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Author: Vawn Himmelsbach

  • An eye-popping $1.65 trillion is stuck in lost or forgotten 401(k)s — here’s why it took this Brooklyn man 4 years to get his money

    An eye-popping $1.65 trillion is stuck in lost or forgotten 401(k)s — here’s why it took this Brooklyn man 4 years to get his money

    Jose Valentin worked hard throughout his life, both in the Air Force and in law enforcement.

    Most recently, the Brooklynite was a dispatcher for an armored car company for 15 years until pancreatic cancer suddenly cut his life short in 2021.

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    “My dad, he worked his butt off,” Jose’s son, Allen Valentin, told WABC’s investigative team 7 On Your Side. “It’s like my dad put in his time for the city, for the state and also for the country.”

    The Valentins suffered a terrible loss, but little did they know that things were about to go from bad to worse.

    Following Jose’s passing, the Valentins found themselves locked in a four-year battle to gain access to the $26,535 that Jose left for them.

    Fighting for a 401(k)

    Allen takes care of his grandmother full-time and also helps out his mom, Esperanza.

    “I feel like it’s part of my duty as the eldest,” Allen told 7 On Your Side, crediting the work ethic and big heart that he inherited from his dad as motivation for putting his family first. “He was the one who had to provide for her and for all of us.”

    When he passed away, Jose reportedly left behind a 401(k) worth more than $26,000, but Allen has been unable to access the money because Rapid Armored — the company that Jose worked for — failed to send the correct documentation to get the funds released.

    “He worked with them for almost 15 years and it’s like they don’t want to lift a finger,” said Allen.

    Meanwhile, Esperanza is in dire need of the money in her late husband’s 401(k).

    “I feel very bad, because I need that money,” she said. Without it, maintaining the family home in Brownsville, Brooklyn — which has been in the family for generations — may be impossible.

    Desperate for help, the family called 7 On Your Side’s Nine Pineda, who then contacted Rapid Armored. And while the company had no comment, the funds within Jose’s 401(k) were finally delivered in full to the Valentin family within three business days.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    This situation is all too common

    Unfortunately, the Valentins are not the only American family struggling to access a deceased family member’s retirement funds in a 401(k). As USA Today reports, sometimes 401(k) accounts are lost or forgotten.

    “People who are leaving a job, and especially if they’re moving to another one, usually have a bunch of things going on,” David John, senior strategic policy adviser at the AARP Public Policy Institute, told USA Today. As John explains, it’s not all that difficult for someone who’s worked at a company for just a year or two to lose track of their 401(k) after transitioning to another job.

    According to Capitalize, a fintech company that helps consumers find and consolidate retirement savings, there were 29.2 million forgotten or left-behind 401(k) accounts carrying approximately $1.65 trillion in assets as of May 2023.

    If your parent worked at a company several years ago but there doesn’t seem to be any record or correspondence related to a 401(k) with that employer, then you may be facing this situation. Finding these assets can be a lot of work, but a good place to start is the National Registry of Unclaimed Retirement Benefits.

    Another common reason why some people can’t access a deceased parent’s 401(k) is that a beneficiary wasn’t designated for the plan. In this case, the funds can go into probate — a legal process for validating a will and distributing the deceased person’s assets.

    Probate laws vary by state, but this can be a complex, costly process that often takes months or even years to complete — and it can be further complicated and extended if someone challenges the will.

    When beneficiaries are designated, it’s not uncommon for a beneficiary trying to access the account to submit inaccurate or incomplete documentation. To access the 401(k), you’ll need copies of the death certificate, legal identification and the correct Social Security number for the account, among other information.

    Of course, sometimes errors or delays can happen with financial institutions. If that’s the case, confirm that the financial institution has received everything it needs and follow up regularly.

    An advisor can help — before and after death

    If you’re going through a situation similar to what the Valentins have experienced, a financial advisor or an estate attorney may be able to help.

    For example, after a loved one has passed away, an advisor can help ensure that all requirements are completed accurately, as well as take care of administration, communication and advocacy during what is likely a difficult time for you.

    But these advisors aren’t just useful for cleaning up a messy 401(k) situation. To ensure your loved ones are taken care of, working with a financial advisor or an estate attorney to prepare your estate can also help the process run more smoothly for your family when you pass away.

    For example, an advisor or an estate attorney can help you locate forgotten or missing retirement funds, outline clear beneficiary instructions and make sure all documentation is complete and accurate. They’ll also keep all necessary information on file for when your family needs it.

    Dealing with estate matters can be difficult and uncomfortable, but it’s necessary to ensure your family is able to inherit your legacy in the way you intend.

    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.

  • I’m 51 and have no debt except a mortgage. My job is offering me a payout when I leave — should I take a $71,000 lump sum or $455 per month for life?

    I’m 51 and have no debt except a mortgage. My job is offering me a payout when I leave — should I take a $71,000 lump sum or $455 per month for life?

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

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

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

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

    Lump-sum payment or lifelong income?

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

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

    Lester’s decision may partly depend on his other resources in retirement. If he’s worried he won’t have enough savings to last a long time, then he may benefit from a lifelong guaranteed income stream.

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

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

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

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Non-financial considerations

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

    But there are other considerations. If Lester is in poor health and doesn’t believe he’ll live another 30 to 40 years, he may want to take a one-time payout because he’ll get more value out of it than a short period of payments.

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

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

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

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

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

    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.

  • ‘Son, roll up your sleeves’: Dave Ramsey lays into ‘entitled’ man for questioning why to even invest if he might not live to enjoy his riches — but Ramsey says his mindset is the real problem

    ‘Son, roll up your sleeves’: Dave Ramsey lays into ‘entitled’ man for questioning why to even invest if he might not live to enjoy his riches — but Ramsey says his mindset is the real problem

    Sometimes you can get the best advice by poking the bear.

    One write-in guest on The Ramsey Show found out the hard way after trying to “make sense” of Dave Ramsey’s investment advice.

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    “You keep saying to invest $100 a month beginning at age 30 and you’ll be worth $5 million at 70 years old,” wrote a man named Isaiah. “That’s the most ridiculous thing I’ve ever heard.”

    Isaiah pointed out that the life expectancy of a white American male is 72 years old, while for a Black male it’s 68, meaning “most people will never live to see $5 million.” He asked Ramsey to help him “make sense of this advice”.

    Ramsey, who called Isaiah “entitled” and “belligerent,” said the real issue is the idea “you’re supposed to get rich in 10 minutes”.

    Here’s why investing still makes sense — even if America’s lifespan stats suggest many men won’t live long enough to enjoy all their savings.

    Crunching the numbers

    Ramsey admitted that Isaiah isn’t completely wrong about life expectancy, but said he was putting words in his mouth.

    “We have never said $100 a month from [ages] 30 to 70 is $5 million — it’s not,” Ramsey said, in a recent episode. “It’s $1,176,000, and that would be true of … any 40-year period of time you wanted to pick.”

    In 2023, the life expectancy for a man born in the U.S. was 75.8 years. For women, it was 81.1, according to the National Center for Health Sciences.

    A Stanford study also found that “people who survive to age 65 are continuing to live longer than their parents — a trend that doesn’t appear to be slowing down.”

    Ramsey said that saving $100 a month was an example — the idea is to save something every month and start building a “money mindset.”

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    What is a money mindset?

    A money mindset is “your unique set of beliefs and your attitude about money,” explained co-host Rachel Cruze in a blog for Ramsey Solutions.

    That mindset “drives the decisions you make about saving, spending and handling money” and “shapes the way you feel about debt.”

    Cruze pointed to a Ramsey Solutions study of more than 10,000 millionaires, which found that 97% believed they could become millionaires. “And having that mindset — not an inheritance, fancy education or wealthy parents — is exactly what caused them to succeed.”

    Some people have an “abundance mindset,” a belief that there are plenty of opportunities for everyone to grow wealth. Others have a “scarcity mindset,” the belief that resources are limited and wealth is hard to come by.

    An abundance mindset focuses on possibilities and potential. A scarcity mindset focuses on limitations and fear, which can lead to unhealthy financial behaviors, such as overspending or hoarding.

    Shifting your money mindset

    Changing your mindset is easier said than done. It often means identifying where your limiting beliefs come from — maybe your upbringing or past money mistakes. Then it takes time and self-reflection to overcome them.

    An abundance mindset means looking at how to build wealth over time. It’s not just about saving $100 a month — it’s about how you use that money, whether through growing assets, investing or developing passive income streams.

    “Millionaires focus on wealth creation, not just income generation,” wrote business strategist and CPA Melissa Houston in an article for Forbes. They “don’t chase quick wins or get-rich-quick schemes.”

    Instead, they build sustainable wealth “through investments that appreciate over time” and make sure their money works for them through stocks, real estate and scalable business models.

    They also invest in themselves, Houston added, whether that’s through personal or professional growth, finding a mentor or building a strong network.

    “They constantly improve their skills, stay ahead of trends and surround themselves with high-value connections,” Houston said.

    That doesn’t mean taking reckless risks — or avoiding risk altogether. It’s about educating yourself and learning how to take calculated, strategic financial risks. You can also start small by developing healthy habits. Create a budget, track your expenses and live below your means. Pay off high-interest debt or avoid it altogether.

    Set clear financial goals. Start with small, achievable ones — like saving a little each month — and build up as your confidence grows. You might even want to work with a financial advisor to create a long-term plan.

    As Ramsey told Isaiah, 89% of America’s millionaires are first-generation rich.

    “Son, roll up your sleeves, live on less than you make, get out of debt, deny yourself a little bit of pleasure,” he said, “because you’re acting like a four-year-old.”

    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.

  • Banks are opening dozens of new branches in this 1 part of America — in the age of apps, online banking. Here’s the state and why

    Banks are opening dozens of new branches in this 1 part of America — in the age of apps, online banking. Here’s the state and why

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

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

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

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

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

    Why some banks are embracing expansion

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

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

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

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

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

    JPMorganChase isn’t the only one expanding its offerings.

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

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

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

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    More than wealth management

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

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

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

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

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

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

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

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

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

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

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

    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.

  • Tampa woman at a crossroads with her brother after he refused to repay a car loan she took out for him — but The Ramsey Show hosts remind her she’s the one in the driver’s seat

    Tampa woman at a crossroads with her brother after he refused to repay a car loan she took out for him — but The Ramsey Show hosts remind her she’s the one in the driver’s seat

    Four years ago, Carmen from Tampa, FL, did her brother a solid by letting him move into her home when he was low on cash. She didn’t charge him rent and she even took out a car loan for him — in her name.

    Fast forward to now, and their fortunes are reversed. Carmen needs the money, but her brother doesn’t want to repay the car loan. During an episode of The Ramsey Show, Carmen said her brother has “fully recovered” from his financial woes.

    He works on commission, has stocks, CDs and retirement savings, and “is living a good life,” she said. Yet, when it comes to the car loan, he told his sister he wasn’t going to “take that upon my credit.”

    As Carmen pondered whether she should pay off the remaining loan herself — which is around $11,000 — co-host Ken Coleman told her: “You know what you’re supposed to do.”

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    What happened?

    Carmen’s husband made a career switch that she says will eventually pay off, but in the meantime, they’re bringing in less money. And to get a mortgage, they were told by their lender that they need to get rid of the car loan debt first.

    Carmen didn’t just co-sign the loan; she put it under her name.

    So her brother is making monthly payments to Carmen on a car that’s not in his name and that “he’s never going to own,” said co-host Jade Warshaw. If he’s not willing to pay back the full amount of the loan, then Carmen has every right to repossess the vehicle.

    “That is not mean, Carmen. That is not a bad sister,” said Warshaw. “That is just you doing something that is very normal and fair by saying, ‘if I’m paying for a car that’s in my name, I’m going to be the one owning it and driving it.’”

    If her brother wants to keep making monthly payments, “then he needs to go rent a car,” said Warshaw.

    Carmen said a private seller would pay $19,000 for the vehicle.

    “I would go get that car from your brother today and sell it instantaneously,” said Coleman.

    At that point, her brother can decide whether he wants to buy the car from her, in which case he can pay back his sister for the full amount of the loan and she can transfer the title over to him. If he’s not interested in buying it, she can find another buyer and pay back the loan from the proceeds.

    Still, Carmen is hesitant because she doesn’t want to cause a rift in the family. “It already has,” said Warshaw. “The damage you’re worried about being done has already been done.”

    Warshaw said she wants Carmen to be respected. “It’s a disrespectful transaction and if you let it continue, he’s not just disrespecting you — you’re disrespecting yourself at that point.”

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Should you loan a family member money?

    While you may want to help out a family member in need, a ‘friends and family’ loan should still be treated as any other loan. Otherwise, you could consider the money a gift (particularly if you don’t think you’ll ever see that money again).

    About one-third of U.S. adults have provided financial support to friends or family, according to the Consumer Financial Protection Bureau (CFPB). It could make sense in some circumstances — for example, parents may loan their adult child some money when they’re just starting out in their career or don’t yet have a credit history to qualify for a loan.

    Whatever the case, if you’re thinking about lending money to a friend or family member, first consider your own financial situation — for example, it’s probably not a good idea to drain your own emergency fund to pay for a family member’s emergency. And, if you do have some extra cash, how much of it can you afford to part with and for how long?

    If you do lend money to a friend or family member, put it in writing (you can find several options for templates online by searching under loan agreements). This contract should outline the terms of the loan, such as when you expect it to be repaid (either in a lump sum or a series of payments over a specified period of time).

    You should also specify whether you’ll be charging interest on the loan (perhaps the rate you’d be getting if that money was sitting in your high-interest savings account) and what the consequences will be if they can’t pay you back.

    For example, in Carmen’s case, if she had made her brother sign a contract before getting a car loan, she could have specified that she’d take back possession of the vehicle if he didn’t pay back the loan in full by a certain period of time.

    Another option is co-signing a loan, but only do so if you trust this person — not because you’re feeling pressured by your family to do so. A co-signer is a person “who agrees to be legally responsible for someone else’s debt,” according to Equifax, one of the three major credit reporting agencies in the U.S., along with Experian and TransUnion.

    This provides a safety net to lenders, but it also means the co-signer is legally responsible for that debt if the borrower is unable to pay it back. Plus, if you’re the co-signer, that debt will show up on your credit report and could influence your credit score and/or debt-to-income ratio.

    If the borrower fails to make payments, that will harm your credit rating — and it will likely put a strain on your relationship.

    If you’re already in that situation, like Carmen, there’s no easy way out. “We didn’t say this was going to be fun but… it’s already not fun,” said Coleman, “so let’s go ahead and rip the band-aid off and take possession of the car.”

    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.

  • 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, Musk revised the savings goal a few times from $2 trillion to $1 trillion and now $150 billion for fiscal year 2026.

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

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

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

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

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    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 29, the DOGE website indicated that it has saved $190 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 $1,180.12.

    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 July 15, estimates by the nonpartisan Tax Foundation show Trump’s tariffs could cost American households an average of $1,296 in 2025.

    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.

  • ‘It felt like I was in a movie’: North Korean agents infiltrated this Atlanta man’s business, gaining his trust as ‘super-duper talented’ remote workers — then stole $1M in crypto

    ‘It felt like I was in a movie’: North Korean agents infiltrated this Atlanta man’s business, gaining his trust as ‘super-duper talented’ remote workers — then stole $1M in crypto

    It sounds like the plot of an action-thriller, but for one Atlanta tech entrepreneur, an elaborate cryptocurrency theft involving North Korean assets became his reality.

    “It felt like I was in a movie,” Marlon Williams told Channel 2 News (WSB-TV). “That’s where we see these things, right?”

    Rather than a phishing scam with criminals pretending to be a bank or government agency and requiring payment in cryptocurrency to ‘solve’ an ‘urgent’ issue, this was a long con orchestrated over two years.

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    Williams thought he had hired remote IT workers for his Atlanta-based blockchain research and development company, Starter Labs. Instead, the ‘workers’ were North Korean nationals using stolen identities, according to the FBI.

    After gaining his trust, they were able to infiltrate the business, eventually making off with just over $1 million in cryptocurrency.

    The unfolding of a long con

    Four men — Kim Kwang Jin, Kang Tae Bok, Jong Pong Ju and Chang Nam Il — have been indicted on charges of wire fraud and money laundering, according to a now unsealed federal criminal indictment.

    This is part of a larger investigation by the FBI and U.S. Department of Justice (DOJ) into North Korea’s so-called remote IT worker program in which skilled North Korean agents infiltrate American companies using a mix of stolen and fake identities.

    Using the stolen identities of at least 80 Americans, North Korean agents have been able to find remote work at more than 100 American companies and then steal and launder virtual currency, according to the DOJ.

    This money is used to generate revenue for the Democratic People’s Republic of Korea (DPRK), including its weapons program.

    Williams was one of those targets. He hired one of the men — who reached out through the Telegram app via a fake identity — to work on a project. Williams was impressed with his work, telling Channel 2 News he was “super-duper talented.”

    So Williams hired him for more projects, eventually promoting him to the role of chief technology officer and allowing him to hire additional staff.

    The con took place over about two years during which time he gained Williams’ trust.

    “He had the power to create malicious code that he installed and that allowed him to withdraw the funds completely,” Williams said.

    “The threat posed by DPRK operatives is both real and immediate. Thousands of North Korean cyber operatives have been trained and deployed by the regime to blend into the global digital workforce and systematically target U.S. companies,” U.S. Attorney for the District of Massachusetts Leah B. Foley said in a statement.

    The investigation into North Korean criminal activity has so far resulted in an arrest, two indictments, searches of 29 “laptop farms” across 16 states and “the seizure of 29 financial accounts used to launder illicit funds and 21 fraudulent websites,” according to the DOJ.

    The four North Koreans are now wanted by the FBI, but they’re not in the U.S. They were allegedly working out of the United Arab Emirates with North Korean travel documents. As for their victims? It’s incredibly difficult to recover virtual currency and there’s usually no insurance for lost or stolen cryptocurrencies.

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    How to protect yourself from crypto risks

    When it comes to cryptocurrency such as Bitcoin and Ethereum, industry regulations are still being developed. Since crypto doesn’t require an intermediary (like a bank), it can also be used by criminals to hide their activities.

    While we could see the passage of the GENIUS Act in the second half of 2025 — designed to regulate the digital currency industry — some critics say it will make the financial system less stable.

    As an asset class, it’s considered to be volatile since its value is often based on market sentiment. For investors, that means it can offer big rewards, but it can also result in big losses. Many financial advisors consider it a ‘discretionary’ investment — meaning don’t invest what you can’t afford to lose.

    Cryptocurrencies aren’t like stocks — or even cold, hard cash, for that matter. The money in your bank account is regulated and insured, but there’s no enforceable regulations or insurance for lost or stolen cryptocurrencies.

    “Cryptocurrency held in accounts is not insured by a government like U.S. dollars deposited into an FDIC insured bank account. If something happens to your account or cryptocurrency funds — for example, the company that provides storage for your wallet goes out of business or is hacked — the government has no obligation to step in and help get your money back,” warns the Federal Trade Commission.

    For individuals, staying safe means keeping your wallet keys private. Ignore cold calls about crypto investment opportunities and any ‘too good to be true’ offers. If you’re experiencing high-pressure tactics, keep in mind that fraudsters often use a sense of urgency as part of their scam.

    For businesses, FBI Atlanta suggests using additional layers of scrutiny in the hiring process for remote IT workers.

    Specifically, the FBI recommends using identity-verification processes “during interviewing, onboarding and throughout the employment of any remote worker,” as well as cross-checking HR systems for other applicants with the same resume content. In addition, “complete as much of the hiring and onboarding process as possible in person.”

    That’s something Williams is considering.

    “Going back to the fundamentals of business, meeting you face-to-face and looking in your eye, shaking your hand, that really matters," he told Channel 2 News, "even in these new industries that are developing."

    If you suspect you’re the victim of a similar scam, report the activity to the FBI’s Internet Crime Complaint Center.

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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 69 with $300K in savings but I’ve got a $250K reverse mortgage causing me serious stress. Should I just use most of my savings to pay it off ASAP and aim to survive on Social Security?

    I’m 69 with $300K in savings but I’ve got a $250K reverse mortgage causing me serious stress. Should I just use most of my savings to pay it off ASAP and aim to survive on Social Security?

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

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

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

    How does a reverse mortgage work?

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

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

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

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

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

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

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

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

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

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

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

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    Options for paying off a reverse mortgage early

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

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

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

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

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

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

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

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

    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.

  • ‘Too old to be having these problems’: Cincinnati mom left ‘confused’ after partner walked out on her when they found out she was pregnant — so Dave Ramsey helped her build a ‘baby budget’

    ‘Too old to be having these problems’: Cincinnati mom left ‘confused’ after partner walked out on her when they found out she was pregnant — so Dave Ramsey helped her build a ‘baby budget’

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

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

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

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

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

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

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

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

    Preparing financially for a new baby

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

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

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

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

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

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

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

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

    What to do once baby has arrived

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

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

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

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

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

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

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

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

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

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

  • Americans of all ages are suddenly cooling on Florida — and this 1 hot spot has been hit the hardest. 3 reasons this once trendy city is seeing ‘the biggest slowdown’ in new residents

    Americans of all ages are suddenly cooling on Florida — and this 1 hot spot has been hit the hardest. 3 reasons this once trendy city is seeing ‘the biggest slowdown’ in new residents

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

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

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

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    And one hot spot has been hit particularly hard.

    A slowdown in domestic immigration

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

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

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

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

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

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

    1. Housing has become more expensive

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

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

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

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

    2. Natural disasters

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

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

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

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

    3. Return-to-office policies

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

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

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

    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.