Category: Moneywise

Consider this scenario: A 25-year-old woman with epilepsy currently relies on friends, family and Uber lifts not only to get to work but around more generally, in a city where transit is limited and unreliable.

To gain independence, she wants to move to a rental apartment within walking distance of her work. The catch? The rent is $1,600 per month — almost 50% of her $50,000 salary.

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On the upside, her transportation costs would be lower if she moves closer to work, and she’s willing to make sacrifices to her discretionary spending to do it.

So is moving into this expensive apartment worth it for the greater independence she will gain?

The cost of living for young people with disabilities

Unfortunately, she’s not alone in grappling with this dilemma. Many Americans with disabilities pay more to enjoy the same standard of living as peers without disabilities.

According to the National Disability Institute, 20 million working-age Americans live with some form of disability and must spend 28% more on average to achieve the same standard of living as their counterparts without disabilities.

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Compounding the cost-of-living challenge for Gen Zers is a lack of affordable housing. Younger Americans are spending more on housing than previous generations.

The New York Times reports that, as of 2022, 5.2 million Gen Zers were spending 40% of their income on rent.

On the upside, if the character in our scenario moves, she would save on transportation costs, and she’s already ahead because she doesn’t have to worry about the cost of buying a car and ongoing maintenance and insurance costs.

Newsweek reports that two in every five Americans spend 20% of their monthly income on their vehicles, a figure that may rise as tariffs take hold.

Stress-testing your budget

The first step toward determining whether a new apartment is affordable is to write out a budget.

The classic 50/30/20 budget breakdown is a good starting point. Here’s what that looks like:

• 50% of your income on essentials, including a maximum 30% of your pre-tax income on housing
• 30% of your income on discretionary spending, including travel, hobbies and dining out
• 20% of your income towards savings, or savings and debt payments.

Then examine how you’re actually spending your money — now, not in the future. This will help you set a new budget that’s realistic.

To do this, gather up your bank and credit card statements from the last year and work out what you’re currently spending on essentials, discretionary spending and savings. You can even run a stress test in which you live on your new budget for a month to see if it’s doable.

Put away the extra money that would go towards “rent” into an emergency fund.

If you find it’s possible to get through the month on your proposed budget without too much stress or a feeling that you’re missing out on having fun, then the costly apartment may be worth it.

Make sure your new budget allows you to continue saving towards an emergency fund and that it doesn’t require you to use credit cards to cover expenses. Pay down debts so unexpected expenses don’t leave you scrambling to cover your bills at the end of the month.

Finally, if you’re going to spend more on your home, try to get as much enjoyment out of it as possible.

Since you’ll likely be trimming your budget for entertainment and dining out, make a point of moving into a place where you can entertain at home.

If you like to host dinner parties or board-game nights, invest in a good dining table that your friends can gather around. If you like to watch sports or play video games, try to get a comfortable couch and chairs, and a large, sturdy coffee table.

If outdoor space is important, prioritize a place with a balcony, access to a backyard, or one situated near a park.

Whatever your idea of fun is, be sure the sacrifice in your disposable income is worth it and doesn’t eat into your quality of life in ways you didn’t expect.

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

With the cost of living still high in many parts of Canada and average credit card interest rates hovering around 21%, managing day-to-day finances has never been more important. While credit cards are often associated with debt, when used wisely, they can be a powerful tool for improving your cash flow, earning rewards, and keeping your financial life organized. But be warned: If misused, that powerful piece of plastic can quickly turn into an debt anchor as it sinks your budget.

To help, here’s a primer on how to use credit cards to your advantage. In particular, learn how to track spending, time payments, and make the most of features like grace periods and cash-back programs. With a bit of discipline and the right tools, you can turn a credit card into the cornerstone of smart money management.

Learn More: Cut down debt faster with a simple 2-step plan

Treat yourself like a business

Before we bring credit cards into the picture, let’s start with a very simplistic financial mindset to get you on the right foot: think of your own life as you would a business. A restaurant will quickly go under if it spends more to pay staff, rent, and buy ingredients than it earns from the sale of prepared food. An individual’s bank account must be given the same consideration.

This idea manifests itself in a strategy that looks simple on paper, but can be difficult in practice: spend less than you earn. To help enforce self-imposed limits and act responsibly, it’s recommended to create a personal cash flow statement that accounts for all monthly income and spending.

Track income and expenses with care

You might be surprised by how many small, irregular purchases crop up when you keep perfect track of your spending. Every expended cent should be recorded, as they can otherwise accumulate over time and leave mysterious, unexplained gaps in a cash flow chart. Incoming cash, while usually more predictable, also needs to be correctly documented. Ensure that your cash flow statement includes the following entries:

1. Regular Income: This includes your steady income and spousal income if applicable. The easiest to record is salary, but bonuses and commissions should also be listed. Do not include reinvested or locked income such as dividends, or unrealized gains from equity investments that are still open, for example. This money isn’t liquid, so it isn’t immediately relevant for the purposes of modeling your incoming cash.
2. Peripheral Income: Other, typically smaller sources of cash can be placed in this section, which might include consulting or freelancing income, government benefits, pensions, dividends and investment residuals that aren’t steady enough to be included in the ‘Regular Income’ section.
3. Fixed Expenses: Predictable expenses should be entered in the correct amount and date they’re expected to be paid, and might include things like mortgage and lease payments, rent, taxes, and scheduled investment contributions. However, as many shoppers can attest to, the list doesn’t end here.
4. Variable Expenses: The most troublesome part of any cash flow statement, variable income consists of the bills that are largely circumstantial in nature. They can be hard to predict, and prove even harder to track. Purchases like groceries, clothes, entertainment expenses (restaurants, movies, streaming subscriptions, etc.), medical care and ATM withdrawals go here.

Sample personal cash flow statement

Below, you can see how fictional couple Pat and Louis keep track of their monthly incomes and expenses. By living below their means and practicing diligent financial upkeep, the couple is able to land in the black each month.

Maintain a documented record of purchases

Your first go at maintaining a cash flow chart might be challenging. It takes time and practice to make something a habit, and most individuals don’t have the discipline required to save hard copies of all their receipts. This means that a lot of purchases made in cash can potentially fall through the cracks rather than find their way onto a cash flow chart.

Using credit cards instead of cash helps preserve a more thorough record of purchases (though it’s still recommended to save receipts as a backup). And aside from making it easier to track expenditures, the use of credit cards can also earn rewards points that can help you reduce travel costs, or generate cash back directly from various expenses.

Pay bills on time

Delinquent bills accrue interest and fees, which can slowly send manageable debt into unmanageable territory. Using a credit card automates the process of paying bills, which has several advantages over paying them manually. The most significant advantage of automated bill pay is that you no longer need to rely on your memory, reducing the chance that you’ll miss a payment and incur a financial penalty. Automatic bill payments can often be customized, so that they only come due once the cardholder has already been paid their salary, for instance.

Many cards, like the Tangerine Money-Back Credit Card also offer incentives for scheduling automated payments and recurring bills that can make this cash flow management system especially attractive. But it pays to be careful. In 2023, the Canadian Anti-Fraud Centre reported over $530 million in losses from fraud, much of it tied to automated and recurring transactions. Always monitor your card statements even with automated payments enabled.

Moreover, credit cards grant users a grace period between when a statement arrives and when it must be paid. This basically amounts to an interest-free loan, as you’re purchasing something on credit without the requirement to pay for it immediately. Assuming the bill is paid within the grace period, no extra interest or fees on the purchase are added. The minimum grace period for many Canadian credit cards is 21 days, as per the Financial Consumer Agency of Canada; however, some card issuers may offer longer grace periods, and some issuers allow cardholders to set their preferred billing date. Not all credit cards will offer this flexibility, so before settling on a card it’s wise to compare the best credit cards for cash flow management.

Never carry a balance

It might be tempting to only pay the minimum balance and carry extra debt from month to month but it’s never recommended, particularly when the average credit card interest rate reaches more than 20%. In 2025, the average interest rate on a Canadian credit card was 20.99% — making it very costly to carry a balance. Those who tend to overspend should remember that interest effectively adds to the purchase price of an item and this cost compounds when it takes longer to pay off the balance.

Chronic overspenders might consider reducing their credit limits, which diminishes the ability to indulge and reduces the chance of having to carry a balance that can’t be paid off each month. But be warned that a reduced credit limit might also have a negative impact on credit utilization ratio — a metric that’s very relevant to good credit scores.

Taming the cash flow beast

Since 2022, Canadians have experienced persistent inflation — particularly on groceries, transportation, and rent. According to the Bank of Canada, core inflation remained above 3% throughout 2024, reinforcing the need for diligent cash flow and credit card use.

Maintaining cash flow requires practice and discipline. But it’s worth the effort, as it results in significant savings over time if you stick to the plan and adjust accordingly for changes. With the proper tools in hand, being consistent is simple and exceptionally rewarding.

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

What would you do if your city placed $366,000 in liens on your home after inspectors observed minor violations like broken window frames, cracked outlet covers and peeling paint?

If you were Lauderdale Lakes residents Kenneth and Mildred Bordeaux, a Florida couple in their 80s, you’d hire a lawyer and fight back.

"I feel like I’m just being beat on with a sledgehammer, and I don’t understand it," Kenneth told CBS News.

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Their lawyer Ari Pregen says the city’s actions are completely unfair.

“It’s absolutely mindblowing to say ‘We’re going to hold your property hostage and we’re not going to allow you to do what you want with your property, to pass it on to your next of kin and your loved ones, because of window cranks and plastic covers,’” he said.

Now, their efforts — and the media attention — may have borne some fruit.

How minor violations turned into major fines

It all started last year when the Bordeauxs — who rent out part of their duplex to cover bills — evicted a tenant.

When inspectors visited the property following the eviction, they fined the Bordeauxs for six violations, including broken window frames and handles; cracked outlet covers; peeling paint; minor interior door and wall damage; and smoke detectors needing replacement.

The Bordeauxs say they promptly addressed all the issues and made the required repairs.

The problem? City inspectors took 222 days to verify that the repairs had been made. Meanwhile, for every one of those 222 days, the city levied additional daily fines of $1,500 per violation — resulting in the $366,142.70 total.

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Their attorney, Ari Pregen, said the situation is unreasonable.

"You can’t charge someone $65,000 for a broken window crank, $55,000 for a broken [cover] plate,” he said.

The couple applied for a lien reduction, a process allowing property owners to request a lower payment on fines or fees owed to the city.

Inspectors only offered a 10% reduction, meaning the Bordeauxs would have to pay more than $300,000 to remove the liens on the property, one the couple want to leave to family members.

"It’s just been absolutely terrible,” Kenneth Bordeaux said.

CBS Miami has since discovered that other Lauderdale Lakes property owners have been hit with excessive fines and liens due to code inspection delays.

The news outlet revealed that in its 2025 budget, the City of Lauderdale Lakes is counting on a 161.4% increase in revenue from fines and forfeitures compared to 2024.

The Bordeauxs’ lawyer notes that levying excessive fines is illegal.

“We have the excessive fines clause for a reason,” Pregen says. “It prohibits excessive fines.”

He continues to negotiate with the city — not only to lower the Bordeauxs’ fines and remove the liens on their duplex, but to urge the city to change its policy to protect other homeowners in similar situations.

In a CBS followup to the story, City Attorney Sidney Calloway rejected the idea that the City of Lauderdale Lakes "acted improperly, has (dragged) its feet or slowed the process" for the Bordeauxs.

However, he did invite the Bordeauxs to meet with him to reduce how much they owe.

And CBS discovered the city attorney also reached out to the local business Levy Realty Advisors — one of Lauderdale Lakes’ biggest taxpayers — to talk about reducing $744,000 worth of liens that resulted from similar delays in city inspections.

How to handle excessive fines on a fixed income

For retired homeowners like the Bordeauxs living on fixed incomes — primarily Social Security and modest pensions — unexpected fines, fees or repair costs can be ruinous.

Without sufficient savings, seniors in such situations may accumulate debt and could lose their homes. The added stress can take a toll on physical and mental health, particularly for seniors who don’t have the resources to navigate complex legal and financial systems.

Legal advocacy and community support can be lifelines. Homeowners facing large municipal fines should first seek legal counsel, especially pro bono services or nonprofit legal clinics that specialize in housing or elder law.

Organizations such as Legal Aid or the AARP Legal Advocacy Group may offer assistance or connect individuals to local resources.

Homeowners on fixed incomes who find themselves in the same predicament as the Bordeauxs should consider doing as they have done and bring media attention to the case to increase public pressure and push local governments to revise their enforcement practices or settlement offers.

Homeowners can also work with housing counselors certified by the U.S. Department of Housing and Urban Development to explore options like financial hardship programs, home equity solutions or income-based repayment plans for liens, where available.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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

A Montana woman, identified only as Rita, lost more than $90,000 in an online romance scam. She shared her story in a video created by the FBI on June 15th, World Elder Abuse Day, hoping to help others recognize the signs before it’s too late.

In 2024, Rita was going through a divorce and feeling isolated when she was approached online. The messages from the scammer filled an emotional void during a difficult time in her life—until the financial toll and betrayal became impossible to ignore.

“It hit me at the right time,” she said. “I was very vulnerable. For me, these texts were like a drug… like I needed them to live with. Now I read these texts, and it makes me sick that I fell for this.”

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What happened to Rita — and how romance scams work

In 2024, Rita met a person online who claimed to be a celebrity. They couldn’t meet in person, he said. At the time, that didn’t seem strange. The celebrity was also going through a divorce, and they bonded emotionally over their shared struggles. The connection grew deeper, and then the celebrity began requesting money through Bitcoin.

By the time Rita realized what was happening, she was out nearly $90,000. Some of the romance scam red flags become clear only in hindsight. Here’s how they typically work:

• Scammers create fake profiles and form fast emotional bonds, often with older adults who may be feeling lonely or going through major life changes.
• The scammers avoid meeting in person.
• They isolate their victims from friends and family.
• They begin requesting money, sometimes claiming they’re stuck overseas, need help with medical bills, or want to visit but can’t afford travel.

When Rita finally started to question the relationship, she saw the truth: “I wasn’t thinking with my brain,” she said. “I was thinking with my heart.”

Hundreds of millions of dollars are lost to romance scams nationwide

Rita’s not alone. According to the Federal Trade Commission (FTC), Americans lost a total of $1.14 billion to romance scams in 2023, with more than 64,000 victims reporting losses. The FBI’s annual Internet Crime Complaint Center (IC3) fraud report said there were over 17,000 reports of romance scams in 2024, with a total loss of $672 million. Victims over the age of 60 are most vulnerable, with a reported $389 million in losses to romance scams alone.

The impact is also clear in Montana. FBI spokesperson Sandra Barker said the state saw 44 romance scam victims last year with millions in losses.

“In 2024, our internet crime report shows that in Montana, there were 44 victims reporting losses of over $2.2 million just on romance scams alone, so that will indicate just how prevalent the scam is,” she said.

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How to stay safe from romance scams

Romance scams often follow a predictable pattern: fast emotional bonding, refusal to meet in person, and repeated requests for money. To stay safe, the FTC recommends keeping these tips in mind:

• Be skeptical of fast-moving relationships. Scammers often profess love or deep affection within days or weeks. They may share a sad or dramatic story to gain your trust or sympathy.
• Insist on face-to-face contact. Anyone who refuses to meet in person may not be who they say they are. Remember that even videos can be faked or altered to seem real.
• Do a reverse image search of any photos. If the images show up attached to someone else’s profiles or on a stock photo site, you’re likely dealing with a scammer.
• Never send money to someone you haven’t met. This includes wire transfers, gift cards, or cryptocurrency, which are common payment methods used in scams. Common excuses include needing help getting home, investments, or wanting to meet.
• Limit what you share online. Scammers comb through social media profiles for personal details they can use to manipulate you. They might see your travel photos and say, "I love to travel," as a way to bond or, as in Rita’s case, claim to be going through a similar emotional struggle.
• Talk to trusted friends or family. If a new relationship feels “too good to be true,” check in with someone who can offer perspective. Pay attention if they express concern. *

If you think you’ve been scammed, cut off contact immediately and report it. File a complaint with the FBI’s Internet Crime Complaint Center (IC3.gov) and report the fraud to the Federal Trade Commission at ReportFraud.FTC.gov. You should also contact your bank or credit card company to see if any payments can be reversed.

“So many people are so embarrassed to come forward and admit to it,” Rita says, but she implores victims to come forward anyway because “You give these people an opportunity to make even more money. So you need to report it, don’t get taken advantage of.”

While recovering stolen funds can be difficult, especially if sent via crypto or wire, reporting the scam quickly may improve your chances. It can also help prevent others from being targeted by the same perpetrator.

Rita says she shared her story in the hope that others will learn from her experience. “If I can save just one person from this folly, if I can make one person realize that this is not real, I’ve done my job.”

What to read next

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• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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

After decades in the workforce, the prospect of a relaxing retirement might seem like paradise. Imagine waking up without an alarm, enjoying leisurely mornings and finally diving into all those hobbies you’ve dreamed about for years. Sounds perfect, right?

But what happens when the novelty wears off and boredom creeps in?

Picture this: Jake is 67 years old, one year into retirement and the leisurely lifestyle isn’t as fulfilling as he expected. Restlessness has him craving the stimulation and social connections work once provided. On top of that, the Canada Pension Plan (CPP) cheques feel a little underwhelming, which had him thinking about re-entering the workforce.

If this description puts a fright in you, you’re not alone. A 2024 report from the National Institute on Ageing found that 43% of Canadians over the age of 50 are at risk of social isolation, while 59% experience some degree of loneliness. Additionally, 36% of Canadians over the age of 50 have very (13%) or somewhat (23%) weak social networks.

So, what’s a frustrated retiree to do? Lucky for Jake, he found a solution. He decided to work as a driver for a ride share and courier company. Now, he gets the social interaction he craves while making a bit of cash. He also works only a limited number of hours.

If you want to go back to work, you don’t have to jump straight back into a 40-hour workweek. Even a part-time gig can offer financial, psychological and lifestyle benefits. Let’s dive into why staying busy could be your secret to a truly satisfying retirement.

Mental stimulation

Picking up a side gig or part-time work during retirement is more than financially rewarding, it can also keep you socially engaged. Work provides plenty of opportunities for social interaction, either with customers or coworkers.

It can also encourage a structured routine, helping to restore a sense of control and purpose. The American Psychiatric Association notes how some research indicates those who maintain a clear purpose experience less stress and greater resilience in challenging situations.

Your expertise has value. If you find work in your old field — let’s say through consulting or freelancing — you have an opportunity to both refine your skills and pass on what you’ve learned. Sharing and growing your knowledge can be gratifying, and you can make a few extra bucks while you’re at it.

Financial benefits

Living on a fixed or limited income can be stressful, especially if you’re trying to balance achieving your retirement goals with paying the bills. Getting a side gig can help ease some of this stress, giving you extra cash flow for expenses that the CPP won’t cover.

Even better, returning to work and finding a gig offering health benefits might cover reduce any prescription costs you may have.

While your CPP payments get adjusted annually the longer you wait to start collecting it (8.4% per year), for many seniors this may not be sufficient in the current cost of living crisis. A side hustle can help limit uncomfortable belt-tightening so you can have money to travel, spend time with family and cross off some of your bucket-list items.

Thankfully, if you choose to continue to work in some capacity after 60 (when you are eligible to receive CPP), you will not reduce how much you earn from the benefit. In fact, you could increase it by means of the CPP post-retirement benefit. The government will automatically pay you this benefit the following year and you’ll receive it for the rest of your life. However, CPP contributions will be cut off when you reach 70 years of age, even if you’re still employed in some capacity.

Preparing for the calm

If you’re nearing retirement and fearing a perceived boredom of life after your career, there’s still time to plan for a stimulating and fulfilling retirement. Let’s look at some ways you can prepare for the lifestyle change:

Experiment now, avoid trouble later: There’s no time like the present — why not pick up some different hobbies before you retire? If you find one or more that really interest you, make that your passion project once you finish work. Consider picking an activity that can involve social interaction via clubs or classes you can join. That way, you get the benefits of social engagement and mental stimulation.

Prepare a routine: Create a daily or weekly structured routine before retirement. In his 2022 TEDx Talk, Dr. Riley Moynes, author of The Four Phases of Retirement, says that phase two for retirees can bring on a sense of loss in identity and purpose. Avoid this by setting daily tasks and focusing on ways to keep yourself busy, ahead of time.

Stay near friends and family: If you’re able, retiring near friends and family can provide a nearby support network and help avoid social isolation and loneliness. If you and your spouse are retiring together, consider building a plan that keeps you both active, engaged and communicative with each other.

Sources

1. National Institute on Ageing: Perspectives ongrowing older in Canada: The 2024 NIA Ageing in Canada Survey survey, by Natalie Iciaszczyk; Gabrielle Gallant; Talia Bronstein; Alyssa Brierley; Dr. Samir Sinha (Jan 28, 2025)

2. American Psychiatric Association: Purpose in Life Can Lead to Less Stress, Better Mental Well-being (Dec 7, 2023)

3. YouTube: The 4 phases of retirement | Dr. Riley Moynes | TEDxSurrey (May 26, 2022)

This article I’m 67, retired and was bored out of my mind until I found a side hustle to keep myself busy while earning extra cash. Here’s how you can stay engaged in your golden years originally appeared on Money.ca

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

Personal finance expert Suze Orman didn’t grow up wealthy — she worked her way through a number of challenging jobs and learned how to invest before becoming the success she is today.

Orman is a firm believer that everyone deserves to live without financial stress — both during their working years as well as in retirement. To achieve that goal, Orman is a fan of living below your means, always having a financial safety net, and working toward financial independence.

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But doing that takes time and effort.

As Orman says, “Financial independence is not something we snap our fingers and have materialize right then and there. It is the result of a process that we create and then commit to seeing through.”

If your goal is to achieve financial independence to the point where you’re able to retire early, the right tools could set you up for success. To that end, here are three accounts Orman recommends putting in place as soon as possible.

An emergency fund in a high-yield savings account

You never know when you might face a surprise expense or a period of financial hardship. That’s why it’s important to have an emergency fund — money in savings to cover unplanned bills, or to take the place of your paycheck for a while if that becomes necessary.

Unfortunately, an early 2025 U.S. News & World Report survey found that 42% of Americans do not have an emergency fund. In addition, SecureSave, a fintech Orman co-founded, reported in August of 2023 that 63% of workers do not have enough emergency savings to cover an unplanned $500 expense.

At the very least, it’s a good idea to save enough money in an emergency fund to cover three to six months of essential bills. However, Orman would prefer that you save more.

“You know that I want you to have far more than three months of living costs set aside. One year is my sweet spot advice for being prepared for major financial setbacks,” she said.

An emergency fund could also be an important component of your early retirement strategy. If you retire before you can access your IRA or 401(k) penalty-free, you can potentially dip into your cash reserves to pay bills (though ideally, that money should be saved for unplanned expenses).

You can also use your emergency fund to cover expenses during periods when the stock market is down and it’s a bad time to tap your portfolio.

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

A retirement account

The number of Americans who are nearing retirement without savings is alarming. AARP found last year that 20% of Americans 50 and older don’t have any money socked away for their golden years.

In addition, the Federal Reserve puts median retirement savings among Americans 65 to 74 at just $200,000 as of 2022.

Orman says the key to building a strong retirement nest egg is to start saving when you’re young — ideally, in your 20s. The sooner you fund your retirement account, the more time that money has to grow.

Orman also thinks people should save at least 15% of their income for retirement when they’re younger (and beyond). And if you want to retire early, you may even want to aim higher.

If you have access to a 401(k) plan, it can be particularly advantageous to participate — and max out if possible. This year, that means contributing $23,500 if you’re under 50, $31,000 if you’re 50 or older, or $34,750 if you’re between the ages of 60 and 63.

One easy way to boost your 401(k) savings is to claim your employer match in full. If you’re not sure what that entails, ask your benefits department.

You should also know that your employer match won’t count against your contribution limit. So if you’re 29 and want to contribute $23,500 out of your paycheck, and your employer matches your first $2,500 in contributions, you can put in $26,000 this year.

An investment portfolio

The nice thing about retirement plans like IRAs and 401(k)s is that they give you a tax break on your money. With a traditional IRA or 401(k), for example, your contributions go in tax-free and investment gains are tax-deferred.

The problem with these accounts, though, is that you’re required to wait until age 59 and 1/2 to take distributions. If you take an earlier withdrawal, you’ll typically face a 10% penalty. And a penalty like that could easily eat away at your savings.

That’s why it’s important to invest in a taxable brokerage account if you think you’d like to retire early — though you won’t get any IRS benefits, your account will also be unrestricted. You’ll be able to take withdrawals whenever you want and contribute as much as you want in any given calendar year.

Orman says it’s important to be strategic with your investments — and to be mindful of your asset allocation at different stages of life.

"For many people, as they near retirement, it can make sense to reduce their reliance on stocks if they want a smoother ride," she said. "But just because you had 80% or more invested in stocks when you were 40 doesn’t mean you need or must keep that much invested in stocks when you are 65 or 75."

To be clear, you shouldn’t reduce your stock exposure at a certain age so much as at a certain point before retirement. Generally speaking, the five-year mark is a good time to start moving out of stocks and into bonds, which tend to be more stable.

This doesn’t mean you should dump your stocks completely as retirement nears. But you may want to limit your portfolio to 50% or 60% stocks so you’re not overly exposed to market volatility at a time when you’re ready to start tapping your investments for income.

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

As online business owners, keeping finances secure and personal information safe for your customers are key to running a reputable business. But what about your own personal information as the one running the shop?

Imagine this: You run an online business making routine transactions with customers all over the country through a third-party shopping cart company. But one day, you discover that your Social Security number (SSN) has been showing up on customer receipts, compromising your business and your identity. What should you do?

It’s not a far-fetched scenario, as Social Security leaks are a rising vehicle for identity theft. How can you protect yourself?

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When your SSN is leaked through your business

In 2024, a massive data breach involving data broker National Public Data resulted in the exposure of Social Security numbers for over 270 million Americans – considered to be one of the largest breaches of sensitive personal data in U.S. history. But there are also risks involved when your own SSN as a business owner is exposed.

While the chance of a random customer using your Social Security number from a receipt for fraudulent purposes may seem remote, it highlights a broader concern: There could be numerous places throughout your business operations where your SSN is unnecessarily exposed to risk. Your SSN can often be found on online business tax forms, and depending on where you live, business licenses and permits.

Social engineers could also utilize the contact information you’ve posted online to pose as a customer to try to get you to reveal your SSN. They could also hack through your store’s cybersecurity protection system.

If cybercriminals obtain your Social Security number, they can inflict significant damage on your online business. They may open unauthorized credit accounts or secure business financing under your identity.

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What to do during a leak

If your Social Security number has been exposed through your online business, it’s critical to act fast — not just to protect yourself, but also to safeguard your customers and preserve your business’s integrity.

Report the leak to the Federal Trade Commission (FTC) right away and fill out the information on their identity theft site. Next, place a fraud alert on your credit report at any one of the three major credit bureaus (Equifax, Experian and TransUnion). The alert lasts one year but you can extend it if the matter isn’t resolved quickly enough.

Third, freeze your credit – you must call all three bureaus to freeze your account. Freezing your credit is free and restricts access to your credit report, helping prevent new fraudulent credit accounts from being opened in your name. And if you suspect any fraudulent business tax filings using your SSN, file an Identity Theft Affidavit through the IRS.

Even though the breach was of your personal Social Security, you may be legally obligated to inform customers, clients and vendors of the leak, depending on where you live.

Preventing an SSN leak

Discovering that your Social Security number may have been compromised during business transactions can be alarming. However, there are proactive measures you can implement to protect yourself from potential identity theft.

Consider applying for an Employer Identification Number (EIN) to use on business forms and payment processors in place of your SSN. Don’t make business transactions or share personal information through email or unsecured sites, and make sure to enable multifactor authentication on all banking, payment and online marketplace sites.

Consider investing in more advanced cybersecurity software for your business, including password managers, encrypted data storage and cloud platforms. You may also want to consider purchasing Identity Theft Insurance for your business.

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A new federal lawsuit is targeting California’s labor rules, and the state’s Vietnamese-American nail technicians are at the center of the fight.

Filed at the U.S. District Court for the Central District of California in Santa Ana, the lawsuit argues that a 2020 law, Assembly Bill 5, stripped nail technicians of their right to work as independent contractors, which violates the 14th Amendment’s promise of equal protection.

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The change has shaken up an industry with many immigrant employees from Vietnam. That industry also generates about $3 billion a year, according to the Pro Nails Association.

Representative of Little Saigon, California Assemblyman Tri Ta (R-Westminster), confirmed fear and frustration are flooding his office, and it’s impossible to ignore.

"Their lives have turned upside down overnight," Ta said at a news conference. "It is not just unfair, it is discrimination."

While some are critical of the law, which has turned their livelihoods upside down, labor advocates argue it’s a step toward ensuring a workforce that is often overlooked and underpaid, earns fair, stable wages.

More rules, more costs

In 2019, California passed Assembly Bill 5, a law that redefined how companies classify workers. The law stemmed from a 2018 Supreme Court ruling against Dynamex Operations West, which had misclassified delivery drivers as independent contractors to cut costs. The assembly bill established ground rules for who can be an independent contractor.

Under the new law, workers must meet three conditions to be classified as contractors. These include working independently, performing tasks outside the company’s core business and offering their services to other clients. If not, they must be treated as employees, with protections including minimum wage, overtime pay, workers’ compensation and unemployment insurance.

For nail salon owners, this shift isn’t in their favor. An Tran, who owns two Happy Nails & Spa franchises, is taking the state to court, arguing the rules impede how salons operate day-to-day. Turning contractors into full-time employees means higher payroll costs, higher insurance and tighter margins for owners, who also deal with overhead costs such as rent and supplies.

"We don’t have customers all the time. That’s going to cost us a lot more to pay them for the downtime when they don’t have any customers," Tran told the LA Times.

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A community under fire

This fight is also about community. Many Vietnamese refugees turned to nail salons in the late 1970s as a way to rebuild their lives in America. Decades later, that legacy endures. More than 82% of California nail technicians are Vietnamese, and about 85% are women, according to the lawsuit.

“Vietnamese American manicurists have faced blatant discrimination under California’s labor laws, stripped of the same rights and freedoms afforded to others in their industry,” Scott Wellman, attorney for the plaintiffs, said in a statement to KTLA 5. “If the State of California refuses to fix this injustice, we are prepared to hold them accountable in federal court.”

Worker advocates add that the lawsuit highlights deeper issues of exploitation across the industry. A UCLA Labor Center report found nearly 80% of nail salon workers earn pay at or below two-thirds of the median full-time wage, more than double the national low-wage rate for all workers. Beyond low wages, many salons are reportedly concerned about health and safety conditions as well.

Former nail technician Pabitra Dash confirmed those risks firsthand. She and her husband struggled with miscarriages while she was working in the salon industry. Once she quit, she was finally able to carry her baby to term. While her doctor never pinned the miscarriages on the chemicals she used at her job, Dash said she and her husband felt relieved they had a child after she left.

“(My doctor) said, ‘It’s really good for your health and your baby,’” Dash told NBC News.

Stoicism has been the response of many workers, who are worried that speaking up could cost them shifts or even their jobs.

The federal lawsuit has turned nail salons into the latest flashpoint in California’s struggle to balance gig work with fair labor protections. Salon owners fear that stricter rules might make it harder to keep their doors open, while many technicians quietly worry they’ll lose their employee rights.

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

A Winnipeg man’s $5 million lottery win has turned into a legal saga after his former partner claimed the winnings and allegedly cut off all contact.

The case, now before Manitoba’s Court of King’s Bench, offers a stark lesson about the financial risks of informal arrangements in personal relationships.

Lawrence Campbell alleges he purchased the Lotto 6/49 ticket on January 19, 2024, and gave it to his then-girlfriend, Krystal McKay, to hold because he had lost his wallet. When they realized the ticket was a winner, Campbell says McKay deposited the entire prize into her own bank account and later ghosted him, according to a statement of claim filed May 14.

McKay claimed the jackpot and was named the sole winner in a January 30 press release issued by the Western Canada Lottery Corporation (WCLC) and Manitoba Liquor & Lotteries. The release stated she had received the ticket as a birthday gift.

Campbell denies this and is now suing McKay, WCLC and the provincial lottery authority, alleging breach of trust and negligent advice that allowed McKay to keep the funds.

None of the allegations have been tested in court. The defendants have not yet filed a statement of defence.

Lack of paper trail leaves $5M lottery claim in legal limbo

The legal dispute revolves around Campbell’s claim that McKay agreed to hold the winnings in trust until he obtained government-issued ID and opened a bank account. The lack of any written agreement has complicated his efforts to recover the money.

Campbell’s lawsuit also claims McKay used their relationship breakdown as a way to sever communication and retain sole control over the funds.

A court motion filed last week seeks to freeze McKay’s assets, including property, investments and vehicles, while the case proceeds.

Legal experts: cohabiting couples face risks without documentation

Financial and legal experts frequently warn that cohabiting couples in Canada don’t enjoy the same automatic property rights as married spouses. Provincial laws differ, but in most provinces, unmarried partners must prove direct financial contributions to claim shared ownership of assets after a breakup.

In Ontario, for example, the Family Law Act does not grant equal property division to common-law spouses. Similar limitations apply in Manitoba, although couples who live together for more than three years (or have a child and live together for one year) may fall under provincial common-law rules.

According to CLEO (Community Legal Education Ontario), individuals in common-law relationships should document financial contributions and create written agreements to clarify how property will be divided if the relationship ends. These agreements, often called cohabitation agreements, can help prevent disputes like Campbell’s.

Lottery corporations stress ticket ownership rules

According to WCLC guidelines, lottery prizes are awarded to the individual whose name is on the ticket. If a group plays together, all members should sign a group play form to establish joint ownership.

In this case, McKay was the only person named when the ticket was submitted, and she provided the necessary identification. Campbell alleges he was misled by WCLC staff into allowing McKay to claim the prize on his behalf, a claim that forms part of his lawsuit.

How to protect your finances in love and law

The legal and emotional fallout from this story offers several takeaways for Canadians:

• Don’t rely on verbal agreements. For any significant financial matter — whether it’s lottery winnings, home ownership or large joint purchases — get it in writing.
• Know the law in your province. Common-law property rights vary widely. In many cases, shared assets are not automatically divided without clear proof of contribution.
• Take steps to protect windfalls. Whether it’s lottery winnings or inheritance, speak with a lawyer or financial advisor to establish who owns what and how it should be handled.

A cautionary tale about trust, relationships and money

Campbell’s story may be unique in its drama, but the financial implications are all too common. As Canadians increasingly live together without marrying, this case is a reminder that trust alone may not be enough, especially when millions are at stake.

Sources

1. CLEO: Community Legal Education Ontario

2. WCLC.com: FAQ Group Play

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

Each member of the board of directors overseeing Highlands Community Charter and Technical Schools in Sacramento either resigned or was removed weeks after the release of a report by the California State Auditor that found the school improperly received over $180 million in education funding.

In addition, the report, published June 24, says the adult charter school engaged in “questionable financial transactions” and conflicts of interest, including unlawful gifts, luxury travel and the hiring of unqualified individuals.

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“This moment is about accountability at every level,” Jonathan Raymond, who recently came on as executive director of the school, said in a statement obtained by ABC10. “I asked for these resignations because I believe Highland’s future depends on a clean break from past governance failures.”

According to the local broadcaster, the California Department of Education (CDE) has requested Highlands return the $180-plus million in misallocated funds.

Board members resign en masse

The audit report states Highlands wasn’t eligible for $177 million in funding it received in fiscal years 2022-23 and 2023-24. It also estimates millions of dollars in overpayments were issued due to misreported attendance figures.

During a special board meeting on July 7, members voted to remove Sonja Cameron. The report suggests an employee in a leadership role — with a salary of $145,860 — may have originally been hired by the school with the help of their board-member mother, and lacks qualifications for their current position, including a bachelor’s degree. ABC10 identified the employee as Cameron’s daughter.

After Cameron’s removal, the remaining six board members — Ernie Daniels, Matt Powers, Rick Jones, Sharon Rocco, Mike Reid, and Mary DeChance — announced their resignations. At least three members, however, will remain until replacements are named in order to keep the school operational.

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Meanwhile, pressure is being applied for the school to pay back the funds it apparently wasn’t supposed to receive.

“Those were taxpayer dollars that were wrongfully received by Highlands’ operators,” Al Muratsuchi, chair of the state’s Assembly Education Committee, told ABC10. “So, it’s only right they have to pay that money back.”

Raymond provided a statement to the broadcaster, saying the school is reviewing its legal options, calling the repayment demand “political theater” and warning that returning the funds would force the school to shut down.

“Lawmakers, regulators and CDE cannot let that happen — not to tens of thousands of immigrants, refugees and second-chance students who count on Highlands as a lifeline,” he said.

Hidden costs to students

Beyond the political fallout, families and students may face challenges.

For many adult learners, including immigrants and working parents, Highlands served as an affordable path to diplomas, job training and a second chance at education. If the school shuts down or scales back its services, students may need to seek more expensive alternative options.

Here are some ways students can cope:

• Set up an emergency fund: Building a cushion now, if you’re able, can help you avoid going into debt, or further into debt, in the future.
• Reassess your monthly budget: Trim non-essential expenses and begin building a budget for future educational costs.
• Look for outside financial support: Apply for scholarships, employer tuition reimbursement or nonprofit education grants.
• Request your transcripts now: Secure official records in case your school closes or it becomes more difficult to transfer credits.

For now, Highlands’s future remains uncertain, but the audit has sent a clear message about the importance of oversight in school boards.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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