Author: Chris Clark

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.

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

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• You’re probably already overpaying for this 1 ‘must-have’ expense — and thanks to Trump’s tariffs, your monthly bill could soar even higher. Here’s how 2 minutes can protect your wallet right now
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

##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

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?

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

Musician Cat Stevens (Yusuf) once ruefully sang that the first cut is the deepest, which explains why many Americans are bracing themselves for the fallout of Elon Musk and the Department of Government Efficiency’s (DOGE) cutting of the federal budget.

The world’s richest man wants to cut $1 trillion from the federal budget. In a recent Fox News interview, Musk declared that the cuts wouldn’t harm essential U.S. services, promising Americans they could have their fiscal cake and eat it, too.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• You’re probably already overpaying for this 1 ‘must-have’ expense — and thanks to Trump’s tariffs, your monthly bill could soar even higher. Here’s how 2 minutes can protect your wallet right now
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

“The government is not efficient,” Musk said. “There’s a lot of waste and fraud. So, we feel confident that a 15 percent reduction can be done without affecting any of the critical government services.”

But as analysts and concerned citizens point out the numbers — and reality — might not add up to Musk’s optimism.

Millions of Americans depend on essential services like health care and retirement support, so the coming months may prove critical in determining whether Musk’s actions will deliver prosperity or deepen economic woes.

What does $1 trillion in cuts really mean?

What’s pinching the chain in Musk’s cuts is President Donald Trump’s recent round of tariffs.

The broad-sweeping tariffs, which have been temporarily placed on pause, have driven a wedge between his administration and the Tesla billionaire. Since Inauguration Day, DOGE has spearheaded layoffs across all departments of the federal government, leading to concerns that Musk is moving too fast and endangering services counted on by millions of Americans.

DOGE, and its cuts, have yet to be approved by Congress. But Musk and his team argue that federal spending has ballooned irresponsibly, claiming wasteful expenditures can easily absorb these cuts without hurting Americans’ daily lives. Recent events, however, suggest the reality might be more complicated.

Cuts made by DOGE are impacting older adults particularly hard. Social Security offices, a vital resource for retirees managing their benefits, have seen significant staffing cuts, causing online systems to buckle and physical locations to become overwhelmed.

Older Americans — many unfamiliar with digital platforms — now face hurdles to support. Retirees have flooded social media and news outlets venting their frustrations, suggesting Musk’s self-described “revolution” feels more like abandonment.

The cuts have also injected unpredictability into the stock market. Experts suggest Wall Street, already in turmoil over tariffs, might be underestimating the impact of the DOGE cuts, which could reduce consumer confidence.

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 if Medicare and Medicaid are on the chopping block?

Beyond these immediate impacts lies a deeper concern: Experts warn the math behind Musk’s $1 trillion cuts doesn’t add up without significantly scaling back Medicare and Medicaid. They represent nearly a quarter of the federal budget.

If cuts are made to Medicare and Medicaid, millions could find their health coverage compromised or significantly reduced.

Currently, Medicare serves approximately 67 million Americans. Medicaid provides essential healthcare to roughly 72 million low-income individuals, including children, older adults in nursing homes and disabled Americans. Any substantial reduction in these programs would inevitably ripple across communities, straining hospitals and leaving countless families struggling to afford basic medical care.

Health policy experts have sounded the alarm for those reasons. According to a recent Kaiser Family Foundation report, cutting even a small percentage of Medicare or Medicaid could lead to thousands of healthcare facility closures, disproportionately affecting rural and underserved urban areas.

“Any reduction in federal Medicaid spending would leave states with tough choices about how to offset reductions through tax increases or cuts to other programs, like education,” Kaiser Family Foundation analysts concluded in a recent Medicaid brief studying the impacts of proposed Medicaid cuts. “If states are not able to offset the loss of federal funds with new taxes or reductions in other state spending, states would have to make cuts to their Medicaid programs.”

Public reaction

Public skepticism (and incredulity) underscore a fundamental tension between Musk’s economic vision and the gritty realities facing everyday Americans.

Economists widely acknowledge the need for fiscal responsibility and targeted spending cuts. However, Musk’s trillion-dollar gamble highlights crucial trade-offs between government size and service quality, forcing hard conversations about national priorities. As debates rage and details emerge, citizens must remain informed and engaged, understanding exactly what’s at stake.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?

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

One phone call was all it took to jeopardize an elderly Florida man’s financial security. Police in Pembroke Pines say the man was the victim of a brazen scam that drained $55,000 from his bank — the latest in a heartbreaking wave of scams targeting vulnerable older adults.

Police say Terol Castel Lyn, posing as a Wells Fargo bank employee, contacted the victim and told him his account was part of an active criminal investigation. But instead of advising the victim to freeze his funds or visit a branch, Lyn instructed him to withdraw the money and meet Lyn to hand over the cash. Over two days in April, that’s exactly what the victim did, and Lyn allegedly wasn’t finished: Police say he warned the man the FBI would be contacting him for additional payments.

The victim’s son grew suspicious when he learned about the unusual bank withdrawals and reported it to local authorities. Working with the Pembroke Pines Police Department, they quickly set up a sting operation.

When Lyn showed up to collect an additional payment, police moved in for an arrest. Lyn fled but was later caught in Fort Lauderdale. He faces charges of felony larceny on a victim 65 years of age or older, felony fraud and other charges, and police are exploring whether the scheme may have targeted additional victims.

Police are now urging families in the area to closely monitor the bank accounts of elderly relatives and to be vigilant for similar scam attempts.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

Scams target the vulnerable

The Florida case is far from isolated. Scams targeting seniors are surging.

Americans over the age of 60 reported approximately $4.8 billion in financial losses to internet-related crimes in 2024 — a sharp increase from previous years, with both the number of complaints and total losses for this age group rising by more than 40% from 2023, according to the FBI’s 2024 Internet Crime Report.

Impersonation scams, where criminals pose as trusted institutions like government agencies, banks or law enforcement, were among the most common tactics, the report found. And the true numbers could be even higher: The FBI says many seniors are too embarrassed or confused to report scams once they’ve fallen victim.

Scammers know exactly how to manipulate their targets. They exploit trust, fear, and urgency and they often strike when victims are most vulnerable or isolated.

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 spot a scam and protect your loved ones

Stopping scams like this starts with education and vigilance. Here’s what you — and your elderly loved ones — need to know to stay protected:

**Watch out for requests for cash: **No legitimate bank or FBI agent will ever ask a citizen to withdraw cash and hand it over in person. If you get a call like this, it’s a scam. Hang up immediately.

Verify before you act: If you get a suspicious call, don’t act on it right away. Look up the official phone number of the bank or agency and call them yourself to verify. Never trust caller ID, since scammers can spoof phone numbers to look legitimate.

Beware of pressure tactics: Fraudsters often create fake emergencies. If someone says you must act "right now," slow down. Pressure to act fast is a huge red flag.

**Set up account alerts: **Banks offer free tools to monitor accounts for unusual transactions. Set up text or email alerts for all major withdrawals or charges over a certain amount.

**Talk to your family: **Have regular conversations with older family members about common scams. Make sure they know it’s okay to call you before taking action on anything suspicious.

**Help older adults with technology: **Teach elderly loved ones how to block unknown callers on their cell phones and report spam calls. Some apps even screen calls automatically to prevent scam attempts.

If you suspect fraud, contact your local police department and file a complaint with the Federal Trade Commission at ReportFraud.ftc.gov.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

Sometimes what leaders don’t say speaks the loudest. So, when U.S. President Donald Trump refused to rule out a recession amid a wave of price-increasing tariffs and stubborn inflation, it sent a clear message: economic pain might be part of the plan whether America wants it or not.

When Trump sat for an interview with Fox News in March and refused to rule out a recession, his answer — coupled with his Cabinet’s insistence that short-term pain could be worth it in the long run — it sparked fresh anxiety among consumers and economists already bracing for impact.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

“I hate to predict things like that,” Trump said when asked by Fox host Maria Bartiromo about a recession in a March interview. “There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing … it takes a little time, but I think it should be great for us."

Cabinet members have echoed their boss, arguing that short-term economic pain caused by tariffs on international imports and slashing federal spending would create long-term gains.

That framing has hit a nerve. After all, recessions are more than abstract economic concepts: They mean job losses, tightened budgets and financial stress for millions. Here’s how to protect yourself.

Below the surface of Trump’s words

The backdrop to these remarks is crucial. Persistent inflation has consumers facing price hikes at grocery stores and retail shops, and housing affordability remains a challenge. Trump and his team argue that aggressive fiscal changes — including cutting federal programs and taking a hard line on trade via tariffs — are necessary corrections.

Suggestions of short-term collateral damage have unnerved many economists, who worry that Trump’s tariffs will elevate inflation, stunt growth and increase recession risks. Goldman Sachs has raised its recession probability to 45%, citing tariffs as a significant factor.

Deep cuts to government spending is already reducing economic activity and has cost tens of thousands of federal workers their jobs. Broad tariffs are expected to significantly increase the prices of imported goods on everything from electronics to cars, hitting consumers and businesses alike.

Still, regardless of whether Trump’s policies result in a recession, proactively recession-proofing your finances is prudent. Here are three straightforward strategies to fortify your financial health against an extended downturn.

Diversify your investments — smartly

If recession fears become reality, diversified investments can shield your savings from significant losses. Rather than placing all your financial eggs into one basket, consider spreading your assets across multiple investment types:

Dividend-paying stocks: Companies that reliably pay dividends — especially in stable sectors like health care, consumer staples and utilities — typically perform better during economic downturns.

Bonds: Treasury and investment-grade corporate bonds offer steady returns and reduced volatility compared to stocks, providing crucial financial stability during turbulent times.

Real estate: Historically, real estate investments — especially rental properties — often weather recessions well, providing both appreciation potential and steady rental income.

The key here is not just diversification, but intentional diversification toward assets known for resilience in uncertain economic climates. You may want to consult with a financial advisor to calibrate your portfolio to your risk tolerance and financial goals.

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

Trim non-essential spending and build savings

In booming economies, it’s easy to overlook how quickly unnecessary expenses add up. When recession risks loom, now is the time to ruthlessly assess your spending habits:

Audit your budget: Go line by line and identify subscriptions, services or discretionary purchases you can either downgrade or eliminate entirely.

Boost emergency savings: Aim to build a safety net of three to six months’ living expenses. Cash reserves offer a vital buffer, keeping you afloat if your income is reduced or interrupted during a recession.

By proactively cutting non-essential spending, you create flexibility in your monthly budget, positioning yourself to weather economic shocks with greater confidence.

Prioritize paying down high-interest debt

High-interest debt can become crushing when economic conditions tighten. As borrowing rates spike during a recession, carrying significant debt can rapidly spiral out of control. Therefore, prioritizing debt repayment now is a critical protective step:

Target credit card balances first: These typically carry the highest interest rates, draining significant portions of your income. Implement strategies like the “avalanche method,” paying down debts starting with the highest interest rates.

Refinance wisely: If possible, consider refinancing high-interest loans into lower-interest options, reducing your monthly payments and overall debt burden. But act quickly — refinancing becomes harder and less favorable as recessions take hold.

Proactively attacking debt not only saves significant money in interest payments but also boosts your financial resilience, giving you greater flexibility if economic hardship strikes.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

Government spending and jobs are being cut across the board, and it doesn’t seem like there isn’t an agency left untouched — including Social Security.

This became all too real, and frightening, for Paul Aguilar, who recently got a letter from the agency telling him his disability benefits had been slashed. Even worse? The agency claims it overpaid Aguilar $201,000, and it wants the money back.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

The letter said that “there were concerns about my benefits and that they should have actually stopped December 2013, and that I now owed them over $200,000 and I had 30 days to pay that $200,000," Aguilar told ABC7 News in April.

Aguilar has been unable to work and on disability due to his HIV-positive status since 2005. Now, Social Security wants him to pay back a decade’s worth of benefits in just one month.

While the sheer size of the bill is scary enough, Aguilar said he’s most worried about his medical care getting cut off and giving the disease a chance to catch up.

“The fact that they cut off my medical care scares me more than anything else because if I can’t access my medical care, it means I can’t access my medications which means eventually my HIV virus disease will spiral out of control and I could be dead in a year or two.”

Aguilar believes DOGE is behind his benefits being slashed, and he might be right: the Social Security Administration released a statement in February about its plans for structural reorganization in response to DOGE cuts and changes from the Trump administration. Even before DOGE, the agency has come under scrutiny for overpayments that were later flagged for repayment, stunning and scaring benefit recipients.

But that isn’t stopping Aguilar from fighting back. He’s been working with a lawyer, his doctor and is reaching out to lawmakers.

What you can do

As the Elon Musk-led DOGE targets federal government agencies for drastic cuts, it’s fair to wonder if and when disability benefits might be cut. But there are measures you can take if it happens to you.

If you want to file an appeal, do it immediately. In order to keep your benefits during the appeal process, you need to make that request within 10 days of notice. You then have 60 days to file an official appeal.

Consulting a disability attorney as soon as possible is the smartest route to take. An attorney can walk you through the appeals process and go to any benefits hearings if necessary. Even better, many disability lawyers handling Social Security cases work on contingency, which means you only pay them if they get your benefits reinstated.

Make sure to gather all relevant documentation related to your disability, including medical records, physician statements, treatment and therapy records, and any correspondence with the Social Security Administration. Be sure to also include any evidence that your disability prohibits you from daily tasks or working.

In the meantime, you might need to explore other coverage options. Even if your SSDI benefits are cut, Medicare coverage may be available.

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

Preparing for the uncertain

The current economic and political landscape might have folks feeling anxious about the availability of benefits and services. Social Security has appeared acutely at risk, as cuts have already hurt staffing levels and closed offices.

Let’s explore some ways you can prepare yourself for possible cuts.

Set up an emergency fund: Consider opening a high-yield savings account for small but consistent auto-transfers. Aim for an amount that will cover three to six months of essential expenses.

Analyze your budget: Track your non-essential expenses to see what could be removed quickly in the event of a sudden cut to your benefits. Formulate a hypothetical budget that only focuses on essential bills, especially medication, treatments or transportation related to your disability.

Consider flexible work options: If your disability prevents you from working 40 hours, consider part-time, remote or freelance work — anything to build up that emergency fund. Make sure to research what work limits SSDI has in place, as working could impact your benefits eligibility.

Explore other resources: Research your eligibility for other benefits services, such as SNAP, Medicare, utility discounts, housing assistance and nonprofits. If your disability benefits get cut suddenly, you’ll know which services to turn to quickly. Also consider checking out the Disability Benefits Consortium, a national group of charities that provide resources, advocacy and guidance in the benefits system.

Keep track of your benefits: Benefits policies are rapidly changing, with criteria for assistance getting tightened. Make sure to stay alert and up-to-date with current SSA policy and respond promptly to any correspondence from the agency. This will help keep you informed and prepared in the event you need to appeal a cut to your benefits.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

The U.S. stock market has always been a rollercoaster, but on some days lately, the ride has felt more like a freefall — and many retirement investors are panicking.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

March 2025 marked the busiest month for 401(k) trading activity since the early COVID-19 market crash in October 2020, according to Alight Solutions. Nearly half the days saw above-normal trading. The trigger? Possibly a perfect storm of market volatility, high interest rates, and political uncertainty tied to President Trump’s latest economic policies.

Faced with flashing red numbers on their screens, many 401(k) participants are yanking their money out of stocks and rushing toward what they hope are safer havens. But while the urge to protect your nest egg is understandable, following these jittery retirement savers might just set you up for even bigger losses later on.

Where 401(k) investors are moving their money

According to the latest Alight 401(k) Index, the flows were unmistakable. Outflows were primarily from U.S. large-cap stock funds and target-date retirement funds, typically the backbone of long-term portfolios. Meanwhile, inflows mainly surged into stable value funds, bond funds, and money market funds.

Stable value funds were the biggest winners, pulling in about 40% of the month’s trading inflows. Offered only in retirement plans, these funds contain high-quality short- to intermediate-term bonds and are designed with insurance wrap contracts to protect both principal and accumulated interest. This means upon withdrawal participants are guaranteed both even if the bonds in the fund declined in value.

It’s essentially the financial equivalent of crawling under the covers during a thunderstorm. “It can be a good risk mitigator if you have already built your nest egg and you’re trying to maintain it,” said Jania Stout, president of Prime Capital Retirement & Wellness, to CNBC about these assets.

Younger investors are new to giant market swings and might panic, causing higher trading activity, Alight analyst Rob Austin told the National Association of Plan Advisors. “It’s the first time they see their 401(k)s decline. They pull it out to put it into something safe. Unfortunately, though, they did it now when stocks have already gone down, which is what we typically see. People don’t get back into equities until after they’ve rebounded. So, it’s buying high and selling low. That’s really what’s happening.”

It’s easy to see why. After years of steady gains, recent market shakiness can be alarming. Retirement accounts that once seemed untouchable are suddenly shrinking, and the idea of “waiting it out” feels a lot harder when it’s your future on the line.

But in the rush for safety, many investors risk making a classic mistake: reacting emotionally and moving money to low-risk fixed income assets instead of thinking strategically.

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 hidden risks of abandoning stocks

When markets get rocky, the gut reaction is simple: Get out before things get worse. But history is pretty clear about the risks of trying to time the market.

Investors who flee stocks during downturns don’t just miss the worst days. They also often miss the best recovery days, those sudden rebounds that recoup losses and build long-term wealth. And missing even a few of those key days can kneecap your returns for years, if not decades.

Consider this: If you missed the 10 best days in the market over the 20 years from Jan. 3, 2005 to Dec. 31, 2024, your returns would have been almost cut in half compared to a fully invested portfolio, according to J.P. Morgan Asset Management data cited by CNBC.

Timing the market requires being right twice: once when you sell and once when you buy back in. And very few investors, professional or amateur, manage to pull it off consistently.

Stable value funds have their place, especially for investors who are near retirement and can’t afford major losses. But for anyone with more than five years until retirement, pulling too much out of stocks can actually increase the risk that you’ll run out of money later on.

“Don’t be fooled by investment risk and not consider inflation risk,” Austin said to CNBC. “You might not see your account value go down, but inflation continues to be high: Will you outpace that enough to keep your portfolio growing?”

Stocks, despite their volatility, have historically been the best way to outpace inflation and grow wealth over long periods. Giving up that growth potential too soon could mean smaller retirement income, fewer lifestyle choices, and a much harder road ahead.

A popular rule of thumb says you should subtract your age from 110 to know how much of your portfolio should be in equities. Speak to your financial advisor about the right asset allocation for your age and financial goals.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

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”?

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

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

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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