Author: Maurie Backman

The decision to retire is rarely an easy one. Giving up your career means more than just losing a steady paycheck — it can also mean giving up part of your identity and upending your routine.

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With a 43-year work history, you’re obviously contemplating a retirement date. After all, you’re tired and you’re old enough to claim Social Security benefits, albeit at a reduced rate. You may also be eager to kick off retirement at a time when your health is in solid shape.

However, there can be advantages to holding off on retirement and working a few additional years, so it’s important to look at the big picture when making your choice.

How to narrow down your retirement date

Retiring too early could mean leaving your job at a time when you’re not financially or emotionally secure. However, retiring past the traditional age could mean missing out on things you’ve always wanted to do in your golden years.

There are a number of things you should consider when deciding when to retire. First, think about Social Security, and whether you’ll need to claim benefits right away if you retire.

If you were born in 1960 or later, which is the case if you’re 62 now, your complete Social Security benefit won’t be available to you until age 67 — otherwise known as your full retirement age (FRA).

You can file as early as age 62, but your benefits will be reduced if you don’t wait until FRA. The closer you get to FRA, the less of a reduction you’ll face.

You should also think about health insurance, since that’s something you need to have at any age.

According to Fidelity, a 65-year-old who retired in 2023 can expect to spend an average of $165,000 in health care and medical expenses throughout retirement.

“Health care costs are among the most unpredictable expenses, especially when it comes to retirement planning,” said Robert Kennedy, SVP, workplace consulting at Fidelity.

Medicare eligibility generally does not begin until age 65. If you retire sooner, and your health insurance is tied to your job, you might end up spending a lot of money to put coverage in place.

You’ll need to research options, like COBRA, which allows you to retain your old employer coverage for a period of time, or a health insurance marketplace plan to see what the costs entail.

In addition, it’s important to examine your finances and see what the numbers look like. AARP found that 20% of Americans ages 50 and over have no retirement savings. The median retirement account balance of households of those ages 55 to 64 was only $185,000 as of 2022, per the Federal Reserve.

However, a 2024 Northwestern Mutual survey found that Americans believe it takes $1.46 million to pull off a comfortable retirement. So, you’ll need to see where your savings fall and what sort of annual income your nest egg might allow for.

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If you’re sitting on $1 million, for example, you can use the popular 4% rule to arrive at an annual income of about $40,000. You may decide you can live comfortably on that, in addition to whatever Social Security pays you. But if not, that’s a good reason to work longer and save more.

Also, think about how much debt you have (if any).

In 2024, 68% of retirees with debt reported having credit card debt outstanding, according to the Employee Benefits Research Institute. High-interest debt like that could eat up a big chunk of your retirement income, so you may want to try to hold off on ending your career until your credit card balances are gone.

Finally, think about the non-financial side of retirement. Many people end their careers only to wind up lost. If you’re not sure how you’ll fill your days in retirement, you may want to keep working longer – even if you can afford to stop now.

What’s the ideal age to retire?

A recent MassMutual survey found that on average 63 is the ideal age for retirement, according to both retirees and pre-retirees. Nearly half (48%) of retirees said they retired earlier than planned, most commonly due to changes at work (33%) or being able to afford to retire sooner than expected (28%). Other reasons for retiring early include illness/injury (25%), to relax and enjoy more free time (25%) and burnout (17%). Only 10% of retirees retired later than planned, with the most common reasons being to increase their wealth during retirement (41%) and satisfaction with their job (38%).

The decision to retire is a very personal one. So, a good bet is to think about how you feel about working versus retiring.

If you love your job and are someone who thrives on being busy, then you may not want to retire in the next year or two. Similarly, if you feel your savings could use a boost, working a bit longer could help pad your nest egg.

Effective this year, there’s a super catch-up contribution limit available for 401(k) savers ages 60 to 63. It allows you to put in an extra $11,250 instead of the $7,500 available to workers 50 and over.

On the other hand, if you’re miserable at your job and it’s a source of stress, you may want to consider retiring this year or next if you can afford to. Even if you like your job, if there are things you want to do in retirement that you fear you won’t be able to do a few years down the line, like take a six-month backpacking trip, that’s another reason to consider ending your career sooner as long as the finances work.

If you’re really torn, you may want to talk to a financial adviser and get their guidance. A finance professional can help you understand the pros and cons of retiring at various points so you can feel more confident in your decision.

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

When San Diego resident Alexandria Moya needed a place to live, she was worried that her small budget would be an issue. A one-bedroom apartment in the Ocean Beach neighborhood of San Diego costs about $2,500 on average, according to Zumper, which is beyond what she could afford.

So when Moya saw a listing priced at $1,300, she was thrilled. And, she was even more excited when the woman listing the home agreed to rent it to her for just $1,000.

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The problem? The listing turned out to be a scam, and Moya lost money in the process.

"I got fooled. And it’s easy to get fooled," she told Fox 5 News San Diego.

A rental application turns into a nightmare

Moya was immediately interested in the rental that fit her price point, so she contacted the woman listing it for a tour. She then met a young woman, who identified herself as the owner’s niece, who showed her the property

Moya read the lease and all looked legitimate. She wanted a little time to make her decision, but the property owner was pressuring her to commit. Worse yet, she said that Moya had to make an immediate cash payment if she wanted the rental.

Moya says she paid the owner $2,500 in total — $1,500 in cash and $1,000 through Zelle. From there, Moya’s move-in date kept getting pushed back.

Eventually, Moya was told she could not move in at all. She was promised a refund for the money she’d sent, but it never came. She called the woman who had listed the property repeatedly, but her calls kept going straight to voicemail

"I was hurt. I cried about it," she told Fox 5.

Moya says she filed a police report but does not expect to get her money back. And it just goes to show how important it is to be careful when a listing seems, as Moya said, "too good to be true.”

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How to avoid rental scams

Rental scams are on the rise. The FBI was already warning of a spike back in 2022, reporting that in 2021, Americans lost $350 million to real estate and rental scams. The Better Business Bureau (BBB) also reports that more than 5 million people have lost money to rental scams. Plus, the BBB found that in 2023, rental scams saw a 64.1% increase.

San Diego County District Attorney Summer Stephan told Fox 5 that in the past two years, rental scams have risen by 45%, per the Better Business Bureau. She warns that scammers use tactics like claiming they’re out of town and that they can’t show the property, or claiming that they have multiple offers and need an immediate answer and payment.

Be mindful of these patterns if you’re in the market for a rental, and don’t let a pushy so-called property owner pressure you.

Another “red flag,” Stephen told Fox 5 reporters, is that scammers also sometimes take legitimate listings and create duplicate ones with their own contact information. If you see a listing, do some online searching to make sure it’s not showing up in multiple places at different price points. In that case, the lower price is typically the bogus listing.

It’s also a good idea to look at public records to confirm who owns the property you’re trying to rent. If the names don’t match up, dig deeper — or run away. Your county clerk’s office could be a good resource here.

Of course, it’s common for property managers to list rentals on owners’ behalf. In that case, research the property management company at hand. See if they have a BBB listing and what their ratings are.

It’s also important to use trusted online platforms to find a rental. Be wary of posts on social media listing homes for rent.

Also, be wary of rentals that require a larger-than-average up-front deposit. It’s common to put down your first month’s rent plus a security deposit. Beyond that, ask questions. And in the course of putting down a deposit, try to use a credit card if possible. That gives you a way to track the payment and, if needed, stop or dispute it.

Finally, research rental prices in your area so you know what the market is demanding. And, be careful with listings that are priced under market. If a given rental seems like it’s too good to be true, it just may be.

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

Roughly 90 minutes south of the Canadian border at Niagara Falls lies Ellicottville, New York. Known for its ski resorts and charming small-town atmosphere, it’s home to several hundred Airbnb listings.

But recently, a number of Canadian homeowners have been putting their Ellicottville vacation properties up for sale. And according to mother-daughter real estate brokers Cathleen and Melanie Pritchard, this trend is happening as a result of President Donald Trump’s aggressive tariff policies.

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“We have seen an uptick in listings from Canadians,” Melanie told ABC 7 News Buffalo.

“Our Canadian friends, some of them are very upset. … They’re just feeling like they’re not being loved. They’re wondering why this is happening — as are we."

How an uptick in listings could affect property values

Realtor.com puts the median listing price in Ellicottville at about $420,000. Redfin reports that in February of 2025, home prices in Ellicottville were up 699.9% compared to last year, and that homes spend an average of 66 days on the market.

But as sellers increasingly put their Ellicottville homes on the market, whether due to frustrations over U.S. economic policies or other factors, home values in the town have the potential to decline. And that’s not unique to Ellicottville — it’s how the real estate market generally works.

A big reason home values are up on a national level right now is that inventory has been low for years. Mortgage lenders offered up record-low borrowing rates during the pandemic, which spurred a wave of refinances. When rates started creeping upward following the pandemic, housing inventory declined.

And that made sense. Homeowners did not want to give up the super-low mortgage rates they had managed to lock in. But that lack of supply helped home prices rise, even at a time when mortgages were expensive to sign.

But if the opposite happens in Ellicottville, and a large number of homes hit the market in short order, it could result in an oversupply. That, in turn, could lead to lower home prices and lower home values.

Sellers who list their homes may not get the prices they want. And existing homeowners who aren’t selling could see a drop in equity.

Furthermore, if ill feelings toward the U.S. drive Canadian buyers away, home values in Ellicottville could plunge even more as a large pool of buyers dwindles down. It’s been reported that an estimated 23% of homes in Ellicottville are owned by Canadians.

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What a changing housing market means for buyers and sellers

The housing market is typically subject to basic laws of supply and demand. When there’s a greater supply of homes than demand, prices tend to drop. When there’s more demand and less supply, prices can rise. And if supply continues to tick up in Ellicottville, both buyers and sellers will need to use those circumstances to their advantage.

Sellers will need to be strategic to help their homes stand out and attract buyers. Those looking to sell can partner with a real estate agent who knows the area well in order to price their homes strategically. They can also focus on high-impact repairs and improvements that are likely to draw buyers in.

Being flexible with closing dates is another tactic sellers can use. Similarly, offering added concessions, like covering closing costs, could help.

Buyers, on the other hand, can take advantage of the changing market by negotiating lower prices. They can also ask sellers to make certain repairs or improvements as a condition of completing a sale.

But, buyers do need to be careful about entering a shifting market. If Canadians continue to pull out of Ellicottville, home values could drop in coming years. For buyers making a minimal down payment, there’s the real risk of ending up underwater on a mortgage in short order.

It’s especially important to be cautious about buying in a changing market when the home is being purchased as an income property, as opposed to a primary residence. Waning demand could lead to a decline in bookings, making it harder to cover the costs of owning the property.

One thing Ellicottville buyers should do at a time like this is talk with real estate agents in the area and get their take on whether current sentiment and recent trends are likely to impact future rental income. Those agents may not have a crystal ball, but their insight could prove invaluable — and perhaps spare some buyers from making a bad decision.

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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 past few years have been wrought with rampant inflation, and many Americans are having a hard time paying their bills.

In a February CBS News and YouGov poll, 77% of Americans said their income isn’t keeping up with inflation. And a March survey from Equitable found that 80% of Americans across all income levels are worried about rising living costs.

Life can be especially challenging for young adults who are just starting their careers and craving independence. Suddenly, the burden is on you to pay for every little expense. And what if you realize you can’t afford everything you need?

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Imagine you’re 22 years old and you’re ready to move out of your parents’ house, but you’ve done the math and discovered you can’t afford a place of your own. One of the reasons is your car payments eat up too much of your income — but you need wheels to get to work every day.

So, what can you do to lower your auto costs? And can you do anything to lower your living costs as well?

Tackling high car payments

A number of things may be contributing to high transportation costs at that age. Let’s focus on your auto loan and car insurance.

Insurance premiums tend to be higher for less-experienced drivers, as they’re deemed more likely to get into accidents. Companies can also assess risk based on a car’s make, model and safety features. A high-end car that’s expensive to repair or a car with a high theft rate result in higher premiums.

If you want to try cutting down on your insurance bill, you can start by collecting quotes from multiple companies and select the best deal. Don’t be afraid to negotiate, either, especially if you have a good driving record thus far. Ask if there are any further options for lowering your monthly payments.

As for your car loan, even as borrowing rates remain elevated, you may be able to refinance for a better deal if your credit score has improved since you bought the vehicle. What kind of car do you have? If it’s new or expensive, you may want to consider swapping it with a cheaper option.

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

Rent options

If you’re in a situation where you can take your time to find a new place to live, sometimes it can pay to be patient and wait for the right rental opportunity to come along.

But if you’re still unable to find something in your price range, you might need to adjust your expectations. That could mean living in a different neighborhood than you wanted or a much smaller space with fewer amenities close by.

Still can’t find what you want? It might be time to put those dreams of living by yourself on hold. Co-habitating with roommates may not be ideal for everyone, but it’s a great way to cut down on living expenses. Not only does the rent get split, but you may be able to save on general household items.

Take control of your finances

If you feel like you’re drowning and can’t keep up with your bills, there are further steps you can take to improve your situation.

First, get yourself on a budget so you can track every dollar spent. Next, review your spending and identify ways to cut back. Chances are, there are some discretionary expenses you can reduce, whether it’s dining out or paying for subscription or streaming services. And along those lines, do a spending audit to make sure you aren’t paying for services you don’t use.

If you want to boost your monthly income, you may also want to look at getting a side hustle. This can allow you to afford and save more for yourself.

And if you can afford it, it’s a good idea to start an emergency fund. This may take time if you’re in a position where you can barely cover rent and car payments. But the point of an emergency fund is to provide a cushion in case of an unplanned expense so you don’t fall deep into debt.

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

Tax strategy should be top of mind when it comes to drawing down your retirement account.

If you’ve held stocks in your retirement portfolio for a long time, you may be looking at significant gains.

Those long-term capital gains could play a big role in your retirement finances — and a positive one.

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But it’s important to balance your various income streams and cash out your gains strategically.

The benefits of long-term capital gains

Long-term capital gains are earnings on investments held for at least a year and a day. Any earnings on investments held for a shorter time are classified as short-term capital gains.

There’s a major difference between them when it comes to taxes. Long-term capital gains are taxed at lower rates than short-term capital gains, which are taxed as ordinary income.

You can leverage the tax-advantageous aspect of long-term capital gains when it comes to drawing on your nest egg for income.

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The amount of tax you pay on long-term capital gains depends on your tax-filing status and your overall income. Here’s a rundown of long-term capital gains tax rates as of 2025.

If you’re single, your long-term capital gains tax rate will be:

• 0% if your income is $48,230 or less
• 15% if your income is between $48,351 and $533,400
• and 20% if your income is more than $533,400.

If you’re married and filing jointly, your long-term capital gains tax rate will be:

• 0% if your combined income is $96,700 or less
• 15% if your income is between $96,701 and $600,050
• and 20% if your income is more than $600,500.

These are significantly better rates than the taxes levied on short-term capital gains.

For example, if you’re single with an annual income of $45,000, you’ll pay a 12% tax on short-term capital gains versus no taxes at all on long-term capital gains.

If you’re married and file jointly with an annual retirement income of $240,000, you’ll pay a 24% tax rate on short-term capital gains but almost 10% less (15%) tax on long-term capital gains.

This tax advantage may be one reason to start withdrawing long-term capital gains as retirement income before you claim Social Security. The longer you wait to claim Social Security, the larger those monthly benefits will be — for life.

Leveraging long-term capital gains

It’s important to consider all your retirement income sources — including 401(k)s and Social Security benefits — as you plot out your tax strategy.

Let’s say most years your retirement income is low enough for you to pay 0% taxes on long-term capital gains, but you get a windfall that bumps you into the 15% range in that year.

If you have a Roth IRA, you could tap it for income in the year you get the windfall because Roth IRA withdrawals are tax-free.

Then if your income shrinks the following year, you could return to cashing out long-term gains in a taxable account.

It’s a good idea to talk to a financial advisor or tax professional about the best ways to minimize your tax burden in retirement.

This could include doing a Roth conversion ahead of retirement so you have some tax-free income at your disposal later on.

You may end up having to pay taxes on retirement savings if you have money in a traditional IRA or 401(k). At a certain point, you’ll be forced to take required minimum distributions (RMDs), which are a taxable event.

That said, there are strategies to minimize the tax-related impact of RMDs. One option is to make qualified charitable distributions (QCDs) directly out of your traditional IRA or 401(k), although there is a limit to how much money you can donate.

If your retirement income isn’t low enough to qualify for a 0% tax rate on long-term capital gains, you can try selling other investments strategically at a loss to offset those gains.

For example, say you’re looking at a $10,000 long-term gain that’s subject to a 15% tax rate. If you’re able to take a $10,000 loss in a taxable account, that negates your tax obligation.

Overall, long-term capital gains can be one of your greatest tax advantages in retirement.

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

High interest rates have been battering consumers for years. And there’s been a lot of pressure on the Federal Reserve to lower its benchmark interest rate, since that should result in lower consumer borrowing costs across the board.

But in March, the Fed opted to keep its benchmark interest rate steady. The Fed hasn’t nudged interest rates downward since late 2024. Its last rate cut happened back in December.

That’s not sitting well with President Donald Trump, who has made it clear that he’s looking for the Fed to cut rates in short order.

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“The Fed would be MUCH better off CUTTING RATES as U.S.Tariffs start to transition (ease!) their way into the economy,” Trump wrote in a post this past Wednesday on Truth Social.

“Do the right thing. April 2nd is Liberation Day in America!!!”

On April 2, Trump rolled out a tariff initiative that focused on trade partners who the have what the administation has characterized as large imbalances with the U.S.

How interest rates and tariffs affect the economy

Both interest rates and tariffs can have a notable impact on the U.S. economy.

Interest rates dictate how much it costs consumers to borrow money. They also determine how much it costs companies to borrow money to finance operations.

When interest rates are higher, consumers tend to spend less. It’s for this reason that the Federal Reserve tends to raise interest rates during periods of higher-than-average inflation.

Inflation commonly comes as the result of a mismatch between supply and demand. When there’s not enough supply to meet demand, prices tend to rise.

By raising interest rates, the Fed can discourage consumers from spending. That, in turn, narrows the gap between supply and demand, causing prices to come down.

Tariffs, meanwhile, can lead to higher costs for imported goods. If it costs more for U.S. supermarkets and retailers to source the products they sell, those higher costs are generally going to be passed onto consumers, resulting in higher prices.

Of course, the hope is that U.S. companies will source more products domestically in light of tariffs. But that won’t necessarily result in lower prices.

Quite the contrary — domestic goods are commonly more expensive to produce, which could lead to higher prices. In fact, the whole reason the U.S. is so heavily dependent on foreign trade partners is that it’s historically been more economical to source certain products than produce them domestically.

In response to the expected impact of tariffs, the Fed raised its 2025 inflation forecast to 2.8% in mid-March.

The reason Trump is pressuring the Fed to lower its benchmark interest rate is to make borrowing less expensive for consumers. Lower borrowing rates could potentially offset some of the higher costs that may result from tariffs.

But lower borrowing rates could also fuel inflation by encouraging more spending. So, it’s easy to see why the Fed isn’t in a rush to go that route.

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 adjust your finances in today’s economy

It’s hard to know what actions the Fed will take in the coming months, and it’s hard to predict the exact impact of tariffs on the average consumer’s wallet. But, there are some steps you can take to protect your personal finances given current circumstances.

First, know that until interest rates come down, borrowing is going to be more expensive. So, 2025 may not be the best time to sign a new loan or refinance an existing one. You may instead want to focus on boosting your credit score so that if rates come down next year, you’ll be in a strong position to borrow.

On the other hand, you should know that while elevated interest rates are bad news for borrowers, they’re great news for savers. Now’s a good time to put extra money into a high-yield savings account. You can also open a certificate of deposit (CD) if you have cash on hand you don’t expect to need for a period of time, which guarantees you the same interest rate until its maturity date.

Given that there’s pressure on the Fed to cut rates, a CD could be a good bet. If interest rates fall, savings accounts are apt to start paying less. But if you lock in a CD at a given rate, your bank has to honor that rate.

You may also want to boost your emergency fund given that economic conditions could potentially fuel a recession or cause stock market volatility.

On March 13, the stock market entered correction territory for the first time in more than a year (meaning it fell at least 10% from a recent high, but less than 20%). Tariff policies, once implemented, could drive stock values down even more. So, now’s a good time to rebalance your portfolio as needed or potentially cash out some remaining gains if your emergency fund needs a boost.

A recent U.S. News & World Report survey found that 42% of Americans have no emergency fund. While J.P. Morgan’s chief economist puts the chance of a U.S. recession at 40% this year.

A recession could lead to widespread layoffs, which is why it’s important to have a solid emergency fund — one with at least three months of living expenses. A fully loaded emergency fund could make it easier to leave your stock portfolio alone in the event of market meltdown, sparing you from locking in losses due to needing cash.

Of course, no one has a crystal ball, so it’s hard to know how things will shake out economically in the coming months. But, it’s best to prepare as best as you can by stockpiling some cash and being careful about taking on new debt. You should also make sure your investment portfolio is well diversified, to withstand potential turbulence.

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

Many people spend years contributing to their retirement savings in the hopes of building a sizable nest egg for later in life. You may have worked hard to grow your retirement account balance, too.

If you’re planning to retire next year, now is a good time to review your portfolio and ensure your assets are appropriately allocated for your age. But what does that mean in practical terms?

Your portfolio likely includes a mix of stocks (equities) and bonds (fixed income), and you may be wondering what the right balance is. Here’s how to figure out the optimal mix.

The benefits of stocks vs. bonds in retirement

Having both stocks and bonds in your retirement portfolio offers distinct advantages. While stocks carry more risk, they also tend to deliver stronger returns.

The average return rate for stocks is 7% to 10%, whereas bonds have typically returned 3% to 5%.

Maintaining stocks in your portfolio is important because you want your money to continue growing during retirement. However, bonds play a role in protecting a portion of your assets from stock market volatility.

Unlike stocks, bond values don’t fluctuate wildly, providing stability — a necessity when you’re living off your investments. Bonds also offer to generate fixed income since they’re contractually obligated to pay interest.

Stocks can provide income as well if you invest in dividend-paying companies. However, unlike bonds, companies’ stocks are not required to pay dividends, and even those with a solid history of doing so may opt to cut or eliminate those payments as they see fit.

How to build the right investment mix

How you allocate your assets before retirement may not be the same strategy you use during retirement — and for good reason.

While you’re working, you have time to ride out stock market downturns because you won’t need to withdraw that money for many years. However, once you’re retired, you may need to tap into your portfolio regularly for income, requiring a more cautious investment approach.

For this reason, it’s a good idea to keep the bulk of your portfolio in stocks during your wealth accumulation years. But as you transition into retirement, shifting a greater percentage into bonds can help manage risk and provide stability.

Your specific allocation will depend on factors like life expectancy, risk tolerance and income needs. Some retirees prefer a 50/50 split between stocks and bonds, while others opt for a 40/60 split in either direction.

A common guideline is the rule of 110, which suggests subtracting your age from 110 to determine the percentage of your portfolio that should be in stocks.

• At age 40, this rule suggests keeping 70% of your assets in stocks
• At age 65, a 45% stock allocation may be more appropriate

Another popular strategy is the bucket strategy, which divides your portfolio based on different time horizons:

• Short-term bucket: Holds conservative investments like bonds for near-term expenses
• Medium-term bucket: Includes a mix of stocks and bonds
• Long-term bucket: Primarily stocks for long-term growth

It’s also important to maintain a cash reserve. Rather than allocating a fixed percentage to cash, a good rule of thumb is to keep enough to cover one to two years of living expenses. This allows you to avoid selling investments during a market downturn.

Finally, your retirement portfolio doesn’t have to be limited to stocks and bonds. Depending on your income goals and risk tolerance, you might consider diversifying with real estate, such as a rental property.

Consulting a financial adviser can help you develop a strategy that balances risk and reward — ensuring your portfolio meets your retirement needs.

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

Most consumers are familiar with the concept of inflation — a broad increase in prices as purchasing power declines. But stagflation is a concept you may not have heard of.

Economists coined the term to describe a period of slow economic growth, high levels of unemployment and stubbornly high prices. During stagflation (or stagnant inflation), prices remain elevated while the economy remains in a slump.

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And the recent fear is that new tariff policies will fuel a period of stagflation in the near term that could lead to a recession.

In a recent analysis of a March Federal Reserve meeting, RSM chief economist Joe Brusuelas said policymakers “implied mild stagflation ahead in the near term as growth slows and inflation increases,” according to Reuters. Brusuelas also noted the “pervasive uncertainty around the size and magnitude of the trade shock."

Here’s why the fear may be a valid concern and what you may want to keep in mind when investing amid economic uncertainty.

Why stagflation fears are mounting

The last time the U.S. had to deal with a prolonged period of stagflation was during the 1970s, when a large increase in oil prices triggered a series of suboptimal decisions around monetary policy and ultimately fueled a recession early on in the following decade.

Now, the U.S. economy is showing signs of "stagflation-lite,” the title of Brusuelas’ recent analysis, as a growing number of economists are projecting a slowdown in growth and an uptick in prices as tariff policies come to life.

Of course, it’s worth noting that unemployment is fairly low. February’s jobless rate was only 4.1%. By contrast, during the mid-1970s, it peaked at 9%. For this reason, economists aren’t necessarily predicting a repeat of the stagflation that occurred in the 1970s, but rather, a more mild version.

"I don’t see any reason to think that we’re looking at a replay of the ’70s or anything like that," Federal Reserve Chair Jerome Powell said at a press conference after a recent central bank meeting, according to Reuters. "I wouldn’t say we’re in a situation that’s remotely comparable to that.”

But Americans should still brace for a period of economic uncertainty ahead — one that may lead to higher costs across the board and lessen buying power on the whole.

In February, 63% of Americans said inflation is a big problem for the country, according to Pew Research Center. And in a February CBS News and YouGov poll, 77% of Americans confirmed that their income wasn’t keeping up with inflation.

If prices continue to rise, it could push a lot of people into serious debt and have long-lasting impacts. So when it comes to investing for your future (if you can afford to do so), you’ll want to be extra careful with your approach.

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How to invest wisely in times of economic uncertainty

It’s hard to know what’s in store for the U.S. economy in the course of the next few months. But it’s important to financially prepare as best you can.

That means making sure you have a solid emergency fund with enough money to cover three to six months of essential bills as a starting point.

It’s also a good time to pay off high-interest debt if you can. The Fed is unlikely to lower interest rates anytime soon given current inflation levels and general economic uncertainty (though the central bank did recently signal that it sees two more cuts coming before the end of the year). This means your credit card balances in particular may be costing you a lot of money.

We don’t know what unemployment levels will look like for the remainder of the year. But if you’re able to shed high-interest debt, that’s one less expense to grapple with in the event of job loss.

Beyond that, it’s important to invest your money strategically. During periods of economic instability, the stock market can be very volatile. And it’s already been pretty rocky so far in 2025.

So you may want to consider two things.

First, make sure your risk profile aligns with your life plans. If you’re aiming to retire in 2026, now’s not the time to have 80% of your portfolio or more in the stock market. However, if you’re decades away from retirement, a more stock-heavy portfolio may be appropriate since you have many years to recover from near-term market turbulence.

Next, make sure your portfolio is well diversified. This is important whether you’re close to retirement or a long way off. Loading up on S&P 500 ETFs gives you exposure to the broad market, and it’s a good option for people who don’t have the time or skills to research stocks individually.

Given the potential for near-term economic shakeups, you may also want to add some recession-proof stocks to your portfolio. Certain health care and consumer staple stocks fit the bill, since these are things Americans may not be able to cut back on even if living costs rise or unemployment levels climb.

You can also look at inflation-resistant assets like real estate or Treasury Inflation-Protected Securities (TIPS). TIPS are Treasury bonds whose principal value rises as inflation increases. However, TIPS should be used as more of a long-term hedge against inflation rather than a short-term hedge.

Also be mindful of the fact that in the coming months, your portfolio value might swing. Try not to make rash decisions when that happens, like unloading assets at a loss. If you’re invested appropriately for your age, you should be able to ride out whatever storm is coming until the market eventually recovers.

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

Many people opt to buy real estate for the purpose of renting it out as an investment. And owning a rental property nearby is risky enough. But the risk can be even greater if you decide to buy a long-distance rental.

It may be that you’re in your 20s or 30s without kids, so you have time to travel back and forth to a rental in another state. Or, it may be that you’re a recent retiree looking for a project plus extra money and can afford an income property that cash flows in a different market that’s a few hundred miles away.

There can be benefits to going this route, but also drawbacks. So it’s important to know what you’re getting into.

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The pros and cons of a long-distance rental investment

Investing in real estate isn’t for the faint of heart. The upside is obvious — you get a chance to diversify your portfolio, collect what could be a steady stream of rental income, and have someone else’s money paying the mortgage on a property that could gain a lot of value over time.

But investing in real estate carries risk. Your property might sit vacant, leaving you to cover its mortgage — or worse. Your property taxes could rise. Things could break. Or a tenant could do far more damage than what their security deposit covers and leave you on the hook for the bill.

When you invest in a long-distance rental, the potential for complications could increase. Since you’re not there all the time to oversee the property, your tenants might have an easier time violating your rules (such as smoking when the lease forbids it or having pets when they’re not allowed).

Also, being many miles away from your rental makes it challenging to address repair issues as they arise. You could hire a property manager who’s local to oversee your rental for you, but that’ll eat into your profits.

Coastline Equity says that property managers typically charge fees as a percentage of monthly rent collected. A common range is 4% to 12%. Maintenance fees may be extra.

On the other hand, buying a long-distance rental investment could make it possible to tap into a less expensive or less saturated market, and one that is emerging. If your local area is filled with available rentals, there’s more competition. And if your local area is expensive, a rental property may not fit into your budget. So going outside your immediate geographic area could work to your benefit.

Also, buying a rental property in a new area might afford you the opportunity to spend time and discover another place you enjoy. If you’re fairly young and unattached, you might even look forward to visiting a different city a few times a year to check in on your rental (and potentially getting to write off that trip as an expense on your taxes). And as a retiree, you might appreciate the change of scenery.

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Also, depending on the nature of your long-distance rental, it could serve as a vacation spot for you. This may not work with a property you rent out on a yearly basis. But if you live in the mountains and buy a rental property 300 miles away near the beach that you rent out week by week, you can block off a few weeks to enjoy that property yourself. And that way, you can visit a favorite area repeatedly without having to worry about securing lodging.

How to make smart long-distance rental investment decisions

A 2024 Clever survey found that 90% of residential real estate investors have lost money on an investment. And 87% have regrets about investing in real estate. So if you’re going to buy a long-distance rental property, it’s important to do your research.

First, get the scoop on the local market. This may be easier with the help of a real estate agent who knows your prospective area very well and who will be familiar with the local rental trends. Find out what vacancy rates tend to look like and ask for numbers to see what sort of rent you can reasonably expect.

There are certain types of areas you may want to focus on for a long-distance rental. First, areas with highly rated school districts tend to be a draw. You can research school districts here.

Secondly, college towns tend to be perpetually busy, with students and staff alike needing housing on a year-to-year basis. The same holds true for areas with large hospital systems. Medical residents often need housing close to work. The same holds true for areas with booming job markets or industries.

You can also look at rentals that are in close proximity to attractions like theme parks, beaches, and ski resorts. But again, it pays to work with a real estate agent, because some of these areas may be fairly saturated with rentals already.

Another thing you may want to look at is up-and-coming neighborhoods — those that are being developed but aren’t quite there yet. Neighborhoods in this category often allow investors to get in at lower price points and then profit when property values soar.

You’ll also want to be mindful of local landlord-tenant laws in any area you opt to buy. To this end, you may need — not just a good real estate agent — but an attorney as well.

If you’re going to buy a long-distance rental, you’ll also need to have the right support system in place. That could mean hiring a competent property manager (or property management company) familiar with the area and that can handle day-to-day operations effectively. Alternately, it could mean maintaining a list of trusted contractors in the area you can call in a pinch.

There are also different online tools landlords can use to manage their rentals, like Avail or Rent Manager. It pays to explore different options to see which platform you find easiest.

Finally, before you buy a rental property in an area you’re not familiar with or close to, spend some time there and talk to the locals. That may give you enough insight to decide whether you’ve chosen the right location for a long-distance rental, or whether you’re about to make a decision that groups you with the other 87% of those who regret such an investment.

In the end, if you decide that buying a rental property outright isn’t for you, you can always explore other ways to invest, such as with real estate crowdfunding platforms.

What to read next

• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Here are 3 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Nearly 1 million Americans have a net worth of at least $10,000,000 — here are 3 ‘quiet’ ways the ultra-wealthy grow their riches (and how you can join the club ASAP)

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