Author: Vawn Himmelsbach

Construction costs started surging in anticipation of tariffs — and they could get worse amid the latest round of tariff announcements. That translates into higher costs for new condos and homes.

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

“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.

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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 and previous tariffs 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 2025 survey, it estimates that recent 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. He also announced “reciprocal” tariffs on trading partners with large trade imbalances, which includes the European Union (at a rate of 20%) and China (at a rate of 34%).

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.

“Proposed new tariffs on China, Canada and Mexico are projected to raise the cost of imported construction materials by more than $3 billion,” according to 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.

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

Economists, traders and industry leaders are worried about the impact of President Donald Trump’s policies. So it’s no wonder the average American is worried as well.

A stock market correction — like the one happening now — might be good for billionaires who see it as a buying opportunity. But for the average American? Not so great, as they watch their 401(k)s decline in value.

Tariffs, trade wars, and cuts to government programs have many Americans worried about what Trump’s policies will do to their finances — and their retirement savings. Only 4 in 10 voters view his handling of trade and the economy favorably, according to an AP-NORC poll.

Consumers’ expectations for the future fell for a fourth consecutive month, reaching a 12-year low of 65.2, according to the most recent Conference Board Consumer Confidence Survey. That’s “well below the threshold of 80 that usually signals a recession ahead.”

These findings suggest that “worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations,” said Stephanie Guichard, senior economist of global indicators at The Conference Board.

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Economic fears may be justified

These fears may be justified, given some of Trump’s proposals. One such proposal, reiterated by U.S. Commerce Secretary Howard Lutnick to Fox News, is to replace income taxes with tariffs.

Although it’s difficult to accurately quantify the effects of Trump’s tariffs at this point, research has shown that his 2018 tariffs resulted in price increases for goods subject to the tariffs, hurt U.S. GDP, cost jobs and reduced real income by about $674 per household.

Analysis by the Peterson Institute for International Economics (PIIE), an independent and non-partisan research group, also shows that price increases from tariffs will hurt middle- and lower income Americans the most. And, if used to replace income taxes, the middle quintile of income earners — defined as those earning on average $74,730 — would see a reduction in net after-tax income while top earners would see an increase.

And In their most recent Summary of Economic Projections (SEP), Federal Open Market Committee (FOMC) participants downgraded their expectations for GDP and increased their forecast for inflation. There’s “already at least a whiff of stagflation right now” in the U.S., Richard Clarida, global economic advisor at Pacific Investment Management (Pimco), told Bloomberg Surveillance.

Along with higher prices, consumers are also concerned about cuts to social services, including their Social Security and Medicaid benefits.

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While Trump has said several times that he’s not going to touch these, dramatic cuts to the Social Security Administration (SSA) could lead to “system collapse and interruption of benefits,” Martin O’Malley, former commissioner of the SSA, told CNBC — a move that some believe will be used to justify privatization.

In 2025, almost 69 million Americans per month will receive a Social Security benefit, according to the SSA. But DOGE is cutting 12% of the Social Security Administration (SSA) workforce, consolidating regional offices (from 10 to four) and closing 45 field offices, which is expected to impact service levels.

3 steps to safeguard your finances

If you’re looking for ways to safeguard your financial future, here are three ways to shore up your finances right now:

Protect your income: Now is a good time to make sure you can weather shocks, including reduced income or unemployment. If you don’t already have one, build an emergency fund. Given the prospects for the economy, set aside enough to cover at least six months of expenses — and, if you think it could be hard to find a new job in your field, set aside a year’s worth. As you’re saving, it’s also a good time to pay down any debt you may have (like that credit card bill) in case you’re not able to pay it back right away should you lose your main source of income. You might also want to review your insurance coverage with a qualified broker to mitigate risks should you need to tap on coverage in the event of an emergency.

Save, save, save: With rising prices, it could be harder to save for retirement. But, to the extent possible, save as much now as you can. Revisit your financial plan with an advisor to see what you need to save — particularly if you’re highly dependent on your Social Security benefit. If income taxes were to disappear, tax-deferred accounts would likely disappear with them — but in the meantime, try to max out the employer contribution on your 401(k) and use top-ups if you’re over 50 and qualify. Create a budget that helps you find some money to put away each month and hold off on large purchases (you’ll thank yourself later).

Make sure your money is working as hard as it can for you: Speak to your financial advisor about stagflation-proofing your portfolio and reducing the impacts of tariffs. This likely means greater diversification into different assets — and potentially alternative assets — and into wider geographies to reduce exposure to the U.S. and countries most affected by U.S. tariffs.

Big changes may be coming to the U.S. economy, and while we’ve yet to see if the promised benefits will take root in the long run, we do know the short-term pain may be an indication of things to come.

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

With home prices continuing to rise and mortgage rates remaining stubbornly high, is the American dream of homeownership out of reach?

Home prices jumped 3.8% in February compared to the same time last year, according to the latest National Association of Realtors (NAR) findings. That translates to a median cost of $398,400 for a typical home.

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And while mortgage rates are slowly ticking down, the 30-year fixed-rate mortgage still averaged 6.65% as of March 27, according to Freddie Mac.

But it’s not all bad news. Housing inventory is up 17% from a year ago (from 1.06 million to 1.24 million units), which means homebuyers now have more options.

“Homebuyers are slowly entering the market,” said NAR Chief Economist Lawrence Yun, in a press release. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”

How home prices are affecting buyers and sellers

While housing inventory is up, supply is still limited relative to demand, according to NAR’s Realtors Confidence Index. About 21% of homes sold above list price — though some faced delays or terminations. First-time buyers represented 31% of home purchases, up from 26% a year ago.

Still, the dream of homeownership is slipping away for many Americans, particularly as prices continue to outpace wage growth.

Affordability remains near historic lows across most of the country, according to ATTOM’s first-quarter 2025 U.S. Home Affordability Report, with home expenses consuming 32% of the average national wage.

“With the peak buying season ahead, prices could rise further, worsening affordability,” said Rob Barber, CEO of ATTOM, in a release.

According to Zillow’s market heat index, neither buyers nor sellers currently have a clear advantage — at least not on a national level. But market conditions vary widely across the country. For example, government layoffs in Washington, D.C. could lead to more listings, while housing shortages in L.A. caused by January’s wildfires are likely to drive up demand — and prices.

Economic uncertainty is providing a “counterbalance” that will be felt more strongly in some parts of the country than others, notes Zillow’s Housing Market Report for February 2025.

“People tend to shelter in place when the future of their job or industry is uncertain,” the report noted.

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How to navigate a challenging market

With so much uncertainty, how can potential homebuyers navigate today’s market?

Start by securing a mortgage pre-approval, so you’ll know your budget — and be ready to make an offer if you find your dream home. Keep in mind that a pre-approval isn’t a guarantee of final mortgage approval. However, sellers often prefer to work with pre-approved buyers because it reduces their risk.

Pre-approval tells you the maximum loan amount your lender is willing to offer based on your financial situation. If it’s less than you hoped for, that doesn’t mean you’re out of luck. You might want to focus on different property types (such as a condo instead of a three-bedroom house) or focus on emerging neighborhoods to get more bang for your buck.

You’ll also need to decide how much you can afford for a down payment and whether a fixed or adjustable interest rate works best for you. If you’re willing to bet that rates will come down eventually, you might want to consider an adjustable-rate mortgage (ARM).

An ARM starts with a fixed rate that’s typically lower than that of a 30-year fixed-rate mortgage — usually for three, five, seven or 10 years — and then adjusts at set intervals. For example, a 5/1 ARM has a fixed rate for five years and then adjusts annually.

Where can I find more help?

First-time homebuyers may also qualify for certain programs and loans. For example, a Federal Housing Administration (FHA) loan — available through qualified lenders and backed by the FHA — is generally easier to qualify for than a conventional mortgage and has lower down payment requirements. These loans do come with limits, which vary by state.

Many states also offer down payment assistance for eligible first-time homebuyers.

Veterans and active-duty service members may be eligible for U.S. Department of Veterans Affairs (VA) direct and VA-backed home loan programs through qualified lenders, which often offer better terms than conventional loans. Nearly 90% of VA-backed loans don’t require a down payment.

There are also down payment assistance (DPA) programs available through state, county and city governments. These offer financial assistance through grants and low-interest loans to cover down payments — and sometimes closing costs. There are nearly 2,500 DPA programs currently available nationwide.

Alternatively, you might choose to wait for potential rate stabilization. A lower interest rate make a big difference: lower monthly payments can stretch your budget and help you afford a more expensive home. But there’s no guarantee that rates will drop soon.

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

Your sister-in-law is not alone: A number of TikTok influencers using the hashtag #generationalwealth are recommending adding your child as an authorized user on your credit card as a “hack” to help them establish a credit history.

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A credit score provides a measure of creditworthiness — how likely you are to pay back debt — to lenders. This score is based on a number of factors, including payment history and credit mix, but a higher score can give you easier access to credit and better rates on loans.

Adding a child to a parent’s credit card allows the child to piggyback on the parent’s credit history, but the child isn’t responsible for paying back any of the debt (that falls to the cardholder). This is different from opening a joint account, in which both parties would be responsible for the debt.

Why are parents adding their kids as authorized users?

Young adults who establish a credit history early in life may have an easier time applying for credit, taking out a loan, renting an apartment and, down the road, getting a mortgage. While some may question whether this gives them an unfair advantage, it’s an advantage they may need more than ever.

Wages are stagnating, with 73% of U.S. workers “struggling to afford anything beyond their basic living expenses,” according to a recent Resume Now study. With high housing costs and mortgage rates, the dream of homeownership is dying, and the threat of tariffs and a possible recession has led to plummeting consumer confidence.

It’s tough for young people out there. So, by adding a child as an authorized user, the child inherits the parent’s or guardian’s credit history — without having to fill out an application or undergo a credit check. This, of course, is only helpful if the parent and child use the credit card responsibly.

"Typically, the entire account history will show up on the authorized user’s credit report," said Gerri Detweiler, credit expert and author, to U.S. News. "If the primary cardholder has a good payment history and low debt, that can be a tremendous benefit."

Some credit cards allow authorized users as young as age 13 or 15, while some have no minimum age requirement.

“Kids whose parents earn $100,000+ are nearly 5 times as likely to be an authorized user on their guardian’s credit card than those whose parents earn less than $35,000 (37% versus 8%),” according to a LendingTree study. “Overall, 22% of parents say their minor child is an authorized user.”

But this strategy doesn’t just apply to wealthy families who want to pass down generational wealth. It could be a strategy for anyone with a good credit history — and who’s willing to take the time to teach their kids about money management.

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Pros and cons of adding an authorized user

Aside from jumpstarting your child’s credit history, adding your child as an authorized user on your card is also an opportunity to teach them how credit works and how to be responsible with money.

For example, say your teenager gets an allowance or has an after-school job. If they’re an authorized user on your credit card, they can use it to make a few purchases — provided they pay their portion of the bill at the end of the month. Adding a baby or toddler may be somewhat more questionable.

But there are a few drawbacks to consider. Say your 10-years-old niece racks up $5,000 in online purchases on her mom’s credit card without fully understanding the consequences. Her mom would be liable for the charges.

If your kids regularly use your card, it could increase your credit utilization rate (which makes up about 30% of your credit score). That could end up hurting your credit score. And if you end up in a position where you’re carrying a high balance that you can’t pay off, it could hurt your child’s credit history along with your own.

Also, not all credit card issuers report authorized users’ activity to the three main credit bureaus — Experian, Equifax and TransUnion — until they turn 18. That won’t help them establish a credit history, so you’ll want to check with your issuer first.

Another consideration is that eventually, when your child grows up and becomes financially independent, removing them as an authorized user could temporarily ding their credit score (a credit score is based, in part, on your payment history and length of credit history).

“Keep in mind that your credit may be affected after the removal,” notes Experian. “If it was a card with a long history and you don’t have any other accounts of similar age, or you have little credit otherwise, you may see a drop in your credit score.”

Plus, some lenders may not give much weight to an authorized user who’s applying for credit. If you’re not the primary account holder, it means you haven’t gone through a credit approval process, so the lender may still question whether you’re able to manage payments.

So you don’t need to feel guilty about your decision. You may instead want to help your kids apply for a starter credit card or credit-builder loan — where the account is in their name — to build a credit history through responsible borrowing and repayment.

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

You’ve reached retirement age and have a decent nest egg to fund your golden years. But you’re also wondering whether you should work just one more year to boost your savings even further. Then again, will one more year of work really matter in the grand scheme of things? Well, it does. But it’s not the only consideration.

Say you’re 65 years old, with $1.5 million in retirement savings, TFSA, RRSP and other accounts in your investment portfolio and you’ve also recently paid off your mortgage. Should you bother working one more year? Here’s how to figure out what’s right for you.

Should I work one more year?

According to the Government of Canada, most Canadians spend 35% to 50% of their income on housing and utilities. However, if you’ve already paid off your mortgage, your expenses may be significantly less than the national average.

Let’s say, for example, you expect to live off $4,000 a month in retirement. On top of your living expenses, you want to account for things such as travel, hobbies and entertainment — let’s allot $500 a month — and, of course, a cushion in your retirement budget for out-of-pocket medical expenses — let’s suppose $500 a month.

That means you’ll need an annual retirement income of $60,000 a year (or $5,000 a month). However, you’ll also need to account for inflation throughout retirement — you can expect your living expenses and medical costs to go up over time.

If you work one extra year, you’ll be able to put more money into savings. That means a larger nest egg — and more money working for you to earn an income you can live off of during your retirement years.

Plus, there may be other benefits. For instance, if your employer matches registered retirement savings plan (RRSP) contributions, you can further boost these tax-efficient savings by working one more year. Plus, by working another year your retirement savings stay invested longer — another strong hedge against inflation and protecting your retirement nest egg.

Plus, if you keep working and delay your Canada Pension Plan (CPP) benefit by a year, you’ll receive delayed retirement credits. This means an 8.4% increase in yearly benefits for each year you delay between age 65 to 70.

From a practical point of view that means if your benefit is $899.67 — the average monthly amount of CPP paid out at age 65 — but end up delaying those CPP payments until age 66, you’ll end up with a monthly cheque of $975.07. If you delay CPP payments until 70, that monthly cheque jumps to $1,277.53. Keep in mind, these figures are the average CPP payout at 65. If you were eligible for the maximum CPP payment, you could boost your payment from $1,433, at age 65, to $1937.33, by age 70.

What else should I consider?

You can estimate how much you’d be able to withdraw each month in retirement by working with a financial advisor or using retirement planning tools, like our retirement calculator.

While it may make financial sense to wait another year before retiring, it’s not the only consideration.

If you’re not in the best of health, for example, you may want to start enjoying your golden years now rather than keep working — especially if work is a huge source of stress that exacerbates said issues.

After all, no one is guaranteed to live another 20 or 30 years after retirement. It’s also easy to fall victim to the ‘just one more year’ syndrome.

If you’re thinking about retiring early, you may want to crunch the numbers first — since working another year (or three) may provide much more financial security in your golden years.

If, however, you’ve already reached your retirement goals, then it may not make sense to wait another year.

For example, based on the income requirements of $6,500 per month in retirement and a $1.5 million portfolio, then retiring at 65 would mean CPP income of $1,277.53 per month (assuming the average CPP payment), along with $5,000 from your retirement savings, for a total of $6,277.53 per month (before tax). That’s plenty for a comfortable retirement.

As with most financial questions, the real answer depends on your personal circumstances. For more precise answers, it may be a good idea to consult a financial advisor to crunch the numbers and discuss your options.

Sources

1. Government of Canada: Prepare financially: Estimate how much it’ll cost you to live in Canada

This article Does ‘one more year’ of work really matter when it comes to retirement safety in Canada? Yes — and it could be the biggest retirement decision you make. Here’s whyoriginally appeared on Money.ca

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

Life doesn’t always go as planned. Maybe you lost your job or you’re facing uninsured medical expenses. And maybe you’ve already run through your emergency savings.

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It may be tempting to tap into your 401(k), especially if you still have a few decades to go before retirement.

But should you?

More Americans are treating their 401(k) retirement savings like an emergency fund. That’s according to a preview of Vanguard’s How America Saves 2025 report, which says that 4.8% of participants initiated a hardship withdrawal in 2024, up from 3.6% in 2023. The full report, based on nearly 5 million defined contribution (DC) plan participants, will be available in June.

A hardship withdrawal is a one-time withdrawal from your 401(k) for an “immediate and heavy financial need,” according to the IRS. This lump sum is limited to “the amount necessary to satisfy that financial need.”

Why are more Americans tapping into their 401(k)?

In 2024, 401(k) hardship withdrawal rules changed in accordance with the Securing a Strong Retirement Act of 2022 (SECURE 2.0).

“Given that it’s now easier to request a hardship withdrawal and that automatic enrollment is helping more workers save for retirement, especially lower-income workers, a modest increase isn’t surprising,” noted the Vanguard report.

Overall, despite a “few signals of a possible uptick in financial stress,” the report noted that participants are “generally resilient” and “maintain a long-term approach to retirement saving.”

That could be, in part, because of the growing adoption of automatic enrolment (where contributions are automatically deducted from your paycheck) and the growing use of professionally managed allocations, which has helped to increase savings while improving “age-appropriate equity exposure.”

However, these numbers reflect the economic trends of 2024, including real GDP growth, moderating inflation and low unemployment, along with strong consumer spending — though household debt continued to rise during the year.

But the economic outlook isn’t an sunny in 2025, with analysts lowering their GDP forecast for 2025 and raising the probability of a recession.

So it’s possible that hardship withdrawals could increase in 2025. “Given the current economic climate, a greater number of participants may be requesting hardship distributions from their retirement plans,” the IRS currently states on its website updated this month.

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What you need to know about hardship withdrawals

Generally speaking, a hardship withdrawal is considered a last resort. If you’re thinking about going this route, you may want to exhaust all other options first.

If you’ve already used up your emergency fund, you may want to consider other sources of income. For example, if you have two vehicles, could you sell one of them? Could you take on a side gig to earn extra money? Could you get a roommate to cut down on household expenses?

You may be able to withdraw from your other retirement savings, such as a Roth IRA (that could be preferable to a hardship withdrawal, because these contributions have already been taxed). You may want to consult with your financial advisor to crunch the numbers.

Another option is a 401(k) loan, which you have to pay back — but at least the interest you pay on the loan goes back into your account. However, not all plans offer 401(k) loans; you’ll have to check with your HR department to see if this option is available to you.

When you make a hardship withdrawal, that money is considered taxable income. Plus, you’ll be subject to a 10% early withdrawal penalty unless you’re age 59½ or older or qualify for another exception. These may include the birth or adoption of a child, a federally declared disaster, or total and permanent disability.

You may also be able to take one penalty-free withdrawal of up to $1,000 per calendar year for personal or family emergency expenses, but you will have to repay the distribution within three years.

There are also the long-term costs of hardship withdrawals. You’ll lose out on the compounded earnings you could have made from that money if it was still sitting in your account.

If you’ve exhausted all other options and still decide to go ahead with a hardship withdrawal, talk to your plan administrator so you understand how it works and the potential consequences.

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

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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 — which plummeted to its lowest level in more than 20 years when Trump first announced impending tariffs — has since made modest gains. But that could be a good thing for American travelers.

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 will 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.

About 800,000 Oklahomans depend on Social Security — and 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. “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.

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.”

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.