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Author: Chris Clark

  • Student loan borrowers in default could soon see 15% of their Social Security checks being garnished as Trump administration resumes collections efforts — who’s at risk and how to prepare

    Student loan borrowers in default could soon see 15% of their Social Security checks being garnished as Trump administration resumes collections efforts — who’s at risk and how to prepare

    For millions of older Americans relying on an embattled Social Security system to cover their bills, another financial gut punch may be on the way — and it’s coming from their own student debt.

    Under a Trump administration move to resume collections on federal student loans, borrowers in default could soon see their Social Security benefits docked by as much as 15%, higher education expert Mark Kantrowitz told CNBC.

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    That means retirees already living on fixed incomes could lose a big chunk of their monthly checks with little warning.

    And for the hundreds of thousands of borrowers 62 and older who have defaulted student loans — it could be an unhappy surprise in the mail.

    Why your benefits could be garnished

    The government has long had the power to claw back a portion of Social Security benefits to repay defaulted federal student loans. But those collections were paused during the COVID-19 pandemic. The pause was extended under the Biden administration, but President Trump has restarted the clock.

    The Department of Education recently announced the administration will resume involuntary collections as early as June, meaning borrowers in default could once again be subject to wage garnishments, tax refund seizures and offsets to Social Security checks.

    And there’s a big population at risk. Recent federal data shows that nearly 3 million people over the age of 62 hold federal student loans. The Consumer Financial Protection Bureau says more than 450,000 borrowers in that age group have defaulted on their federal student loans while receiving Social Security benefits.

    Many of these borrowers are parents who co-signed loans or took out Parent PLUS loans for their children and fell behind after job losses, medical expenses or other financial shocks, according to the National Consumer Law Center.

    “Borrowers who receive these notices should not panic,” Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program, told CNBC. “They should reach out for help as soon as possible.”

    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

    What you need to know about the Social Security offset

    If you’re in default, the federal government can withhold up to 15% of your monthly Social Security benefit without your permission. The offset kicks in automatically, unless you act to stop it.

    If you get such a notice, it’s important to know your entire benefit won’t be wiped out.

    Federal law protects the first $750 per month of Social Security income from garnishment. But for seniors already scraping by, even a small deduction can have a devastating impact.

    How to fight back, or at least prepare

    The worst thing you can do is ignore the problem. If you’re in default or nearing default, there are steps you can take now to reduce the risk of garnishment.

    First, you may be able to request a hearing or file a request to stop or reduce the offset. If you’re facing medical issues, supporting dependents or already living below the poverty line, you can submit documentation proving financial hardship to the Treasury Department or its debt collection agency.

    Second, consider reentering good standing through loan rehabilitation or consolidation. These programs allow borrowers to make a series of small payments to bring their loans out of default.

    Once you’re out, you’re no longer at risk for Social Security offsets, but you have to act quickly. Loan rehabilitation typically requires nine monthly payments, and the process can take several months.

    Other options for retirement

    If you’re still working and planning to retire soon, Trump’s repayment effort should be a wake-up call. Retiring while in student loan default is now risker than ever.

    For some, it may make sense to delay retirement until the loan is resolved, especially if garnishment would push you below your living threshold.

    You might also need to rethink your savings strategy. If your retirement income plan was built around a full Social Security check, it’s time to reassess. You may need to increase 401(k) or IRA contributions, trim expenses or explore additional income sources to make up the shortfall if garnishment kicks in.

    And for those still in the workforce with aging loans, now is the time to check your status. Are your loans in good standing? Are you on an income-driven repayment plan?

    The answers to those questions could make or break your retirement security.

    What to read next

    Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

  • ‘You are despised’: Houston homeowner locked in bitter feud with revolving door of short-term renters next door — but the property owner counters he’s the one harassing paying guests

    ‘You are despised’: Houston homeowner locked in bitter feud with revolving door of short-term renters next door — but the property owner counters he’s the one harassing paying guests

    When Bill Stewart bought his home in Houston’s upscale Walden neighborhood, he expected peace and quiet alongside an idyllic lake.

    What he didn’t expect was a battle of signs, arguments with neighbors and a cease-and-desist letter.

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    His neighbor, he says, turned a suburban home into a revolving door of short-term renters — and Stewart isn’t having it.

    “It just seemed like we’d moved into a mob neighborhood of scum,” Stewart told Houston news station KPRC. “You’re concerned for your safety. You go to bed at night and there’s 20 people out there. Who are they?”

    But the property owner, through their attorney, argues they and other short-term renters in the area are well within their rights, and that it’s Stewart who’s harassing paying guests.

    Who’s right?

    One neighborhood, two stories — and a legal minefield

    At the heart of the dispute is whether Stewart’s actions crossed a line. Stewart received a cease-and-desist letter alleging that he has harassed guests, recorded them without consent and intimidated them with menacing signage — including signs on his fence that say:

    • ‘AIRBNB GO HOME’
    • ‘You are DESPISED’ and
    • ‘You are INTRUDERS in a RESIDENTIAL NEGHBORHOOD’

    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

    For passersby, the scene now resembles something out of a bitter political campaign rather than dispute among neighbors in an enviable Houston suburb.

    For his part, Stewart insists he’s simply protecting his home and community. He says the rental has brought strangers into the neighborhood who act as if they’re on vacation — not in someone else’s backyard.

    What the law says about short-term rentals in Texas

    Short-term rentals, typically defined as properties rented for fewer than 30 consecutive days, have exploded in popularity. In the U.S., the short-term vacation rental market was valued at nearly $70 billion in 2024, with an expected growth rate of 7.4% through 2030.

    But in Texas, such properties remain a legal gray area. Texas has no statewide law banning or comprehensively regulating such rentals. Instead, regulation of the short-term rental industry is left to local governments, resulting in a patchwork of rules across cities.

    A 2022 Texas Supreme Court ruling found that a homeowners association (HOA) could not use standard “residential use only” deed restrictions to prohibit short-term rentals.

    The court found that unless deed restrictions specifically ban short-term rentals, simply requiring “residential use” does not bar owners from renting their properties for short periods.

    Attorney Mahsa Monshizadegan told KPRC that disputes arise over short-term rental properties and otherwise “when one neighbor tries to enforce their own standard of a neighborhood on everyone else” — particularly in large cities like Houston.

    “How you resolve the issue matters,” she added. “All disputes should be resolved through good faith and not like unilateral enforcement of their own demands.”

    She added that it would have been better if Stewart had approached the owner of the property directly rather than expressing his frustration with the short-term rental guests.

    What both sides need to know

    Operating a short-term rental may be legal, but it comes with responsibilities. Hosts must be aware of local zoning codes, occupancy limits, noise regulations and tax requirements.

    Cities like Houston, Austin and San Antonio have passed ordinances to regulate or restrict short-term rentals. In Houston, short-term rental owners must respect the city’s rules around noise and sound, neighborhood protection, waste and litter and fire codes.

    Houston is also launching a hotline people can call with complaints about short-term rentals to have the appropriate city department follow up.

    Short-term rental hosts in Texas are often responsible for collecting hotel occupancy taxes and registering with the state. Violating those rules could open owners up to fines or lawsuits, but the rules stop short of outright bans.

    Even with evidence of rule-breaking, the better path may be cooperation rather than conflict. Hosts can ease tension by screening guests carefully, enforcing strict house rules and communicating openly with nearby residents.

    Sharing a phone number in case of problems or limiting large gatherings can go a long way toward keeping the peace.

    Meanwhile, neighbors who feel blindsided can try engaging in a civil conversation before turning to lawyers or public protest. If both parties come to the table with goodwill, they may find common ground.

    Mediation through an HOA or neighborhood group can also provide a neutral space for resolution.

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

  • Ramit Sethi became a millionaire in his 20s. Here’s his ‘dead’ simple advice for young Americans hoping to follow in his footsteps — and it’s ‘literally easier than brushing your teeth’

    Ramit Sethi became a millionaire in his 20s. Here’s his ‘dead’ simple advice for young Americans hoping to follow in his footsteps — and it’s ‘literally easier than brushing your teeth’

    With TikTok tutorials, Reddit threads, and self-proclaimed gurus crowding social media feeds, Gen Z is getting a crash course in how to build wealth fast — or so they think. From day trading tips to flashy claims about retiring a millionaire by 40, the platforms are flooded with promises of financial freedom.

    FinTok might be touting all the tactics of buying low, selling high and watching the stock market all day, but personal finance expert Ramit Sethi says most of it is overkill. The host of the Netflix series How to Get Rich became a self-made millionaire in his 20s. Warren Buffett, one of the most successful investors in history, wasn’t even that young when he made his first million.

    Sethi’s advice is “actually not complicated,” he told Fortune magazine. The key? Make investing seem easy and feel confident while doing it.

    “My advice is, think of another part of life where you are really confident… Like if you open up your closet, you can see a simple, great outfit. That’s the same way that money works.”

    So what exactly does Sethi mean?

    Don’t miss

    Rise of the ‘dead investors’

    How does investing become as effortless as choosing a great fit? By setting it and forgetting it, Sethi says.

    Carrying the ghoulish slang of “dead investors,” these wealth builders are actually passive investors who leave their money untouched for long periods of time. These are the people who buy diversified index or target-date funds and automate their contributions, then forget about it for years.

    No day trading. No spreadsheets. And no stress tied to timing the market and the potential for emotional and poor decision-making, not to mention all those buying and selling fees.

    Passive investors, on the other hand, benefit from diverse portfolios that spread out risk over time, growing wealth steadily and relatively stress-free. Research backs it up: A University of California study found that investors with higher portfolio turnover significantly underperformed the market, lagging by as much as 6.5% annually due to the “frictional” costs of frequent trading, such as taxes and fees.

    Sethi himself adopts the buy-and-hold strategy. “What I do is I create a vision, I put my money [aside], I set it up to go automatically where it needs to go, and then I get the hell out of the spreadsheet.”

    Start early

    The sooner you invest, Sethi says, the more time your money has to grow through compound interest. “Time is one of the most powerful allies to live a rich life and grow your investments,” Sethi told Fortune.

    He doesn’t hide the fact that he was privileged enough to have a father who emphasized the importance of financial security and who helped Sethi set up an investment account where he put small amounts of money from his job as a teen. Even just $50 a month, when started young, can go a long way with compounded interest.

    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

    But if Sethi is telling Gen Z to start small, avoid meme stocks and not get swept up in complicated investment strategies, where should they put their cash?

    The answer may be boring, but that’s the point: Sethi recommends target date funds, a mutual fund tied to your desired retirement age. The strategy, he says, is “literally easier than brushing your teeth.”

    “You pick that fund, you automatically set your account up to send money every month, and it invests for you, and that’s it. You certainly do not have to pick stocks. You just set it up once and forget it.”

    Let’s say you want to retire around 2060. You select the fund you would like tied to that estimated retirement year — numerous such target-date options exist at firms like Vanguard, T. Rowe Price, and Fidelity, and many 401(k) plans offer them — and then the fund begins to invest. It starts aggressive but then shifts to more conservative allocations as you approach 2060. This is known as the “glide path” strategy.

    The best part: The fund does all the shifting and rebalancing of itself over time, meaning you don’t have to do any adjustments or monitor the fund — exactly what Sethi recommends.

    “Timing the market is for suckers. The best thing you can do is treat your investments like a Thanksgiving dinner. Put the turkey in the oven, close it and let it cook for the next 30 years.”

    His advice to young investors racing to “buy the dip?” Slow down. Building wealth isn’t a sprint.

    “For the Gen Z people who feel so proud, ‘I bought the dip bro,’ you might want to consider actually bolstering up your emergency fund,” Sethi recommends. “That money might be a little bit more valuable right now sitting in a high-yield savings account, just in case you get laid off five months from now.”

    What to read next

    Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

  • Ramit Sethi became a millionaire in his 20s. Here’s his ‘dead’ simple advice for those hoping to follow in his footsteps — and it’s ‘literally easier than brushing your teeth’

    Ramit Sethi became a millionaire in his 20s. Here’s his ‘dead’ simple advice for those hoping to follow in his footsteps — and it’s ‘literally easier than brushing your teeth’

    With TikTok tutorials, Reddit threads and self-proclaimed gurus crowding social media feeds, Gen Z is getting a crash course in how to build wealth fast — or so they think. From day trading tips to flashy claims about retiring a millionaire by 40, the platforms are flooded with promises of financial freedom.

    FinTok "influencers" on TikTok might be touting all the tactics of buying low, selling high and watching the stock market all day, but personal finance expert Ramit Sethi says most of it is overkill. The host of the Netflix series How to Get Rich became a self-made millionaire in his 20s. Warren Buffett, one of the most successful investors in history, wasn’t even that young when he made his first million.

    Sethi’s advice is “actually not complicated,” he told Fortune magazine. The key? Make investing seem easy and feel confident while doing it.

    “My advice is, think of another part of life where you are really confident… Like if you open up your closet, you can see a simple, great outfit. That’s the same way that money works.”

    So what exactly does Sethi mean?

    Rise of the ‘dead investors’

    How does investing become as effortless as choosing a great fit? By setting it and forgetting it, Sethi says.

    Carrying the ghoulish slang of “dead investors,” these wealth builders are actually passive investors who leave their money untouched for long periods of time. These are the people who buy diversified index or target-date funds and automate their contributions, then forget about it for years.

    No day trading. No spreadsheets. And no stress tied to timing the market and the potential for emotional and poor decision-making, not to mention all those buying and selling fees.

    Passive investors, on the other hand, benefit from diverse portfolios that spread out risk over time, growing wealth steadily and relatively stress-free. Research backs it up: A University of California study found that investors with higher portfolio turnover significantly underperformed the market, lagging by as much as 6.5% annually due to the “frictional” costs of frequent trading, such as taxes and fees.

    Sethi himself adopts the buy-and-hold strategy. “What I do is I create a vision, I put my money [aside], I set it up to go automatically where it needs to go, and then I get the hell out of the spreadsheet.”

    Start early

    The sooner you invest, Sethi says, the more time your money has to grow through compound interest. “Time is one of the most powerful allies to live a rich life and grow your investments,” Sethi told Fortune.

    He doesn’t hide the fact that he was privileged enough to have a father who emphasized the importance of financial security and helped Sethi set up an investment account where he put small amounts of money from his job as a teen. Even just $50 a month, when started young, can go a long way with compounded interest.

    But if Sethi is telling Gen Z to start small, avoid meme stocks and not get swept up in complicated investment strategies, where should they put their cash?

    The answer may be boring, but that’s the point: Sethi recommends target date funds, a mutual fund tied to your desired retirement age. The strategy, he says, is “literally easier than brushing your teeth.”

    “You pick that fund, you automatically set your account up to send money every month, and it invests for you, and that’s it. You certainly do not have to pick stocks. You just set it up once and forget it.”

    Let’s say you want to retire around 2060. You select the fund you would like tied to that estimated retirement year and then the fund begins to invest. It starts aggressive but then shifts to more conservative allocations as you approach 2060. This is known as the “glide path” strategy.

    The best part: The fund does all the shifting and rebalancing of itself over time, meaning you don’t have to do any adjustments or monitor the fund — exactly what Sethi recommends.

    “Timing the market is for suckers. The best thing you can do is treat your investments like a Thanksgiving dinner. Put the turkey in the oven, close it and let it cook for the next 30 years.”

    His advice to young investors racing to “buy the dip?” Slow down. Building wealth isn’t a sprint.

    “For the Gen Z people who feel so proud, ‘I bought the dip bro,’ you might want to consider actually bolstering up your emergency fund,” Sethi recommends. “That money might be a little bit more valuable right now sitting in a high-yield savings account, just in case you get laid off five months from now.”

    Sources

    1. Fortune: Finance guru Ramit Sethi made millions in his 20s—years before Warren Buffett. He says Gen Z can too, by Orianna Rosa Royle (Apr 25, 2025)

    1. The Journal of Finance: Trading Is Hazardous to Your Wealth:The Common Stock Investment Performance of Individual Investors, by Brad M. Barber and Terrance Odean (Apr 2000)

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

  • 5 big things that disappear after you retire in Canada: Are you prepared?

    5 big things that disappear after you retire in Canada: Are you prepared?

    Retirement is often seen as the long-awaited reward after years of hard work. The daily grind of morning alarms, office politics and stressful commutes finally come to an end, regaining full control over your time and how you spend it.

    While retirement offers newfound freedom, it also brings some unexpected losses. Some, like a steady paycheque, are obvious. Others, like a sense of purpose, might sneak up on you.

    Without proper planning, these changes can leave you feeling unprepared. Here are five major things that tend to disappear in retirement, and what you can do in the present to make sure they don’t catch you off guard in the future.

    1. The financial safety of your paycheque

    The most immediate change when you retire is the loss of your steady income. For years, your paycheque arrived on a set schedule. In its place, you’ll rely on withdrawals from your RRSP, TFSA, CPP, OAS and any other savings, pension plans or investments you’ve built up over time.

    Many Canadians find this transition more jarring than they expected. Moving from earning and saving to withdrawing and budgeting can feel uncomfortable. Diversifying income streams through investments, rental income or part-time work can help ease financial stress.

    With CIBC Investors Edge you can invest in low-cost exchange traded funds (ETFs) and reap the benefits of consistent long-term investing as a way to build up your retirement nest egg and mitigate the stress of losing your paycheque.

    Build your own investment portfolio with the CIBC Investor’s Edge online and mobile trading platform and enjoy low commissions. Get 100 free online equity trades when you open a CIBC Investor’s Edge account using promo code EDGE100.

    2. Your risk tolerance

    While working, taking risks with investments can feel manageable because you’re still earning and contributing. If the stock market dips, you have time to recover.

    But in retirement, market downturns have a bigger impact on your portfolio and your ability to withdraw funds safely.

    This is why it’s essential to optimize your savings and spending so you have a cash cushion in retirement. Using a chequing account that pays high interest — like the EQ Bank Personal Account —will allow you to earn high interest on your day-to-day spending and be better prepared if you need funds to fall back on.

    The EQ Bank Personal Account offers the interest-earning potential of a high interest savings account, at a rate of 3.50% per dollar, while also having easy access to your money when you need it.

    To further prepare yourself for retirement, you should consider paying down any high-interest debts as soon as possible, so you’re not saddled with high payments during your golden years.

    You can make this process easier by finding a debt consolidation loan through Loans Canada

    Loans Canada is a lending platform that specializes in matching Canadians with suitable lenders, so you can find a rate that works best for your financial circumstances, lessen your financial burdens and enjoy your retirement.

    3. Your sense of purpose

    Work isn’t just about earning money. It also provides structure, social interaction and a sense of accomplishment. Retirement can leave many people feeling lost.

    A study by the National Library of Medicine found that lacking a sense of purpose can lead to depression, substance use and self-derogation. Social isolation is also a growing concern, particularly for men, who tend to have fewer social connections outside of work; The Government of Canada states how 30% of seniors are at risk of becoming socially isolated.

    The best way to avoid this emotional downturn is to plan beyond just your finances. Volunteering, pursuing hobbies or even taking on part-time work can help create structure and fulfillment.

    4. Employer-sponsored benefits

    Losing a paycheque is one thing, but losing employer-sponsored benefits — especially health insurance — can be even more challenging. In Canada, provincial healthcare covers many medical expenses, but not everything.

    Prescription drugs, dental care, vision care and long-term care costs can add up quickly. A report from Innovative Medicines Canada found that nearly 70% of Canadians — or more than 27 million — rely on employer-sponsored health plans for supplemental coverage.

    If you retire before 65, you may need to purchase private health insurance or pay out-of-pocket for certain medical expenses. Planning ahead by setting aside savings specifically for healthcare or considering a retirement health plan can help bridge the gap.

    5. Your spending habits

    Many retirees enter what financial planners call the “retirement honeymoon” phase — travelling more, dining out frequently and taking on expensive hobbies. While this newfound freedom is well-deserved, it can lead to financial trouble if spending isn’t balanced with long-term needs.

    Just like in pre-retirement life, emergencies can happen at any time that might blow up your fixed monthly budget.

    Let’s say, you have a pet that needs emergency care or regular vet visits, you can avoid breaking the bank on these costs by getting a pet insurance policy through Spot Pet Insurance. Spot offers customizable deductibles and reimbursement rates so you can choose what is best for you. Get a quote today so you can be prepared for unexpected costs during retirement.

    Tracking expenses and adjusting for different phases of retirement can help maintain financial stability throughout your later years.

    Consider using a money management app like Monarch Money to help keep you on track. Monarch Money allows you to track your spending, investments and account balances all in one place so making a budget is streamlined.

    Sign up for Monarch Money today and Get 50% OFF your first year with code MONARCHVIP.

    Sources

    1. National Library of Medicine: Purpose in Life in Older Adults: A Systematic Review on Conceptualization, Measures, and Determinants, by PV AshaRani, Damien Lai, JingXuan Koh and Mythily Subramaniam (May 11, 2022)

    2. Innovative Medicines Canada: Unlocking the Benefits: Private Drug Coverage’s Role in Canada’s Healthcare Landscape

    3. Scotia Wealth Management: Healthcare costs in Canada: Planning for inflation-adjusted care (Jan 14, 2025)

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

  • ‘Daunting task’: Americans are more scared of going broke than dying — with ‘forgotten’ generation most spooked as they face high inflation and shrinking Social Security support

    ‘Daunting task’: Americans are more scared of going broke than dying — with ‘forgotten’ generation most spooked as they face high inflation and shrinking Social Security support

    More Americans are afraid of going broke than they are of dying.

    A new study by Allianz Life lays it bare: 64% of Americans say they fear running out of money ahead of death itself. Furthermore, 62% say they’re not saving as much for retirement as they’d like.

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    High inflation, shrinking Social Security support and rising taxes are driving this fear. Inflation was the top concern, cited by 54% overall and 61% of baby boomers, more than millennials (56%) or Gen X (55%).

    “With Americans living longer in retirement and facing risks like market volatility, creating a financial strategy so that your money lasts your lifetime is a daunting task,” Kelly LaVigne, Allianz Life’s Vice President of Consumer Insights, said in a press release. “A strong retirement strategy will go beyond a dollar amount in the bank — it will also address how you will create a reliable income stream from your assets.”

    Why anxiety is so high right now

    The fear of going broke is most prominent among Gen X (70%) — the “forgotten” generation — who are in their 40s and 50s and fast approaching retirement. Millennials aren’t far behind at 66%, while fear among boomers, many of whom are already retired, sits at 61%.

    An April 2025 report from Northwest Mutual found the average American believes they’ll need about $1.26 million to retire comfortably. That figure is down from $1.46 million in 2024.

    But many Americans are well short of this target. For those aged 55 to 64 and on retirement’s doorstep, the median retirement account balance is $185,000, according to Federal Reserve data. For those aged 45 to 54, the figure drops to $115,000.

    Several forces are at work. Inflation has shredded the real value of savings, making everything from groceries to health care more expensive. And Social Security — a major factor in American retirement — is looking increasingly shaky. The program’s trust funds could be depleted by 2035 — a time when many Gen X may be entering retirement — forcing possible benefit cuts, unless the government takes action.

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

    How to build a strong future

    The good news? You don’t have to be a millionaire today to retire comfortably tomorrow. But it’s wise to start taking smart, focused action, and soon.

    Start saving now, no matter how small the amount: The magic of compounding interest works wonders over time. The more you’re able to save over a longer period of time, the more compounding works in your favor. Delaying by even a few years could cost you big time down the road.

    Boost your retirement account contributions: Max out your employer’s 401(k) match if you have one — that’s free money. If possible, take advantage of catch-up contributions if you’re over 50.

    Prepare yourself emotionally: Many retirees aren’t undone by running out of money — they simply lose a sense of purpose. Start planning now for how you’ll stay mentally active, socially connected and personally fulfilled once the 9-to-5 grind ends, and you can be mentally prepared to make the most of your golden years.

    What to read next

    Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

  • Bill Gates claims that America’s doctors, teachers could be replaced within 10 years — and humans won’t be needed ‘for most things.’ But will ‘free intelligence’ help or destroy US workers?

    Bill Gates isn’t sugarcoating it: Artificial intelligence is coming for jobs. And not just blue-collar ones.

    In a recent episode of the People by WTF podcast, the Microsoft co-founder laid out a vision of the future in which AI tools take over some of the most essential professions in America, including teaching and medicine.

    Don’t miss

    But instead of sounding the alarm, Gates insisted it’s a good thing — even as millions of workers brace for change.

    "We’ve always had a shortage of doctors, teachers, of people to work in the factories. Those shortages won’t exist," Gates told host Nikhil Kamath. “AI will come in and provide medical IQ, and there won’t be a shortage."

    Gates also spoke to The Tonight Show host Jimmy Fallon about the transition.

    “Will we still need humans?” Fallon asked. “Not for most things,” Gates replied.

    So what are the implications for working Americans?

    Are doctors and teachers on the chopping block?

    Gates zeroed in on two industries already under pressure: teaching and health care — markets that have historically suffered labor gaps, especially in rural areas of the U.S.

    AI, Gates believes, can fill in the gaps or at least relieve some of the burden.

    In schools, AI-powered tutoring tools are already being tested, offering personalized help for students in reading and math, according to Government Technology.

    In health care, companies like Suki, Zephyr AI and Tennr can now generate clinical decision support, helping doctors diagnose faster and more accurately, says Business Insider.

    “Years from now, AI will have changed things enough that just this pure capitalistic framework probably won’t explain much, because as AIs, both as sort of white-collar type work and as blue-collar workers, the robots will get good hands and are able to do the physical things that humans do,” Gates told Kamath. “We will have created, you know, free intelligence.”

    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

    More industries on deck

    It’s not just teachers and doctors. Numerous industries are facing an AI invasion.

    Besides some of the other industries that Gates mentions, like construction, cleaning companies and factory workers, the impact has already trickled down to customer service and IT support.

    For instance, AI chatbots — with wildly inconsistent success — have already assumed much of the “first response” nature of product support on the web.

    For some, AI may simply become a co-pilot, a helper that boosts productivity. But for others, it could mean full-on job replacement. Gates doesn’t deny that. What he argues is that the tradeoff might be worth it.

    Less work, more free time — or mass displacement?

    In Gates’ ideal scenario, AI takes over routine tasks and frees people up to pursue more leisure. He envisions a world where the standard 40-hour workweek shrinks and people enjoy better work-life balance. But critics aren’t buying the utopia just yet.

    A recent United Nations report warned that AI could affect 40% of jobs worldwide, raising concerns about automation and job displacement.

    “The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies,” the report said.

    So while the industry is expected to reach $4.8 trillion, the UN says the payoff will be “highly concentrated.”

    According to UN Women, there’s also the issue of bias and reliability. AI tools have been shown to replicate racial and gender disparities, particularly in hiring and health care decisions — trends that could compound, not solve, existing problems.

    What should workers do now?

    Gates isn’t alone in predicting AI’s rise. But believe it or not, he’s one of the few tech leaders still mostly optimistic about it.

    If his vision holds, workers may need to pivot fast.

    That could mean refining skills that complement AI, rather than compete with it. Things like critical thinking, emotional intelligence and creativity are talents that machine thinking may be more likely to struggle with … for now.

    It’s also a wake-up call for policymakers to think ahead. The transition could be bumpy, but with the right guardrails, it might just lead to a smarter economy.

    At least, that’s what Gates is betting on.

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

  • ‘Addicted to price hikes’: Disney is having internal concerns over the soaring cost of its theme parks, report says — is the ‘House of Mouse’ pricing out middle-class families for good?

    ‘Addicted to price hikes’: Disney is having internal concerns over the soaring cost of its theme parks, report says — is the ‘House of Mouse’ pricing out middle-class families for good?

    For generations, a trip to Disney has been a rite of passage for American families. It is a place where kids can hug their favorite characters, parents can relive childhood nostalgia, and memories are made on Main Street, U.S.A.

    But is Walt Disney World still “The Happiest Place on Earth”?

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    For many, the price of the Disney dream is slipping further out of reach. The Wall Street Journal(WSJ) reported recently that Disney insiders fear the company has become “addicted to price hikes” and that the House of Mouse “has reached the limits of what middle-class Americans can afford.”

    Are Disney’s pricing schemes driving away its core audience?

    Over the past decade, Disney’s theme park prices have skyrocketed. A one-day ticket to Magic Kingdom in Florida, which cost around $85 in 2010, now easily surpasses $120 on peak days and can reach nearly $180.

    Factor in food, the hotel room, merchandise and Genie+ add-ons — those special passes that let you bypass the regular standby for quicker access to rides — and a family of four can expect to spend thousands of dollars on a single vacation.

    Following The Wall Street Journal’s report, Disney acknowledged that families are feeling the strain of today’s economic climate but highlighted promotions and special deals aimed at making visits more affordable.

    “We know our parks create life-long memories for families and we’ve worked hard to make a Disney vacation accessible to guests of all income levels,” said Hugh Johnston, Disney’s Chief Financial Officer. “With strong guest satisfaction scores and intent-to-visit ratings, our parks remain the most popular offering in the industry.”

    Disney’s dilemma: How much is too much?

    While Disney has defended its pricing as a reflection of demand, WSJ’s report indicates growing unease among company insiders who worry that the Disney experience has become unattainable for the middle-class families that fueled its growth for decades.

    Former Disney CEO Bob Chapek famously leaned into a premium pricing strategy, arguing that demand justified higher prices. But even under Bob Iger’s return, the company has struggled to balance profitability with accessibility — though shareholders are cheering recent estimate-beating quarterly results.

    Disney’s stock has faced turbulence, and while the parks remain a revenue powerhouse, the strategy of endless price hikes may not be sustainable.

    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

    Is Mickey pushing away the middle class?

    For many families, a Disney trip has become less of a spontaneous getaway and more of a long-term financial commitment.

    Once an affordable way for locals and frequent visitors to enjoy the parks, annual passes have been priced into near-extinction. The introduction of paid FastPass replacements like Genie+ has added another layer of expense, turning what was once a free perk into a costly necessity for visitors who don’t want to spend hours in line.

    A recent report by Mouse Hacking found that a baseline Disney World vacation for a family of four in 2025 will cost $7,093 for a five-night stay, including transportation, hotel, tickets and some meals. A deluxe experience can easily double that cost.

    Families on social media have voiced their frustration, and many longtime Disney fans have admitted they are reconsidering their loyalty.

    Yvonne Kindell, a bank compliance officer from Delaware, told WSJ that her family’s long-awaited Disney World trip turned into a money pit, costing over $3,000 for just two days — excluding airfare and lodging. The steep prices left her stressed about spending rather than enjoying the experience, highlighting growing concerns over Disney’s affordability for middle-class families.

    “The whole time, I was thinking about how much we were spending,” Kindell said.

    A brand at a crossroads?

    Disney’s parks division remains a financial stronghold, but alienating a significant portion of its customer base could have long-term repercussions. If middle-class families continue to feel priced out, Disney risks eroding the emotional connection that has kept generations returning.

    “The majority of Disney guests – probably the overwhelming majority – are still the middle class, splurging or going into debt,” wrote Tom Bricker on the Disney Tourist Blog, which offers planning guides and recommendations for visitors.

    “The upper class cannot sustain the parks and resorts. If you visited Walt Disney World today and could Thanos-snap away everyone who wasn’t part of the top 20%, the parks would suddenly look like ghost towns.”

    In response to criticism and competition from rival Universal’s Epic Universe offering, Disney has made moves to address affordability concerns, such as bringing back certain discounted ticket options and limited-time promotions. But the fundamental question remains: Is the magic still worth the price?

    As competition grows fiercer and consumer sentiment shifts, Disney may soon have to choose between short-term profitability and long-term brand loyalty. And if they bet on the former, they may find that even the most enchanted kingdom has limits.

    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.

  • New Jersey homeowner claims paving scammer left her driveway in shambles and then raised the cost of his services by thousands — he was only caught thanks to a quick-thinking neighbor

    Catfishing schemes and tap-to-pay scams are on the rise, but there’s a new one that’s reportedly paving the way: the driveway scam.

    A New Jersey homeowner says she was approached at her front door in March by a company called “Total Paving and Masonry,” which apparently offers driveway repair services and group rates it claimed her neighbors had already taken advantage of.

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    But to the homeowner’s horror, the company left her driveway in disrepair and increased the cost of their initial quote by thousands of dollars. As it turned out, “Total Paving and Masonry” was, in fact, a scam.

    And the suspects might have gotten away with the homeowner’s money if they hadn’t made one small mistake: their trucks were blocking the driveway of a neighbor who called police to get them moved.

    Other neighbors reported that 33-year-old Patrick Connors, the man allegedly behind the scam company, was driving up and down the street advertising driveway repair services and handing out business cards. One resident became suspicious when she asked Connors to provide a contractor permit, which he reportedly said was in his truck, but police say Connors never showed it to her.

    Connors was charged with several consumers affairs violations and criminal offenses, and the company’s trucks were impounded. But Connors, unfortunately, is likely not the only one out there running a contractor scam.

    Should homeowners be worried?

    While residents of that New Jersey neighborhood may have been new to the scheme, driveway repair fraud is a widespread problem, especially in the warmer spring months when outdoor repairs are often done.

    Homeowners throughout the country should be on alert, especially elderly homeowners, or those who don’t have experience with repair projects and know what the costs should be.

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

    How these driveway scams work

    Like with the New Jersey homeowner, a scammer pretending to be a contractor typically knocks on a homeowner’s door to advertise a service. These scammers may say they have already been doing work in the area, or have given quotes to neighbors before noticing that your driveway also needs some work.

    They might offer a discount if the homeowner can pay a fee upfront since they’re already in the area. Once that’s paid, they might say they need to finish the job at another house around the corner before never coming back.

    On the other hand, they might actually do some work on your driveway after you’ve made a payment. But the work may appear unprofessional and unfinished – or they may even damage your driveway further like they did with the New Jersey homeowner.

    Meanwhile, there’s a good chance that any contact information they’ve provided will likely be phony, leaving you with no way to complain or get your money back.

    Red flags to watch for

    With the spring months underway and summer on the horizon, homeowners are likely to find numerous sales reps and contractors on their doorsteps. Let’s explore some of the warning signs that may help you discern whether that friendly contractor at your door is actually a scammer.

    They have no contractor permit: Always ask if they can produce a legitimate permit before initiating any repairs or making any transactions.

    They won’t provide a written estimate: A lack of an upfront contract is a warning sign that you’re either about to get shoddy work or no work at all. If there’s no contract or price estimate, there’s nothing to protect you.

    They show up unsolicited and ask for immediate payment: Door-to-door sales aren’t uncommon, but making an on-the-spot transaction for a repair that might cost thousands of dollars should raise alarm bells. They may also request cash only.

    If you believe you may have fallen victim to a driveway repair or another type of contractor scam, make sure to document all records related to the transaction and keep any business cards or contact information they gave you. Also, make sure to take photos of any work they did or did not do on your property.

    Even if they did complete work on your driveway, you should still consider filing a complaint since there’s a good chance the work wasn’t done properly. Contact your local police department and report the incident to the Better Business Bureau Scam Tracker. Furthermore, don’t forget to inform your neighbors that they should be careful with contractors showing up at their door.

    What to read next

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

  • ‘A lot of people are struggling’: Growing number of Americans using BNPL loans to pay for groceries — and they’re increasingly paying those bills late. What’s behind this troubling trend

    ‘A lot of people are struggling’: Growing number of Americans using BNPL loans to pay for groceries — and they’re increasingly paying those bills late. What’s behind this troubling trend

    When Americans start financing their weekly groceries the same way they might finance a new phone or a plane ticket, something is clearly off.

    New data suggests that’s exactly what’s happening — and for many, it’s not going well.

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    A fresh study from LendingTree reveals a troubling shift: More people are turning to buy now, pay later (BNPL) loans to pay for essentials like groceries, and many are falling behind on payments. The online survey, released in April 2025, polled 2,000 U.S. adults ages 18 to 79. It found that not only are Americans increasingly using these short-term installment loans for basic needs, but roughly 2 in 5 users have missed a payment.

    “A lot of people are struggling and looking for ways to extend their budget,” Matt Schulz, Lending Tree’s chief consumer finance analyst, told NBC News. “Inflation is still a problem. Interest rates are still really high. There’s a lot of uncertainty around tariffs and other economic issues, and it’s all going to add up to a lot of people looking for ways to extend their budget however they can.”

    Financing your food?

    According to the survey, 25% of American BNPL users said they used the method to buy groceries in the past year. For Gen Z, that figure jumps to 33%. Across all categories, 41% said they made a late payment on a BNPL loan in the last year — a worrying sign that a short-term lifeline is becoming a long-term burden.

    So, why is this happening? Inflation and high grocery prices have backed many Americans into a corner. Even as overall inflation has cooled, grocery costs remain stubbornly high. The price of basic staples — eggs, bread, milk — keeps climbing, stretching household budgets thinner by the month.

    “For an awful lot of people, that’s going to mean leaning on buy now, pay later loans, for better or for worse,” Schulz said.

    And while BNPL loans can offer short-term relief, they weren’t designed to be used repeatedly for perishable goods. Originally meant for discretionary spending on things like electronics or travel, BNPL is now being used to put food on the table — and that’s raising alarm bells about both spending habits and wider economic strain.

    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

    The rise and risks of BNPL

    Companies like Klarna, Afterpay and Affirm offer BNPL plans. The model is simple: Split a purchase into several payments over a few weeks, often with no interest if you pay on time. The option is easy and built into the checkout pages for everything from Target to DoorDash.

    That frictionless convenience is exactly what makes BNPL so appealing — and so risky.

    Only recently have BNPL lenders been required to follow some of the same rules as credit card companies, including clearer disclosures and the right to dispute charges. For many purchases, lenders use soft credit pulls or none at all. Users can also open multiple loans across different platforms, often without realizing how quickly the debt adds up.

    LendingTree’s study found 60% of users had multiple BNPL loans open at once. While each payment might seem small — $25 here, $15 there — the total impact can wreck a budget, especially when combined with rent, utilities and gas.

    But the danger is clear: using debt to buy items you’ll consume in days, then repaying that debt over weeks or months, creates a disconnect between cost and consequence. And if you miss a payment? You could face late fees, overdraft charges and even hits to your credit score.

    How to avoid the BNPL grocery trap

    For Americans feeling squeezed, BNPL can seem like a lifeline. But it’s important to use these services strategically — not impulsively.

    If you’re thinking about using BNPL to pay for groceries, look into why your budget doesn’t cover the essentials. Are you overspending in other areas? Could you cut back on subscriptions or dining out?

    If there’s truly no room to maneuver and BNPL is your only option for putting food on the table, treat it like a serious financial obligation — not just a few taps at checkout. Stick to one BNPL provider to better track your payments. Set reminders to avoid late fees. And don’t use BNPL on multiple purchases in a single pay period. It’s not free money — it’s a debt, and it needs to be managed.

    If you’re in a tough spot, explore grocery assistance programs like SNAP or visit local food banks. If your income allows but you’re tempted to lean on BNPL anyway, consider building a small buffer in a high-yield savings account. Budgeting apps can also help you flag overspending and keep you on track.

    What to read next

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