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Category: Moneywise

  • This Vietnam vet, 84, was forced to sell her ‘dream’ retirement home after new owners jacked up monthly costs from $1,395 to $6,500 — how she lost out on $100,000 and a warning to seniors

    This Vietnam vet, 84, was forced to sell her ‘dream’ retirement home after new owners jacked up monthly costs from $1,395 to $6,500 — how she lost out on $100,000 and a warning to seniors

    Many seniors across the country would consider their senior living community a safe haven. But for some, these properties turn out to be money traps right when their personal finances are most fragile.

    Martha Bray, an 84-year-old Vietnam veteran, found herself trapped in such an unfortunate situation.

    After 10 years of living at River Glen of St. Charles, a senior living community near Chicago that she describes as her “dream” home, the property was acquired by two investment companies that swiftly raised rents. She told NBC News that her monthly maintenance surged from $1,395 to $6,500 — a 365% increase.

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    Unable to pay this extortionate rate, Bray ultimately decided to move out and receive only 75% of the $314,000 entry fee she paid to move in. Based on the property’s value at that time, she estimates her total loss at $100,000.

    “I just want people to know not to believe a damn word anybody says,” she told NBC News.

    “Your money is not safe.”

    Indeed, many seniors are exposed to similar risks when they sign up for these seniors communities. Here’s why the industry’s image as a safe haven is looking increasingly shaky.

    Private equity’s invasion

    Factors that make seniors living facilities valuable to many families also make them attractive to investors. Elevated rents, recurring revenue and the nation’s aging population has made this a lucrative asset class for private equity firms.

    According to the American Seniors Housing Association’s (ASHA) annual report on the industry, eight of the 50 largest operators in the U.S. senior housing space were private equity firms in 2024. And at least three had partnerships with real estate investment trusts (REITs).

    Private equity’s influence could expand further in the years ahead. A survey of seniors housing trends by global real estate investment firm JLL, showed that 78% of institutional investors planned to expand their investments in senior care facilities. “Opportunities exist for investors to acquire high-quality real estate at below replacement cost,” says the 2025 report.

    The impact of private equity ownership on residents of these facilities can be “significant and troubling,” according to the Center for Medicare Advocacy.

    According to their analysis, properties taken over by one private equity firm in Iowa received lower overall and health inspection ratings, had fewer nursing staff, faced more abuse citations, incurred higher federal civil monetary penalties, and experienced more payment denials for new admissions

    Put simply, some investment firms may be incentivized to put profits and shareholder returns above the interests of vulnerable seniors. If you or your loved ones live in such facilities or are considering moving in, you should take some steps to protect yourself.

    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

    Protect yourself and your loved ones

    There are several ways you and your family can reduce the risk of financial damages from seniors living arrangements.

    Before you sign up, make sure you review the contract carefully and consider having the terms reviewed by an experienced lawyer. You should also try to find out which entity owns the property you or a loved one is considering.

    There are minimal disclosure requirements for senior living property transactions, so it’s not easy to find out if a facility is owned by a private equity firm, but the Centers for Medicare & Medicaid Services (CMS) offers some limited information on its website about “affiliated entity performance” that could be helpful.

    The CMS is also advocating for tighter regulations and more disclosures to bring transparency to the industry and help consumers find out who owns the properties they or their loved ones live in.

    Last year, Democratic Senators Ed Markey and Elizabeth Warren introduced the Corporate Crimes Against Health Care Act, which aims to “root out corporate greed and private equity abuse in the health care system.”

    If you believe the industry needs greater transparency and tighter protections, reach out to your local representative to encourage them to support the bill as it makes its way through Congress.

    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 thought I was getting somewhere’: New Jersey dad bought his daughter a $959 iPad — but when she unwrapped the gift, the box was empty. And that’s when his real headache started

    Pete McCollum wanted to surprise his daughter with a top-of-the-line iPad Pro for Christmas. But when she unwrapped the $959 gift, she was shocked.

    “On December 23rd, I gave my daughter the gift, I gave her the box. She opened [the packing box] and opened the Apple iPad Pro box, but it was empty,” McCollum told NBC10.

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    Stunned, he grabbed his phone and immediately called BJ’s Wholesale Club, where he had bought the device.

    “I got a very nice rep on the phone,” he told NBC. She asked him to send a photo of the empty box, so he did right away.

    An initial email from BJ’s was promising, but when McCollum followed up a week later, a different story emerged.

    ‘I thought I was getting somewhere’

    A member of BJ’s care team told him he would need to dispute the charge through his bank.

    McCollum then contacted American Express. A representative told him the purchase was covered under their protection policies. So McCollum submitted the required paperwork and sent it via certified mail — but his dispute was denied within a week.

    McCollum followed up with both BJ’s and American Express, hoping persistence would pay off.

    “I thought I was getting somewhere from the tone of the calls I was having,” he told NBC10.

    But both appeals were denied. McCollum shared his experience with coworkers and customers, one of whom suggested he file a complaint with NBC10’s consumer help team. That’s when things finally started to change.

    “I felt relief… just the fact that someone was listening to me,” McCollum said.

    NBC10 stepped in, sharing receipts and account documentation with both BJ’s and American Express. Within a week, the credit card issuer told McCollum they were reviewing why the refund had been denied. Two days later, he got the call he’d been waiting for: a full refund was on the way.

    “We handle situations like these on a case-by-case basis,” American Express told NBC10.

    When the news team contacted BJ’s, the store requested McCollum’s membership number and added, “We’re pleased that the issue has been resolved.” And when asked for details about how an empty iPad box made it into a customer’s hands, BJ’s said they had “no additional details.”

    American Express advised that for any questions about refund claims, cardholders should call the number on the back of their card.

    For McCollum, the long journey ended with a win, but not without a lot of persistence, paperwork and one well-placed complaint. Here’s what you can do to protect your big purchases and avoid a situation like this.

    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 to do to protect your big purchases

    Sometimes the unexpected happens, and you want to be protected when it does. Here are some tips to protect your big purchases:

    Check the item right away

    Even if it’s a gift, don’t wait until the big day to find out something’s wrong.

    Make sure you open the box to see if the product is there and if it’s the right size or model — or if it’s damaged.

    If the purchase is electronic, you may want to power it on and make sure the device works properly. If you wait until potentially weeks later to report an issue, it can make returns and disputes more challenging, and the burden of proof will be on your shoulders.

    Use the right payment method

    For big-ticket items, you may want to use a credit card instead of a debit card or cash. Credit cards often have purchase protection or dispute resolution processes.

    When you’re considering credit cards, look for cards with built-in protections, like extended warranties, return protection and theft or loss coverage. Some premium credit cards reimburse you if the item is damaged, lost or stolen within a certain timeframe.

    And be sure to keep your receipts. Whether digital or paper, having proof of purchase is essential when making a claim.

    Choose trusted retailers

    Shop with trusted stores that have a clear return and customer service policy.

    Avoid third-party sellers on marketplaces if you’re not familiar with them. It’s harder to prove who’s at fault if something goes wrong, and it often becomes a “he said, she said” situation.

    Register high-value items with the manufacturer when possible. This can help with warranty claims, but it also proves that the item was yours to begin with.

    Protect the shipment

    Shipping errors or theft can occur before you even receive your item, so if you have the option, go for signature confirmation on high-end deliveries.

    Use secure delivery addresses. Consider having packages shipped to your workplace, a locked parcel box or a neighbor who’s always home if you’re not able to receive the delivery.

    Track your shipments closely and report anything suspicious as soon as possible.

    Act fast if there is an issue

    If you do receive an empty box, a damaged item or nothing at all, take photos right away to document the packaging, labels and contents.

    Report the issue to the retailer and your credit card issuer promptly in writing — not just over the phone.

    Follow any instructions from the retailer accurately, since missed paperwork or deadlines can result in denied claims, even if you’re in the right.

    Anytime you spend a lot of money on a purchase, the stakes are high. It’s worth taking a few extra steps upfront to avoid the long, frustrating process of disputes and appeals later.

    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.

  • Smart car shopping in retirement: What to consider before buying a vehicle on a fixed income — from budget tips to choosing the right features for your lifestyle

    Smart car shopping in retirement: What to consider before buying a vehicle on a fixed income — from budget tips to choosing the right features for your lifestyle

    You’re enjoying your retirement years, taking the occasional road trip to spend time with friends and family. But your car has seen better days — nearing the end of its life at 200,000 miles.

    Since you haven’t purchased a car in a long time, you may be surprised at how much vehicles have changed — and how much they cost.

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    Before heading to the nearest dealership, It’s essential to determine what you’re looking for in a new vehicle first.

    Evaluating your finances

    Take a careful look at your financial situation. You’re no longer in your income-earning years, so every penny counts. Planning for expenses outside your usual spending can help prevent you from severely depleting your retirement savings.

    Start by figuring out your budget for a vehicle purchase. You can do this by reviewing your monthly retirement income and allocating a percentage towards a vehicle.

    If your car budget isn’t as high as you’d like it to be, purchasing a used vehicle could save you money.

    Don’t forget to estimate the trade-in value of your current car — it could help bring down the overall cost.

    It’s possible to finance a vehicle after retirement, but you’ll need to factor in interest charges and any additional lender fees. These extra costs can eat into your retirement budget, so the monthly payment must be one you can easily afford.

    Shopping around with different lenders is a smart way to find the best rate and loan terms based on your financial profile. Checking your credit score ahead of time can also give you an idea of which lenders are more likely to approve you.

    Paying for a car in full upfront can save you money on interest. If you choose this route, consider whether you’re comfortable withdrawing a lump sum from your retirement accounts. Alternatively, you could set up a sinking fund — setting aside a chunk of your retirement income in a separate savings account until you have enough to make the purchase.

    Remember to factor in ongoing costs beyond the purchase price or loan payments, such as car insurance, maintenance, and fuel.

    Owning a different vehicle may result in higher car insurance premiums, so be prepared for potential increases. Fuel costs might also rise if your new car isn’t as fuel-efficient as your old one.

    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

    Choosing the right vehicle for your needs

    Reliability is one of the most important factors when choosing a car. Look for a vehicle that offers the safety features you want, one that’s low maintenance and fuel-efficient. Spending less on fuel and repairs will help lower your ongoing expenditures.

    Resources like Consumer Reports offer reliability ratings can give you insight into how well certain makes and models hold up over time. You can also ask trusted friends and family members for their recommendations.

    In addition to financial considerations, think about your lifestyle. If you need a reliable car for running errands and visiting family, you may not need all the latest bells and whistles.

    However, if you plan to be more active — going camping or taking long-distance trips — you may want to consider features that improve your safety on the road. These can include backup cameras, blind spot detectors and cross-traffic alerts.

    Whatever you plan to use your car for, make sure you feel comfortable driving it and know how to use its features. A high-end infotainment system might sound nice for long trips, but if it’s challenging to use, it could end up being more frustrating than helpful.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

  • ‘It’s not safe’: This Houston couple says their brand-new home in a gated community has become a mold-ridden uninhabitable nightmare — now they’re left in an ‘unfathomable’ position

    ‘It’s not safe’: This Houston couple says their brand-new home in a gated community has become a mold-ridden uninhabitable nightmare — now they’re left in an ‘unfathomable’ position

    When Angela and Terry Taylor of Houston moved into a four-story home in a gated community in 2020, they thought it would be a safe, low-maintenance environment where they could ease into retirement.

    Instead, things started to go wrong almost immediately. The Taylors noticed condensation on the windows and doors. Angela began to feel ill.

    They soon identified the problem: mold. A doctor discovered mold in Angela’s sinuses and told her it was the highest level he had seen in 32 years.

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    Then they checked out the house. Hundreds of thousands of mold spores per cubic meter, on the walls, beneath stucco finishes — even their furniture.

    "It’s not safe for anybody to be there," their attorney Ernest Freeman told KHOU 11.

    The Taylors have moved into an apartment, carrying the costs of the apartment and their new home at the same time.

    "We’re trying to retire one of these days and these are some of the most expensive days of our lives," said Terry Taylor. "It’s unfathomable that we’re in the position we’re in."

    Now they’re suing the home builder, Pelican Builders, and sharing their story to alert other people to the dangers.

    Mold takes a physical and financial toll

    "We worked hard, raised our kids and this is our time, and I’ve gotten sick," Angela said. "It’s just a nightmare."

    The couple said they initially tried to work with the builder on a solution.

    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

    Pelican Builders’ lawyer Ben Westcott said that the company offered to repair the Taylors’ home at no cost in 2022. He said the Taylors’ decision not to take the offer led to further degradation of the property.

    But Freeman and his clients note that the builders’ offer did address underlying structural issues that caused the mold growth in the first place.

    Mold grows when houses aren’t properly sealed. Warm air fills the inside of the walls, forced down from the attic. Cooler air from the other side of the wall makes condensation form, causing mold to grow rapidly.

    What you can do if your new home has serious structural issues

    If you, like the Taylors, find structural problems in a new-build home, there are several avenues you can pursue to get help.

    First, review your contract and the builder’s warranty. This type of warranty is standard for new homes, and is also enforced when any extensive remodels to your existing home take place. It covers permanent parts of your home, including concrete floors, plumbing, electrical work and the like.

    You may also have a home warranty, which covers replacements or repairs. This can include appliances or air conditioning systems, and servicing for these items.

    If your warranty covers the repairs you need, you should have no trouble enforcing the terms of your agreement with your builder.

    If the issues are not part of the warranty, but are so significant that the property is uninhabitable, your builder should also make a good faith agreement to repair the damage and underlying issues with the home.

    If your builder refuses to cooperate, you can file a complaint with your state’s contractors licensing board. The specific rules and regulations vary by state, but each board can pursue disciplinary action against a contractor who fails to uphold a reasonable standard for their work.

    Finally, you can consider hiring a lawyer. Look for a representative who has handled similar cases in the past, and can help you understand the laws in place in your state to protect homeowners.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

    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,”

    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

    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.

    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

    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

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

  • Connecticut couple issued $111 fine for allegedly using a toll road in a state they hadn’t even visited in 5 years — what you need to know about the ‘ghost car fraud’ scam plaguing US drivers

    Cruising in their classic 1966 Ford Mustang was one of the joys of retired life for Mary and Dan Smith, but that joy took an unexpected turn when they received a fine for an alleged toll they never paid.

    That fine was for the New Jersey Turnpike, a toll road that the Enfield, Connecticut couple hadn’t driven on in years, let alone in the very specific car that authorities had flagged.

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    "Our Mustang was never there," Mary told WBTV. "We never drove that far with that old car to begin with."

    Now the couple is sounding the alarm on so-called "ghost car fraud," a scam that is quickly becoming a growing problem for American drivers and state governments.

    ‘We haven’t been to New Jersey in at least 5 years’

    It all started when Mary found a letter from the New Jersey Turnpike Authority in the mail. In it, the authority stated the Smiths’s license plates were recorded traveling through one of the state’s E-ZPass toll booths without paying. The fine? $11.50.

    "We haven’t been to New Jersey in at least 5 years," said Mary.

    The Smiths appealed the fine, but the couple was shocked when the appeal was denied. Making matters worse, their $11.50 fine had skyrocketed to $111.50 thanks to administrative fees. From then on, the bills just kept coming, almost daily.

    Finally, a letter arrived with visual evidence of the supposed offense, showing a car distinctly different from the Smiths’s classic yellow Mustang. While unclear, the photo showed a vehicle with modern taillights that featured the same license plate as the Smiths’s Mustang. The couple sent replies to the New Jersey Turnpike Authority stating that while the plates seemed to match, the car captured in the photo was in no way theirs.

    "We’re giving you all the information, the pictures, what more can we do?" asked Mary.

    It was only after WBTV inquired on behalf of the Smiths that the error was rectified, with the couple no longer on the hook for the charges.

    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 ‘ghost car fraud’?

    Ghost car fraud is a type of scam where criminals steal or duplicate license plates and put them on different vehicles, causing the legitimate plate owners to receive toll violations and fines for roads they never traveled.

    License plate theft scams typically involve criminals stealing plate numbers in a few common ways:

    • Physically removing plates from vehicles
    • Creating duplicate plates to mask stolen vehicles
    • Using stolen plate information for identity theft or toll evasion
    • Capturing plate images to create fraudulent registrations

    The Smiths’s story is similar to those of other Americans who also found they had become victims of ghost car fraud. Joanne Barbara from New Jersey once discovered her temporary Audi SUV plates were duplicated on a black Audi sedan, racking up over $600 in tolls and fines, according to WABC. Similarly, Walter Gursky discovered his truck’s temporary license plates were also duplicated on a white Tesla, resulting in $167 in toll violations.

    The states of New York and New Jersey have since taken steps to alert residents about this scam.

    "Ghost plates and toll evasion cost our state millions each year," New York Governor Kathy Hochul said in a statement on NYC’s official website. "Working in partnership with Mayor Adams and law enforcement, we are prioritizing the safety of all New Yorkers by removing these vehicles from our streets and ensuring these brazen actions do not go unchecked any longer."

    How to protect your license plates

    While there might not be much you can do to thwart criminals from stealing the numbers and duplicating your license plates, there are a few things you can do to prevent your plates from being stolen from your car.

    For starters, parking your car in the garage and keeping it off the street as much as possible can make it more challenging for criminals to steal your plates. You could also protect your plates by installing an anti-theft license plate cover, or replacing the screws on your plates with tamper-proof screws. These screws can only be installed or removed using a special wrench that comes with the screws.

    If you’ve received a letter from a toll authority claiming that you owe money for tolls that were wrongfully applied to your license plate, you can follow the same steps the Smiths took to rectify their situation:

    • Contact the toll authority to both verify and dispute the charge(s)
    • Request photographic evidence of the supposed offense, as this could prove that your plates were duplicated and you did not incur the toll charges
    • If you hit a wall in dealing with the toll authority, consider alerting your local news outlet about your situation, as Mary Smith had done. Bringing local news into the situation could apply enough pressure to encourage the toll authority to recognize the fraud and clear the charges from your records

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

  • I’m 58 and plan to retire in 5 years with a portfolio worth $2.5 million. I expect annual dividend income of $80K but worry this strategy too risky

    I’m 58 and plan to retire in 5 years with a portfolio worth $2.5 million. I expect annual dividend income of $80K but worry this strategy too risky

    Close to retirement with a nest egg of more than $2 million? No wonder you’re thinking about retiring! To put this in perspective, you’re 58 years old with a $2.5 million saved in an investment portfolio — this is more than four times the savings for the average Canadian. According to Statistics Canada, the average nest egg is closer to $573,040.

    But wait, there’s more! Once you’re 60, you can start collecting payments from the Canada Pension Plan (CPP), albeit at a reduced rate. If you opt to hold off collecting CPP (you can delay until age 70), the more government payment you’re entitled to each month.

    Based on these factors, there’s a really good chance that you might be able to live off of the dividends produced by your investment portfolio without touching the $2.5 million principal, but you still need to manage your portfolio and make smart money decisions.

    Pay attention to diversification to keep your dividend income up

    With a dividend yield of at least 3.2%, a $2.5-million portfolio could easily generate $80,000 in annual dividends. That kind of yield is doable if you diversify beyond a basic broad-based exchange-traded fund (ETF) and focus on stocks and other assets with higher-than-average dividends.

    For investors comfortable with picking and trading stocks, keep in mind that over time a portfolio loaded with growth stocks can experience more volatility due to market growth. For instance, the value of specific stocks in your portfolio can grow so much that the portfolio is overweighted with certain holdings or assets. Also, companies experiencing rapid growth and accelerated gains don’t always pay high dividends because they reinvest their profits to fuel growth and boost stock prices. Plus, companies are not obligated to raise dividends over time, nor are dividend increases guaranteed to match inflation.

    For that reason, you need to keep tabs on a portfolio of dividend-paying stocks. A good bet is to rebalance your portfolio on a quarterly basis — either on your own or with a financial adviser.

    Another good option is to add other income-generating asset, such as REITs, or real estate investment trusts. REITs are a great choice for those seeking regular income since REITs are required to pay out 90% of their taxable income to shareholders each year. That means adding REITs into your portfolio will help keep your monthly income stable and allow you to avoid dipping into the principal to pay living expenses during your retirement years.

    Keep an eye on inflation

    Inflation could impact your investment income dramatically. For instance, if you collect $80,000 in income from your portfolio when you’re 60, and collect the same amount when you are 80, inflation over the years will erode the purchasing power of that money and force you to adjust your spending as time goes on — or dip into your principal investment amount.

    The Bank of Canada and the federal government has long targeted a 2% annual inflation rate, the midpoint between 1% to 3%, but even a 2% inflation can erode the spending power of $80,000. And things can happen. Remember that the stimulus policies amid the pandemic rapidly drove the cost of goods and services above 2% and other circumstances can always prompt quick price increases.

    Consider taxes

    Consider tax implications in your dividend calculations. If the dividends are distributed in a non-registered account, you’ll have to pay full tax on the earnings. The good news is the Canada Revenue Agency does tax dividend income more favourably than other forms of income — as long as the dividends earned meet the CRA’s criteria.

    Another option is to shelter your earnings in a registered account, such as a registered retirement savings plan (RRSP) or Tax-Free Savings Account (TFSA). Just be sure you understand when and where it make sense to shelter dividend income in a registered account. To help

    On the other hand, if you have a traditional RRSP, you only pay taxes on dividends when you withdraw them.

    Your taxes will depend on your filing status and income, as well as what tax thresholds look like in the future. If you’re a single tax filer and your income is between $57,375 and $114,750, then you’re looking at a tax rate of about 7.56% for eligible dividends and 13.19% for non-eligible dividends. Remember that tax laws and rates can change over time. It’s a good idea to consult a financial adviser to plan your short- and long-term retirement strategy.

    Sources

    1. Statistics Canada: Assets and debts held by economic family type, by age group, Canada, provinces and selected census metropolitan areas, Survey of Financial Security (x 1,000,000) (Oct 29, 2024)

    2. Tax Tips: Canada 2025 and 2024 Tax Rates & Tax Brackets

    This article I’m 58 and plan to retire in 5 years with a portfolio worth $2.5 million. I expect annual dividend income of $80K but worry this strategy too riskyoriginally appeared on Money.ca

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

  • A North Carolina woman bought a house with her boyfriend — but then they broke up and both stopped paying the mortgage. Facing foreclosure, here’s what The Ramsey Show hosts say she should do

    A North Carolina woman bought a house with her boyfriend — but then they broke up and both stopped paying the mortgage. Facing foreclosure, here’s what The Ramsey Show hosts say she should do

    Janelle from Raleigh, North Carolina, says she “did the ultimate no-no” when she bought a house with someone to whom she wasn’t married. After about a year, they broke up and she moved out.

    Now, they’re four months behind in mortgage payments, haven’t been able to sell the house and are facing foreclosure.

    She’s also racked up $25,000 in loans and credit card debt. Since she no longer communicates with her ex-fiance, she isn’t sure how to fix her situation, so she called into The Ramsey Show to find out what her options are.

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    Both Janelle and her ex are on the mortgage and property deed.

    “We’re four months behind,” she told show cohosts, and while they’ve been trying to sell the home and recoup their losses, so far they haven’t had any takers — and they still have $465,000 left on the mortgage.

    When the romance is dead — but the mortgage lives on

    Now, Janelle says they’re “in the process of asking the mortgage company for a short sale to see if that’s even possible.”

    “I don’t see a way out of this unless you guys can find a way to sell it before it forecloses,” cohost George Kamel said.

    First, however, they need to get caught up on their mortgage payments and try to avoid foreclosure. While her ex tried to float the mortgage for a few months, he’s now stopped making payments. Janelle also stopped paying her share when she moved out because she’s paying rent elsewhere.

    But, when your name is on the mortgage, that reasoning doesn’t fly.

    “You are legally obligated to pay that [mortgage],” cohost Ken Coleman said, “whether you’ve moved out or not.”

    Janelle brings home about $6,000 a month after taxes, pays about $2,400 in rent and still has money leftover for her “expenses,” which includes putting money aside into her 401(k). She also has about $4,000 in savings.

    “We need to pause all of that.” Kamel advised. “You need to act like everything is on fire. And you need to work on getting out of this house mess and paying off your debt.”

    They’re about $12,000 in arrears on their mortgage, so they need to “both put some skin in the game” to get caught up on payments. That means giving up any expenses that aren’t necessary — including investments — until they’re out of this hole. It could also mean Janelle getting a second job for a short period of time or her ex getting a temporary roommate until they can get caught up and eventually sell the house.

    “That’s going to be your best bet — just trying to sell this thing ASAP even if you have to lower the price,” Kamel said, “instead of going through a short sale or, worst case, that foreclosure.”

    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 to consider before you buy a house together

    Buying property with someone you’re not married to — whether a partner, friend or family member — can be rewarding but does come with legal and financial risks.

    It’s a small, but still significant, percentage of homebuyers, with 9% of recent homebuyers being unmarried couples, according to the National Association of Realtors 2024 Profile of Home Buyers and Sellers Report.

    Long before you start searching for a home together, you’ll need to decide on a budget and how much each of you will contribute. It’s also a good idea to review each other’s finances, including credit scores. You’ll then have to decide on the ownership structure: joint tenancy (equal property ownership) or tenancy in common (unequal shares).

    If you’re unmarried, lenders will assess the credit scores of each buyer. So, if your partner has a low credit score, that could impact your ability to get approved for a mortgage.

    On the flip side, if only one partner has their name on the mortgage and title, the other loses out on building equity (and if they split up).

    You’ll also need to account for expenses above and beyond the mortgage, such as property taxes, insurance premiums, homeowners associations (HOA) fees, maintenance costs, utility bills and any other household expenses.

    While a 50/50 split makes this much easier — where each partner contributes half to the down payment, each pays half of the mortgage each month and they split the utilities and other household expenses — it doesn’t always work out this way. Maybe one partner puts down money for the down payment, or they agree that one will pay the mortgage and the other covers the rest of the bills.

    Whatever the case, you’ll want this agreement in writing. A cohabitation or joint homeownership agreement is a legally binding contract (preferably drafted by a legal professional) that details what will happen in the case of a breakup.

    This agreement should outline each person’s rights and responsibilities, and what happens if they break up or one partner wants to sell. Otherwise, you’ll have to come up with your own settlement — at a time when tempers could be flaring — or rely on the legal procedures in your state, meaning the court could make that decision for you.

    If you end up getting married, then you can update the ownership structure. But if you break up, having a legally binding agreement in place can help avoid a situation like Janelle finds herself in — and she’d understand that she can’t just stop paying the mortgage because she moved out.

    “You’re going to need to start communicating — you guys entered quite the partnership here to then just flee the coop,” Kamel said, adding that even if they can’t stand each other, “you’re kind of stuck right now until you guys figure out the next move.”

    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.

  • ‘That is a bath right there’: This Atlanta dad splurged on a $60K car — now it’s only worth $30K but he still owes $57K. Here’s how the Ramsey Show hosts suggest he get clean again

    Terrence from Atlanta has a budget problem, and he knows it.

    The Georgia father recently called in to The Ramsey Show seeking advice on how to get rid of his car, a 2021 Kia Stinger GT2 that costs him $1,200 a month. He also pays $2,000 in child support every month — a financial burden that leaves him with little breathing room despite earning a six-figure salary.

    Don’t miss

    “I make $10,000 a month,” Terrence told co-hosts Ken Coleman and Dr. John Delony. “I bring home $5,200 after taxes and child support.”

    Terrence bought the Stinger for about $60,000 — rolling in negative equity from a previous vehicle. Two years later and he still owes $57,000, but the car is now only worth about $30,000.

    “Oh boy, that’s a bath!” Coleman exclaimed. “That is a bath right there.”

    America’s auto loan crisis

    Terrence’s situation isn’t rare. Unfortunately, many Americans find themselves “car poor” — trapped by high monthly payments, inflated prices and interest rates that stretch already-thin budgets.

    According to CarEdge, the average price of a new car in the U.S. hovers around $48,699. Meanwhile, Experian reports the average monthly car payment for new vehicles sits at $742 as of Q4 2024.

    Interest rates on auto loans are also elevated, with new car buyers paying an average of 7.1% in Q1 2025, according to USA Today. All of this has led to Americans accumulating $1.64 trillion in auto loan debt as of Q1 2025, according to Trade Economics.

    Those numbers don’t even factor in insurance, gas or maintenance costs. And with 20% of new car buyers now paying over $1,000 a month, Terrence is among a growing cohort of American drivers underwater on their loans.

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    Co-hosts share their advice for Terrence

    Terrence’s question for the co-hosts was simple: what’s the fastest, least painful way out of this situation?

    In order to give the co-hosts a complete picture of his finances, Terrence said he typically has between $1,300 and $1,400 remaining every month after paying his child support and other expenses.

    The co-hosts offered Terrence two potential escape routes. One option is to aggressively pay off the car over a long period of time by throwing $3,000 a month at the debt. However, that route might include some extreme budgeting and maybe even a few overtime shifts for Terrence.

    "If you take that $1,200 a month [car] payment, you take that $1,300 extra and you go through your budget with a magnifying glass. You stop going out for a season, and let’s say you can scrounge up $3,000 [per month] that includes this $1,200. You can pay this thing off,“ Deloney said.

    The other route calls for Terrence to sell the car now for around $30,000 and buy a reliable used vehicle — like a high-mileage Toyota or a Buick, which Terrence once owned and loved — for about $7,500, and then pay off a big chunk of the auto loan balance with the roughly $22,000 remaining from the sale of the car.

    This would leave Terrence with roughly $35,000 left on the auto loan, which means he wouldn’t be out of the woods just yet.

    Either way, Terrence is going to have to pull himself up by his boot straps and create a frugal budget in order to get out of this financial hole. Ultimately, the co-hosts applauded Terrence’s honesty and determination to change course.

    “I’ve got a daughter who’s about to go to college, so I want to have the money," Terrence said.

    Coleman and Delony’s final piece of advice? Ditch the debt, drive a modest car and stay focused on long-term goals.

    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.