Author: Vawn Himmelsbach

With prices rising, consumers are increasingly looking for ways to save money. And one way to do that is through warehouse club retail stores, like Sam’s Club, Costco and BJ’s Wholesale Club. But is membership all it’s cracked up to be?

Shopper Britney Downing tells KHOU-11 that she saves on cereal for her five kids. “I can get two bags of cereal here at Sam’s for about six bucks.”

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This comes at a time when consumer confidence is plummeting, with fears over how trade policies and tariffs will impact the cost of living. American consumers have already seen what’s happened with the price of eggs.

That could be why many “are now turning to the club channel for routine household shopping,” according to research from Acosta Group. “They are seeking good value and prices that better fit their budget, with millennials driving most of these increases.”

Compared to a year ago, 21% of respondents are shopping at a warehouse club more often, and 28% say they’re buying grocery and household needs there — not just big-ticket items.

How warehouse clubs work

A warehouse club is still a retail store. But to shop there, you’ll need to become a member first. An annual membership fee typically costs from $60 to $120, which can usually be recouped in savings if you use the membership enough. But there are a few considerations to be aware of before joining.

Warehouse clubs typically offer everything from groceries to electronics to clothing. What sets them apart from traditional retail stores, however, is that they offer these items in bulk at discounted or wholesale pricing. They might also offer discounted services such as travel and insurance, and may have an on-site pharmacy, optical center and/or gas station.

The benefits? You can save on bulk purchases and gain access to deals and discounts. Some stores, like Costco, offer a money-back guarantee if you’re not satisfied with your membership.

The downside? A membership may not be worth it if you don’t shop there frequently enough to offset the savings. There are other issues, too: It can lead to impulse buying, which defeats the purpose of joining a club to save money.

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

Things to keep an eye out for

A warehouse club membership isn’t a scam, but not every deal is really a deal. Buying in bulk, for example, isn’t always a bargain. And the selection of big-ticket items like electronics or appliances may be more limited than what you’d find at a specialist retailer.

Many products, from groceries to vitamins, have a shelf-life. So buying in bulk may not save you money if you can’t get through a super-size version of that product before it expires. If you can’t eat 24 oranges before they start to rot, you’re literally throwing those savings in the garbage.

Warehouse clubs are typically designed to get you to shop more and spend more. The layout can be confusing; usually the groceries are at the back — behind all the fun big-ticket items like flat-screen TVs. And free food sample stations tempt you to spend more time in the store.

Warehouse clubs may also employ tactics that lure you into making impulse buys with signage such as ‘limited quantities.’ Many marketers use this ploy, not only warehouse clubs, but it’s good to be aware of it. You don’t want to walk out with a giant flat-screen TV when you just came for groceries.

How to protect your finances

Before joining a club, consider whether you’ll go often enough to justify the membership fee. Do you have enough room to store these bulk items? For perishable items, will you be able to eat everything before it goes to waste? If you’re buying a big-ticket item, are you really getting a deal?

You may find better sale prices on electronics or appliances at retailers who specialize in those products, especially during Black Friday. It’s worth doing a price comparison of big-ticket items against other retailers, such as Walmart, Amazon and Best Buy.

If you do buy a big-ticket item from a warehouse club, be sure to understand the return and refund policy (some product categories may be exempt or have a limited return window).

If you have a membership, avoid shopping traps by making a shopping list before you go. It could be helpful to create a budget to prevent you from overspending. If you’re about to make an impulsive buy on a ‘deal’ — walk away, do the rest of your shopping and come back after you’ve had a moment to think about it.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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.

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

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

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.”

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

How to protect 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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• 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

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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.

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.”

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

The 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.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• 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
• 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

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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.

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

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

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• 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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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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.

An Australian nurse had her life upended when scammers hijacked her phone number, drained her bank accounts and opened loans in her name — all within 24 hours.

“They were able to change my email, passwords,” Lee-Anne McLean told 9News. “They broke into my social media and they opened bank loans.”

And she doesn’t know how they did it. “I have security on my phone and my computer, so I’m not sure how they got all my personal information but I would really like to know.”

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How phone porting scams work

Phone porting is a legitimate process that lets you keep your phone number when switching carriers, and it’s typically protected by verification safeguards. But scammers have learned how to exploit it.

“To work around these protections, scammers will gather personal information about their target online, combing through social media posts, or purchasing information from cyber thieves or hackers,” according to the Federal Communications Commission (FCC).

If fraudsters have the right combination of personal information — which could include your address, birth date, Social Security number, PINs and passwords — they “may be able to con the victim’s phone company into believing the request to port out the number is from the authorized account holder,” says the FCC.

Once the fraudster convinces your phone company to transfer your number, your phone goes offline — and theirs lights up with your messages and calls, often allowing them to bypass safety measures like two-factor authentication.

“Once the scammer has access, they attempt to drain the victim’s bank accounts,” says the FCC. “In another variation, the scammers may attempt to sell or ransom back to the victim access to their social media accounts.”

This happened to Associated Press reporter Fatima Hussein in 2024, who woke up one morning to discover she didn’t have cell service. “Using my home Wi-Fi connection, I checked my email and discovered a notification that $20,000 was being transferred from my credit card to an unfamiliar Discover Bank account,” she explained in an article for the Financial Post.

Hussein said it took 10 days to get her number back from Cricket Wireless. “And that wasn’t until I told company representatives that I was writing a story about my experience,” she wrote in the Financial Post. During that time, fraudsters had accessed her account three times and transferred $19,000 from her credit card to the same unfamiliar account, even after freezing her credit and changing all her passwords. Bank of America was working to reverse the $19,000 transfer.

Neither McLean nor Hussein know how fraudsters got their information.

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

How to protect yourself from phone porting scams

In 2024 alone, SIM swapping scams led to nearly $26 million in reported losses, according to the FBI — and the real figure may be even higher, since many victims don’t report.

• To minimize the risk, start by asking your wireless provider about port-out authorization. “Every major wireless has some sort of additional security for accounts or for port-out authorization that customers can set up, like a unique pin, or add verification questions, which will make it more difficult for someone to port out your phone,” according to the Better Business Bureau (BBB).
• Be on the lookout for phishing scams, which can lead to phone porting scams. A phishing scam takes place when fraudsters try to trick you into giving away personal information, typically by posing as a legitimate individual or business (such as an HR manager or your bank). They may contact you via text, email or phone.
• Never give away any personal information to a call or email from an unknown contact. Hang up (or ignore the email) and contact the individual or business with a trusted phone number or even an in-person visit.

“Typically, loss of service on your device — your phone going dark or only allowing 911 calls — is the first sign this has happened,” according to the FCC.

If this has happened to you, time is of the essence. Contact your phone company and bank, and place a fraud alert on your credit reports. Aside from filing a police report, you can also file a complaint with the FCC.

But for victims like McLean or Hussein, recovery can be a long, difficult process.

“My days are basically taken up by trying to prove who I am again,” McLean told 9News, “and piece by piece trying to put my life back together.”

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
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• 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

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

With cuts to Social Security staffing and programs, rumors of privatization and an impending funding shortfall, it’s no wonder some Americans are worried about the program’s future.

Nearly one in three adults age 60 or older now doubt their retirement benefit will be there when they need it, according to a new poll from the Associated Press-NORC Center for Public Affairs Research conducted in April. That’s a jump from 2023, when only one in five older Americans felt the same.

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How you feel, though, may depend on your politics.

A partisan divide

That doubt is particularly strong among older Democrats. About half say they’re “not very” or “not at all” confident that Social Security will be there for them. Just a year ago, only one in 10 felt that way. At the time, Democratic President Joe Biden was in the White House.

Older Republicans, on the other hand, are feeling more secure. Six in 10 say they’re “extremely” or “very” confident in the program — up from just one-quarter in 2023

Younger adults show less confidence overall. About half of Americans under 30 say they don’t trust that Social Security will be there when they retire, regardless of political affiliation. But that view hasn’t shifted much since last year.

As of 2025, nearly 69 million Americans will receive a Social Security benefit each month.

Under the Department of Government Efficiency — or DOGE — launched during Donald Trump’s presidency, until recently, led by billionaire Elon Musk, the Social Security Administration was targeted for major restructuring. That included the elimination of 7,000 jobs, the downsizing or closure of field offices and a proposed cut to national phone services — a move that has since been reversed.

At the same time, the SSA is under pressure to act. Without policy changes, it won’t be able to pay full retirement benefits by 2035, according to the 2024 Social Security and Medicare trustees report. If nothing changes, recipients will only receive about 83% of their benefits.

“If anything happens to Social Security, it would really impact me,” Timothy Black, a 52-year-old Democrat from San Diego, told ClickOnDetroit. Black, who receives Social Security Disability Insurance to help manage a chronic illness, says he’s concerned about both his retirement and disability payments.

“If SSDI doesn’t keep up with the cost of living, my medical expenses are only going to grow and I could end up homeless,” he said.

Republican voter, Linda Seck, a 78-year-old retiree from Saline Township, Michigan, told ClickOnDetroit she’s confident the program will last.

“When I was in college, financial planners were telling us not to depend on Social Security,” she said. “But here we are more than 50 years later and it’s still going.”

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

How to shore up your retirement savings

Fifty years ago, financial planners may have warned people like Seck not to count on Social Security — and they may have had a point. The program was never intended to be the only source of retirement income. Instead, it was designed to complement personal savings, investments and, when available, pensions.

Whether you’re worried Social Security or not, it still makes sense to take a well-rounded approach to retirement planning. Just like you wouldn’t put all your money into a single stock, you shouldn’t rely on Social Security alone.

Maximize your contributions to retirement accounts: If you have access to a 401(k), try to contribute as much as possible — especially if your employer offers a match. You can also open an individual retirement account (IRA).

A traditional IRA lets you contribute pre-tax dollars and pay taxes when you withdraw in retirement. A Roth IR A uses after-tax dollars but allows tax-free withdrawals after age 59 ½. In both cases, your money grows tax-free. If you’re 50 or older, you can make catch-up contributions too.

Diversify your investments: Don’t get too focused on one type of asset. A mix of stocks, bonds, real estate and other investments can help reduce risk — though no strategy is guaranteed. Ideally, you’ll want investments that don’t all move in the same direction, so a loss in one area might be balanced by gains in another.

Get creative: If you’re still concerned you won’t have enough to retire comfortably, consider picking up a side gig or part-time work. But if you’re collecting Social Security before full retirement age, there’s an earnings limit to keep in mind. In 2025, that limit is $23,400.

You could also explore passive income streams, like renting out a basement apartment or getting a roommate. There are plenty of ways to boost your retirement savings, so no matter what happens — or doesn’t happen — with Social Security, you’ll be better prepared for the years ahead.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• 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
• 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

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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