three-month Treasury bill.

This occurred in late 2022 and lasted until late 2024, and occurred again in late February — and the yield spread between the two remains negative.

The time from when this situation occurs until the onset of a recession can vary, but it’s a strong indicator of a recession in the coming 16 to 20 months.

Leading economic indicators are pointing to a slowdown. Another predictor is the Conference Board Leading Economic Index (LEI). This index fell%20in%20January.) in February for the third consecutive month. The Conference Board is forecasting that GDP growth will slow.

Data and sentiment are turning negative. Consumer confidence is dropping, recent data for retail sales has been weak and the Federal Reserve Bank’s Economic Policy Uncertainty Index is high. CEOs are more pessimistic, consumers are pulling back and “workers are getting nervous,” according to The Wall Street Journal. And the Federal Reserve Bank of Atlanta’s GDPNow forecasting model is predicting that GDP growth will retract by 1.8% in the first quarter of 2025.

Be proactive to weather a downturn

All this talk of a recession may have you concerned. The best approach is to be proactive — but not panicked.

Build up an emergency fund. Prepare for potentially difficult times by setting aside an emergency fund that covers at least three months to a year of expenses, depending on how long you think it might take to get a job if you’re laid off. To boost your savings, investigate a high-interest savings account (HISA) or a high-yield savings account.

Pay down debt and avoid unnecessary expenditures. Servicing a large amount of debt could be a problem if your income declines or everyday costs go up (like egg prices). Avoid extra financial stress by creating a budget, paring down spending where you can and weighing large purchases carefully.

Protect or increase your income. You may want to look into a side hustle or second job to bring in some extra cash.

Talk to a financial adviser about how to maximize your investment performance. Make sure your portfolio is suitably diversified, including geographically, with exposure to sectors that perform better in a recession.

Most financial professionals advise against trying to time the market. Multiple studies show that staying in the market during downturns leads to better long-term returns, especially when you employ dollar-cost averaging — investing the same amount of money in the same securities at regular intervals regardless of their prices.

If you’ve been laid off, talk to your adviser about strategies that may make sense in low-tax years, such as a Roth conversion.

You may not have much control over whether there’s a recession, but you can take steps to weather the storm.

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

What should have been a straightforward home upgrade has turned into an ongoing nightmare for one family in Jacksonville, Florida.

The problem started back in November, when Bradley Byrd purchased a $3,500 fridge from Costco. The fridge came with a free appliance installation service, but this “free” service didn’t exactly turn out to be without cost for Byrd: He’s now facing an estimated $700,000 in damages due to a faulty water line installation.

And a satisfactory solution isn’t on the horizon. “They dropped the ball and are hoping that I foot the bill with my life savings for their bottom line,” Byrd told News4JAX.

Months later, his family is living in a partially habitable home, without a fully functioning kitchen or bathroom. Many of their possessions were ruined, including furniture, electronics and musical instruments, while the rest is in storage (which he’s covering out of pocket).

Now Byrd wants to warn other homeowners about the risks of free appliance installation services.

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A fridge installation gone wrong

Byrd’s new fridge was delivered on Dec. 2 and the installation appeared to go smoothly. But that didn’t last long.

“When my daughter got home from school that day, she FaceTimes me and says, ‘Dad, the house is underwater,’” he told News4JAX.

Byrd then discovered that Costco’s third-party installer had failed to properly install the water supply line. Rather than wrapping the extra line into a coil and taping it to the back of the fridge, they let the extra line run under the fridge — and under the wheels of the fridge — causing the line to crack and eventually burst.

Byrd has video footage of himself wading barefoot through water and sloshing around on the floor of his home. Aside from ruining many of their possessions, the flooding also caused damage to the home’s structure. The family had to move out temporarily and live in an Airbnb — all right before Christmas.

An air quality inspection revealed “significant moisture in two-thirds of the first floor of the home and an abundance of mold,” according to the News4JAX report.

At the time of writing, Byrd was still seeking a resolution from Costco and the third-party installer. Meanwhile, he’s paying out of pocket to repair his home.

“I have spent about $300,000 on repairs, mitigation, third-party charges for reports and testing and to get our belongings moved out and into storage,” Byrd told News4JAX. Public adjusters say the repairs will cost upwards of $700,000.

However, the settlement offer he received was just $175,000. He hasn’t accepted the offer, so a lawsuit may be in the cards. He has since said, after his own investigation, that his fridge was installed by an “uninsured installer sent by Costco.”

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The risks of ‘free’ appliance installation

In some cases, ‘free’ might cost more than you think. Many retailers offer free installation services as an incentive. But these installation services may be outsourced to third-party contractors, so you should ask a few questions to ensure there are no hidden fees before proceeding with such services.

For example, there may be a charge for hauling away and recycling your old appliance. If additional parts are required for installation, like hoses or adapters, those may cost extra. There may even be plumbing or electrical upgrades required — at a cost.

And, like the Byrds, it could result in poor workmanship, property damage and limited accountability.

Before scheduling an appointment, ask the third-party installer about removal and/or recycling fees, upcharges for custom fittings and any other additional charges that may apply. Also ask whether they’re licensed and insured. In some states, third-party installers are required to be licensed if they’re performing certain types of work (such as plumbing installations).

Find out who is liable if things go wrong. Do they have liability insurance that covers damage caused by their negligence? How much liability coverage do they have? What is their process for handling claims? Who is responsible for repairs if damage occurs? It’s recommended to get this in writing. If they’re uninsured, they may not be willing or able to pay for damages.

Also, understand your homeowner’s policy before having any work done on your home, even if it seems as minor as a fridge installation. Your policy may cover certain damages, but not others. And even if your insurer pays for damages, they may not pay for subsequent repairs.

If damage does occur, document the damage with photos and videos — preferably time-stamped and contact the installation company and/or your insurance company. It’s advisable not to accept any settlement offers until after you’ve spoken with your insurer — and potentially a lawyer.

If the damages are substantive — like Byrd’s fridge installation gone awry — you may want to consult with a lawyer who specializes in property damage claims, especially if multiple parties are involved and you’re unsure of who to file a claim against. You may even be able to file a claim directly with the installer’s insurance company, if you were able to obtain that information (again, you may want to enlist the help of a lawyer if this is the route you take).

Costco did not respond to News4JAX for comment on Byrd’s installation issue and the third-party installer said it was Costco’s problem to solve. Unfortunately, this vacuum of accountability has left Byrd with the bulk of the burden — and the bills to fix the damages.

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

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

Janelle and her husband, both 68, recently retired and are ready to make the most of their golden years.

They own a condo, which originally they thought would be ideal for retirement. But now, with an active lifestyle — and more time spent babysitting their grandkids — they’re wondering if it actually makes sense to upsize during retirement.

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Janelle spent most of her career commuting to an office, while her husband spent long stretches on the road for work. Now that they’re retired, they want to enjoy their home.

Janelle, who recently took up watercolors, wants a space to herself where she can paint — preferably a sunroom overlooking a garden. Her husband wants a ‘man cave’ where he can watch football and Formula One.

Three out of four Americans aged 50-plus want to age in place, according to AARP’s national 2024 Home and Community Preferences Survey.

For many, that means downsizing.

“Nearly half (44%) of adults aged 50-plus expect to relocate, with housing costs being a primary motivator, including rising costs of rent or mortgage (71%), property maintenance (60%) and taxes (55%),” according to the survey.

But could it make sense for some retired couples? Here’s what Janelle and her husband might want to consider before making a move.

The benefits of upsizing

Upsizing can enhance quality of life, providing more space for family visits or home-based hobbies as many retirees are “realizing their dreams” of spending more time with family and friends (58%) and pursuing hobbies (43%), according to 2024’s Annual Transamerica Retirement Survey.

It allows for flexibility along the continuum of life. It could make sense for multigenerational households — say, if you’re regularly babysitting your grandchildren, as 19% of the Transamerica survey respondents are — or if your adult children help out with caregiving duties.

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It could provide space for a live-in caregiver, or serve as an extra source of income if you rent out a room, basement apartment or garden suite.

The downsides of upsizing

Moving is costly — from selling your home and buying a new one to moving costs themselves, which can range from $1,200 to $29,000, depending on how much stuff you’re moving, how far you’re moving and if you want professional movers to do the heavy lifting.

You may not net as much from your sale as you hope, meaning you may have to dip into your retirement savings or borrow money to get a bigger home.

Currently, it’s a buyers’ market, with 34% more sellers than buyers in the market, according to Redfin. As a result, it expects home prices to drop 1% by year’s end.

Meanwhile, the average 30-year mortgage rate is sitting at over 6.8%, according to data from Freddie Mac.

“High home prices and mortgage rates are scaring buyers off,” according to Redfin, while “tariff talks, layoffs and federal policy changes are among the other factors dampening homebuyer demand.”

Even if you buy a big home in a more affordable area, larger homes come with higher utility bills, maintenance and insurance costs.

If you need to hire someone for maintenance and repairs — such as regularly mowing the lawn — you’ll need to account for that in your retirement budget.

While it may be unpleasant to think about, if one spouse dies sooner than expected, or if the grandkids don’t visit as often as you counted on, then a big, empty house could also end up feeling rather lonely.

Key questions to consider before upsizing

Before upsizing, Janelle and her husband may want to answer some key questions:

• Are there other expenses we need to budget for, such as more furniture to fill a larger home?
• Can we afford this while still preserving a financial cushion for emergencies and health care?
• Are we prepared for the extra work (such as maintenance) that comes with a larger home?
• Will we still want or be able to live in a bigger space in 10 to 15 years?
• Is this larger home suitable to an aging-in-place lifestyle (e.g., are there too many stairs)?
• How will this move affect our estate plan and heirs?

Working with a financial advisor to run the numbers can help couples like Janelle and her husband determine whether upsizing would be the right move for their retirement years.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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

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