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Author: Vawn Himmelsbach

  • Air travel between the US and Canada is set to plunge 70%, and domestic tourism has also slowed — how to plan your trips as Trump’s policies hit travel demand

    Air travel between the US and Canada is set to plunge 70%, and domestic tourism has also slowed — how to plan your trips as Trump’s policies hit travel demand

    Many Canadians have decided not to travel in the U.S. as a trade war rages.

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    Future bookings for flights between Canada and the U.S. have plummeted by over 70% in every month through to the end of September compared with the same time in 2024, according to OAG, a global travel data provider.

    In February, the number of Canadians crossing the land border into the U.S. dropped almost 500,000 compared to the same period last year, according to data from U.S. Customs and Border Protection (CBP) — reaching levels not seen since the height of the Covid-19 border closures.

    “This is like Covid all over again,” said Len Saunders, an immigration lawyer in Blaine, Wash., which borders the Canadian province of British Columbia, in an interview with CBC News. “With the rhetoric coming from Trump — people just don’t want to come down here.”

    The number of Canadian residents returning from the U.S. by flights also fell by 13.1% in February, with Air Canada, WestJet and United Airlines announcing cuts to service due to declining demand.

    “A 10% reduction in Canadian travel could mean 2.0 million fewer visits, $2.1 billion in lost spending and 14,000 job losses,” according to the U.S. Travel Association, which noted that Canada is the top source of international visitors to the country, with 20.4 million visits in 2024.

    But it’s not just Canada. The Trump administration is also escalating a trade war with the rest of the world, and domestic tourism has also slowed down this year, with Bank of America aggregated card data showing softer lodging, tourism and airline spending. "It could be that the recent drop in consumer confidence is translating into people hesitating to book trips, or considering paring them back. But bad weather and a late Easter this year are also likely playing a part," said the bank.

    While this will undoubtedly impact Americans working in the tourism and hospitality industry, it could also have impacts on everyday Americans.

    Why Canadians are avoiding U.S. travel

    It’s not just tariffs that have shaken Canada-U.S. relations. Taunts about Canada becoming the 51st state, threats of annexation and reports of Canadians and other nationals being detained by Immigration and Customs Enforcement (ICE) — like the account of one Vancouver woman detained by ICE for two weeks — is keeping Canadians away.

    Then there’s the Canada-U.S. exchange rate. The loonie plummeted to its lowest level in more than 20 years when Trump first announced impending tariffs. It has since risen to a near five-month high against the greenback.

    But Barbara Barrett, executive director of the Frontier Duty Free Association, told CBC News that cross-border traffic declines aren’t due to the exchange rate. Rather, it’s about anti-tariff sentiment.

    “We’ve seen the dollar fluctuate up and down before and we haven’t seen this sort of dramatic decline,” she said. “If it was all about the dollar — we’d have a flood of Americans coming over and we’re not seeing that.”

    While many Canadians and other foreign nationals are boycotting the U.S., some don’t feel it’s safe to go right now. Several countries — including the U.K., Denmark, Finland, Germany and Canada — have updated their travel advisories for the U.S. regarding immigration requirements and gender identification.

    “Since the start of the second Trump administration, there appears to be an uptick in foreign visitors to the U.S. being denied entry, resulting in people being sent back to their original destinations or being held in detention,” according to Wired.

    As of April 11, Canadians also have to register with the U.S. government if they plan to stay in the country for more than 30 days.

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    What does this mean for American travelers?

    While tariffs may not have an immediate impact on domestic travel — like the price of airfare or hotel rooms — ongoing trade wars with multiple countries could eventually take a toll.

    The Federal Reserve lowered its outlook for economic growth in 2025 to 1.7%, with inflation projected to creep up from 2.5% to 2.7%. With signs of slowing economic growth and consumer expectations for income, business, and labor market conditions at a 12-year low, Americans may decide to hold off on those vacation plans.

    “The longer tariffs last, the more likely we’ll see air travel impacted in the form of higher costs for Boeing and airlines, fewer overall flights, and higher fares,” Scott Keyes, founder of Going, told USA Today.

    But if the U.S. does sink into a recession, some travel costs could drop. “That’s because demand for travel typically falls during economic hard times, and with less demand, airlines would be forced to drop prices in order to fill planes,” Keyes said.

    Tips for travel planning in uncertain times

    Americans traveling domestically may want to consider vacationing in areas impacted by a downturn in Canadian tourism, such as Florida. Prices could drop because of reduced demand; at the same time, you’d be helping to support the tourism industry in those areas.

    Visits to national parks, however, could get more complicated. The mass firing of 1,000 national park workers could result in service delays and maintenance issues — so you’ll want to plan any outdoor adventures far in advance.

    As gas prices rise as a result of tariffs, road trips could also get more expensive (at home and abroad). So, for example, if you’re traveling in Europe, you may want to compare the costs of traveling by train rather than renting a car.

    If prices escalate, airlines and hotels may adjust their prices accordingly. So it may be better to book sooner rather than later to lock in rates for flights and hotels.

    Another option is to cash in those frequent flyer miles or credit card travel rewards to save on flights, hotels and rental cars. If you’re in the market for a new travel rewards credit card, keep an eye out for promotional offers that could help fund your next vacation.

    It could also be a good time to sit down with a financial adviser to come up with a game plan for uncertain times, which could mean diversifying your portfolio, topping up your emergency fund and perhaps even creating a “travel fund” (say, in a high-interest savings account) so you don’t rack up unnecessary credit card debt on your next vacation.

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

  • Nearly 800,000 Oklahomans stressing over proposed Social Security cuts — as insiders warn of impending ‘system collapse.’ What to know about protecting your nest egg

    Nearly 800,000 Oklahomans stressing over proposed Social Security cuts — as insiders warn of impending ‘system collapse.’ What to know about protecting your nest egg

    About 800,000 Oklahomans depend on Social Security — and now they’re wondering how proposed Security Social cuts could impact their retirement.

    “Oklahomans want to hear and make sure that Social Security is protected and saved, not only for them, but their children, grandchildren,” Sean Voskuhl, AARP Oklahoma state director, told Oklahoma’s News 4 in a March interview. “More than 22% of Oklahomans rely on Social Security as their primary source of retirement income.”

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    Now under Trump-appointed leadership, the Social Security Administration (SSA) is eliminating 7,000 jobs, significantly reducing its workforce, while closing several SSA offices across the country.

    And that leaves Oklahomans with questions.

    “Is Social Security going to be fully funded? Are people going to get their payments on time? And will there be people at the Social Security Administration offices to answer questions if people have them?” said Voskuhl.

    The impact of proposed Social Security cuts

    This comes at a time when a record number of baby boomers are reaching retirement age — a phenomenon referred to as Peak 65. And 2025 is the “peak” of Peak 65, with a record 4.18 million Americans reaching the traditional retirement age of 65, according to a research report by the Alliance for Lifetime Income’s Retirement Income Institute.

    “Unlike older retired baby boomers, the majority of Peak 65’ers don’t have pensions, which used to help fill that gap left by Social Security,” according to the report’s author, Jason Fichtner, executive director of the institute and a former chief economist at the SSA.

    That means cuts to the Social Security workforce are coming at a time when demand for its services are at an all-time high. Former Social Security Commissioner Martin O’Malley told CNBC.com in March that recent actions by Elon Musk’s Department of Government Efficiency (DOGE) are putting the benefit checks of more than 72.5 million Americans at risk.

    “Ultimately, you’re going to see the system collapse and an interruption of benefits,” O’Malley said. “I believe you will see that within the next 30 to 90 days.”

    Delays could be disastrous for many Americans. In one study, 42% of Americans aged 65-plus said they wouldn’t be able to afford basic necessities like food without their monthly check. For Americans about to retire, staffing cuts and office closures could lead to delays in processing their claims.

    At the same time, DOGE — which is helmed by unelected billionaire Elon Musk — is closing 47 local Social Security offices in an effort to save money. Musk has referred to Social Security as “the biggest Ponzi scheme of all time.”

    In Oklahoma, a total of 15 federal offices are on the chopping block, including the SSA office in Lawton. These closures will save an estimated $3.7 million, according to DOGE.

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    How to adjust your retirement savings

    From the get-go, Social Security was never meant to be the sole source of a person’s retirement income; rather, it was meant to supplement personal savings and pensions. But an AARP survey found that 20% of Americans aged 50-plus don’t have any retirement savings.

    The earlier you start saving, the better — but it’s never too late to start. And that may be more important than ever, with “the imposition of additional tariffs on imports from China, substantial policy uncertainty, sizable pullback in consumer sentiment and spending since the beginning of the year, elevated geopolitical tensions and federal spending reduction initiatives,” according to The Conference Board’s forecast for the U.S. economy.

    For those who don’t have a long-term financial plan, it may be worth sitting down with a financial advisor to create a strategy going forward (or to revisit your existing financial plan).

    That could include rebalancing into a more diversified mix of investments to include different industries, countries and risk profiles, as well as alternative investments such as real estate or commodities. It could also include mitigating some risk through dividends, in which companies pay distributions to shareholders based on profitability.

    Whether you’re saving for the future or close to retirement, you may want to explore your options for bringing in some extra cash, such as taking on a side gig. It may even be worthwhile to reevaluate your retirement plans. Maybe that means working a few more years before retiring, downsizing your home or moving to a less expensive neighborhood or city.

    Younger investors have more time to ride out a potential downturn in the economy; those closer to retirement may want to talk to their financial advisor about their options.

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

  • Trump wants to ‘make America’s showers great again’ — but water bills are boiling over in parts of the country. 5 ways to save on your water bill

    Trump wants to ‘make America’s showers great again’ — but water bills are boiling over in parts of the country. 5 ways to save on your water bill

    President Donald Trump says he’s going to “make America’s showers great again” by easing restrictions on water flow.

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    The executive order signed earlier this month “frees Americans from excessive regulations that turned a basic household item into a bureaucratic nightmare,” according to a White House fact sheet. "No longer will showerheads be weak and worthless."

    As he signed the order, Trump told reporters in the Oval Office that “ridiculous” water pressure requires him to stand in the shower for 15 minutes to get his hair wet.

    The change comes down to the definition of showerhead. Showerheads manufactured since 1994 cannot discharge more than 2.5 gallons of water per minute to abide with federal laws.

    In the case of showerheads with multiple nozzles, President Obama made it so this restriction applied to the entire showerhead overall rather than each nozzle. Trump wants each individual nozzle to be considered a showerhead, so that every nozzle can produce 2.5 gallons of water per minute.

    He has directed Energy Secretary Chris Wright to rescind the change by the Obama administration. “We’re going to get rid of those restrictions. You have many places where they have water, they have so much water they don’t know what to do with it. But people buy a house, they turn on the sink, and water barely comes out. They take a shower, water barely comes out. And it’s an unnecessary restriction,” said the president. The executive order will also impact sinks and toilets.

    Critics argue that Trump’s executive order is irrelevant since modern showerheads have no trouble delivering good water pressure and meeting water flow standards.

    “Showerheads seem to be a pet peeve of President Trump—he keeps bringing them up,” said Andrew deLaski, executive director of the Appliance Standards Awareness Project (ASAP), to Fast Company. “But his concerns are outdated — while there were problems with showerheads sold in the 1990s, those problems have long since been solved by manufacturers’ modern designs.”

    As for consumers, higher water usage could lead to higher monthly utility bills. About 17% of water used in American homes is for showers and 26.7% is for toilets, according to the U.S. Environmental Protection Agency (EPA), and the cost of water has surged across the U.S. in recent decades. The EPA estimates that 9.2% to 14.6% of all U.S. households don’t have affordable access to water services.

    Bills are rising faster in some regions, as recent research points out.

    Where water prices are rising

    The average American uses about 82 gallons of water every day, and the average family spends more than $1,000 on water every year, according to the EPA.

    The Bank of America recently spotted that water bills are rising much faster in certain states.

    Last year, water bills in the Mid-Atlantic, Pacific, and West North Central regions rose faster than the national rate. The Mid-Atlantic (New Jersey, New York, and Pennsylvania) saw the biggest price jump in 2024, with a year-over-year increase of 9.5%, compared to the national increase of 6.8%.

    “It’s possible that labor-related inflation and seasonal charges due to weather in these states are more directly passed onto to customers,” said the report. “Various factors, such as infrastructure age, localized climate risks, and respective state policies, can influence regional water rate disparities.”

    The Midwest was the only region with water bills higher than the overall U.S. level for the past two years, and the Northeast was the only region to be consecutively lower.

    Higher-income households saw the biggest increases, but lower-income households typically pay more as a percentage of their income.

    “And with local utilities contending with rising operational costs caused in part by climate change-induced shifts, more households could fall into ‘water debt,’” noted the report.

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    How can average consumers keep their water bills low?

    With eased regulations on water flow — combined with rising prices and growing water shortages — it’s possible those bills will jump even higher. But there are measures you can take to keep your water bill from boiling over.

    Simple measures include taking shorter showers or cutting back on baths. The EPA says a full bathtub uses up to 70 gallons of water while a five-minute shower uses 10 to 25 gallons. You can also turn off the tap while you’re brushing your teeth or lathering soap on your hands.

    You could also look into installing water-saving fixtures, including faucets, showerheads and toilets. Products with the WaterSense label are more water-efficient (and equally as effective) than standard models — and can save you hundreds of dollars a year. Also check for leaky taps and toilets, which can literally lead to money down the drain.

    While there’s an upfront cost, replacing older dishwashers and washing machines with Energy Star-certified appliances can save you money in the long run. For example, an Energy Star-certified dishwasher saves about 5,800 gallons over the course of its lifetime — and only costs about $50 a year to run. You may be eligible for a rebate to offset the cost of purchasing energy-efficient appliances.

    If you have a lawn, water it before sunrise or after sunset (during the day, the water could evaporate in the sun rather than sinking into the soil). Also, use sprinklers with low-flow sprinkler heads or invest in smart irrigation controllers so you can adjust your watering levels based on weather and other factors.

    You could even swap out your grass for native or drought-tolerant plants — known as xeriscaping — which could lead to substantial savings down the road.

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

  • Bernie Sanders calls White House allegations of Social Security fraud and waste ‘a prelude not only to cutting benefits, but to privatizing.’ How outsourced Social Security might work

    Bernie Sanders calls White House allegations of Social Security fraud and waste ‘a prelude not only to cutting benefits, but to privatizing.’ How outsourced Social Security might work

    Could misinformation about Social Security be paving the way for privatization? That’s how Bernie Sanders sees it.

    Sen. Bernie Sanders of Vermont told CNN that lying about Social Security “is a prelude not only to cutting benefits, but to privatizing Social Security itself.” By making the system appear dysfunctional, then “why would anybody want to support it?”

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    DOGE aims to cut 12% of the Social Security Administration (SSA) workforce, reducing staff from 57,000 to 50,000. It’s also consolidating 10 regional offices down to four and closing 45 field offices across the country, according to Government Executive.

    A leaked email from SSA’s acting commissioner Leland Dudek, published by The Bulwark, sparked fresh fears about privatization.

    The March 1 email to staff stated they need to “revitalize SSA operations by streamlining activities” and “outsource nonessential functions to industry experts.”

    Why lawmakers are talking about privatizing Social Security

    This wouldn’t be the first time politicians have attempted to privatize Social Security. Back in 2005, former president George W. Bush floated the idea of creating privatization accounts, in which workers could divert a third of their payroll taxes into a private account. It did not go over well.

    What’s different this time? A false narrative that the current program is rife with waste and fraud.

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    Elon Musk, who spearheads the Department of Government Efficiency (DOGE), told Fox News that Social Security was “a mechanism by which the Democrats attract and retain illegal immigrants by essentially paying them to come here and then turning them into voters.”

    In late February, Musk told podcaster Joe Rogan that Social Security is the “biggest Ponzi scheme of all time,” and accused the program of fraud and abuse.

    President Donald Trump has reiterated Musk’s false assertion that millions of dead people are receiving Social Security checks.

    Under the Biden administration, the SSA’s Office of the Inspector General conducted Social Security audits of payments from 2015 and 2022 and found that most improper payments were overpayments — not payments to dead Americans.

    The office uncovered $72 billion in improper payments, but while that sounds like a lot, it’s less than 1% of the total benefits distributed over seven years.

    “So why do you lie so much about Social Security? Why do you make it look like it’s a broken, dysfunctional system?” Sanders asked in the CNN interview. “The reason is to get people to lose faith in the system, and then you can give it over to Wall Street.”

    Pros and cons of privatization

    Social Security has been under the microscope for years, thanks to a long-term funding shortfall. If nothing is done, it will run short of funds by 2034, with only enough to pay beneficiaries 79% of their scheduled benefits.

    The program is funded by employers and employees through payroll taxes (each paying 6.2% of the employee’s earnings, while self-employed workers pay the full amount).

    But with fewer working-age Americans and a record number of baby boomers retiring, those payroll taxes aren’t producing enough revenue to keep pace with demand.

    There are a number of options for making up this shortfall, such as raising the retirement age, eliminating the taxable income cap or raising payroll tax rates.

    A vast majority (85%) of Americans polled in a National Academy of Social Insurance survey (NASI) want their Social Security benefits to remain intact — even if it means raising taxes.

    Advocates of privatization believe the private sector could do a better job managing the program. Privatization would involve diverting payroll tax contributions into self-directed private accounts.

    Proponents say this would give workers more options and allow them to make better investment decisions. For example, they could increase their contributions so they could build up their retirement funds faster.

    Advocates say it could result in better investment returns. Currently, Social Security funds are invested in low-risk government bonds, which are guaranteed by the U.S. government.

    Critics of privatization say it carries more risk. Rep. John Larson (D-Conn), pointed out in an interview with CNBC that people’s 401(k) plans dropped in value alongside the stock market crash of 2008 — but Social Security never missed a payment.

    Another consideration is the cost of the transition.

    “Social Security has accumulated trillions of dollars in liabilities to workers who are already retired or who will retire soon,” according to Brookings research. “To make room for a new private system, policymakers must find funds to pay for these liabilities while still leaving young workers enough money to deposit in new private accounts.”

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

  • Trump wants to ‘abolish’ the IRS and replace federal income tax revenue with tariffs on imports — how would such a move affect middle-class Americans?

    Trump wants to ‘abolish’ the IRS and replace federal income tax revenue with tariffs on imports — how would such a move affect middle-class Americans?

    U.S. President Donald Trump plans to replace income taxes with tariffs, but what does that mean for the average middle-class American?

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    “Donald Trump announced the External Revenue Service, and his goal is very simple: to abolish the Internal Revenue Service and let all the outsiders pay,” U.S. Commerce Secretary Howard Lutnick told Fox News on Feb. 19. The idea is that once the budget is balanced, taxes will be waived for Americans earning less than $150,000 a year.

    However, the flaw in this plan is that tariffs are not paid by “outsiders.” Rather, tariffs are a tax placed on imported goods and services.

    “When the U.S. imposes tariffs on imports, businesses in the United States directly pay import taxes to the U.S. government on their purchases from abroad,” according to the Tax Foundation. During Trump’s first term, “the economic evidence shows American firms and consumers were hardest hit by the Trump tariffs.”

    At the same time, it would be hard to replace the revenue collected from income taxes with revenue from the planned tariffs. According to a study by the Peterson Institute for International Economics (PIIE), a non-partisan research group, the U.S. imported $3.1 trillion in goods in 2023 while raising about $2 trillion through individual and corporate income taxes.

    This means it would be nearly impossible to replace income taxes with tariffs, since the tariff rate would have to be “implausibly high,” according to PIIE. The institute determined that even at a “revenue-maximizing tariff rate,” the U.S. could raise only a fraction of what it raises with income taxes.

    Additionally, Trump’s policy could become a victim of its own success. If the result of the policy is that most manufacturing moves to the U.S., there will be fewer imports to tariff, making the replacement of income taxes even more difficult.

    The Tax Policy Center speculated there could also be a new consumption tax to help with the revenue shortfall.

    "Congress isn’t going to vote any time soon to explicitly replace the income tax with a consumption levy. But aggressive efforts to dismantle the IRS combined with a hollowing out of the income tax base could render the existing revenue system unsustainable. And drive lawmakers to replace it with something else," wrote Howard Gleckman a senior fellow at the Tax Policy Center.

    Layoffs and resignations at the agency have left commentators worry about the agency. "The future of the IRS is in doubt in ways Americans have never seen before," wrote MSNBC political contributor Steve Benen recently.

    Here are 3 potential impacts on America’s middle class if tariffs replaced income taxes:

    1. Prices are likely to rise

    It’s difficult to quantify the effects of Trump’s tariff proposals since they’re continually changing.

    But research has shown that during the last Trump trade war in 2018, tariffs resulted in price increases of 10% to 30% for goods subject to tariffs and that much of the tariffs were passed on to U.S. importers and consumers.

    The Federal Reserve of Boston looked at an additional 25% tariff on goods from Canada and Mexico with an additional 10% tariff on goods from China, and estimated they would add 0.8 percentage points to core inflation (excluding food and energy).

    The policy proposed during Trump’s campaign (an additional 60% tariff on imports from China and an additional 10% tariff on imports from the rest of the world) would add 2.2 percentage points to core inflation.

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    2. After-tax income could decline

    These price increases will have a greater impact on middle- and lower-income Americans since these demographics tend to have less disposable income.

    To test these effects, PIIE studied what would happen if tariffs were maximized in an attempt to replace income taxes. The result? The tax cut for the middle quintile of income earners would not compensate for the tariff increase and they’d see a net after-tax income loss of about 5%.

    This loss in income would be 8.5% for the lowest quintile, while the top quintile would come out 2% ahead. The top 1% would see an increase of 11.6%.

    Those losing net income to the tariff-income tax trade-off are unlikely to find much help from improved economic and employment conditions.

    3. Tariffs could hurt the economy and cost jobs

    Oxford Economics estimates that Trump’s 2018 tariffs on Chinese goods and the resulting trade war cost 0.5% of U.S. GDP. “At its peak, the trade war cost the U.S. economy an estimated 245,000 jobs and on a cumulative basis, real household income was $88 billion lower over 2018–2019 (in 2020 prices), or around $675 per household,” it said.

    An argument for tariffs is that domestic companies would become more productive and innovative, but one University of California, Davis study of a past era of high tariffs found that they had the opposite effect.

    “Less competitive industries are less innovative, and less innovative industries are less productive,” said author Christopher Meissner. “Tariffs probably weakened the incentives to innovate and come up with streamlined processes that keep companies on their toes and productivity high.”

    All told, these forces have the potential to be a drag on the economy and employment that may outweigh any jobs created by the tariffs. A study of 151 countries from 1963 to 2014 found that, in the medium term, tariffs have only small effects on the trade balance but lead to lower domestic output and productivity, higher unemployment and greater inequality.

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

  • In the market for a new condo? Developers are bracing for construction costs to surge — as high as 20% because of Trump’s tariffs. Here are 3 moves homebuyers can make to protect themselves

    In the market for a new condo? Developers are bracing for construction costs to surge — as high as 20% because of Trump’s tariffs. Here are 3 moves homebuyers can make to protect themselves

    Construction costs started surging in anticipation of tariffs — and they could get worse with a baseline 10% tariff now in place on imported goods from most countries, not ot mention a sky-high tariff of 145% on most Chinese goods.

    That all translates into higher costs for new condos and homes, even after the Trump Administration announced a 90-day pause for many previously unveiled "reciprocal" tariffs on countries other than China.

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    “We’re seeing [subcontractors] throw an additional cushion into their numbers anticipating tariffs,” Related Group CEO Jon Paul Pérez told CNBC in March.

    “It could be as much as 20%, depending on what material they’re getting from another country.”

    The billionaire developer told CNBC that contractors bidding on seven of its projects are raising their prices, driven by the anticipation of higher costs.

    A tariff on imported goods — in this case, construction supplies like softwood lumber sourced from Canada and gypsum (for drywall) sourced from Mexico, means higher costs that are either absorbed by builders or passed onto consumers.

    How tariffs are impacting the construction industry

    The cost of housing has been on the rise — and it’s not just because of tariffs. Supply chain issues have had a negative impact on the construction industry for several years.

    “The cost of building materials has already risen by 34% since December 2020, which is far higher than the rate of inflation,” notes the National Association of Home Builders (NAHB). In a March survey, before reciprocal tariifs were even announced, it estimated that tariff actions could increase the price of a typical home by $9,200.

    On April 2, President Donald Trump announced sweeping tariffs, including a baseline of 10% for all trading partners and 25% on all imported cars. The “reciprocal” tariffs he’d proposed for trading partners with large trade imbalances were later paused, for 90 days, with the exception of China.

    There were no additional tariffs on Canada and Mexico, but tariffs of 25% remain on goods that aren’t covered by the Canada-United-States-Mexico Agreement (CUSMA).

    Contractors reacted by raising their prices in anticipation of those tariffs.

    “These tariffs are projected to raise the cost of imported construction materials by billions of dollars, depending on the specific rates,” warns NAHB, and some critical supplies could see dramatic increases that “could substantially impact builders’ ability to deliver new projects.”

    Another factor to consider is the crackdown on immigration, which could have an inflationary effect on the construction industry — which relies heavily on foreign-born workers.

    So, what can condo buyers do in today’s market? Here are 3 smart financial moves.

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    1. Lock in financing early

    Mortgage rates fluctuate for a number of reasons, from supply and demand to economic pressures (a downturn, for example, could result in lower rates to spur growth). The mortgage market also tends to follow movements in the Federal Reserve’s key borrowing rate.

    If you’re worried that rates will rise between the time you make an offer and closing, an option is to lock in financing with a mortgage rate lock. This provides a fixed rate for a set period of time (typically between 30 to 60 days, but possibly longer). Some lenders will offer this for free, but others may charge a fee.

    The flipside is if interest rates drop, then you’re stuck with the higher locked-in rate. Some lenders may offer a ‘float-down provision’ so you can secure the lower rate if it drops by a certain amount, but there’s usually a fee for this.

    2. Explore new construction incentives

    Another option is to consider buying a pre-construction condo, which means it’s still being built. Homebuilders may offer incentives to attract potential buyers and to persuade them to sign a contract — and it’s possible we could see more of these types of incentives if the market slows.

    In 2022, for example, when the market rapidly slowed during the height of the COVID-19 pandemic, builders used sales incentives to boost sales and limit cancellations. According to NAHB, 59% of builders offered some kind of incentive, such as paying closing costs or fees, offering options or upgrades at low or no extra cost and offering mortgage rate buydowns.

    If you’re looking at new construction, it’s always worth asking about incentives.

    3. Consider alternative financing

    You also have options beyond a traditional mortgage. For example, there are a number of government-backed loans available if you meet certain criteria. These include:

    • FHA loans: Offered by certain banks, these loans usually require a smaller down payment than a traditional loan, and they’re insured by the Federal Housing Administration (FHA). If your credit score is preventing you from a traditional loan, this may be an option.
    • VA loans: If you’re a vet, active-duty service member or eligible spouse, a VA loan can provide perks such as no down payment and no private mortgage insurance requirements.
    • USDA loans: If you’re looking to buy a home in a rural area and you meet income requirements (for low to moderate-income homebuyers), a USDA loan may offer more competitive interest rates than a traditional rate and options for no down payment.

    There’s also down payment assistance (DPA) programs offered by state and local governments, which are low-interest or deferred-payment loans to help first-time homeowners cover down payments.

    Other options include owner financing (where you buy direct from the seller and pay the seller back in installments rather than going through a bank) and rent-to-own (where you rent the property before buying it at the end of the lease). These types of arrangements can be complex, so you’ll want to consult with a real estate attorney before proceeding.

    What to read next

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

  • Can buying in bulk cost you more? Why Americans desperate for savings should be wary of warehouse clubs like Costco

    Can buying in bulk cost you more? Why Americans desperate for savings should be wary of warehouse clubs like Costco

    With prices rising, consumers are increasingly looking for ways to save money. And one way to do that is through warehouse club retail stores, like Sam’s Club, Costco and BJ’s Wholesale Club. But is membership all it’s cracked up to be?

    Shopper Britney Downing tells KHOU-11 that she saves on cereal for her five kids. “I can get two bags of cereal here at Sam’s for about six bucks.” Another shopper, Tracy Reese, tells KHOU-11 that she likes to buy in bulk for items like paper towels and toilet paper.

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    This comes at a time when consumer confidence is plummeting, with fears over how trade policies and tariffs will impact the cost of living. American consumers have already seen what’s happened with the price of eggs.

    That could be why many “are now turning to the club channel for routine household shopping,” according to research from Acosta Group. “They are seeking good value and prices that better fit their budget, with millennials driving most of these increases.”

    Compared to a year ago, 21% of respondents are shopping at a warehouse club more often, and 28% say they’re buying grocery and household needs there — not just big-ticket items.

    How warehouse clubs work

    A warehouse club is still a retail store. But to shop there, you’ll need to become a member first. An annual membership fee typically costs from $60 to $120, which can usually be recouped in savings if you use the membership enough. But there are a few considerations to be aware of before joining.

    Warehouse clubs typically offer everything from groceries to electronics to clothing. What sets them apart from traditional retail stores, however, is that they offer these items in bulk at discounted or wholesale pricing. They might also offer discounted services such as travel and insurance, and may have an on-site pharmacy, optical center and/or gas station.

    The benefits? You can save on bulk purchases and gain access to deals and discounts. Some stores, like Costco, offer a money-back guarantee if you’re not satisfied with your membership.

    The downside? A membership may not be worth it if you don’t shop there frequently enough to offset the savings. There are other issues, too: It can lead to impulse buying, which defeats the purpose of joining a club to save money.

    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

    Things to keep an eye out for

    A warehouse club membership isn’t a scam, but not every deal is really a deal. Buying in bulk, for example, isn’t always a bargain. And the selection of big-ticket items like electronics or appliances may be more limited than what you’d find at a specialist retailer.

    Many products, from groceries to vitamins, have a shelf-life. So buying in bulk may not save you money if you can’t get through a super-size version of that product before it expires. If you can’t eat 24 oranges before they start to rot, you’re literally throwing those savings in the garbage.

    Warehouse clubs are typically designed to get you to shop more and spend more. The layout can be confusing; usually the groceries are at the back — behind all the fun big-ticket items like flat-screen TVs. And free food sample stations tempt you to spend more time in the store.

    Warehouse clubs may also employ tactics that lure you into making impulse buys with signage such as ‘limited quantities.’ Many marketers use this ploy, not only warehouse clubs, but it’s good to be aware of it. You don’t want to walk out with a giant flat-screen TV when you just came for groceries.

    How to protect your finances

    Before joining a club, consider whether you’ll go often enough to justify the membership fee. Do you have enough room to store these bulk items? For perishable items, will you be able to eat everything before it goes to waste? If you’re buying a big-ticket item, are you really getting a deal?

    You may find better sale prices on electronics or appliances at retailers who specialize in those products, especially during Black Friday. It’s worth doing a price comparison of big-ticket items against other retailers, such as Walmart, Amazon and Best Buy.

    If you do buy a big-ticket item from a warehouse club, be sure to understand the return and refund policy (some product categories may be exempt or have a limited return window).

    If you have a membership, avoid shopping traps by making a shopping list before you go. It could be helpful to create a budget to prevent you from overspending. If you’re about to make an impulsive buy on a ‘deal’ — walk away, do the rest of your shopping and come back after you’ve had a moment to think about it.

    What to read next

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

  • Is $1.5 million the ‘magic number’ for retirement savings in the US? Here are the top 4 best and worst states for making it last

    Is $1.5 million the ‘magic number’ for retirement savings in the US? Here are the top 4 best and worst states for making it last

    Americans now believe they’ll need more money to retire comfortably than they did even a few years ago.

    The “magic number” for retirement savings has grown by more than 50% since 2020 to roughly $1.5 million, according to Northwestern Mutual’s Planning & Progress Study 2024.

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    But, according to a recent analysis, how much you’ll need to live comfortably in retirement is highly dependent on which state you choose to live out your golden years.

    The ‘magic number’ keeps getting higher

    The ‘magic number’ for retirement savings has jumped 50% since 2020 — driven in large part by fears of inflation eating away at people’s retirement savings. Consider the dramatic inflation rates we saw from 2021 to 2023, which reached as high as 9.1% in June 2022.

    Those inflation fears aren’t behind us, though. Consumer confidence has fallen to a 12-year low, according to the latest Conference Board Consumer Confidence Index, which received write-in responses showing that “inflation is still a major concern for consumers and that worries about the impact of trade policies and tariffs in particular are on the rise.”

    Another factor bumping up that magic number is the belief that Americans will spend more time in retirement than previous generations. Three in 10 millennials and Generation Z Americans “believe it’s likely or highly likely that they will live to age 100,” according to Northwestern Mutual’s study.

    While millennials expect to retire at 64, Gen Z plans to retire earlier, at age 60. This is much earlier than baby boomers, who plan to enter their golden years at age 72, and Generation X, who expects to retire at 67.

    That means Gen Z may need their retirement savings to last 40 years. But those expectations may be far from the current reality.

    According to the Transamerica Center for Retirement Studies, the median retirement age is 62, while the U.S. Centers for Disease Control and Prevention puts the average life expectancy in America at 74.8 years for men and 80.2 years for women.

    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

    Determining your retirement income

    Retirees need to carefully plan how much to withdraw each year to live comfortably in retirement while ensuring their money will last as long as possible. A common rule of thumb is known as the 4% rule that, when followed, should allow your portfolio to last at least 30 years.

    This rule stipulates that in the first year, a retiree withdraws 4% of their portfolio, followed by inflation-adjusted amounts in the following years. With a portfolio of $1.5 million, this will provide $60,000 in the first year.

    Most Americans won’t have to rely solely on their nest egg to fund their retirement since they’ll also receive Social Security benefits (and possibly a pension). In February 2025, the average monthly benefit paid to retired workers was $1,980, which is about $23,760 per year.

    With a portfolio of $1.5 million — supplemented with an average monthly Social Security benefit — a retiree could reasonably expect to live on $83,760 per year. Still, life happens, so you may need to withdraw more (or less) than 4%, which will dictate how long your nest egg will last.

    But withdrawals aren’t the only factor to consider.

    Where your nest egg will and won’t last

    A recent analysis looked at how long $1.5 million would last, by state, based on the cost of living after Social Security. According to the study, your retirement nest egg will last longest in West Virginia, where the annual cost of living after Social Security is $27,803 and your $1.5 million portfolio will last 54 years.

    It’s followed by:

    • Kansas, with an annual cost of living after Social Security of $28,945 (a $1.5 million portfolio will last 52 years)
    • Mississippi, with an annual cost of living after Social Security of $29,426 (a $1.5 million portfolio will last 51 years)
    • Oklahoma, with an annual cost of living after Social Security of $29,666 (a $1.5 million portfolio will last 51 years)

    Meanwhile, you’ll whittle down your nest egg fastest in Hawaii, where the annual cost of living after Social Security is $87,770 and your $1.5 million portfolio will last just 17 years. That’s a far cry from West Virginia, where your portfolio will last more than three times longer, at 54 years.

    Hawaii is followed by:

    • Massachusetts, with an annual cost of living after Social Security of $65,117 (a $1.5 million portfolio will last 23 years)
    • California, with an annual cost of living after Social Security of $63,795 (a $1.5 million portfolio will last 24 years)
    • New York, with an annual cost of living after Social Security of $50,997 (a $1.5 million portfolio will last 29 years)

    Of course, there are several factors you’ll need to consider when choosing where to retire (like being close to your grandkids). But given that your money will last an extra 37 years in West Virginia than in Hawaii, where you choose to live in retirement is something to seriously consider — particularly if you don’t have a $1.5 million nest egg.

    What to read next

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

  • San Diego bans grocery stores from offering digital-only coupons, arguing seniors and low-income families end up paying more

    San Diego bans grocery stores from offering digital-only coupons, arguing seniors and low-income families end up paying more

    San Diego has banned grocery stores from offering only digital coupons after the San Diego City Council voted unanimously in favor of the Grocery Pricing Transparency Ordinance. It’s just one move by states looking to alleviate the financial burden many families are facing at the grocery store.

    The ordinance, which still has to return to council for a second reading, is the first of its kind in the U.S. and is aimed at keeping seniors and low-income families from unfairly paying higher prices for groceries.

    Councilmember Sean Elo-Rivera led the effort to pass the ordinance after his father, who’s in his 70s, complained about having difficulty accessing digital coupons and said they didn’t always work.

    “Simplest policy we’ve ever written,” Elo-Rivera told CBS 8. “If you offer a discount digitally, there must be a way to physically access that discount in the store.”

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    Digital-only coupons hurt those who can most use the discounts

    Elo-Rivera and his colleagues on the council hope the ordinance will help ease some of the inequities that result from the digital divide, where some people don’t have access to mobile technology or the internet because of lack of financial means or technological know-how.

    This divide tends to disproportionately affect seniors and those with low incomes. For instance, in the U.S., 90% of all adults own or use a smartphone, but only 76% of those 65 and over own one. And only 79% of those with an annual income of less than $30,000 do, according to Pew Research Center.

    Yet another barrier: In San Diego, more than 50,000 San Diego households don’t have internet access, according to Elo-Rivera’s office. And among those that do, there is still frustration with using grocery apps.

    “What I found frustrating is not being able to use it, and then the cashier at the counter couldn’t use it, and couldn’t show me how to do it,” Fred Davis, a Serving Seniors volunteer, told CBS 8. “Not only did I not get the discount, but nobody could help me.”

    Some argue that the difficulty may be by design. Digital discounts are “a clever ploy by big supermarket chains to get people into the store knowing full well that many of them will wind up paying more than the advertised price,” according to Edgar Dworsky, a consumer advocate and founder of Consumer World.

    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

    Unfortunately, the people most affected by this — seniors on fixed incomes and low-income families — are those who could most use them.

    These groups spend a larger percentage of their income on food and are highly dependent on sales and discounts to get by. As more of these discounts become digital-only, it makes budgeting and reducing food costs almost impossible.

    Making digital coupons more accessible

    Still, digital coupons are popular and their use is expected to continue growing.

    And there has been some pushback against the proposal. “The current proposal would actually reduce access to discounts for San Diegans, not expand it,” members of the California Grocers Association said in a statement to CBS 8, in response to the San Diego ordinance.

    “The proposal would make special offerings like loyalty programs — which fairly reward a store’s best customers — unworkable.” The group implored the San Diego council to consider the ramifications of their proposal.

    Still, San Diego is not the only jurisdiction looking to create laws that would improve the transparency of grocery pricing. In recent months, lawmakers in New Jersey, Illinois, Rhode Island and Connecticut have been looking at legislation that would require grocery stores offering digital coupons to offer alternatives such as paper coupons.

    In the end, legislation may not be required. Some retailers now have in-store kiosks that allow all customers to access coupons and promotions. So if you’re one of those who’s frustrated with digital-only coupons, you may want to vote with your dollars and shop at a store that’s tackling coupon inequities.

    What to read next

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

  • ‘Be very wary’: Bank manager saves Ohio couple from losing $17,000 in scam — how to recognize the warning signs of financial fraud

    ‘Be very wary’: Bank manager saves Ohio couple from losing $17,000 in scam — how to recognize the warning signs of financial fraud

    One Ohio couple was nearly tricked out of $17,000 — before a Chase Bank manager in Westlake stepped in and foiled the scammer’s plan.

    The bank manager became suspicious and alerted police when the couple tried to withdraw the cash to pay for what they thought was a warrant from the Cuyahoga County Sheriff’s Office.

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    “The customers did figure out they were going to be scammed if they took this money out and bought gift cards or put it into a crypto ATM,” Captain Jerry Vogel of the Westlake Police Department told News 5 Cleveland in a story published March 28.

    It seems this type of scam isn’t a rare occurrence. The local broadcaster reports two more instances of fraud involving cryptocurrency machines have occurred recently in Westlake. Victims in those cases lost more than $25,000.

    Here’s what happened, along with steps to protect yourself from being victimized.

    How local residents are getting scammed

    In one incident, the scammer posed as a Microsoft customer support representative after the victim called a phone number she found while doing a Google search. This is referred to as “search engine poisoning,” where cybercriminals manipulate search engine results so a malicious website (which looks legitimate) appears at the top of the page.

    Vogel says the victim was tricked into giving the fake employee access to her computer and was scared into thinking she had visited illegal websites that were trying to steal her money. She was instructed to withdraw $40,000 from her bank and deposit it into a gas station Bitcoin ATM to protect her funds. An attendant took notice and warned her it was a scam, according to News 5, but not before she lost $20,000.

    In another incident, police say the victim got a call from what he thought was the Social Security Administration directing him to deposit $5,500 in a Bitcoin ATM at a convenience store. The owner of the shop told News 5 they planned to remove the machine.

    “I just advise you to be very wary of anything that directs you to buy gift cards or put cash into an ATM,” Vogel said. “Especially the cryptocurrency ATMs.”

    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 protect yourself from financial scams

    Fraud losses involving Bitcoin ATMs topped $65 million in the first half of 2024, according to a report from the Federal Trade Commission. Consumers over the age of 60 were “three times as likely as younger adults to report losing money to Bitcoin ATM scams.” The median loss across all age groups was $10,000.

    When it comes to financial scams, there are usually some red flags. They often start with an unsolicited call, email, text or social media message asking for money or personal information (such as bank account details or passwords).

    Scammers also use high-pressure tactics to create a sense of urgency designed to make you panic — such as impersonating the authorities or claiming you have a virus on your computer. This is followed by a request for money, commonly through unconventional methods like gift cards, prepaid credit cards, a wire transfer or cryptocurrency. If you’re panicked enough, you may not stop to consider the validity of this request.

    “If someone’s calling you out of the blue demanding money, threatening you, and it has to do with Bitcoin, it’s going to be a scam,” cybersecurity expert Alex Hamerstone told News 5.

    For example, “the police don’t generally call you and tell you they want to arrest you, right? They come to the door,” he said. As for the IRS, “they’ll never take your tax payment using gift cards.”

    If you get a call or email from someone claiming to work for an institution, such as your bank or the police department, and they ask for personal information or a sum of money, don’t take action. Instead, call them up yourself to confirm their story and verify a real employee tried to contact you.

    You can learn more about common scams on the Consumer Financial Protection Bureau website or report a scam to the Federal Trade Commission.

    What to read next

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