Author: Christy Bieber

Warren Buffett is well known for his investing talent, as the billionaire got very rich through buying undervalued stocks and holding them for the long term.

It may come as a surprise, however, to learn that Berkshire Hathaway — the multinational conglomerate he runs — held a record US$334 billion in cash at the end of last year after selling US$134 billion in stocks in 2024, including notable stakes in both Apple and Bank of America, according to CNBC. As of March 31, that amount has increased to US$347 billion.

Buffett amassing a big pile of cash may seem like a smart move in light of the market’s recent performance. After all, throughout history, only former Presidents Richard Nixon and Gerald Ford saw the stock market perform worse during their first 100 days in office than Donald Trump in 2025.

However, while Buffett has so far managed to limit his exposure to recent market volatility, it’s typically not in the best interest of the average investor. Here’s why.

Why over-investing in cash can be a bad idea

Although Buffett kept billions safe from potential loss this year, the Oracle of Omaha made clear that he doesn’t believe cash is king.

"Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned,” he wrote in his 2024 letter to shareholders.

The problem with cash is that your potential return on investment is very limited. Even if you put money into a high-interest savings account or guaranteed investment certificate, it’s unlikely you’ll earn more than 5% annual interest, and it’ll probably be much less. Given that the S&P 500 has consistently produced average annual returns above 10% in its history — despite the volatile nature of the stock market — choosing cash investments cuts your growth potential.

Let’s not forget inflation can siphon the buying power of cash and lower the value of any returns. So, while putting money into cash can make investors feel safer during turbulent times, you might also end up losing ground if inflation is high.

How to decide where to put your money

So, where should your money go instead?

CNBC reported data from J.P. Morgan Asset Management that shows a traditional portfolio with 60% in stocks and 40% in bonds consistently outperforms cash in the long run. This is based on putting 60% of your money into an S&P 500 index fund and 40% into the Bloomberg US Aggregate Bond Index.

From 1995 to 2024, the performance of this 60/40 portfolio would beat cash on a one-month basis 65% of the time. On a six-month basis, it beats cash 75% of the time, and when looking at performance over a year, that number climbs to 80%. Finally, over a time horizon lasting 12 or more years, the 60/40 split portfolio outperformed cash 100% of the time.

A similar 60/40 portfolio also beat out a diversified portfolio of 11 different asset classes during the stock runup in 2024, according to Morningstar research cited by CNBC. The 60/40 portfolio gained 15%, while the diversified portfolio gained only 10%. However, as President Donald Trump’s trade policies have shaken up the markets, diversified portfolios have so far done better this year, in large part because the price of gold is up more than 30%.

In times of uncertainty, many people feel comforted by holding cash. It may be wise, in such cases, to build up an emergency fund and keep it in a high-interest savings account. But if you already have enough cash socked away for a rainy day, consider putting that money in a portfolio and riding the waves.

Berkshire Hathaway can afford to have billions sitting on the sidelines earning low returns, waiting for an opportune time to make use of their cash. But you don’t have to follow suit and miss out on potential gains. Even if the market continues to be volatile, a portfolio with a long-term outlook can help weather the storm and put you in a good position for recovery.

Sources

1. CNBC: Warren Buffett amasses more cash and sells more stock, but doesn’t explain why in annual letter, by Yun Li (Feb 22, 2025)

2. CNBC: Berkshire Hathaway Portfolio Tracker

3. CNN: 100 days: The US stock market’s rollercoaster ride since Trump took office, by ohn Towfighi, Eleanor Stubbs, Soph Warnes, Marco Chacón and Sarah-Grace Mankarious (Apr 30, 2025)

4. Berkshire Hathaway: Berkshire’s Annual Letter (Feb 22, 2025)

5. CNBC: Warren Buffett has a record amount of cash on the sidelines. Here’s how experts recommend balancing saving and investing, by Lorie Konish (Apr 24, 2025)

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

Steve Simon’s trouble began when he visited a local car dealer to inquire about buying a vehicle, and the transaction didn’t work out. He had given the dealer permission to run his credit. "I didn’t like the interest rate on it, so I denied it, left, went home," said the delivery truck driver.

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Unfortunately, this wasn’t the end of the story, but the beginning of a nightmare. He told CBS New York that in the days following his visit to the dealer, he received repeated notices of hard inquiries being placed on his credit. Those can damage your score if you get too many.

Worse still, weeks later, he received a letter from Ally Bank indicating he’d been denied the lease he’d co-applied for at the dealer with a woman named Michelle. "I don’t know no Michelle, no person like that, and if I’m not able to get a vehicle, I damn sure not gonna co-sign for someone else to get a vehicle," Simon said.

Now, Simon is looking for answers, but the dealership can’t explain what happened. What is clear, though, is that Simon is a victim of identity theft — and he’s not the only one.

Auto loan fraud is more common than you’d think

Identity theft related to auto loans and leases occurs far more often than you might expect. In 2024, the Federal Trade Commission fielded 60,189 claims. This was a 16% increase compared with the prior year.

Things aren’t looking any better this year either. FTC data reveals 21,446 of such auto lease or loan identity theft reports were filed in the first quarter of 2025 alone, up a whopping 71% from the same time last year. If this trend continues, 2025 will see a record number, according to CBS New York.

Synthetic identities, which combine a real person’s information like their Social Security number or date of birth with false information, are a growing problem due to generative AI. At the end of last year, $3.3 billion in auto loans, bank credit cards, retail credit cards and unsecured personal loans were held by such fake identities, according to a TransUnion report.

The kind of identity theft that Simon experienced can have damaging effects on a victim’s credit score, ability to borrow, and financial well-being.

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Lucas Gutterman, a consumer advocate at the U.S. Public Interest Research Group, said that the one bright spot in Simon’s situation is that he got a denial letter on the loan.

"If it had been accepted and someone who is a criminal had gotten access to that line of credit, that could cause some serious damage by affecting the credit score or just affecting the debts that this person owed,” he told CBS New York.

Still, the repeated credit inquiries are a hassle — and one with real-world financial consequences. Simon explained the incident was "ruining my credit score."

How can you protect yourself?

To avoid becoming a victim of auto loan identity theft, it’s important to keep all your identifying information safe.

Don’t share personal details like your Social Security number on the internet or on the phone. It could be a scammer pretending to be your bank or a government agency. If something seems off — even at a dealership — don’t provide your Social Security number, as you don’t want it misused to apply for credit you don’t want, like Simon experienced.

Simon received notifications when his credit was checked. It’s a good idea for everyone to sign up for these kinds of notifications so they will know right away if something is wrong.

You should also regularly review your credit reports. If you suspect someone may be trying to steal your identity, you can place a credit freeze on your credit reports. You would have to contact each of the three credit bureaus — Experian, TransUnion, and Equifax — to do this.

By taking these steps, consumers can reduce the chance of becoming a victim even with auto loan fraud on the rise — and they can avoid the hassle and potential damage to their credit that goes along with it.

Gutterman, and other consumer advocates, also suggest reporting any suspected fraud both to the Federal Trade Commission and local police so the scam can be properly documented and investigated — and to raise awareness to potentially help others from becoming victims as well.

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• 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.

Many kids struggle to get started financially when they become legal adults, so if you’re a parent putting away money to give to your child when they turn 18, you’re already setting them up for success. However, it’s also smart to look into ways to grow this money so you can give your kids the best possible financial head-start.

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If you’ve invested in certificates of deposit (CDs), you’ve already taken a smart step by looking beyond just a savings account.

CDs typically, although not always, provide higher yields than even high-yield savings accounts. While the interest rate is locked in for the duration of the CD term, and you can’t withdraw the funds during the term without a penalty, you have several years before you need to give the money to your son.

However, while CDs are a solid choice in the right circumstances, other investments offer more growth potential if you have a long time horizon. Here are a few things to consider to maximize the funds you can give your child once they reach adulthood.

Options for investing

If you are saving for college for your child, the best place for the money would likely be a 529 plan, as these tax-advantaged accounts are earmarked for education.

Your funds grow tax-free, you don’t have to pay taxes on withdrawals as long as they’re for qualifying expenses and the majority of states offer tax deductions or tax credits for contributions.

However, if you already have a 529 and this is money meant for other things, then a brokerage account could be a good place for it.

One option is to open a custodial brokerage account, which has no income or contribution limits and withdrawals can be made at any time without penalties as long as the money is used for the benefit of the child.

You’ll be in control of the investments now, and, depending on your state, the funds can be transferred to your child between the ages of 18 and 25. Friends and family can also contribute, and a portion of the earnings may be exempt from federal tax.

Once you’ve opened the custodial account, you’ll have access to a wide range of investment options, such as individual stocks, exchange-traded funds (ETFs), mutual funds and bonds.

For many investors, a broad market index fund will be the best option, as it offers low fees and instant diversification. For example, an S&P 500 ETF tracks the performance of the 500 largest U.S. companies and is widely considered to reflect the performance of the market as a whole.

You can set up automatic investments into the fund each month as you contribute, and the growth will be effortless.

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Of course, there is some risk when investing, and over time, your investment will rise and fall. However, because you won’t need this money for several years, you have the time to ride out fluctuations in the market and historically the market has always recovered and reached new heights.

The S&P has produced an average annual return of around 10% since its inception in 1957, so you should earn more than you would in a CD, and much more than you’d earn if you just kept the money in a regular savings account.

Of course, it’s critical that you review your investment objectives at least annually and rebalance your portfolio if your risk tolerance changes. And you might not want to invest the entire portfolio in equities.

You could also choose a target-date fund, with the year your child turns 18 set as the target date. Target-date funds are usually used for retirement investing, as they automatically rebalance your investments based on the timeline when you’ll need the money. Unfortunately, you’d likely pay higher fees with this approach.

Contribute toward their retirement

You also have another option if you’re willing to think outside the box.

If your child starts earning as a teenager, you could contribute to a custodial Roth IRA for Kids for them up to the amount they earn or the annual limit ($7,000 for those under 50), whichever is lower.

You’re only allowed to contribute earned income to a Roth IRA. Still, Roth IRAs allow the money to grow tax-free. Contributions (not earnings) can be withdrawn at any time tax-free and penalty-free as long they benefit the child.

If you manage to grow the account to $10,000 by your child’s 18th birthday, that would turn into over $1 million by their retirement age of 67 at a 10% average annual ROI — even if they never contributed another dime.

Setting your child up for a future as a multi-millionaire may be an even more valuable gift than just putting aside a little bit each month and handing them a lump sum at 18.

Of course, if you have enough money, you could do both, putting money into both a brokerage account and a Roth IRA so you can help them both start his life and enter their later years in a great financial position.

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

The Ventura County Sheriff’s Office has Southern Californians on the alert for a new strain of phone scams that cost one Ojai resident his life savings.

Someone claiming to be a law enforcement agent with the United States Marshals Service called him and told him to send all his money to an out-of-state location.

As KTLA 5 reports, after the Ojai man complied with the instructions, he met with local police and discovered he’d been conned.

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The Sheriff’s Office issued a release warning people to be wary of this and other scams involving government impersonation.

Government impersonation scams on the rise

Their warning is relevant nationwide, as a growing number of con artists impersonating government agents are scamming Americans out of their hard-earning savings.

Last year, the U.S. Marshals Service warned of a spike in similar scams in Cincinnati, as reported on the local station WLWT 5.

Of course, government impersonation scams aren’t limited to phone calls.

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In 2023, the FBI’s Internet Crime Complaint Center (ICC) reported a spike of more than 60% in online government impersonation scams that robbed 14,190 people — the majority of them older adults — of more than $390 million in savings.

What can you do if you’re scammed?

If you’re the victim of an impersonation scam (whether it’s someone posing as a federal agent, IT professional or a bank rep) you can try to get your money back.

But it’s important to act fast.

The Federal Trade Commision advises that you immediately attempt to stop payment or reverse the financial transaction.

Do this by contacting the relevant credit card company, financial institution, wire transfer company or money transfer app immediately. A credit card company is likelier to do this. If you sent cryptocurrency, you have no chance of recovery.

While you’re dealing with these financial institutions, change your account numbers and freeze your credit so no one can open new credit in your name.

Contact Equifax, Experian, and TransUnion (the three major credit bureaus) to alert them of the scam.

Report the crime to local police and the Federal Trade Commission. This will help authorities investigate these crimes and warn others if fraud is occurring.

How can you avoid being scammed?

Anyone can fall victim to a scam, but you can reduce the odds by following these tips:

• Understand that people can spoof numbers so it looks like they’re calling from a government agency (or bank or even your family). Look up the official phone number to confirm legitimacy and call back if necessary.
• Be aware that no legitimate business or government agency requests payments via cryptocurrency, money transfer app, or wire transfer.
• Do not provide remote access to your financial accounts or account information via phone or email unless you initiated the call.
• Do not wire or give money to someone you don’t know and never mail cash to anyone.
• Talk to a trusted family member or a banker before wiring any money in a transaction you didn’t initiate.

Finally, resist pressure to act quickly. Time pressure is something con artists use to get their victims to hand over cash before they can think things through.

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

“Do or do not, there is no try,” were the wise words of Yoda — and in 2018, Mike O’Dell took them to heart.

He drew a Star Wars stormtrooper on a large sheet of graph paper, cut the pattern into sections, sewed the fabric onto the paper and began quilting over the design using a process called foundation paper piecing.

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As a new quilter, he found the process easy. That success sparked an idea: license images and create quilting kits to sell online. The idea blasted off. Last year, he sold $1.25 million worth of his kits — branded Legit Kits — on Shopify, and earned another $150,000 selling quilts through the now-bankrupt Joann Fabrics.

While O’Dell’s side hustle has been more successful than most, his story still offers inspiration — and practical advice — for others looking to launch their own ventures.

Rebellions are built on hope

O’Dell told CNBC Make It that he devotes one day a week to his side hustle while working four days a week as a nurse anesthetist. His full-time job pays him $240,000, so he’s not planning to give it up anytime soon.

"It’s kind of hard to beat an anesthesia salary," he said. "I’ve got three kids, and I want my kids to go to college."

Balancing both jobs has been challenging. O’Dell admits to losing sleep and feeling stressed. But his creative work helps him cope with the more intense pressure of his hospital job.

"The burnout that I feel at the hospital fuels my energy to do the other thing for myself," he said. "It turns the volume down when everybody’s mad at work. I hear it, but I’m like, ‘I’m not going to manage my people that way.’"

Despite Legit Kits bringing in over $1 million last year, O’Dell says the business isn’t profitable enough for him to quit his day job just yet.

"You don’t really get to keep most of the money that your business makes," he explained. "It goes right back into it. When we were consistently breaking $100,000 a month in sales, I was like, ‘Yeah, this is it. But then you’re spending $100,000 a month, too.’ "

This year, he plans to pay himself just $50K from his business, although he hopes that the number will grow as he increases marketing efforts, hires for custom work and tries to expand into more retail stores.

While it may not yet match his hospital salary, O’Dell values the flexibility and reduced stress that Legit Kits could eventually offer if it continues to grow.

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 Force will be with you, always

O’Dell believes there are many opportunities to start a successful side business — it’s just a matter of finding one that fits your skills and passions.

One of the easiest ways to start is to use platforms designed for part-time work. Apps like Uber, Lyft, Thumbtack, and Rover make it simple to earn cash by offering services such as ridesharing, handyman tasks and pet sitting.

However, these platforms often cap your earning potential. If your goal is to turn your side hustle into a substantial business, you may need to offer more specialized skill, — such as freelance writing, tutoring or engineering — or identify a specific market need and build a business to address it.

Think about what your strengths and interests are. What gaps are there in the market that you might be able to fill? You might sell products on Shopify or Etsy, or create your own website and use social media to attract customers.

As O’Dell advises, it’s important to set clear goals so you know what you’re working toward.

You’ll also need to manage your time carefully to avoid burnout. Most people find that 10 to 20 hours a week is manageable alongside a full-time job. And, like O’Dell, you should be prepared to reinvest your profits if you want to grow your business.

If you’re serious about success, research the market and craft a business plan that outlines your path to profitability. That way, your million-dollar idea stands a better chance of actually earning a million someday.

What to read next

• Millions of Americans now sit on a stunning $35 trillion in home equity — here’s 1 new way to invest in responsible US homeowners while targeting a 14%-17% IRR
• 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.

St. Louis’ Blake and Sarah Anyan’s story begins as a fairy tale. The high-school sweethearts were expecting their first baby.

The couple chose Mercy Hospital — dubbed ‘The Baby Palace on Ballas’ — for prenatal care, labor and delivery. They chose the hospital not only because it is known for its obstetrics care, but because Sarah was employed there as a cardiac nurse and Blake worked there as a respiratory therapist.

Sarah’s pregnancy was a typical one, with her active baby kicking her often on her nursing shifts. When she went into labor, she headed to the hospital to welcome her baby boy Remi. That’s where everything went wrong.

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What happened next would change the couple’s lives forever and lead to a record-setting $48.1 million verdict against the hospital for its failures.

Baby suffered severe harm in labor, delivery

Sarah was given an epidural at 10:42 p.m. At 3:50 a.m., she began pushing. Pushing for more than three hours is dangerous. She pushed for 12 hours.

The couple, who trusted their health team, weren’t offered a C-section or told of the risks of prolonged pushing.

“Speaking as a nurse, I was really, really disappointed that they didn’t share that with me," Sarah told News Alert 4 in St. Louis.

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

Another thing the health team didn’t reveal? That their baby boy Remi was in distress during the prolonged labor.

To their shock, when Remi was delivered, he was floppy, didn’t cry, had poor tone and began having seizures.

“We were pretty much blindsided,” Sarah said.

Sadly, their son suffered severe and permanent harm. Now 5 years old, Remi has full cognition but can’t walk or communicate. He has cerebral palsy.

“It’s just a major travesty,” Blake said. “It hurts us as parents, but it also hurts us as care providers. That’s so far away from what we’ve been taught to do, and what I teach my students to do. It’s just heartbreaking.”

The Anyans filed a malpractice lawsuit against Mercy Hospital, its nurses and their obstetrician Dr. Daniel McNeive for medical negligence.

Medical malpractice laws hold providers accountable if the care they provide falls below a professional standard. Birth injuries are a top reason for malpractice claims.

Expert witnesses said expecting a mother in labor to push for 12 hours was inexcusable, adding that the hospital failed to respond properly after Remi was born. One possible intervention — therapeutic hypothermia — could have reduced his injuries by up to 30%.

The couple won their malpractice suit. The jury awarded them $48.1 million in the verdict, of which $20 million was for punitive damages.

"So grateful that they took what happened seriously and didn’t give up faith in Remi, and that they would try and help him move forward," Blake said.

Mercy is appealing the ruling. In a statement, they wrote:

"We stand by the care provided by our team … No evidence was ever introduced suggesting dangerous patterns or practices of behavior by Mercy or Dr. McNeive, nor did the jury make this finding. The case remains pending with the court, and Mercy will continue to seek appropriate resolution for the benefit of the Anyan family.”

What can malpractice victims do?

The Anyans aren’t the only ones harmed by a medical error. A Johns Hopkins study found that medical errors are the third-leading cause of death in the U.S.

Top reasons for malpractice suits include:

• failure to diagnose/delayed diagnosis
• radiology errors, such as misreading X-rays
• failure to obtain informed consent
• surgical errors, such as operating on the wrong body part or leaving instruments inside patients
• anesthesia errors
• medication errors

Victims of malpractice must demonstrate they were damaged by medical negligence and deserve compensation for losses. If successful, they are owed payment for medical bills, lost wages, pain and suffering and emotional distress.

However, many states cap non-economic damages (for pain and distress) at $500,000 or less.

If you or someone you love has experienced medical negligence, it’s important to take legal action quickly. There are time limits for pursuing a claim — usually within one to four years of discovering your injuries — so don’t wait.

If legal costs concern you, you can work with a personal injury lawyer on a contingency-fee basis. Such lawyers offer free case evaluations and don’t charge legal fees upfront. They subtract legal fees from any compensation they recover on your behalf.

To support your case, gather and maintain all the documentation you can — medical records, names of your care team, and records of any followup care you have received as a result of your injuries.

The Anyans took action not only to advocate for themselves, but to inspire others — as Sarah tells her son Remi.

“You’ve got two choices in life. You can be angry and bitter and hang on to that anger your whole life. Or you can choose to inspire people," Sarah said. "And I tell him that all the time — he’s going to inspire people."

What to read next

• Millions of Americans now sit on a stunning $35 trillion in home equity — here’s 1 new way to invest in responsible US homeowners while targeting a 14%-17% IRR
• 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.

Trouble is brewing on the travel horizon. Once seen as a golden ticket to free flights and VIP perks, airline loyalty programs are leaving frequent flyers grounded.

Most airlines offer loyalty programs to encourage people to stick with the same carrier for most of their trips. These loyalty programs allow flyers to earn miles that can be redeemed to buy free flights. Traditionally, they’ve also offered perks like first-class upgrades, early boarding or line-skipping privileges and access to airline lounges.

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• 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

However, these programs have changed — and not for the better. Consumers are bearing the brunt of these changes.

So what’s shifting, and why are regulators paying attention? Here are some tips on how you can make the most of the existing programs and keep travel affordable, even if they don’t provide the benefits they once did.

Airline loyalty programs are losing value

A recent report from IdeaWorksCompany highlights just how much airline loyalty programs have declined. According to the report, the average cost of award seats on six major airlines has risen 36% since 2019, making miles worth far less. Airline mergers have also contributed to lost or devalued miles.

Earning miles has become less advantageous, too. Many airlines now base rewards and seat upgrades on total spending rather than miles flown — including purchases made with co-branded credit cards. In some cases, airlines have restricted benefits like lounge access and expedited service lines to only their biggest spenders.

These changes have been so dramatic that they caught the attention of the U.S. Department of Transportation (DOT) under the previous Biden administration. Then-Secretary of Transportation Secretary Pete Buttigieg sent a letter to American Airlines, Delta, United and Southwest requesting detailed reports about their loyalty programs.

The DOT stated that it "launched an inquiry into the four largest U.S. airlines’ rewards programs that is aimed at protecting rewards customers from potential unfair, deceptive, or anticompetitive practices," adding that the "DOT’s probe is focused on the ways consumers participating in airline rewards programs are impacted by the devaluation of earned rewards, hidden or dynamic pricing, extra fees, and reduced competition and choice."

One concern raised by the DOT is that travelers who have spent years saving up miles for a dream trip may now find those miles have lost significant value.

However, it’s worth noting that this inquiry began under the Biden administration. With the transition to the Trump administration, there’s skepticism about whether those protections will remain. Some worry that recent rules requiring transparency around fees and timely refunds for cancellations or major flight changes may be rolled back.

As Frommer‘s pointed out, the new Secretary of Transportation, Sean Duffy, is a former airline lobbyist. A major airline lobbying group even said it was "thrilled" with his nomination. As a result, there’s concern that the probe into loyalty programs may stall or be abandoned entirely.

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How to make the most of your loyalty program

If you’re enrolled in a loyalty program and you want to make the most of it, here are a few smart strategies:

• Evaluate co-branded credit cards: These cards can offer extra loyalty points on everyday spending, but make sure the benefits outweigh the annual fee and any restrictions.
• Read the fine print: Know the terms and conditions of your loyalty program so you understand what you’re entitled to — and what’s changed.
• Use your miles sooner rather than later: Programs can change quickly, so if you have enough points for a trip, consider redeeming them before their value drops.
• Learn how to transfer points: Some loyalty programs allow you to transfer or pool miles with partners. This flexibility can help you access more flight options and redeem rewards faster.

These tips can help you get more value from airline loyalty programs — even if they’re not as generous as they once were. And if you find that airline-specific rewards aren’t meeting your needs, consider exploring general travel credit cards. Many offer bonus rewards and discounts on travel purchases, without being tied to a single airline.

If you’re a frequent traveler, it’s worth taking the time to research your options so you can continue earning rewards, save money and visit more places.

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

It’s not uncommon to carry multiple credit cards, but how many is too many?

On average, the American credit card holder carries 3.9 active cards in their wallet. And while that statistic doesn’t offer a definitive answer to this question, experts believe it all depends on your lifestyle and the purpose each credit card serves. For example, those who carry multiple credit cards often have one or two for personal use and another one for business.

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But what if you carry, let’s say, four unused credit cards just for emergencies? Is that too many, or is it smart to have a lot of available credit in case you need it?

Since your credit score has a big impact on your overall financial situation — as does the amount of credit card debt you carry — answering these questions is fairly important.

So, let’s take a look at the pros and cons of carrying multiple unused credit cards.

Benefits of multiple credit cards for emergencies

There are quite a few benefits to having multiple credit cards open at a time.

First of all, if you have several credit cards and carry a low balance on them, this improves your credit utilization ratio, which is the second most important factor in the credit-scoring formula.

Your credit utilization ratio is calculated by dividing the credit you’re currently using by the amount of credit available to you. So, if you have four credit cards — each with a $1,000 limit while carrying a $100 balance across all four cards — your ratio would be $100 divided by $4,000, which comes to 2.5%. Experts recommend a credit utilization ratio below 30% to boost your credit score.

Having multiple credit cards open also allows you to take advantage of the benefits and perks that each card offers. For example, if one card offers 5% cashback on groceries while another offers 5% on gas, you can use different cards for different transactions to maximize rewards.

If you have four cards, you’ll also have a lot of available credit — although this can be both a blessing and a curse. For instance, using credit cards for emergencies can be dangerous since these cards often have very high interest rates, and putting surprise expenses on your card could mean you end up in debt, struggling to pay back what you owe.

However, if some of your credit cards have special promotions, like a 0% introductory annual percentage rate (APR), having a lot of accessible credit at zero interest can help you pay for big purchases over time without paying interest — as long as you repay the full balance before the interest starts accruing.

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Downsides of having multiple credit cards

Before you rush out and sign up for multiple credit cards, you should also consider the downsides to this strategy.

Since four credit cards is a lot of cards to manage, you run a greater risk of missing a payment if you’re using all of them. Plus, depending on how the rewards programs work, you may not use any one of the cards enough to redeem the rewards.

Meanwhile, if you aren’t using all of your cards, there’s a chance they could be closed due to inactivity as credit card companies don’t typically let customers keep unused cards open forever. If this happens to you, the loss of an account could hurt your credit score by reducing your available credit, as well as your length of credit history — the period of time that your credit accounts have been open. Length of credit history accounts for 15% to 20% of your credit score.

Unused credit cards also create a greater risk of fraud, since you might not notice if someone starts using your card unless you’re regularly checking the statements. And, if your cards have annual fees, you could be wasting a lot of money keeping cards open that don’t justify their value.

Lastly, having a lot of credit available to you creates the risk of falling into debt if your spending habits get out of control, or if you start relying on these cards for emergencies.

How many cards is a good number to have?

Ultimately, the right number of credit cards for you depends on multiple financial factors, including how responsible you trust yourself to be, how much time you want to spend managing multiple cards, and your goals for owning multiple credit cards.

If you want to maximize rewards, you trust yourself not to overspend and you’re OK with actively managing four accounts, having this many cards may be right for you. Just be mindful that inactive cards will eventually be closed, so you may want to use your inactive cards here and there for the odd $20 transaction to keep the accounts active.

But if you want to simplify your life, or don’t trust yourself not to charge too much on all of your cards, you may be better off with just one great rewards card.

By thinking about these issues, you can decide what’s best for you. Just remember to be careful — signing up for too many cards could lead to you closing some of them in the future, and closing cards isn’t great for your credit score.

You should also make sure you have an emergency fund instead of relying on cards, as using your credit in an emergency could cause long-term financial problems if you struggle to pay off the balance.

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

President Donald Trump says his tariffs on imported goods are encouraging companies to invest in the U.S., claiming that will lead to "better-paying American jobs making beautiful American-made cars, appliances, and other goods."

But critics say it could take years for American workers to develop the 21st-century manufacturing skills that overseas workers have already mastered.

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"In the U.S. you could have a meeting of tooling engineers, and I’m not sure we could fill a room.” Apple CEO Tim Cook says. “In China, you could fill multiple football fields."

In the meantime, critics warn, consumer products will continue to be manufactured overseas, and Trump’s tariffs will drive prices of those imports higher.

What made-in-the-U.S.A. goods could cost companies, consumers

There’s a reason companies moved production offshore in the first place: It’s cheaper thanks to lower labor costs. As a result, American consumers have long benefited from lower prices.

George Carrillo, CEO of the Hispanic Construction Council, says garments and furniture made overseas are generally 20% to 50% cheaper than U.S.-made goods. But for some products, like consumer technology items, the differential is even bigger.

Apple, which makes 80% of its products in China, is a good example.

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Bank of America Securities analyst Wamsi Mohan told CNBC that if iPhones were made in the U.S., they’d cost $1,500 instead of $1,199 due to labor costs.

Dan Ives specializes in technology as a senior equity research analyst at Wedbush Securities. He says American-made iPhones would cost significantly more — $3,500 — because Apple would not only have to pay U.S. wages, but spend $30 billion to move 10% of its supply chain back onshore.

If higher-paid American workers assembled the Apple Watch in the U.S., Apple would still need to import parts from Japan, South Korea, China and Europe. Those imported parts would be subject to Trump’s tariffs, driving manufacturing costs and consumer prices higher.

With Americans already struggling with inflation and a related surge in consumer debt, these added costs may be unsustainable.

Is it realistic for manufacturing to come back?

Offshoring began in the post-war 1950s and 1960s as more countries built factories to encourage foreign investment.

American firms were eager to move jobs offshore to enjoy up to a 50% reduction in labor costs, The IT revolution in the 1990s accelerated the trend. Between 2000 and 2010, the U.S. lost a third of its manufacturing jobs.

In the meantime, AI and robotics have revolutionized manufacturing.

Adam Balogh trains students at one of the few machine technology centers that exists in the U.S. — at Laney College, a community college in Oakland, California.

"Our big limiter here is the workforce,” he told ABC7 News. “We just haven’t been training people for these roles.”

He believes that to revive the U.S. manufacturing sector, more American students would have to learn robotics in middle school and high school, before even reaching community college.

Even if the U.S. workforce was ready, firms need to build new factories in the U.S.

In an article for Barron’s, Erin McLaughlin, a senior economist at The Conference Board, noted that it could take anywhere from three to 10 years to shift an assembly plant to the U.S.

"It would take decades to onshore at the scale that we need to keep up with American consumer habits," Lance Hastings of the California Manufacturers and Technology Association told ABC.

In other words, Trump’s tariffs will hit American pocketbooks before they change the U.S. manufacturing landscape.

What to read next

• Millions of Americans now sit on a stunning $35 trillion in home equity — here’s 1 new way to invest in responsible US homeowners while targeting a 14%-17% IRR
• 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.