Author: Vawn Himmelsbach

Imagine authorities declared your home unlivable — and gave you just days to vacate.

That’s the reality for residents of an apartment building in Southwest Cedar Rapids, Iowa — and now, according to KCRG-TV9, they’re struggling to find new places to stay.

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On March 25, Cedar Rapids Building Services posted “do not occupy” notices on the building after it was declared “unfit for human habitation” due to sewer problems. But that wasn’t the only reason: the building lacks fire safety equipment, several units are missing plumbing fixtures and some units don’t even have electricity.

“There’s been problems here ever since I first moved here,” tenant Darius Franklin told KCRG-TV9. “There would be times where we would pay the rent, on like a Monday on the first [of the month] and then the water would be cut off on like Thursday. Or the gas would be cut off.”

Another displaced tenant expressed concern for her daughter and infant grandson who live in another building owned by the same landlord.

“They came in and they were shown a hole that was ate through the floor from mold on it,” she said. “He’s so tiny he would fall straight through the floor and they still haven’t fixed it, nothing’s been done.”

When is a building deemed uninhabitable?

The rules vary by state, but generally, a property is considered legally uninhabitable if it violates the building code or if it’s not safe to live in — for example, if it’s structurally unsound or lacks reliable heat, plumbing or electricity.

Other factors that may render a building uninhabitable include mold, a leaky roof or pipes, no hot water in winter, unsafe elevators or a pest infestation.

In most jurisdictions, when you sign a residential lease, you have an implied warranty of habitability, meaning your landlord is legally required to keep the property in compliance with local housing codes — even if this isn’t explicitly stated in the lease.

If your landlord doesn’t comply, you may be able to withhold rent to pressure them to make repairs. And in most cases, they’re not allowed to evict you for reporting code violations.

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What to do if your home becomes unlivable

If you find yourself in this situation, start by reviewing your lease to determine who’s responsible for the repairs. (Tenants are typically responsible for minor fixes, such as replacing light bulbs). If the issue affects habitability — or if the lease explicitly states that it’s the landlord’s responsibility — report it to them immediately.

Many buildings have a formal maintenance report process, such as an online requisition form. Always keep a copy of your request. Also, take date-stamped photos or videos of the issue to support your claim.

Document everything: if you make a verbal request, record the date and time, and follow up with a written letter confirming that the request was made. Keep a copy of that letter too. There are plenty of templates available online to help you draft one. For added proof, consider sending the letter via certified or registered mail.

Continue to track all correspondence and monitor any changes to the issue — for example, if a ceiling leak worsens or mold spreads.

Consider holding back rent, getting legal help or leaving

Most jurisdictions give landlords a set period to complete necessary repairs. Be sure to ask how and when the issue will be resolved. While you wait, you may be able to negotiate a temporary rent reduction.

If your landlord doesn’t respond or fix the issue, contact your local housing authority. Depending on the local laws, you may be allowed to withhold rent or make the repair yourself and deduct the cost from your rent.

If nothing changes, you might need legal assistance — or even consider moving out. If the situation poses a risk to your health, you may be able to leave without giving notice. Just be sure to confirm your rights with your local housing authority before doing so.

Legal action or relocating can be costly, so having an emergency fund that covers three to six months of expenses can make a big difference. Renters insurance might also help — while it usually doesn’t cover landlord negligence, it may cover temporary living expenses if your home becomes uninhabitable due to fire or natural disaster.

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

What happens when your tenants are driving you to financial ruin, but you can’t kick them out during an ongoing eviction battle?

That’s the problem faced by property owner Akosua Danquah in Iowa Colony, Texas. Her tenants have stopped paying rent and call the police when she tries to check on her home. Though she’s trying to get them evicted, the process is time-consuming — and it’s driving her toward bankruptcy.

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“I can’t even come to my home,” Danquah told KHOU-11 News. “This is the most disheartening thing you can imagine.”

An ongoing eviction battle

Danquah decided to rent out her home after accepting a job out of state. In January, her tenants stopped paying rent — and haven’t paid since — so she gave them a notice of eviction. But after going to her local justice of the peace court to file the eviction, she was told she’d have to wait 30 days.

Now, her tenants have stopped all communication with her, and when she tries to check on her home, they call the police.

In the meantime, Danquah has had to stay with family and friends since she can’t afford to pay both her mortgage and her rent out of state without the rental income from her tenants.

She now wishes she had done a background check on the tenants.

“Whenever you take shortcuts when leasing a property, you’re taking chances,” Troy Cothran, treasurer for the Houston Association of Realtors, told KHOU-11 News.

“My recommendation is don’t take any shortcuts when leasing because it’s a business decision that you’re doing.”

In the meantime, Danquah has an eviction hearing this month.

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How landlords can protect themselves

If you’re looking to rent out your property, start by screening potential tenants. That could include a credit check, background check and/or income verification. You can also ask for references from their employer and previous landlord. If they refuse to do so, that may be a red flag.

Make sure you have a lease agreement that clearly outlines the amount due each month and what will happen if tenants don’t pay their rent on time (including grace periods and late fees). You may want to consult with a real estate lawyer to help you navigate landlord-tenant laws in your state.

You can also ask for a security deposit (due when the tenant signs the lease), which is typically equal to one or two month’s rent. Most states allow landlords to use the security deposit (or a portion of it) to cover unpaid rent, but the rules differ from state to state. This should be outlined in the lease.

If the tenant is late with their rent, reach out with a late rent notice. States have different rules around grace periods. In Texas, for example, landlords aren’t required to provide tenants with a grace period (unless they agree to do so in the lease).

If the tenant still doesn’t pay, you could follow up with a pay-or-quit notice in which you outline a specific time to pay the overdue rent — or move out. (Make sure you understand local and state laws around eviction procedures.)

If the tenant still fails to comply, you can file for eviction with your local court. If the eviction is successful, you may be able to sue for outstanding rent and associated costs.

While landlord insurance isn’t mandatory, it can help to cover financial losses if your tenant doesn’t pay their rent. However, if you have a mortgage on the property, you may be required by your lender to take out a landlord insurance policy.

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

Many Canadians have decided not to travel in the U.S. as a trade war continues.

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Future bookings for flights between Canada and the U.S. have plummeted by over 70% in every month through to the end of September compared with the same time in 2024, according to OAG, a global travel data provider.

In February, the number of Canadians crossing the land border into the U.S. dropped almost 500,000 compared to the same period last year, according to data from U.S. Customs and Border Protection (CBP) — reaching levels not seen since the height of the Covid-19 border closures.

“This is like Covid all over again,” said Len Saunders, an immigration lawyer in Blaine, Wash., which borders the Canadian province of British Columbia, in an interview with CBC News. “With the rhetoric coming from Trump — people just don’t want to come down here.”

The number of Canadian residents returning from the U.S. by flights also fell by 13.1% in February, with Air Canada, WestJet and United Airlines announcing cuts to service due to declining demand.

“A 10% reduction in Canadian travel could mean 2.0 million fewer visits, $2.1 billion in lost spending and 14,000 job losses,” according to the U.S. Travel Association, which noted that Canada is the top source of international visitors to the country, with 20.4 million visits in 2024.

But it’s not just Canada. The Trump administration is also escalating a trade war with the rest of the world, and domestic tourism has also slowed down this year, with Bank of America aggregated card data showing softer lodging, tourism and airline spending. "It could be that the recent drop in consumer confidence is translating into people hesitating to book trips, or considering paring them back. But bad weather and a late Easter this year are also likely playing a part," said the bank.

While this will undoubtedly impact Americans working in the tourism and hospitality industry, it could also have impacts on everyday Americans.

Why Canadians are avoiding U.S. travel

It’s not just tariffs that have shaken Canada-U.S. relations. Taunts about Canada becoming the 51st state, threats of annexation and reports of Canadians and other nationals being detained by Immigration and Customs Enforcement (ICE) — like the account of one Vancouver woman detained by ICE for two weeks — is keeping Canadians away.

Then there’s the Canada-U.S. exchange rate. The loonie plummeted to its lowest level in more than 20 years when Trump first announced impending tariffs. It has since risen to a near five-month high against the greenback.

But Barbara Barrett, executive director of the Frontier Duty Free Association, told CBC News that cross-border traffic declines aren’t due to the exchange rate. Rather, it’s about anti-tariff sentiment.

“We’ve seen the dollar fluctuate up and down before and we haven’t seen this sort of dramatic decline,” she said. “If it was all about the dollar — we’d have a flood of Americans coming over and we’re not seeing that.”

While many Canadians and other foreign nationals are boycotting the U.S., some don’t feel it’s safe to go right now. Several countries — including the U.K., Denmark, Finland, Germany and Canada — have updated their travel advisories for the U.S. regarding immigration requirements and gender identification.

“Since the start of the second Trump administration, there appears to be an uptick in foreign visitors to the U.S. being denied entry, resulting in people being sent back to their original destinations or being held in detention,” according to Wired.

As of April 11, Canadians also have to register with the U.S. government if they plan to stay in the country for more than 30 days.

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What does this mean for American travelers?

While tariffs may not have an immediate impact on domestic travel — like the price of airfare or hotel rooms — ongoing trade wars with multiple countries could eventually take a toll.

The Federal Reserve lowered its outlook for economic growth in 2025 to 1.7%, with inflation projected to creep up from 2.5% to 2.7%. With signs of slowing economic growth and consumer expectations for income, business, and labor market conditions at a 12-year low, Americans may decide to hold off on those vacation plans.

“The longer tariffs last, the more likely we’ll see air travel impacted in the form of higher costs for Boeing and airlines, fewer overall flights, and higher fares,” Scott Keyes, founder of Going, told USA Today.

But if the U.S. does sink into a recession, some travel costs could drop. “That’s because demand for travel typically falls during economic hard times, and with less demand, airlines would be forced to drop prices in order to fill planes,” Keyes said.

Tips for travel planning in uncertain times

Americans traveling domestically may want to consider vacationing in areas impacted by a downturn in Canadian tourism, such as Florida. Prices could drop because of reduced demand; at the same time, you’d be helping to support the tourism industry in those areas.

Visits to national parks, however, could get more complicated. The mass firing of 1,000 national park workers could result in service delays and maintenance issues — so you’ll want to plan any outdoor adventures far in advance.

As gas prices rise as a result of tariffs, road trips could also get more expensive (at home and abroad). So, for example, if you’re traveling in Europe, you may want to compare the costs of traveling by train rather than renting a car.

If prices escalate, airlines and hotels may adjust their prices accordingly. So it may be better to book sooner rather than later to lock in rates for flights and hotels.

Another option is to cash in those frequent flyer miles or credit card travel rewards to save on flights, hotels and rental cars. If you’re in the market for a new travel rewards credit card, keep an eye out for promotional offers that could help fund your next vacation.

It could also be a good time to sit down with a financial adviser to come up with a game plan for uncertain times, which could mean diversifying your portfolio, topping up your emergency fund and perhaps even creating a “travel fund” (say, in a high-interest savings account) so you don’t rack up unnecessary credit card debt on your next vacation.

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

While Elon Musk has claimed that millions of dead people are fraudulently receiving Social Security benefits — an assertion that has been debunked by experts — one Seattle man experienced the opposite problem.

“You wake up one day and discover you’re dead,” Ned Johnson told The Seattle Times in an article published March 15. “It’s been truly surreal.”

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But Johnson, 82, is still very much alive. For reasons unbeknownst to him, he ended up on the Social Security Administration’s (SSA) “death master file,” according to the Times, and had his benefits clawed back to November — the month he supposedly died.

Funds were deducted from his bank account for retirement benefits received in December and January, for a total of $5,201. And he hadn’t yet received his February or March checks. His Medicare insurance had also been canceled and his credit report marked him as deceased and ineligible for a loan.

It took nearly two weeks and multiple calls per day to Social Security before he was able to make an appointment. But the appointment was then delayed, which prompted him to make a spontaneous trip to the agency’s downtown office. He described it as a “Depression-era scene” with a long queue and only two tellers.

Once in front of a human, he was able to prove he is, in fact, alive. The agency pledged to fix his predicament.

“When I was in that line, I was thinking that if I was living solely off Social Security, I could be close to dumpster diving,” he recalled.

Social Security mistakes

It’s unclear what led to Johnson being considered deceased by the SSA, however, the agency notes that among the millions of death reports it receives each year, “less than one-third of 1% of are erroneously reported deaths” that require correction. Death reports often come from family, friends or funeral homes and are considered “first-hand” accounts.

But the agency has also been prone to other mistakes. The SSA’s Office of the Inspector General reported last year nearly $72 billion in improper Social Security payments were made from fiscal years 2015 through 2022. That amount represents less than 1% of the benefits paid over that seven-year period — and most of those were overpayments.

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If you’ve been receiving overpayments — even through no fault of your own — you’re on the hook for them. Under Trump-appointed acting commissioner Leland Dudek, the SSA is reinstating the default overpayment withholding rate to 100% of a person’s monthly benefit until reimbursement is complete. This only applies to new overpayments as of March 27. The withholding rate was previously capped at 10% due to potential financial hardship of beneficiaries. This latest move is expected to save about $7 billion over the next 10 years.

In an article published by the Center on Budget and Policy Priorities, Directory of Social Security and Disability Policy Kathleen Romig insisted that, despite these errors, the agency’s overall payment accuracy rate is well over 99%.

“Only 0.3 percent of Social Security benefits are improper payments, which are typically caused by mistakes or delays,” she wrote.

What to do if it happens to you

Mistakes will always happen, whether from a data entry error or administrative delay in updating a beneficiary’s information. And that can result in delayed benefits, clawbacks or overpayments that require repayment — regardless of who’s to blame for the error.

If you or a loved one are affected by a Social Security error, you’ll want to report it as soon as possible. In Johnson’s case, the error became glaringly obvious when money disappeared out of his bank account. But in other cases it may not be so obvious, so it’s good practice to regularly review your earnings statement for each calendar year to look for any discrepancies.

Contact the SSA as soon as possible to request a correction, either through your Social Security account, by calling 1-800-772-1213 or by visiting a local field office. Make sure you can provide them with the necessary documentation, such as pay stubs or W-2s.

If your request for correction is denied, you can file an appeal. For complex matters, you may want to seek assistance from a financial adviser or attorney. And, as in Johnson’s case, it may require an in-person visit to speed up the process.

Additionally, if your benefits are being withheld in order to reimburse any overpayments, you can make an appeal to the SSA to adjust the amount or waive the collection if you believe the error wasn’t your fault and you can’t pay it back.

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

After spending decades saving for your retirement — and maybe making some sacrifices along the way — you’ve finally retired.

Now you can start living off your nest egg, which, if managed prudently, can maintain your standard of living while allowing you to spend more on indulgences like travel, hobbies and dining out.

But, if you’re like many Canadian retirees, this won’t be the case. Why? Because you won’t spend enough to get the most out of your retirement — even though you can.

It’s not easy being a spender

Economic theory suggests that we should try to keep our level of consumption steady throughout our lifetime. Yet, studies have shown that we reduce our inflation-adjusted consumption in retirement. This is known as the ‘retirement consumption paradox.’

For those without enough retirement income, this may be out of necessity. But it’s more likely driven by fear.

According to CPP Investments61% of Canadians are worried about running out of money in retirement.

Among non-retirees, having a financial plan set in place is one of the top reasons why they don’t worry about their retirement savings. Yet, many still restrict their savings. So, how can you move from a savings mindset to a spending mindset and begin to enjoy your retirement?

How to change your mindset

Knowledge is power, so first get a handle on your numbers. Be sure you have a full accounting of all your investments, pensions, governmental benefits, annuities and any other sources of income.

Do the same for your expenses. Hopefully, you’ve spent some time tracking them in your preretirement years so you have a place to start. You’ll want to create a budget for your retirement years and then track your spending (using an app is a great way to do this) so you can adjust as needed.

With this knowledge in hand, you can determine how much you’ll need to withdraw from your investments. It’s possible to reasonably draw down the principal each year and still have your money last for decades.

One commonly used method for determining a sustainable level of withdrawals is the 4% rule, by which you withdraw 4% of your portfolio the first year and then 4% plus an adjustment for inflation each subsequent year.

Regardless of the plan you’ve set up, you’ll need to learn to trust it — many don’t. But this is the time of life to stop saving and start spending, so don’t be afraid to embrace this new mindset.

That doesn’t mean you shouldn’t be keeping an eye on your investments. Each person is different, and it’s worth consulting an adviser, but you’ll want to make sure your investments are serving your interests in retirement.

For example, you might want a more conservative portfolio than when you were in your 30s and 40s, but you also might want some potential for growth to weather inflation or help your savings last longer.

If you don’t have a pension, you may want to consider buying an annuity. An annuity is a contract with an annuity provider, like a life insurance company, in which you pay a lump sum up front and then receive payments for either a set period of time or for the rest of your life.

Some studies have shown that people with annuities spend more and feel happierin retirement. To be comfortable that you’ll better weather potential risks, be sure you’re properly insured. Property damage, travel incidents and health issues can be expensive shocks and can derail your retirement plans. Insurance can help mitigate some of the financial damage.

If you’re not sure where to start, a financial adviser can help you decide how much to withdraw from your savings to meet your retirement goals — which, in turn, can help you overcome your fear of withdrawing this amount.

Sources

1. The Globe and Mail: Many Canadians underspend in retirement for no good reason. Here’s what they can do by Alison Macalpine (June 18, 2024)

2. CPP Investments: Nearly 2 in 3 Canadians worry about retirement savings: survey (Oct 30, 2024)

3. Government of Canada: Annuities

4. New York Life: Annuity owners report spending more, staying invested, and feeling happier in retirement (June 21, 2023)

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

About 800,000 Oklahomans depend on Social Security — and they’re wondering how proposed Security Social cuts could impact their retirement.

“Oklahomans want to hear and make sure that Social Security is protected and saved, not only for them, but their children, grandchildren,” Sean Voskuhl, AARP Oklahoma state director, told Oklahoma’s News 4 in a March interview. “More than 22% of Oklahomans rely on Social Security as their primary source of retirement income.”

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Now under Trump-appointed leadership, the Social Security Administration (SSA) is eliminating 7,000 jobs, significantly reducing its workforce, while closing several SSA offices across the country.

And that leaves Oklahomans with questions.

“Is Social Security going to be fully funded? Are people going to get their payments on time? And will there be people at the Social Security Administration offices to answer questions if people have them?” said Voskuhl.

The impact of proposed Social Security cuts

This comes at a time when a record number of baby boomers are reaching retirement age — a phenomenon referred to as Peak 65. And 2025 is the “peak” of Peak 65, with a record 4.18 million Americans reaching the traditional retirement age of 65, according to a research report by the Alliance for Lifetime Income’s Retirement Income Institute.

“Unlike older retired baby boomers, the majority of Peak 65’ers don’t have pensions, which used to help fill that gap left by Social Security,” according to the report’s author, Jason Fichtner, executive director of the institute and a former chief economist at the SSA.

That means cuts to the Social Security workforce are coming at a time when demand for its services are at an all-time high. Former Social Security Commissioner Martin O’Malley told CNBC.com in March that recent actions by Elon Musk’s Department of Government Efficiency (DOGE) are putting the benefit checks of more than 72.5 million Americans at risk.

“Ultimately, you’re going to see the system collapse and an interruption of benefits,” O’Malley said. “I believe you will see that within the next 30 to 90 days.”

Delays could be disastrous for many Americans. In one study, 42% of Americans aged 65-plus said they wouldn’t be able to afford basic necessities like food without their monthly check. For Americans about to retire, staffing cuts and office closures could lead to delays in processing their claims.

At the same time, DOGE — which is helmed by unelected billionaire Elon Musk — is closing 47 local Social Security offices in an effort to save money. Musk has referred to Social Security as “the biggest Ponzi scheme of all time.”

In Oklahoma, a total of 15 federal offices are on the chopping block, including the SSA office in Lawton. These closures will save an estimated $3.7 million, according to DOGE.

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 adjust your retirement savings

From the get-go, Social Security was never meant to be the sole source of a person’s retirement income; rather, it was meant to supplement personal savings and pensions. But an AARP survey found that 20% of Americans aged 50-plus don’t have any retirement savings.

The earlier you start saving, the better — but it’s never too late to start. And that may be more important than ever, with “the imposition of additional tariffs on imports from China, substantial policy uncertainty, sizable pullback in consumer sentiment and spending since the beginning of the year, elevated geopolitical tensions and federal spending reduction initiatives,” according to The Conference Board’s forecast for the U.S. economy.

For those who don’t have a long-term financial plan, it may be worth sitting down with a financial advisor to create a strategy going forward (or to revisit your existing financial plan).

That could include rebalancing into a more diversified mix of investments to include different industries, countries and risk profiles, as well as alternative investments such as real estate or commodities. It could also include mitigating some risk through dividends, in which companies pay distributions to shareholders based on profitability.

Whether you’re saving for the future or close to retirement, you may want to explore your options for bringing in some extra cash, such as taking on a side gig. It may even be worthwhile to reevaluate your retirement plans. Maybe that means working a few more years before retiring, downsizing your home or moving to a less expensive neighborhood or city.

Younger investors have more time to ride out a potential downturn in the economy; those closer to retirement may want to talk to their financial advisor about their options.

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• Trump warns his tariffs will spark a ‘disturbance’ in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP

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

In January, a wildfire tore through the Los Angeles’ Pacific Palisades neighborhood, burning 23,707 acres, destroying 6,837 structures and killing 12 people. Now, allegations have emerged that an electrical tower contributed to the severity of the wildfire — and some residents are looking for compensation.

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A group of residents impacted by the fire have filed a lawsuit against the Los Angeles Department of Water and Power (LADWP). But LADWP wouldn’t be the first utility to be sued over wildfires — and the financial consequences can be severe.

In 2019, Pacific Gas and Electric, one of the largest utility companies in the U.S., declared bankruptcy after it faced billions of dollars in claims from lawsuits related to a series of California wildfires sparked by its outdated equipment.

Eventually, PG&E agreed to pay out $13.5 billion, with a group of executives and board members being forced to personally pay $117 million for their “lax oversight of the utility’s safety measures.”

Now, billionaire Warren Buffett’s Berkshire Hathaway (BRK.B), which owns utilities through its subsidiary PacifiCorp, is tackling this by lobbying multiple states in its western U.S. operating area to enact laws that will reduce the legal risks to companies when their equipment is tied to wildfires.

The multistate lobbying blitz reported on by E&E News has “surprised both consumer advocates and other industries, leaving some powerful sectors — including the insurance and forestry industries, each with their own massive wildfire exposure — scrambling to counter what appears to be a coordinated effort to reshape the way society pays for wildfires.”

Why does it matter?

In its 2023 annual report, Berkshire Hathaway estimated that its utilities could face $8 billion in claims across all wildfire lawsuits filed in Oregon and California. But according to a company filing from August last year reported on by S&P Global, PacifiCorp now faces at least $46 billion in claims related to wildfires.

Wildfires are a growing problem

A recent Sandia National Laboratories study says power grid equipment causes about 3% of wildfires across the U.S. and 10% of wildfires in California, where fires started this way accounted for about 19% of the area burned between 2016 and 2020.

Driven by a warming planet and a power grid that hasn’t adapted to increasing heat and drought, fires are expected to increase in frequency and intensity in the coming years. Utility companies are attempting to mitigate the risk.

But some solutions, like burying cables, are expensive, while others — such as shutting down the grid during high-risk times — are unpopular with customers.

Given the increasing risk of wildfires and the potential for expensive litigation, many states are grappling with how insurance companies, utilities and other stakeholders should share the risks — and the costs — from these fires.

Berkshire Hathaway is trying to tip the scales in utilities’ favor

PacifiCorp is the largest grid owner/operator in the West and serves 1.9 million customers in six Western states.

“PacifiCorp continues to execute its regulatory and financial stabilization strategy across its six states, with a focus on more conservative and safer operating practices, creating supplemental insurance funds and limiting liability to mitigate exposure to existing and future wildfire risk,” the company wrote in its presentation slides at the Edison Electric Institute’s financial conference in November 2024.

Basically, it wants to make it easier for companies to defend themselves in court and limit the amount of money they’ll have to pay victims if they’re found liable.

The same presentation highlighted that Utah passed “favorable legislation” that allows for the creation of a fund for supplemental wildfire coverage and caps damages for wildfire claims.

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States are looking for compromise

In 2024, Utah passed a law that establishes a ratepayer-financed fund to pay wildfire claims. This builds on an existing law that limits utilities’ liability if they file and follow a state-approved wildfire mitigation plan.

Greg Abel, chair of Berkshire Hathaway Energy, refers to Utah’s legislation as “the gold standard.” And it’s clear the company wants other states to follow suit.

Speaking at Berkshire Hathaway’s 2024 annual shareholder meeting, Buffet warned that the company would not invest in states with unfavorable laws related to wildfire liability. “We’re not going to throw good money after bad,” he said.

Abel added that “fundamentally, as we go forward, we need both legislative and regulatory reform across the PacifiCorp states if we’re going to deploy incremental capital, make incremental contributions into that business.”

Since then, Wyoming and Idaho lawmakers have passed laws to limit utilities’ liability. Oregon has also introduced similar legislation.

Wildfire victims may pay the price for imperfect legislation

While these laws require utilities to have wildfire mitigation plans in place, which most agree is a good thing, not everyone is pleased with the broad protections these laws grant utilities.

For example, in Idaho, utilities will be found to have acted without negligence if they “reasonably implemented” the wildfire mitigation plan, which would prevent survivors or insurance companies from suing the utility.

Lee Ann Alexander, vice-president of the American Property Casualty Insurance Association, argues that this will ultimately harm the insurance marketplace.

“All of those concepts fly in the face of how we take care of people in this country,” she told E&E News. “Which is, if you’re responsible for a loss, you are held responsible for that — with varying degrees of accountability, burdens of proof, standards, etc.”

Cody Berne, a Portland-based attorney, told E&E News that Oregon’s law will require victims to release the utility from liability and opt-in to the wildfire fund before knowing what they’ll get paid.

This means “survivors who are desperately in need of funds to rebuild their lives are forced into the impossible position of giving PacifiCorp a get-out-of-jail-free card to get a fraction of what they’re owed,” he said.

“Where does that leave us?” said Debi Ferrer, one of the leaders of the Consolidated Oregon Indivisible Network, to E&E News. “How are people going to cope with a wildfire if the utilities are immune from paying for damages if they cause them, and if FEMA is out of money?”

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Long-term investing can test even the most disciplined investors. With markets swinging on everything from AI breakthroughs to political headwinds, the temptation to act emotionally — especially during big wins or downturns — is real.

Amos Nadler, a behavioural finance expert and former professor at Western University’s Ivey Business School, knows this first-hand. Years ago, he bought shares of Nvidia (NASDAQ:NVDA) for just US$0.48 each. But before the chipmaker exploded into a US$3 trillion AI juggernaut, he sold most of his holdings — missing out on one of the biggest stock runs in tech history. As of March 2025, Nvidia trades around US$108 a share, after its value surged on AI chip demand and record-breaking earnings.

Nadler’s story is more than a missed opportunity — it’s a case study in cognitive bias, and it holds critical lessons for investors trying to navigate 2025’s volatile but opportunity-rich market.

The biggest reason for investor mistakes

When Nadler was starting his teaching career, he wanted to gain some hands-on investment experience to share with his students. As a result, one of his earliest investments was stock in technology company Nvidia (NASDAQ:NVDA)— about US$800 to US$1,000 worth of stock. He paid approximately US$0.48 per share.

After holding them for a period of time, Nadler noticed that the shares had earned a decent profit so he decided to sell a large chunk of his holdings. This was before 2014 and before Nvidia (NASDAQ:NVDA) would become a household name.

Nadler’s goal was to talk about his experience. Turns out the sale gave Nadler lots to talk about with his students — since it was a big mistake.

“I needed some war stories. I needed to talk about gains and losses,” he recently told CNBC Make it. “I need to put my own money to play and experience these things, and take it out of the lab, take it out of the textbooks.” Nadler’s lesson should be used by any investor tempted by bias or emotion.

According to his trading brokerage, Nadler paid about US$0.48 per share, factoring in the stock splits during the company’s history. As of March 31, 2025, Nvidia (NASDAQ:NVDA) stock closed to US$108 per share, reflecting recent market volatility influenced by factors such as underwhelming initial public offering (IPO) of CoreWeave and concerns over potential tariff implementations. The firm’s value increased by more than US$2 trillion just last year.

If Nadler had held onto the stock, his gain would have been over 28,000%. The value of his holdings would have been “enough to buy a nice house somewhere,” according to Nadler.

Here’s the thing: Nadler sold the stock because he succumbed to a cognitive bias known as loss aversion. A cognitive bias is a consistent, repeated error in the way we process information and perceive reality. Loss aversion is a common cognitive bias that leads us to perceive losses as more significant than gains.

In investing, loss aversion can cause us to fear losing the gains of a winning bet in our portfolio. It’s what happened to Nadler when he chose to sell his Nvidia (NASDAQ:NVDA) stock. As he tells it, “What was going through my head was, ‘Hey, I’m new with this. I just made a significant profit in a very short amount of time. I want to lock it in because I’m feeling afraid it may drop again.’”

How loss aversion is driving your investment decisions

You can judge your own loss aversion by considering whether you’d rather have $100 or flip a coin to either gain $200 for heads or $0 for tails. Most people would prefer the certain $100 and value the potential “loss” of this as greater than the potential but uncertain gain of $200. Still not sure, consider the same coin toss scenario but with a payout of $500 or $1,000. The lower the sum you’re willing to accept, rather than risk for the 50/50 chance of getting more, illustrates how risk averse you are (both in coin tosses and investing).

So, how does loss aversion impact your investment decisions?

If you choose to cash-in on your gains, end up being too conservative in your portfolio construction, try to time your entry into the market or instinctively move to cash to avoid volatile markets than you’re operting from a loss aversion bias — and this can all hurt your overall portfolio performance.

Avoiding this cognitive bias means carefully evaluating any stock sale, especially if you plan to move to cash, and trying your best to remove emotion (such as fear) from the decision. For instance, if you’re planning to sell a stock because it’s had a strong run, but fundamentals suggest it’s still a solid investment, you may want to step back and evaluate whether you’re making a rational decision or your actions are being driven by fear.

Engaging with a financial adviser could potentially help you manage that fear by providing an arms-length assessment of your decisions. An adviser could also help you set realistic investment goals so you’re not relying on “bets,” while also helping you diversify your holdings to spread your risk and make individual risks within the portfolio feel less intimidating.

Increasingly, there are also technological tools available to help you remove emotion from investment decision-making. For instance, Nadler founded Prof of Wall Street, which provides software products that help investors use behavioural science to manage biases and improve investment decision-making.

Fear can be a powerful force. Identifying it and enlisting the help of a financial adviser or technological tool could help to take the cognitive bias out of investment decision-making and, hopefully, result in better returns.

Sources

1. CNBC Make It: I sold Nvidia — then it went up over 28,000%, says behavioral finance prof: I could’ve bought ‘a nice house somewhere’, by Ryan Ermey (Dec 12, 2024)

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

With the Trump administration’s political and economic policies shocking many around the world, some strategists are pondering if American exceptionalism is at risk.

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U.S. exceptionalism is the belief among investors and businesses that the country is unique and superior to others. This idea bolsters its economy.

Predictability and the rule of law have given the U.S. this “edge,” according to Mohamed El-Erian, president of Queens’ College in Cambridge and chief economic advisor at Allianz, but he worries that it is being “eroded.”

“The more these two things are questioned, the more that people are going to start questioning U.S. exceptionalism,” he told Bloomberg last month. He stopped short of announcing the death of U.S. exceptionalism, but said it is “under enormous pressure."

When President Donald Trump was elected in November, investors were betting on his policies like tax cuts to spur economic growth and boost U.S. stocks.

But an on-again-off-again trade war, along with an “aggressive posture toward Ukraine and a wave of Elon Musk-driven government cuts,” are instead undermining sentiment, according to BNN Bloomberg, which noted that the “Trump bump is now the Trump slump.”

The dollar has been weakened. The U.S. stock market is also lagging behind the rest of the world this year. U.S.-listed international stock ETFs saw inflows of $13 billion in March and $28 billion in the first quarter, according to Morningstar. "Europe-stock category jumped off the page in the first quarter. It reeled in $5.7 billion in March — its best month in exactly 10 years — to cap off an $8 billion first quarter."

“There’s been an enormous upending of all the consensus trades that were in place at the beginning of the year,” El-Erian told Bloomberg. “All those trades have been turned on their heads.”

Questioning American exceptionalism

Back in November, Oxford Economics remained optimistic that U.S. exceptionalism would continue in 2025, noting that it’s not the first time the economy “has dealt with elevated uncertainty” and that businesses would be able to “quickly adapt.”

With “the prospects for expansionary fiscal policy on top of an already solid backdrop for U.S. consumer spending and investment, the U.S. economy will likely further distance itself from the rest of the pack,” it noted.

Fast-forward a couple of months, and a lot has changed. U.S. CEO confidence plummeted in March, according to one survey, and the Trump administration’s gyrating tariff threats was the most commonly cited reason for declining optimism. U.S. consumer confidence has also tumbled. The Federal Reserve has lowered its gross domestic product (GDP) growth forecast for this year to 1.7% from 2.1%. Strategists at Morgan Stanley and Goldman Sachs downgraded GDP growth forecasts for the U.S. in 2025 over tariff concerns.

Citi strategists are saying U.S. exceptionalism has “paused” under the Trump administration. Not only has the bank downgraded U.S. stocks to “neutral,” it has upgraded Chinese stocks to “overweight,” and recommends taking profits in U.S. stocks to invest in Chinese companies.

J.P Morgan’s chief economist Bruce Kasman told Reuters the country’s standing as an investment destination and its “exorbitant privilege” are at risk of lasting damage if the administration undermines trust in U.S. governance.

El-Erian also told Bloomberg that there’s hope for a “Sputnik moment” in Germany, as the country shifts fiscal policy to support a surge of spending on defense and infrastructure.

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How can investors make sure they’re well diversified?

This may be a good time to make sure your portfolio is diversified geographically.

Vanguard, for example, recommends having 20% of your portfolio invested in international stocks and bonds, but “to get the full diversification benefits, consider investing about 40% of your stock allocation in international stocks and about 30% of your bond allocation in international bonds.”

One of the easier ways to gain broad exposure to international assets is ETFs. You have a choice of investing in developed markets (which would include the U.K., France and Japan) or emerging markets, like China, India and Mexico. Since emerging markets tend to be more volatile, Vanguard recommends “that you don’t overweight your allocation to emerging markets.”

When it comes to buying foreign stocks, ETFs are often a better choice than mutual funds, according to Forbes, since “ETFs are very portable from one brokerage account to another” and they’re “better at tax time.”

You’ll want to do your research or talk to your adviser about the potential risks involved such as market risk and liquidity, as well as costs, fees and tax issues. There are a number of ETF providers to choose from, including iShares by BlackRock, Vanguard, Charles Schwab, Invesco, WisdomTree and VanEck, among many others.

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