Author: Vawn Himmelsbach

Lester, a 51-year-old from Pittsburgh, has no debt aside from his mortgage. The company he works for recently sent a letter to employees offering them a lump-sum payment when they leave in return for ending their participation in the company’s pension plan.

He can choose a one-time payout of $71,000, or he can opt to take a future stream of income and receive $455 per month for life starting at age 65. With only 30 days to decide, he finds the decision confusing and overwhelming.

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Some companies — looking to reduce their pension obligations and the costs of plan administration — may offer employees the option of a one-time payout instead of a life-long stream of pension benefits.

This is the situation Lester now finds himself in. He’s wondering if he should take the $71,000 lump sum or a guaranteed $455 per month in retirement?

Lump-sum payment or lifelong income?

Crunching the numbers will involve looking at different scenarios for investment returns and inflation. A financial advisor will have access to financial planning programs that can generate scenarios under different economic conditions and help you decide which option might make the most financial sense for your situation.

For instance, the stream of pension payments could be eroded by inflation over time, while — given suitable investment returns — it may be possible to increase withdrawals from the lump-sum amount over time to account for inflation.

His decision may also depend on his other resources in retirement. If he’s worried he won’t have enough savings for retirement, then he may benefit from a lifelong guaranteed income stream.

If Lester takes the lump sum, he’ll need to have the investment know-how and discipline to make the most of that one-time payout.

With a monthly income of $455, it would take about 13 years to rack up $71,000. If Lester invested the lump sum in an S&P 500 index fund — the index has had an average annual return of around 10% over the last 20 years — at a 10% return rate he could earn $245,000 in the same time frame.

But he must be warned: investing the money means it’s subject to market risks, and past returns don’t guarantee future earnings. Meanwhile, those monthly payments would be a sure thing.

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Non-financial considerations

Lester’s decision may largely depend on his risk tolerance. If he’s comfortable taking on risk, he may be able to earn a decent return by investing his lump-sum payment. If he’s risk-averse, he may be more comfortable with guaranteed life-long payments.

Risk tolerance isn’t the only consideration. If Lester is in poor health and doesn’t believe he’ll live another 30 to 40 years, he may want to take a one-time payout because he’ll get more value out of it than a short period of payments.

However, if he doesn’t roll the one-time payout directly into an IRA or have it transferred from trustee to trustee, then the money will be treated as ordinary income for tax purposes and 20% tax will be withheld at the time of the distribution.

Also, if Lester withdraws the money from the IRA before he’s 59.5 years old, the money will be treated as ordinary income and may be subject to a 10% additional tax.

Another consideration is how disciplined Lester is with his money. One third (34%) of retirees who took a lump sum from their defined contribution (DC) plan at retirement depleted it within five years, according to MetLife’s 2022 Paycheck or Pot of Gold Study. On average, two out of five (41%) of those who still had assets past five years said they were worried their money would run out.

On the other hand, 96% of those who chose the lifetime payment stream said they were happy they chose to do so and “nearly all annuity-only retirees (97%) use their DC plan money for some type of ongoing expense, such as day-to-day living expenses or housing expenses,” according to the MetLife study.

Regardless of study results, it’s a potentially life-altering decision, one that is personal and requires weighing financial and non-financial considerations.

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

Humans often seek easy answers and shortcuts. This is not always a flaw, but a form of efficiency. So, it’s no surprise that we want a ‘magic’ answer to one of the biggest financial decisions we need to make: how much to save for retirement.

As a result, we often have a ‘magic number’ in mind for our retirement savings.

This year, that ‘magic number’ Americans believe they’ll need to retire comfortably is $1.26 million, according to Northwest Mutual’s 2025 Planning & Progress Study.

This is $200,000 less than the estimated $1.46 million they believed they’d need when they were surveyed last year. This number is also more in line with the 2022 and 2023 estimates, indicating a reversal in thinking from last year to the years before.

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Why the ‘magic number’ might be lower this year

It’s likely that the decline in the ‘magic number’ from last year is at least partially related to declines in inflation, which has been falling — albeit unevenly — since peaking in the summer of 2022.

As inflation has fallen, so too have expectations of future inflation, which were lower in 2024 than in the previous couple of years. This suggests that for that year, future retirees may not believe high inflation would eat away at their retirement savings, compared to years prior.

It may also be that views on retirement are changing. Whether by necessity or intention, about half of workers plan not to retire before the ‘traditional’ age of 65 and 39% expect to retire only at 70 or older, or not to retire at all, according to a report by the Transamerica Center for Retirement Studies. This could mean a shorter retirement and additional income during this period, reducing the size of an individual’s needed nest egg.

Is the ‘magic number’ a reasonable goal?

Before you start worrying about achieving that ‘magic number,’ it’s worthwhile to determine if it’s a reasonable goal. In 2023, the average expenditure for a household where the ‘head’ of the household is 65 years or older was $60,087, according to the U.S. Bureau of Labor Statistics.

Assuming most retirees will collect Social Security benefits — averaging about $2,000 in April 2025 ($24,000 a year), and further assuming only one member of the household will collect benefits, a household would need an additional sum of about $36,000 a year to cover expenses.

A common rule of thumb is to withdraw 4% of your nest egg in the first year of retirement and then to continue withdrawing that amount (adjusted for inflation) each year afterward. This would allow your nest egg to provide income for the duration of most retirements. If you need $36,000 per year, then you’d need an initial nest egg of about $900,000 — making $1.26 million more than many need.

But research by the Employee Benefits Research Institute shows that retirees are cutting back on expenditures because of insufficient income, so using actual expenditures may give a more accurate picture of the amount retirees will need to live comfortably.

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Another retirement rule of thumb is to estimate that you’ll need 70% to 80% of your pre-retirement income to retire comfortably. Real median household income in the U.S. was $80,610 in 2023, according to the U.S. Census Bureau.

A range of 70% to 80% would be about $56,000 to $65,000, which — when applying $24,000 from Social Security — implies a required nest egg of $800,000 to $1.025 million, which is still below the ‘magic number’ of $1.26 million.

Retirement is personal

While the ‘magic number’ may be higher than many people need, calculations that use averages, medians and rules of thumb don’t help you determine what your exact number should be — and your own situation is likely to be quite unique.

After all, retirement is a very personal thing. If you want to estimate what your own ‘magic number’ might be, it’s worth speaking to a financial advisor.

Many advisors have access to modeling programs that factor in your personal circumstances and plans for retirement to come up with a number that works for you. Once they know this number, they can set up a suitable savings and investment program so you can reach this goal. A helpful feature is that these models can be used to run scenarios — such as accounting for higher inflation — to see how this might affect your plans.

There are several factors that go into figuring out your number. Where you plan to retire can make a big difference, as can what you plan to do in retirement.

Some states are much more expensive than others for retirees, while others continue to be popular. And if you plan to travel a lot, this is likely to cost you more than if you plan to stay close to home and spend time with your children and grandchildren.

Healthcare can be a big expense that grows through retirement. It’s impossible to predict what health challenges you may encounter, but if you already have chronic conditions that may get worse with time, it’s important to consider how this might lead to extra expenses in retirement and require a larger nest egg.

Non-investment sources of income will also play a role. Most retirees are at least somewhat reliant on Social Security and some may have a pension — or even plan to work part-time in their semi-retirement years.

You may want to have a ‘magic number’ — but you should arrive at it through analysis of your own unique situation. And you should be prepared to change that number if your retirement goals or circumstances change as you age.

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

In the era of mobile apps and digital banking, it’s not surprising that several banks are shuttering some of their branches. But now, at least in some markets, a few banks are actually opening brand-new branches.

An average of 1,646 branches have closed each year in the U.S. since 2018, according to an analysis of Federal Deposit Insurance Corp. data by Self Financial. California had the most closures, followed by Florida and Illinois. If branch closures were to continue at this rate, the report says there’d be no branches left in the U.S. by 2041.

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The pace picked up in Q1 2025 with a total of 148 branch closures, according to S&P Global Market Intelligence data. That was led by U.S. Bancorp (reporting 50 branch closures) and Wells Fargo & Co. (reporting 23 branch closures).

But, despite this overall decline, some banks are actually building new branches or renovating older ones. Indeed, the American Bankers Association says a “counter trend” has emerged, “gaining momentum over the past two years to where now many of the nation’s largest banks have announced specific plans for widespread branch expansion.”

And there’s one state where we’re seeing dozens of new branch openings. Here’s why.

Why some banks are embracing expansion

Chase plans to open 50 new branches in Massachusetts by 2027, including small towns such as Sudbury (with less than 20,000 people) and Weston (with less than 12,000 people). This is part of a larger expansion the commercial bank announced last year, which involves opening more than 500 new branches and renovating 1,700 locations across the country.

“You don’t see it in lower-income neighborhoods,” Eric Rosengren, former president of the Federal Reserve Bank of Boston, told CBS News. “You see it in wealthy neighborhoods, because even a few wealthy individuals can provide a significant amount of income coming from the wealth management.”

That’s because many affluent customers still value face-to-face financial advice.

Indeed, JPMorganChase is expanding its ‘affluent’ offering with 14 new J.P. Morgan Financial Centers across four states, for a total of 16 locations — with plans to double that by the end of next year.

These centers, based in Massachusetts, California, Florida and New York, are designed to provide a “uniquely tailored and high-touch experience” to high-net-worth clients.

JPMorganChase isn’t the only one expanding its offerings.

“Large regional and national banks, such as Chase, Bank of America, Fifth Third, PNC and Huntington, have all announced significant branch expansion efforts in recent years,” according to an industry insight by the American Bankers Association.

Bank of America, for example, has plans to open more than 150 new branches across 60 markets by the end of 2027, including 40 this year.

While 90% of Bank of America’s client interactions take place through digital channels, its branches “have adapted to focus on meeting spaces where clients can have in-depth conversations about their finances,” according to a release. Last year, about 10 million clients made appointments with its specialists in physical locations.

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More than wealth management

Opening new branches could be a way for some banks to expand their wealth management offerings in new markets without having to acquire other banks.

While Chase is targeting affluent markets, its expansion will also include entry into “low-to-moderate income and rural communities with little access to traditional banking services,” according to a release.

While Self Financial’s report predicted that bank branches could become extinct by 2041, its analysis also found that 39% of respondents had the most trust in banks with physical branches.

In some cases, physical branches are still very much a necessity.

But banking deserts (neighborhoods with no nearby branches) are on the rise, according to the U.S. Bank Branch Closures and Banking Deserts **report.

“Despite the overall trend toward online banking, older, disabled and lower-income communities often rely on in-person banking. For people facing other barriers to banking services, having no bank branches nearby could limit opportunities to foster financial health and build wealth,” according to the report.

It also points out that having a personal relationship with your local banker is important for loan and grant applications, fraud prevention and financial guidance. As well, many small businesses still rely on those personal relationships for financing applications.

And, despite a common belief that younger generations do all their banking online, a few studies have found that Gen Z still likes to have branch access — even more so than millennials.

One study by eMarketer found that, while banking habits vary widely among generations, “younger consumers were more likely to visit bank branches weekly or more.” Another study by LevLane found that less than 5% of Gen Z fully trust AI-driven banking features, compared to 21% of millennials.

While we’re seeing an uptick in branch openings, there are still fewer branches than there used to be. In Massachusetts, for example, there are still fewer branches than there were a decade ago (81,405 branches in 2014 vs 68,632 in 2024), reports CBS News.

Regardless, it looks like we may not see the death of the bank branch any time soon.

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

Back in February, James Fishback, founder and CEO of investment firm Azoria, proposed the idea of a “DOGE dividend” on social media. It was an idea that caught the attention of Elon Musk.

“American taxpayers deserve a ‘DOGE Dividend’: 20% the money that DOGE saves should be sent back to hard-working Americans as a tax refund check,” Fishback posted on X. “It was their money in the first place!”

He went on to say that — with $2 trillion in savings from the Department of Government Efficiency (DOGE) and 79 million tax-paying households — this payment would work out to about $5,000 per household, “with the remaining used to pay down the national debt.”

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DOGE chief Musk — who has since stepped back from the role — responded by saying he’d share the idea with President Donald Trump. The president then promoted the idea onstage at a summit on Feb. 19.

So, can you expect a DOGE dividend check any time soon?

Who would be eligible?

Fishback’s proposal assumed that DOGE would achieve up to $2 trillion in cuts — but that doesn’t appear likely. Indeed, Musk revised the savings goal a few times from $2 trillion to $1 trillion and now $150 billion for fiscal year 2026.

If, however, DOGE was able to achieve $2 trillion in cuts, Fishback says 20% — or $400 billion — could then be divided among 79 million taxpaying households. That works out to $5,000 per household.

But his DOGE dividend would only go to households above a certain income threshold (those who don’t get a tax refund). In other words, lower-income Americans may not qualify.

Many Americans who have an adjusted gross income of under $40,000 owe little or no federal income tax, “especially after factoring in the effects of refundable tax credits, such as the child and earned-income credits,” according to the Pew Research Center.

Fishback says this makes the DOGE dividend different from the stimulus checks sent out as part of the 2021 American Rescue Plan during the COVID-19 pandemic — in which, he says, checks were sent out “indiscriminately,” according to NBC News.

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It’s worth noting that a dividend isn’t the same thing as a subsidy. A dividend is a distribution of profits by a corporation to its shareholders, while a stimulus check is a payment made by a government to its citizens in order to stimulate spending and boost consumer confidence during times of economic hardship.

Coming up short

As of June 3, the DOGE website indicated that it has saved $180 billion through a “combination of asset sales, contract/lease cancellations and renegotiations, fraud and improper payment deletion, grant cancellations, interest savings, programmatic changes, regulatory savings and workforce reductions.” The amount saved per taxpayer is $1,118.01.

While this falls far short of the $2 trillion goal, several news organizations have also reported that DOGE previously overstated some of its savings and published errors and misleading information.

At the same time, DOGE could actually cost taxpayers $135 billion this fiscal year, according to an estimate from the Partnership for Public Service, a nonpartisan research and advocacy group for the federal workforce, per CBS News. This includes the costs associated with re-hiring mistakenly fired workers, lost productivity and paid leave for thousands of federal workers.

“The $135 billion cost to taxpayers doesn’t include the expense of defending multiple lawsuits challenging DOGE’s actions, nor the impact of estimated lost tax collections due to staff cuts at the IRS,” reports CBS News.

Either way, not much has happened lately to carry the idea forward. A formal proposal for a dividend has yet to be made in Congress. Even if Americans were to get a check, at this point, it seems unlikely to amount to much. Since DOGE has revised its savings from $2 trillion to $150 billion, 20% (or $30 billion) would mean a one-time DOGE dividend of around $380.

At the same time, as of June 2, tariffs are expected to cost American households an average of $1,183 in 2025, according to estimates by the nonpartisan Tax Foundation.

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

When Austin Mark and his husband, Bryan, moved back to Chicago from the West Coast in 2024, they wanted to buy a house. They also wanted plenty of living space.

They were able to bid on a bigger home, and put down a bigger down payment, because they teamed up with their friends, Nate and Stephanie.

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Together, the friends put down 40% on an $800,000 multi-unit home.

“With what we are each paying, we never could have found something similar separately, even if each couple had something half the size of this house,” Mark told Business Insider.

The couples split the cost of the down payment 50/50 and now have equal-sized shares of the home — with a primary and secondary unit each, along with their own kitchens and bathrooms.

“We hear a lot of people tell us they’ve always wanted to buy a big house with their friends,” Mark. “And we’ve also heard a lot of people say we’re absolutely crazy.”

A ‘shift’ in how Americans are buying homes

Crazy or not, these four friends are part of “a transformative shift in how Americans approach housing,” according to CoBuy, an online platform that helps people through the co-ownership process.

They reflect a growing trend in “non-romantic co-ownership,” or buying a home with non-romantic partners.

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A recent survey by JW Surety Bonds found that nearly 15% of Americans had co-purchased homes with non-romantic partners. Of those, 29% co-purchased a home with parents; 26% with siblings; and, 26% with friends.

Another 48% of survey respondents — predominantly singles and renters — would consider co-buying with a non-romantic partners. The top perceived benefits: sharing costs (67%), affording a better home (56%) and gaining investment opportunities (54%).

The survey suggested the trend is driven by “economic factors and a generational shift in values.” Currently, nearly one in three U.S. households spend at least 30% of their income on rent or mortgage payments and utilities in 2023, leaving little left for necessities like food and health care.

The U.S. Chamber of Commerce says “soaring rents,” a shortage of 4.5 million homes and high mortgage rates are driving a housing affordability crisis.

In a Time article on non-romantic co-ownership, Simmone Shah noted that inflation, increased cost of living and stagnant wages are reducing would-be buyers’ down-payment power.

It’s not surprising, then, that almost a quarter of those who co-bought a home said they “could not have afforded to buy the home otherwise,” according to the JW Surety Bonds survey.

While economics are a strong driver of the co-buying trend, changing attitudes also play a part.

“A generation ago, most Americans would have never considered the idea of buying a home with a friend,” Shah wrote, adding that “many millennials and members of Gen Z no longer view the traditional markers of stability — marriage, children and a white picket fence — as an inevitable or even desirable goal.”

And not everyone who co-buys does it out of economic necessity.

Passive rental income was a big motivator for 65% of the JW Surety Bonds respondents. Other reasons given were to share a property flip, establish a commercial space or buy a shared vacation or secondary home.

How to choose co-purchasers

While co-buying comes with certain advantages, it’s not without challenges. One important early decision is choosing who to partner with.

Respondents to the JW Surety Bonds survey cite “trust in co-purchasers” as the top consideration and “interpersonal conflict” as the top drawback to co-buying homes.

For example, Mark said Nate and Stephanie were “the only people on the planet who we could imagine doing it with. We have a very balanced relationship with them.”

The process involved open and honest conversations about finances and what everybody wanted out of the arrangement.

Once you’ve chosen the right partner, there are still several issues to sort out.

CoBuy, which surveyed co-buyers and co-owners, found six core challenges, including:

• The co-ownership agreement
• Finances, expenses and payments
• Documentation and record-keeping
• Roles, rights and responsibilities
• Exit strategies
• Risk protection

“If you buy a house with other people, it’s important to treat it as a business as much as it is a living situation,” Mark said.

He and his co-owners engaged a lawyer to draft an operating agreement similar to what business partners purchasing property would have.

The couples also hold formal homeowner meetings and make decisions by voting. Each couple is responsible for upkeep and esthetics for their own unit as well as their own taxes and insurance.

Meanwhile, they split the mortgage and expenses for the common areas and yard.

Having their own bathrooms or kitchens helps them lead their own lives — and there’s room to grow within the units if anybody has kids.

“We refer to it as the ‘forever home,’ which might have been a joke at first, but since we’ve gotten in here, it does feel like it’s a very long-term living solution,” Mark said.

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

Online shopping is here to stay — and it seems so are porch pirates.

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A 2024 Security.org survey revealed that porch pirates — people who steal packages from your porch or yard — stole goods valued at $12 billion in a single year, affecting as many as 58 million Americans. It found that one in four Americans have been victimized by porch pirates at some point in their lives.

Safety and security research group SafeWise estimated $16 billion was lost to package theft in the U.S. in 2023.

While there are deterrents on the market, and SafeWise said it looks like package theft is leveling out at 120.5 million packages snatched in the year, it remains a major problem. A North Texas inventor was inspired to come up with what he calls a “video smart package pillar.”

“If somebody takes anything from your porch, then they may not go to jail because it’s a misdemeanor,” Richard Prince II told Fox 4. “But if somebody touches a mailbox … they automatically know it’s a federal offense, so it’s federally protected.”

How a smart mailbox works

Prince II’s anti-theft mailbox looks like a traditional brick mailbox with a slot, but it opens on the top allowing for larger packages to be dropped inside to the bottom. The owner has a key to open the back and retrieve packages from inside the mailbox.

Prince II explained why he believes his mailbox is a better option for packages. “You don’t really see a lot of people actually going in people’s mailboxes. You see them going on their porches,” he said.

It took eight years for Prince II to get a patent and he’s currently looking for investors to get his idea from a prototype in his garage to front yards across North Texas and beyond.

However, he wouldn’t be the only one peddling this type of product. A number of companies, including Hyve, Keter, Loxx Noxx and Yale, are now offering advanced delivery boxes for secure package delivery — and some even connect to Bluetooth or apps.

While this could be an ideal solution for homeowners, it won’t work for everyone, including those who live in apartments where packages are left in the lobby or in front of their hallway door.

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

What we know about ‘porch pirates’

“Porch pirates have clear favorites when it comes to packages, with Amazon deliveries topping the list at 33% of reported thefts,” according to SafeWise. “We speculate that this could be due to people ordering more deliveries from Amazon, making those packages more ubiquitous overall.”

USPS packages account for another 18% of stolen items, followed by FedEx (17%) and UPS (16%). Grocery deliveries and meal kits like HelloFresh make up 7% and 4% of theft, respectively.

However, it also found that — across the country — one in four people don’t do anything to deter porch pirates “despite more than half of all Americans worrying that they’ll have a package stolen.” That changes, however, once they’ve had a package snatched, with more than eight in 10 victims adding a deterrent.

While this is an issue across the country, Security.org found that Kentucky, North Dakota, Nebraska, Iowa, and Alaska have the highest rates of recent package thefts. But it wasn’t necessarily correlated with high-crime areas.

“Package theft tends to be a crime of opportunity rather than a reflection of localized lawlessness. Where parcels are numerous, unguarded, or exposed, incidents of piracy are likely to be higher regardless of overall crime rates,” according to Security.org.

And that “underscores the need for parcel precautions” even in areas that are considered relatively safe.

How to protect yourself

Research specialist Dr. Ben Stickle told SafeWise that a home is more likely to be targeted if it has a porch less than 25 feet from the street and packages are visible from the road.

A common deterrent is a security camera or video doorbell, which can at least help to identify the culprit if a theft occurs — though it may not prevent theft from occurring in the first place (especially if the thief hides their face). However, cameras and doorbells are getting smarter and could include motion sensors, alarms and even two-way audio.

You can also track packages on an app so you know exactly when they’re being delivered. Or, you could request a signature upon delivery — an old-school, but effective, measure — which means the package can’t be left on your doorstep.

If packages are frequently delivered when you’re not home, telling delivery drivers to place them in a spot not visible from the street or having a smart mailbox could be an effective solution, or you could also consider using a secure pick-up location, offered by major retailers and even delivery services. These pick-up locations could include lockers or even local post offices.

When it comes to certain critical or expensive items, like prescription drugs or electronics, it may simply make more sense to pick them up in person rather than risk being the target of porch pirates.

You can also check if the retailer or shipper provides protection against theft (such as replacement or reimbursement) or if your credit card offers purchase protection.

Since apartment dwellers experience package theft at double the rate of those who live in homes, according to Security.org, it advises specifying “that packages should be left with door attendants or in protected mailrooms rather than entryways or sidewalks.”

What to read next

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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.

Janelle from Raleigh, North Carolina, says she “did the ultimate no-no” when she bought a house with someone to whom she wasn’t married. After about a year, they broke up and she moved out.

Now, they’re four months behind in mortgage payments, haven’t been able to sell the house and are facing foreclosure.

She’s also racked up $25,000 in loans and credit card debt. Since she no longer communicates with her ex-fiance, she isn’t sure how to fix her situation, so she called into The Ramsey Show to find out what her options are.

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Both Janelle and her ex are on the mortgage and property deed.

“We’re four months behind,” she told show cohosts, and while they’ve been trying to sell the home and recoup their losses, so far they haven’t had any takers — and they still have $465,000 left on the mortgage.

When the romance is dead — but the mortgage lives on

Now, Janelle says they’re “in the process of asking the mortgage company for a short sale to see if that’s even possible.”

“I don’t see a way out of this unless you guys can find a way to sell it before it forecloses,” cohost George Kamel said.

First, however, they need to get caught up on their mortgage payments and try to avoid foreclosure. While her ex tried to float the mortgage for a few months, he’s now stopped making payments. Janelle also stopped paying her share when she moved out because she’s paying rent elsewhere.

But, when your name is on the mortgage, that reasoning doesn’t fly.

“You are legally obligated to pay that [mortgage],” cohost Ken Coleman said, “whether you’ve moved out or not.”

Janelle brings home about $6,000 a month after taxes, pays about $2,400 in rent and still has money leftover for her “expenses,” which includes putting money aside into her 401(k). She also has about $4,000 in savings.

“We need to pause all of that.” Kamel advised. “You need to act like everything is on fire. And you need to work on getting out of this house mess and paying off your debt.”

They’re about $12,000 in arrears on their mortgage, so they need to “both put some skin in the game” to get caught up on payments. That means giving up any expenses that aren’t necessary — including investments — until they’re out of this hole. It could also mean Janelle getting a second job for a short period of time or her ex getting a temporary roommate until they can get caught up and eventually sell the house.

“That’s going to be your best bet — just trying to sell this thing ASAP even if you have to lower the price,” Kamel said, “instead of going through a short sale or, worst case, that foreclosure.”

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

What to consider before you buy a house together

Buying property with someone you’re not married to — whether a partner, friend or family member — can be rewarding but does come with legal and financial risks.

It’s a small, but still significant, percentage of homebuyers, with 9% of recent homebuyers being unmarried couples, according to the National Association of Realtors 2024 Profile of Home Buyers and Sellers Report.

Long before you start searching for a home together, you’ll need to decide on a budget and how much each of you will contribute. It’s also a good idea to review each other’s finances, including credit scores. You’ll then have to decide on the ownership structure: joint tenancy (equal property ownership) or tenancy in common (unequal shares).

If you’re unmarried, lenders will assess the credit scores of each buyer. So, if your partner has a low credit score, that could impact your ability to get approved for a mortgage.

On the flip side, if only one partner has their name on the mortgage and title, the other loses out on building equity (and if they split up).

You’ll also need to account for expenses above and beyond the mortgage, such as property taxes, insurance premiums, homeowners associations (HOA) fees, maintenance costs, utility bills and any other household expenses.

While a 50/50 split makes this much easier — where each partner contributes half to the down payment, each pays half of the mortgage each month and they split the utilities and other household expenses — it doesn’t always work out this way. Maybe one partner puts down money for the down payment, or they agree that one will pay the mortgage and the other covers the rest of the bills.

Whatever the case, you’ll want this agreement in writing. A cohabitation or joint homeownership agreement is a legally binding contract (preferably drafted by a legal professional) that details what will happen in the case of a breakup.

This agreement should outline each person’s rights and responsibilities, and what happens if they break up or one partner wants to sell. Otherwise, you’ll have to come up with your own settlement — at a time when tempers could be flaring — or rely on the legal procedures in your state, meaning the court could make that decision for you.

If you end up getting married, then you can update the ownership structure. But if you break up, having a legally binding agreement in place can help avoid a situation like Janelle finds herself in — and she’d understand that she can’t just stop paying the mortgage because she moved out.

“You’re going to need to start communicating — you guys entered quite the partnership here to then just flee the coop,” Kamel said, adding that even if they can’t stand each other, “you’re kind of stuck right now until you guys figure out the next move.”

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?
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• 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

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.

For every month you take your Canada Pension Plan retirement benefit early, you permanently lose 0.6%, reducing your monthly cheque up to 36% if you take it at age 60.

On the other hand, for every month you wait after age 60, you increase your benefit amount by 0.7%. If you wait until age 70, this works out to an increase of 42%.

According to figures from the Government of Canada, only 6% of new CPP recipients waited until 70 in 2023, while 29% opted to start their benefits at age 60.

So why would anyone want to take it early? Here are three reasons why it would make sense to take a reduced benefit.

1. You think you can make more by investing the money yourself

While this isn’t impossible, you’ll need to beat an annual guaranteed increase of 7.2% per year until age 65, then 8.4% from there to age 70, plus increases to adjust for the cost of living.

The average CPP payout in 2024 was $815 per month or $9,780 per year. With the help of tools like CIBC Investor’s Edge, you can invest that $815 per month and potentially grow your retirement fund even more until you’re ready to retire at 65 or 70 years old.

CIBC Investor’s Edge offers a Stock Centre, ETF Centre and Fund Centre to help you dive deep into the underlying fundamentals of individual stocks or the management fees and holdings of specific mutual funds and exchange-traded funds. This allows you to tailor your investments for potentially higher returns based on your timeline, risk portfolio and long-term goals.

Plus, you pay $0 account fees if you’re investing within an RRSP account with a balance of $25,000 or more, as well as a TFSA account with a balance of $10,000 or more.

2. You’re retiring during a market selloff and you want to give your portfolio time to recover

If you need immediate cash but want to hold off on withdrawing from your investments to give your portfolio time to recover, it might be a good idea to tap into CPP early.

However, financial planners generally advise against taking CPP early for this reason. If you’re nearing retirement, a portion of your portfolio should be allocated to cash in order to meet your expenses, without needing to supplement your income with the CPP benefit.

Consider creating a cash cushion of about a year’s worth of living expenses with a chequing or savings account that pays high interest.

For example, the EQ Bank Personal Account offers the interest-earning potential of a high-interest savings account at a rate of 3.50% per dollar, while also having easy access to your money when you need it.

Plus, you pay $0 account fees and the account requires no minimum balance.

3. You have a low income and may qualify for the Guaranteed Income Supplement (GIS) in addition to OAS

In this case, you might want to minimize your CPP payment to maximize your GIS.

It’s a good idea to engage a financial advisor when using OAS or GIS reasons to determine when to take CPP, as these are complicated calculations that can have lifelong implications. An advisor will have software that can help model these decisions.

Whether retirement is five, ten or 15 years away, it’s never too late to try to grow your retirement fund in an effort to reduce your reliance on GIS.

Robo-advisor platforms like Wealthsimple make it easy for you to set up regular contributions and take advantage of the power of compounding — a strategy that many financial experts say is one of the most effective ways to save for retirement.

Compound interest works by allowing your money to grow not just on your initial contribution, but on the accumulated interest as well, creating a snowball effect over time. You can start small and increase the amount you contribute as your salary grows. Your funds will be managed in a smart investment portfolio, so that you don’t have to keep track of market movements yourself. You’ll get a $25 bonus when you open your first Wealthsimple account and fund at least $1 within 30 days. T&Cs apply.

Sources

1. Canada.ca: CPP Retirement pension: How much you could receive

2. Statistics Canada: Income Explorer, 2021 Census

3. Canada.ca: Canada Pension Plan: Pensions and benefits monthly amounts

4. Canada.ca: CPP Retirement pension: When to start your retirement pension

5. Canada.ca: Canada Pension Plan (CPP) – Number of New Retirement Pension by Age, Gender and by Calendar Year – Canada Pension Plan (CPP) – Number of New Retirement Pension by Age, Gender and by Calendar Year

6. Canada.ca: How we calculate your CPP payment

7. Canada.ca: Old Age Security

8. Canada.ca: Old Age Security: How much you could receive

9. Canada.ca: Old Age Security pension recovery tax

10. Canada.ca: Guaranteed Income Supplement

11. CPPInvestments.com: Sustainability of the CPP

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.

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

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.

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

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.