Latest news with #AffordAnything
Yahoo
3 days ago
- Business
- Yahoo
Suze Orman Says Retiring Early Is the 'Biggest Financial Mistake' You'll Ever Make — 'You Might Need $10 Million...Just So You'll Be Fine'
Back in 2018, when gasoline was still under $3 and your grocery bill didn't make you break out in hives, Suze Orman went on the "Afford Anything" podcast to share her unfiltered thoughts on the financial independence, retire early movement—better known as the FIRE movement. "I hate it. I hate it. I hate it. And let me tell you why," she told host Paula Pant. Then came the mic drop. Orman didn't just question retiring early—she called it a massive error in judgment. "I think it is the biggest mistake, financially speaking, you will ever, ever make in your lifetime." Don't Miss: Invest where it hurts — and help millions heal:. Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — And if you're thinking she was only warning people with shaky finances or no backup plan, think again. Suze made it clear that even multimillionaires aren't immune from future uncertainty. "Listen, if you have $20 [million], $30 [million], $50 [million]—I'm not kidding—I have a few of those people. I'll give you permission," she said. "But if you don't have at least $5 million, really, you might need $10 million to retire early today..." she said. Based on her math, you'd need around $350,000 a year after taxes to cover care, living expenses, and everything else. If you only have $1 million earning 4%, that's just $40,000 a year—nowhere near enough. To generate the kind of income she's talking about without dipping into your savings, Orman calculated that you'd need at least $5 to $6 million. "So really you might need $10 million just so you, if you're making 5% on that money and after tax, you'll be fine without touching your principal." Trending: Maximize saving for your retirement and cut down on taxes: . And let's pause on that. She said that in 2018—before the pandemic, before 7% inflation, and before the $20 minimum wage trend swept parts of the country. That was back when average rent was still barely four digits in many cities. So if Suze thought you'd need $10 million just to be "fine" back then, what would she say now? With rents up 25% in major cities since the pandemic, and everything from car insurance to rotisserie chickens doubling in cost, early retirement might look less like sipping coffee on a beach and more like praying your HVAC doesn't break in July. Sure, plenty of people in the FIRE community have successfully retired in their 30s or 40s with way less than $10 million. But Orman's point wasn't about whether it's possible—it's about whether it's sustainable through a few recessions, health crises, and bad market years. "You get hit by a car. You get cancer. You get divorced. You have a parent that you have to take care of," she warned. "Things happen."She wasn't fear-mongering. She was reminding listeners that life throws curveballs—and that financial independence isn't just about math. It's about margin. It's about resilience. You don't have to agree with Suze Orman to admit she made a good point. If $5–$10 million was her baseline for early retirement seven years ago, in what now feels like the "old economy," then the FIRE finish line might be a little farther away than some people want to believe. So if you're banking on quitting work forever in your 30s because you hit a $1 million net worth... you might want to re-run the numbers. Suze already has. Read Next:Many are using retirement income calculators to check if they're on pace — Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Suze Orman Says Retiring Early Is the 'Biggest Financial Mistake' You'll Ever Make — 'You Might Need $10 Million…Just So You'll Be Fine' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
USA Today
15-05-2025
- Business
- USA Today
California man admits to scamming DoorDash out of $2.5 million using fake deliveries
California man admits to scamming DoorDash out of $2.5 million using fake deliveries Show Caption Hide Caption Expert take: Does buy now, pay later help or hurt your finances? Priya Malani, CEO of Stash Wealth, and Paula Pant, host of the Afford Anything podcast talk buy now, pay later. A former delivery driver has pleaded guilty to conspiring with several others to steal over $2.5 million from DoorDash, a San Francisco-based food delivery company, federal prosecutors said. Sayee Chaitanya Reddy Devagiri, 30, of Newport Beach, California, pleaded guilty on May 13 to one count of conspiracy to commit wire fraud, according to the U.S. Attorney's Office for the Northern District of California. Prosecutors said Devagiri admitted to working with three others and a former employee of DoorDash in a fraud scheme that targeted the company between 2020 and 2021. In the scheme, the group caused DoorDash to pay for deliveries that never occurred, according to prosecutors. Prosecutors said the scheme resulted in more than $2.5 million in fraudulent payments. Devagiri was arrested and indicted alongside Manaswi Mandadapu, 29; Matheus Duarte, 29; and Hari Vamsi Anne, 30, in October 2024, according to prosecutors. All four were charged with a single count of conspiracy to commit wire fraud. Mandadapu pleaded guilty to the charge on May 6, prosecutors said. Duarte and Anne previously pleaded not guilty and are scheduled to appear in court on July 22, The Los Angeles Times reported. The former DoorDash employee involved in the scheme, Tyler Thomas Bottenhorn, was charged in a separate indictment in September 2022 and pleaded guilty to conspiracy to commit wire fraud in November 2023, according to prosecutors. Devagiri is expected to appear in court for a status hearing on September 16, prosecutors said. He faces a maximum statutory penalty of 20 years in prison and a fine of $250,000. 'Fundamentally unfair': DoorDash to pay millions to dashers after company pocketed tips Fraudulent accounts, manipulated DoorDash software DoorDash provides food delivery services to customers who place orders on the platform. Drivers who work for the company fulfill those orders by picking up ordered items from restaurants and other merchants and delivering them to customers. According to an indictment unsealed in October 2024, the group worked together between November 2020 to February 2021. During that period, Devagiri, along with Mandadapu, Duarte, and Anne, created multiple fraudulent customer and driver accounts with DoorDash, the indictment states. The group used the fraudulent customer accounts to place "high value" orders from restaurants across Northern California, including Santa Clara County, according to the indictment. They then utilized an employee's credentials to access DoorDash's computer systems and software. The indictment further alleged that the group used the computer systems to manually reassign DoorDash orders placed by their fraudulent customer accounts to their driver accounts. Prosecutors said Devagiri then would report the orders had been delivered on the driver accounts when they had not and manipulated the software to prompt DoorDash to pay the driver accounts for the deliveries that never occurred. 'Senseless act of violence': DoorDash driver shot after arriving at wrong house; NY highway official arrested Devagiri also used the DoorDash software to change the orders from 'complete' statuses to 'in process' statuses and reassigned the orders to driver accounts that the group controlled, according to the indictment. Prosecutors said Devagiri repeated this process, which took less than five minutes, hundreds of times for many orders. In total, the group stole over $2.5 million and received payments through bank accounts controlled by Devagiri Mandadapu, Duarte, and Anne, the indictment states. According to the indictment, the group gained access to the software by using credentials that belonged to Bottenhorn, who was a resident of Solano County, California. He briefly worked for DoorDash in 2020. After pleading guilty in 2023, prosecutors said Bottenhorn admitted to being involved in the scheme to defraud the company. Devagiri Mandadapu, Duarte, and Anne were all arrested on Oct. 4, 2024, prosecutors said. Devagiri and Mandadapu were taken into custody in Newport Beach and later released on bond. Duarte was arrested in Mountain House, California, and was also released on bond. Anne was arrested in Cypress, Texas, and was detained in Houston pending further proceedings, according to prosecutors.
Yahoo
17-02-2025
- Business
- Yahoo
'$2 Million Is Pennies' — Suze Orman Says If You Think You'll Be Able To Survive On $80,000 A Year In Retirement, 'I've Got A Bridge To Sell You'
What's your magic number for retirement? A million? Two million? Maybe you've run the numbers and think $80,000 a year will be plenty to live comfortably in your golden years. Suze Orman is here to tell you—you're wrong. "Two million is nothing. It's nothing. It's pennies in today's world, to tell you the truth," she said bluntly during a 2018 interview on the "Afford Anything podcast." And for those who think they can make it on $80,000 a year in retirement, she didn't hold back. "I promise you think $80,000 a year as you get older is going to make it for you before taxes, I have a bridge to sell you." Don't Miss: The average American couple has saved this much money for retirement —?At first glance, $2 million sounds like a massive nest egg. After all, a 4% withdrawal rate—often cited as a safe benchmark—would give you $80,000 a year. But Orman sees that logic as dangerously naive. "Let's say you need help," she explained. "Remember, I took care of my mother and it cost me $30,000 a month. So you're talking about very possibly $300,000, $400,000 a year." And that's just one expense. Add in taxes, inflation, market downturns, and unexpected emergencies, and suddenly, that $2 million doesn't stretch as far as you'd hoped. Orman believes retirees are vastly underestimating just how expensive things will get. "Do not be surprised if by the year 2030, there's a 25% unemployment rate," she predicted, citing artificial intelligence and automation as major disruptors. "There will not be the money there for Social Security." Trending: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." According to the Federal Reserve's Survey of Consumer Finances, only 3.2% of retirees have even $1 million saved—let alone $2 million. Those with $2 million or more? They make up an even smaller sliver of the population. But is Orman right that $80,000 a year won't be enough? The Bureau of Labor Statistics reports that as of 2023, retirees aged 65 and older spent an average of $60,087 per year. On paper, that might suggest $80,000 could work. But that number doesn't account for rising healthcare costs, unexpected emergencies, or future tax increases—all of which Orman warns could quickly drain savings faster than people expect. Orman's skepticism extends to the Financial Independence, Retire Early movement, which promotes aggressive saving to retire in one's 30s or 40s. She called it "the biggest mistake financially speaking, you will ever, ever make in your lifetime." Trending: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Her reasoning? Retiring early cuts off compounding growth—one of the most powerful tools for wealth building. "If you wait until you're 35 to start investing, those ten years will cost you $700,000," she warned. And even if a FIRE retiree pulls in $80,000 a year from their investments, Orman sees major risks. "Your portfolio can go down. Your dividends can be cut. Taxes will go up. What happens when you need a new roof? A new car? If you think you can predict all of life's expenses at 35, good luck." She's heard the regret stories firsthand. "I have seen people retire at 50, at 55, and then they call me back at 70 and they go, 'Why did you let me do that?'"No matter what your retirement goal is, money doesn't stretch as far as it used to. Adjusted for inflation, that same $2 million Orman called "pennies" in 2018 would need to be at least $2.5 million in 2025 just to have the same buying power. Whether you're aiming for $2 million, $5 million, or more, it's crucial to consult a financial advisor to ensure your savings, investments, and income streams will actually last. Because in retirement, the last thing you want is to find out too late that your "comfortable" number wasn't nearly enough. Read Next: Can you guess how many Americans successfully retire with $1,000,000 saved?.Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article '$2 Million Is Pennies' — Suze Orman Says If You Think You'll Be Able To Survive On $80,000 A Year In Retirement, 'I've Got A Bridge To Sell You' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
