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Author: Vawn Himmelsbach

  • ‘Liberating these buildings from its dark past’: Developers spent $64 million turning this Virginia prison — originally commissioned by Theodore Roosevelt — into a 165-unit apartment complex

    ‘Liberating these buildings from its dark past’: Developers spent $64 million turning this Virginia prison — originally commissioned by Theodore Roosevelt — into a 165-unit apartment complex

    Would you choose to live in a prison? You might — if it had been converted into a community of well-designed apartments with a club house, swimming pool, green spaces, restaurants, retail shops and even a preschool.

    That’s exactly what was done to an old prison in Lorton, Virginia.

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    “We really felt that we were liberating these buildings from its dark past, and for that reason we thought Liberty was a good name for the project,” David Vos, a development project manager with real estate developer The Alexander Company, told CNBC Make It.

    From abandoned prison to designer apartments

    The Lorton Reformatory prison complex, originally commissioned by Theodore Roosevelt, was built in 1910 and shuttered in 2001. In 2002, Fairfax County bought the 2,324-acre campus for $4.2 million.

    In 2008, The Alexander Company — which specializes in urban infill development and historic preservation — partnered with the county and Elm Street Development to help convert the campus, with renovations taking place from 2015 to 2017.

    The company spent $64 million converting 207,000 square feet into the Liberty Crest Apartments. Rent for the 165 apartments ranges from $1,372 and $2,700 per month. For comparison, the average rent for all property types in Virginia is $1,700 per month.

    Forty-four of the units are set aside for people earning 50% of the median household income of $136,719 for Lorton, according to CNBC Make It. These units were fully leased within a couple of months and have been at full occupancy since.

    The Lorton Reformatory was a Progressive Era prison, so it’s architecturally interesting and laid out well for apartments, with plenty of windows providing lots of natural light and ventilation.

    The original dining room has been turned into a club house with a pool table and shuffleboard table, while the prison ball field has been converted to a central green for residents. There’s also a fitness center, yoga room, swimming pool and two playground areas, along with retail shops and restaurants.

    Plus, there’s still room for development. A few penitentiary buildings on the complex are slated to become commercial spaces and the power plant is being converted into 10 additional apartments.

    The developers, believing we can learn from our past, have kept some signage from the original prison intact as a reminder of what the buildings once were.

    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 economic and environmental promise of adaptive reuse

    The Liberty Crest Apartments are a prime example of adaptive reuse — when existing assets in a built area are repurposed for new uses. This can be an environmentally friendly way to develop needed spaces such as affordable housing.

    According to The World Economic Forum (WEF), “cities are turning to adaptive reuse as a powerful strategy to reduce waste, cut emissions and enhance circular economy principles in the built environment.”

    Repurposing an existing building emits 50% to 75% less carbon than building new, according to WEF, and the process itself can be efficient — up to 90% of materials can be salvaged and diverted from landfills when buildings are repurposed rather than demolished. By saving the expense of demolition and new construction, repurposing can result in cost savings of 12% to 15%.

    Communities also benefit from adaptive reuse because it helps to preserve culture and architecture while creating unique, distinctive spaces to work and live. It can also be a catalyst for urban renewal and innovation.

    For example, where the Lorton prison complex was once an empty, decaying structure, there’s now attractive architecture, affordable housing and community spaces.

    Adaptive reuse projects can also boost property values in the surrounding community through neighborhood revitalization. Jobs are created during the project and, longer term, for ongoing maintenance and administration of the new facility — as well as through any commercial spaces that may be part of the development.

    However, it often means overcoming community and regulatory hurdles. In the case of Lorton Reformatory, investors initially expressed concern that the development was in a metro area without mass transit and that mixed-income housing might turn off prospective developers. Eventually, an investor did see the potential — and the result is Liberty Crest Apartments.

    Despite these types of hurdles, adaptive reuse projects represent a huge opportunity for developers and communities alike. CNBC Make It reports that 188 prison facilities were shut down in the U.S. between 2000 and 2022, and in at least nine states conversions of these facilities are either underway or have been completed.

    After all, why would communities and developers want to keep that much potential locked up?

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

  • ‘I’m speechless’: San Francisco families feel betrayed after learning $3.8M in donations meant for local playgrounds were allegedly used on expenses like ‘swanky galas’ and staff bonuses

    ‘I’m speechless’: San Francisco families feel betrayed after learning $3.8M in donations meant for local playgrounds were allegedly used on expenses like ‘swanky galas’ and staff bonuses

    The San Francisco Parks Alliance (SFPA) — a nonprofit foundation established to “create, sustain and advocate for parks” — has abruptly shuttered amid a media and legal firestorm over alleged mismanagement involving at least $3.8 million in donations.

    That leaves donors like Nicola Miner — whose Baker Street Foundation donated $3 million to the SFPA several years ago — “speechless.” She gave the SFPA that money to support construction of two neighborhood playgrounds.

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    “I wanted a park here, that was what our money was for,” Miner told CBS News.

    But the parks never materialized. Instead, she learned that the SFPA — an arm’s-length fundraising partner of San Francisco’s Recreation and Parks Department — funneled nearly $2 million of her foundation’s donation to cover general operating expenses.

    “The money was not for general operating expenses. And so I just feel a real sense of betrayal,” Minser said. “The fact that they took money away from families, I’m speechless.”

    A prominent nonprofit falls from grace

    The San Francisco Standard reports that top employees at the SFPA got bonuses despite a “massive deficit”, and the nonprofit spent more on “swanky galas” and fundraising events than it made.

    “You would never, in a million years, give a bonus under these circumstances,” Joan Harrington, a nonprofit ethics expert at Santa Clara University, said.

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

    In the wake of the allegations, San Francisco’s mayor froze the organization’s funding in May, and City Attorney David Chiu launched an integrity review into the nonprofit.

    Subsequently, The San Francisco Standard reported that the SFPA was abruptly “winding down,” leaving donors and partners empty-handed.

    Just days afterward, the San Francisco Government Audit and Oversight Committee subpoenaed the organization’s former CEOs and its board treasurer after they failed to show up at a committee hearing.

    Doing your donation due diligence

    Some donors may be left wondering how they could be let down by such a prominent and politically connected organization. It’s a reminder that a prominent name is no guarantee of continued success or appropriate management — and the prudent approach to committing funds is to perform thorough due diligence.

    To help with this process, the Stanford Center on Philanthropy and Civil Society (Stanford PACS) has published “The Stanford PACS Guide to Effective Philanthropy,” with questions that donors should try to answer before making a commitment. For example:

    • Does the nonprofit comply with tax regulations?
    • Are its donations earmarked for a specific purpose (like a playground)?
    • Are the donations restricted or unrestricted?
    • How does the organization track and report restricted donations?

    Restricted donations have conditions on how those funds are to be used, while unrestricted donations can be used for anything related to the nonprofit’s mission.

    Stanford PACS also publishes the Philanthropist Resource Directory, which can be a helpful resource early in the due diligence journey.

    Several third-party websites are also available to help with this process.

    For example, GuideStar aggregates information about U.S. nonprofits registered as 501(c)(3) organizations and categorizes them based on the amount of information they self-report.

    It also publishes IRS Form 990 tax returns, which are filed by “tax-exempt organizations, nonexempt charitable trusts and section 527 political organizations.”

    GiveWell researches and recommends charities working in global health and poverty alleviation “that save or improve lives the most per dollar,” while Charity Navigator rates more than 225,000 nonprofits based on their “cost-effectiveness and overall health of a charity’s programs, including measures of stability, efficiency and sustainability.”

    The Stanford PACS guide also suggests looking at which organizations have received grants from respected foundations such as the [Gates Foundation]https://www.gatesfoundation.org ) or Ford Foundation — both of which have searchable grants databases — and talking to people who’ve contributed to the organization or worked with it.

    Donors can also consider a Donor Advised Fund (DAF), an account that allows donors to give to charity, receive an immediate tax deduction and recommend grants from the fund over time.

    Donating a large amount of money to a charity is a big commitment — and even supposedly reputable organizations can run into trouble. So time spent on due diligence is time well spent.

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

  • ‘Everything we had’: LA family devastated after jewelry store targeted in shocking Hollywood-style heist — with millions gone, owner says it’s left his 71-year-old dad’s retirement at risk

    ‘Everything we had’: LA family devastated after jewelry store targeted in shocking Hollywood-style heist — with millions gone, owner says it’s left his 71-year-old dad’s retirement at risk

    It seems like a plotline out of a Hollywood blockbuster: thieves cutting through a concrete wall in the middle of the night to break into a neighboring jewelry store and steal more than $2 million in cash and jewels.

    But that’s what happened in a brazen heist to family-owned 5 Star Jewelry and Watch Repair in Simi Valley, California, according to ABC7 Eyewitness News.

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    “I feel bad because this was my life, my retirement … they got everything we had,” Jacob Youssef told KTLA5. At 71 years old, he was about to retire and had already left the business to his son Jonathan in 2015. “I cannot rebuild what I did in my lifetime.”

    Since the store was priced out of insurance, they’ve now lost everything.

    Why a family’s financial future is now at stake

    A security camera shows one of the thieves crawling on his stomach through the neighboring store to avoid motion sensors and then spray-painting the camera lens.

    “This wasn’t random,” Ted Mackrel, owner of Dr. Conkey’s Candy and Coffee told KABC. “They sawed a hole in our roof Sunday evening of Memorial Day weekend and managed to dodge all security systems.”

    From there, the thieves dropped into the shop’s bathroom, shimmied along the floor and spent at least three hours cutting through a concrete wall and then a heavy safe.

    Mackrel says the break-in was discovered on Monday morning when staff reported “a big hole in the wall leading to the jewelry store.”

    According to Jacob and Jonathan, the thieves stole all of the gold and jewelry in the safe, as well as customers’ heirloom pieces — including a Rolex watch — that they were repairing at the time of the break-in.

    But that wasn’t all they lost.

    “It’s a hit,” Jonathan, who now runs the family business, told KTLA5. “It’s [my dad’s] retirement, my future. I have a young family and three daughters. It’s a lot to have to rebuild from, especially because my dad is 71. He can’t work forever.”

    Since the incident, the local community has started a fundraiser to help the family get back on their feet.

    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

    A risky strategy for retirement

    This event reveals a critical vulnerability that many small business owners face: relying entirely on their business as their retirement plan.

    Recent Gallup research found that most small business owners don’t have a succession plan, yet 74% of employer-business owners have plans to sell or transfer the ownership of their business for retirement.

    An earlier 2025 survey by SCORE found that 34% of entrepreneurs have no retirement savings plan for themselves, with 18% planning to sell their business and use the money to fund their retirement. Another 21% have already used their retirement savings to invest in their business.

    But this strategy comes with risks, including a lack of diversification, liquidity challenges and even the myth of the eventual sale.

    “Of the approximately 77 million baby boomers in the U.S., an estimated 12 million have ownership in privately held businesses,” according to a whitepaper by Butcher Joseph & Co. and ITR Economics.

    At the same time, about 10,000 baby boomers reach retirement age every day. But many are facing a similar problem, since “their would-be heirs would rather have the proceeds of a sale than take over the family business.”

    Another problem, however, is that with an influx of baby boomers looking to sell, “we’re entering an environment where buyers have the upper hand,” according to Entrepreneur.

    That may be good news for young entrepreneurs looking to buy an established business, but perhaps less so for small business owners dependent on the sale for their retirement.

    How to save for retirement

    If you’re self-employed or run a business, you may want to avoid putting all your retirement eggs in one basket.

    If you’re self-employed and don’t have any employees, consider a solo 401(k) to beef up your own retirement savings. If you have employees, a Simplified Employee Pension (SEP) IRA can help both owners and their employees contribute toward their retirement.

    You may also want to consider contributing to personal investment accounts separate from the business. The more diversified you are, the better.

    And don’t forget about liquidity. If you can’t sell the business right away, what would that mean for your retirement goals?

    It’s well worth consulting with a financial advisor as well as experts in succession planning to make sure you have an exit strategy that leaves you with options.

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

  • ‘Something worse than a recession’: Billionaire investor Ray Dalio says Trump’s economic agenda could be catapulting the US toward a world order ‘very much like the 1930s’

    ‘Something worse than a recession’: Billionaire investor Ray Dalio says Trump’s economic agenda could be catapulting the US toward a world order ‘very much like the 1930s’

    The founder of Bridgewater Associates, one of the world’s largest hedge funds, is voicing concern that President Donald Trump’s economic agenda could lead to “something worse than a recession.”

    “Right now, we are at a decision-making point and very close to a recession,” billionaire investor Ray Dalio told NBC’s Meet the Press. “And I’m worried about something worse than a recession if this isn’t handled well.”

    A recession is typically defined as two consecutive quarters of negative GDP growth. A much more “profound” change would be a breakdown of the current monetary order. (It’s worth pointing out that Dalio correctly predicted the 2008 financial crisis.)

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    What’s worse than a recession?

    Trump has triggered global economic chaos with his on-again, off-again tariffs, most recently declaring a 90-day pause on ‘reciprocal’ tariffs, with some exceptions.

    In that case, tariffs have increased to 145%. With markets in turmoil and consumer confidence plummeting, more economists believe a recession is likely.

    But Dalio believes Americans could be facing more than a recession. Tariffs, combined with a high level of debt and a rising superpower challenging the existing superpower, could lead to “profound changes” in the world order.

    “Such times are very much like the 1930s,” he told NBC.

    The end of the Second World War ushered in a new monetary and geopolitical world order. But history tends to repeat itself.

    “These go in cycles that can be measured, and I worry about the breakdown of that kind of order, particularly since it doesn’t need to happen,” he told NBC, adding that there are better ways to restructure debt.

    Whether tariffs are implemented in a “stable” way or a “chaotic and disruptive way” can make “all the difference in the world,” he said. But so far, the tariffs have been akin to “throwing rocks into the production system.” In other words, highly disruptive.

    “Right now we’re at a juncture,” he told NBC. He believes Congress needs to get the budget deficit down to 3% of GDP while managing trade deficits “in the right way.” If not, there will be a supply-demand issue for debt and “the results of that will be worse than a normal recession.”

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

    How can you prepare your finances?

    If you’re an average American, how can you heed Dalio’s warning? Start by establishing an emergency fund (if you don’t already have one) that will cover at least three to six months of expenses — perhaps more, if you’re in a job that could be impacted by tariffs and trade wars.

    Pay down high-interest debt (like credit cards) and avoid building up more debt if possible. While times of uncertainty can lead to retail therapy — where we buy something to get a temporary hit of dopamine to combat our stress and anxiety — you’ll likely feel better in the long run if you cut back on unnecessary spending.

    After you’ve taken care of your emergency fund and high-interest debt, you can prioritize saving for retirement and other long-term goals. You may want to consider diversifying your income stream, like taking on a side hustle, or reskilling to manage changes in the job market.

    It may also be a good time to diversify your investments across different asset classes to mitigate risk. That might mean adjusting your mix of stocks, bonds and other assets.

    If you’re close to retirement, you might want to shift to lower-risk assets, like dividend-paying stocks. Alternative investments , such as gold and real estate, are often considered a hedge against inflation and recession.

    If you’re new to hedging — a risk management strategy that can help offset losses by purchasing investments in an opposite position to an existing investment — you may want to consult with a financial advisor to see how this could help mitigate risk in your portfolio.

    Depending on whether you’re close to retirement or not, you may want to adjust your retirement strategy — and adjust your risk tolerance to match that strategy. If you’re a young investor, you still have time for the market to recover, so avoid panic selling.

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

  • ‘Mind boggling’: Some Californians making six figures now qualify for low-income housing, as report reveals 41% of households there are ‘cost burdened’ — making it the highest rate in the US

    ‘Mind boggling’: Some Californians making six figures now qualify for low-income housing, as report reveals 41% of households there are ‘cost burdened’ — making it the highest rate in the US

    California is in the midst of a housing affordability crisis. And whether you are renting or buying, “the salaries that people once strived for often are no longer enough,” reporter Steve Large with CBS News Sacramento said.

    Household income levels — based on the latest data from California’s Department of Housing and Community Development — are used to determine eligibility for certain housing assistance programs.

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    Some of those income levels at which people qualify for low-income housing assistance are “mind-boggling,” Chelsea Carmack, who recently moved to California, told CBS News Sacramento.

    In the Bay Area, for instance, the low-income threshold for individuals is $111,700 in Santa Clara and $109,700 in San Francisco and San Mateo counties.

    “I love the weather,” Carmack told Large, adding that when it comes to finding housing, “it’s been very challenging to adapt to the higher cost of living.”

    Now her California dream is simply “to survive.” That applies to many Californians.

    Why many Californians are cost-burdened

    The U.S. Department of Housing and Urban Development considers homeowners cost-burdened if they spend more than 30% of their monthly income on housing, including utilities. They’re severely cost-burdened if that figure tops 50%.

    These households “may have difficulty affording necessities such as food, clothing, transportation and medical care,” according to HUD.

    In California, where homes cost about twice as much as the typical U.S. home, 41.1% of households were cost-burdened in 2023 — the highest proportion in the country, according to California’s Legislative Analyst’s Office (LAO) housing affordability tracker.

    LAO also found that the annual household income needed to qualify for a mortgage on a mid-tier California home in March 2025 was about $234,000 — more than double the state’s 2023 median household income of $96,500.”

    If you’re looking for a starter home, you’ll likely need to earn at least $142,000. And if you’re eyeing a two-bedroom place, your monthly payments could be nearly double what you’d pay in rent.

    While the situation in California is severe, affordability is an issue across the country. In 2023, 41.8 million people — or 32.8% of all households — were cost-burdened. That includes just over half of renters (51.8%) and nearly a quarter of homeowners (23.3%).

    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 avoid being cost-burdened

    Lenders generally require that your payments for principal, interest, taxes and insurance don’t exceed 25% to 28% of your gross monthly income. Combined with long-term debt, your total obligations usually shouldn’t exceed 33% to 36%.

    These are useful limits, but it’s a good idea to stay well below them if you can. Consider your lifestyle and other financial goals.

    For example, are you willing to skip dining out to afford a bigger home? Do you want enough room in your budget to max out your 401(k) and save for retirement?

    Start with your take-home pay. Build a budget that accounts for your lifestyle, fixed costs and priorities, then decide what you can comfortably afford in housing costs each month. Factor in not just your mortgage but utilities, insurance and maintenance. Make sure you have wiggle room in case rates or costs increase.

    Also consider upfront costs like legal fees, moving expenses and renovations. If you’re a first-time buyer, you may also need new furniture and household basics.

    Saving for a larger down payment can help reduce your monthly costs. Paying down other debts could free up more income and improve your credit score, which may lower your mortgage rate. And don’t forget an emergency fund — aim to cover three to six months of expenses. That way, if you lose your job or face a financial setback, you can stay afloat without piling on more debt.

    What if you’re already cost-burdened?

    If you’re already house-poor, start by creating a budget and cutting unnecessary spending. You might need to boost your income with a new job, side gig or second job.

    To ease housing costs, consider getting a roommate or renter. Downsizing, refinancing or relocating could also make a big difference. A move to another state might be worth considering if your job and lifestyle allow it.

    Some states have high rates of cost-burdened homeowners — like California (31.9%) and New York (28.2%) — while others, such as North Dakota (15.6%) and West Virginia (14.6%) have much lower rates.

    That said, avoid frequent moves, which come with added costs. And try to resist lifestyle creep — upgrading your home every time your income rises can trap you in a cycle of spending.

    You need a place to live — but you also need to live. Make sure your housing costs align with your overall financial plan so you can still meet your other life goals.

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

  • Are US taxpayers getting ‘DOGE dividend’ checks? What we know about the idea floated by Trump and Musk — and if we do get them, why they might only cover a fraction of the cost of tariffs

    Are US taxpayers getting ‘DOGE dividend’ checks? What we know about the idea floated by Trump and Musk — and if we do get them, why they might only cover a fraction of the cost of tariffs

    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, DOGE has revised its savings goal a few times from $2 trillion to $1 trillion and now to $150 billion.

    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.

    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’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.

    What to read next

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

  • There’s a new ‘magic number’ Americans say they’ll need to retire comfortably — and it’s a shocking change since 2024. Here’s how to reach it ASAP without turning to sorcery

    There’s a new ‘magic number’ Americans say they’ll need to retire comfortably — and it’s a shocking change since 2024. Here’s how to reach it ASAP without turning to sorcery

    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.

    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

    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.

  • Can buying in bulk actually cost you more? Why Americans desperate for savings should be wary of warehouse clubs like Costco

    Can buying in bulk actually cost you more? Why Americans desperate for savings should be wary of warehouse clubs like Costco

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

  • ‘Porch pirates have clear favorites’: Texas man designs ‘smart mailbox’ to protect packages from theft — what you need to know to keep your property safe from ‘a crime of opportunity’

    ‘Porch pirates have clear favorites’: Texas man designs ‘smart mailbox’ to protect packages from theft — what you need to know to keep your property safe from ‘a crime of opportunity’

    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.”

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

  • A Minnesota nonprofit linked to $250 million fraud scheme was just raided by the Feds — the FBI believes its records claiming it fed 1 million children ‘are phony.’ How the scam worked

    A Minnesota nonprofit has been raided by the Feds in a new investigation more than a year after last year’s $250 million-meal program fraud scheme. In those allegations, Feeding Our Future is said to have had scammers steal hundreds of millions of dollars from taxpayer-funded nutrition programs for hungry children during the early days of the pandemic.

    Now, more than a year later, New Vision Foundation (NVF) in Saint Paul is the focus of yet another Feeding Our Future meal fraud investigation.

    NVF is a nonprofit with a mission to “create pathways to success by motivating disadvantaged youth in Minnesota through coding and digital literacy classes,” according to its website, which also displays logos from major sponsors including 3M, Target and Wells Fargo, as well as the City of Saint Paul.

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    How meal program fraud works

    In March, a jury found Aimee Bock, founder and executive director of Feeding Our Future, guilty on all counts of fraud. She’s considered the ringleader of an elaborate scheme that stole $250 million from the federal child nutrition program in 2021, during the height of the pandemic.

    While Bock is in jail awaiting sentencing, 47 suspects “have been indicted for defrauding a federally funded child nutrition program,” according to the FBI.

    The scam was executed by claiming to serve more meals to children in need than was the case. Like other organizations taking part in the scam, “NVF allegedly submitted fraudulent reimbursement requests to the Minnesota Department of Education for meals that it never served,” according to MPR News.

    During the trial, it came to light that Feeding Our Future paid NVF more than $2.5 million in 2021. While NVF claimed to serve more than 1 million meals to children in need over an eight-month period in 2021, “the FBI believes meal count sheets, claiming to feed more than 3,000 kids two meals every day, are phony,” according to KARE 11.

    There were several red flags. For example, workers at a neighboring nonprofit called Repowered (which provides electronics recycling jobs to people recently released from jail), “told law enforcement that they never saw any children at New Vision Foundation — either being served meals or otherwise,” according to the search warrant written by FBI Special Agent Travis Wilmer.

    And, since Repowered has registered sex offenders on staff, “children could not be present at New Vision Foundation.”

    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

    NVF invoices claim the food was purchased from a food service company in Eden Prairie. But, according to the search warrant, the address on the invoices led to an apartment complex rather than a food warehouse for produce, dairy products and rice (as the invoices claimed).

    In addition, public tax filings show that NVF reported five times the amount of “gifts and grants” in 2021 as it did in 2020 or 2022.

    The broader economic implications of fraud

    While this was an exceptional case, it’s not the first nor the only case — highlighting what can go wrong with programs intended to help those in need without proper oversight and governance.

    A scathing report from the Office of the Legislative Auditor found that the Minnesota Department of Education’s “actions and inactions created opportunities for fraud.”

    To mitigate risks, the report recommends better oversight for reviewing and approving sponsor applications, as well as conducting monitoring visits and compliance reviews.

    Fraud wastes money and diverts resources from those who actually need it — in this case, thousands of children who never received meals and snacks during the height of the pandemic. It also has broader social impacts, such as eroding trust in government programs.

    This is particularly urgent right now, as America’s “crisis of public trust in government is growing,” according to a national survey conducted by the Partnership for Public Service. The survey found that only 23% of Americans trust the federal government and just 29% believe that democracy is working in the U.S. today.

    The federal government loses between $233 billion and $521 billion annually to fraud, according to the U.S. Government Accountability Office (GAO).

    In the case of Feeding Our Future, the FBI and law enforcement partners have “been able to recover $50 million from 60 bank accounts, 45 pieces of property, and numerous vehicles and additional items, such as electronics and high-end clothing,” according to the FBI and “additional seizures are expected.”

    When it comes to detecting and rooting out fraud, advanced technologies could help.

    For example, the U.S. Department of Agriculture’s (USDA) is targeting fraud in its Farm and Food Workers Relief Program in a variety of ways, including a centralized risk and fraud analysis tool, document verification technology to detect alterations and predictive analytics that analyze deviations from expected patterns. It also monitors social media and the dark web.

    Concerned citizens can learn more about common fraud schemes on GAO’s Antifraud Resource or they can report fraud, waste, abuse or mismanagement of federal funds to FraudNet.

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