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Author: Vishesh Raisinghani

  • Joe Biden blasts Trump for taking ‘hatchet’ to Social Security — says it’s not just a government program, but a ‘sacred promise’ to Americans. 3 ways to protect your income no matter what

    Joe Biden blasts Trump for taking ‘hatchet’ to Social Security — says it’s not just a government program, but a ‘sacred promise’ to Americans. 3 ways to protect your income no matter what

    Social Security is widely considered a ‘third rail’ in American politics, meaning it’s so controversial that most politicians simply avoid touching it.

    But 100 days into his second administration, President Donald Trump hasn’t just touched the system but taken a “hatchet” to it, according to former president Joe Biden.

    "This new administration has done so much damage and done so much destruction. It’s kind of breathtaking," said Biden at a conference in Chicago.

    He also took aim at billionaire Elon Musk, whose team has pushed spending and staffing cuts at the Social Security Administration (SSA) and has called the system "the ultimate Ponzi scheme of all time."

    "What the hell are they talking about?" Biden said. "Social Security is more than a government program. It’s a sacred promise we made as a nation."

    Democrats and the former president are not the only ones alarmed by Trump and Musk’s recent moves on the nation’s retirement safety net. Public concerns about the system’s future reached a 15-year high, according to a recent Gallup poll.

    If you share these concerns, here are three ways you can bolster your retirement income regardless of what happens to Social Security in the future.

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    Maximize retirement accounts

    With the social safety net at risk, it might be a good time to consider weaving an independent safety net by maximizing your tax-sheltered retirement accounts.

    Ramp up contributions to your 401(k) or Roth IRA plans to start creating a self-sufficient retirement fund.

    Take the time to learn about Health Savings Accounts (HSAs) and start saving for any medical bills you may have to deal with in your senior years.

    This is also a great time to reach out to a professional tax planner or investment advisor to understand how you can bolster your long-term savings and investment plans.

    Look for alternative streams of passive income

    Most retirees rely on a combination of dividends from stocks, interest payments from savings accounts and Social Security benefits to fund their retirement. But with the last one in jeopardy, it might be a good idea to consider alternative sources of passive income.

    A rental property is a good example and is widely considered a reliable source of passive income.

    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

    According to Zillow, the median age of a landlord is 59 years old. If you start your real estate journey early, you could create a property portfolio that supplements any other sources of retirement income you may have.

    Consider moving and downsizing in retirement

    If you don’t have the time or money to create your own retirement plan and insulate yourself from any potential disruptions to Social Security, it might be time to get creative.

    If you don’t already live in a state that doesn’t tax your Social Security benefits, consider moving to one with a lower cost of living in general, or perhaps even out of the country. This could reduce the amount of money you need to live comfortably in retirement.

    Kathleen Peddicord, founder and publisher of Live and Invest Overseas, told CNN Travel that American seniors account for 80% of the site’s traffic and that visits surged 250% above average in the days after the U.S. election. Many retirees see the appeal of moving to Panama, Portugal or Malaysia insteading of financially struggling in America.

    Downsizing your home is another lifestyle adjustment that could make your retirement more comfortable. This isn’t a popular option, as 84% of American seniors consider aging in place a priority, according to a recent survey by Point, a home equity investment company.

    However, for those who are struggling to make ends meet in their senior years, unlocking some of the equity built up in their home could be a good way to meet essential expenses.

    What to read next

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

  • An alarming 73% of America’s baby boomers are ‘worried’ about Social Security changes, survey says — but should they be? Here are 3 simple money moves to shockproof your income ASAP

    An alarming 73% of America’s baby boomers are ‘worried’ about Social Security changes, survey says — but should they be? Here are 3 simple money moves to shockproof your income ASAP

    Americans are growing increasingly worried that Elon Musk and the Department of Government Efficiency (DOGE) may be taking a metaphorical chainsaw to their retirement safety net.

    A recent survey conducted by Clever Real Estate between March 5 and 9 found that 85% of U.S. adults are concerned about potential changes to their benefits, while 68% are worried about the future of the Social Security Administration (SSA).

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    Gallup also found that fears surrounding the system’s future have recently reached a 15-year high.

    Unsurprisingly, seniors who are already retired or approaching retirement are especially concerned. Roughly 73% of baby boomers — those born between 1946 and 1964 — told Clever Real Estate they were worried that the SSA’s ongoing austerity measures could impact their financial future.

    Although only 55% of millennials share these concerns, changes to the Social Security system impact all taxpayers. That’s because 94% of American workers contribute to the pot every year, according to Rep. John Larson.

    With that in mind, here are three simple money moves that can help shockproof your retirement income.

    1. Monitor everything

    With so much in flux, it’s easy to miss some major developments from the Trump administration or lawmakers on Capitol Hill.

    Unfortunately, staying up to date may become a little more difficult. According to MarketWatch, the SSA is reportedly considering moving its public announcements from its official website to Elon Musk’s social media platform, X.

    To stay informed, consider setting up an account on X if you haven’t already. You should also regularly log in to your Social Security account to monitor your earnings record and get benefit estimates. Setting up news alerts on your phone or email is another simple way to stay in the loop.

    Frequently monitoring changes to the system can give you the time and flexibility to adjust your long-term financial plan and better protect your retirement income.

    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

    2. Wait for FRA

    The age at which you begin collecting Social Security can significantly impact your monthly benefits.

    While you’re eligible to start receiving benefits as early as age 62 — provided you’ve paid into the system for at least 10 years — doing so means your benefits will be permanently reduced.

    To receive your full benefit amount, you’ll need to wait until you reach your full retirement age (FRA). For anyone born in 1960 or later, the FRA is 67. Claiming benefits before this age result in smaller monthly checks, while delaying benefits beyond it — up to age 70 — can increase the amount you receive.

    You can’t control potential changes to the Social Security system, but you can control when you start collecting benefits — making this one of the most powerful levers you have to maximize your retirement income.

    3. Plan with an expert

    Working with a financial professional can help you stay prepared for any changes to Social Security and build a solid plan around them.

    Financial professionals are more likely to stay in the loop on the latest developments and are better equipped to explain how those changes could affect your personal finances.

    According to Edelman Financial Engines, 52% of American adults believe they’re missing out on tax savings and benefits due to a lack of knowledge about sophisticated tax strategies. Nearly 45% said they would need professional help to properly plan for retirement.

    Some of these strategies may take years, or even decades, to reach their full potential.

    Even small tax savings today can lead to a significant boost in retirement income over time, especially if you have years left to let your investments grow. With that in mind, it’s a smart move to connect with an expert as soon as possible.

    What to read next

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

  • Here are the top 7 secrets on US nursing home hunting revealed — save yourself thousands of dollars (and lots of heartache) on long-term care. How many can you use today?

    Roughly 70% of seniors will need some type of long-term care during their final years, according to Genworth. Yet, most people don’t know much about the industry unless they have a loved one in a care facility or are actively looking for one.

    From staff turnover to surprise fees, here are the secrets you need to know before you commit someone you love to one of the 30,600 assisted-living communities across the country.

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    1. It’s all about the staff

    With nearly 478,500 workers powering the long-term care and assisted living industry, it’s ultimately the staff, rather than the building or branding, that can determine whether your loved one feels at home.

    When you tour a facility, keep an eye on how the staff interact with residents and see if the employees look tired or worn out. Check with management about staffing levels during the day and night to see if the facility has a registered nurse available around the clock.

    A study published in the International Journal of Nursing Studies found that higher staffing levels led to better outcomes for residents, so check the facility’s staff-to-resident ratio before you sign up.

    2. High staff turnover could be a red flag

    While staffing levels are important, a facility’s retention rate is also something to look into. If a facility sees high turnover of employees and management, that could be a signal that something is wrong.

    Besides, you wouldn’t want your loved one to build a good relationship with someone at the facility only for that staffer to leave a few months later.

    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

    3. Ownership matters, especially private equity

    Private equity firms have been snapping up nursing homes as of late, and the trend has alarmed some industry advocates. After all, an investment manager might have more experience cutting costs and initiating layoffs than managing health care outcomes for elderly patients.

    In 2024, the Center for Medical Advocacy studied the impact of the private equity takeover of 29 facilities in Iowa and found that the transition led to “considerably lower health inspection and overall ratings, lower nurse staffing ratings, more abuse citations, higher federal civil money penalties, and more denials of payment for new admissions.”

    Before you select a facility, check to see if it’s owned by a private equity firm or a team of health care professionals.

    4. It’s a heavily regulated industry

    The long-term care industry has always been tightly regulated and the Biden administration tightened it further by implementing a minimum staffing requirement for LTC facilities participating in Medicare and Medicaid, according to law firm Wilson Elser.

    This means you can expect most facilities to meet a minimum standard of care.

    5. Extra fees can quickly add up

    Some facilities can add extra fees to the services they provide, which means you could face bills for health screenings or extra therapy sessions at any time, according to Care.com.

    These hidden additional charges can quickly add up, so make sure you get all the details and a full pricing list from the facility before you sign a contract.

    6. Facilities may discharge “difficult” residents

    The American Council on Aging has called involuntary discharges from nursing homes across the country a “legitimate problem.”

    Roughly 14,000 complaints about improper discharges are filed with local Long-Term Care Ombudsman Programs every year, which makes it one of the top five types of complaints filed in the industry.

    There are federal guidelines that set limits on the factors that can lead to a resident being discharged, but it’s a good idea to review the contract and understand all the terms and conditions before you sign up.

    7. Family involvement matters

    Even if you pick the best nursing home and conduct thorough research before signing up, one of the only ways to make sure your loved ones are safe and comfortable is by visiting them or calling to check in as often as you can.

    With this in mind, try to pick a facility that is close to where you and your family live so that frequent visits are not an inconvenience.

    What to read next

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

  • Even Ben Shapiro blasted Trump tariffs as one of the ‘biggest tax increases’ in US history — warns Americans will get smoked with ‘hundreds of billions of dollars’ in taxes. Do you agree?

    Even Ben Shapiro blasted Trump tariffs as one of the ‘biggest tax increases’ in US history — warns Americans will get smoked with ‘hundreds of billions of dollars’ in taxes. Do you agree?

    The stock market turmoil has deepened to the point where even some of President Trump’s staunchest allies are voicing concern.

    After the so-called “Liberation Day” announcement, conservative commentator Ben Shapiro criticized the administration’s erratic economic approach, calling the now-paused tariffs a covert tax hike on consumers and businesses nationwide.

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    " Trump’s reciprocal tariffs impose hundreds of billions of dollars in new taxes on Americans,” said Shapiro on his podcast. “[It] would be the largest tax increase since the Revenue Act of 1968. One of the biggest tax increases on American consumers in the history of America."

    Surprisingly, Shapiro’s description of the Trump tariffs, which were paused for 90 days on April 9, echoes that of former Vice President Kamala Harris, who referred to Trump’s tariff proposals as a “sales tax on the American people” during last year’s campaign.

    Here’s why the administration is facing growing backlash for its global trade war — even from its core supporters.

    Covert tax hike

    While Trump calls tariffs a “beautiful thing to behold,” economists would describe them as import taxes.

    “Tariffs are federal taxes, set by Congress, and applied to goods at the border,” confirmed Robert Gulotty, an associate professor in the Department of Political Science at the University of Chicago.

    In many cases, these additional taxes are passed along to the consumer. The Peterson Institute for International Economics estimates that an average American family pays an additional $1,200 per year due to tariffs.

    It’s worth noting that the institute’s analysis already factors in the offsetting impact of the extended Tax Cuts and Jobs Act but does not account for additional tariffs announced by the Trump administration after February. Put simply, the true cost to families is likely much higher.

    Since many consumers and businesses cannot afford these added expenses, the economic outlook has weakened, and the stock market appears to reflect that.

    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

    $11 trillion wealth destruction

    From the beginning of this year through May 15, the S&P 500 had lost roughly 11% in value, while the Nasdaq-100 and Dow Jones Industrial Average had both fallen by 12% and 12%. According to MarketWatch, U.S. stocks had lost $11 trillion in market value in the months since Trump’s inauguration. The Dow Jones and S&P 500 did experience a big jump once tariffs were paused.

    However, the rapid erosion of wealth on this tariff-laden rollercoaster has left many ordinary Americans questioning the White House’s economic policies. According to a recent Reuters/Ipsos poll, Trump’s approval rating stands at 43%. Meanwhile, another poll by the Marquette Law School found that 58% of adults believe tariffs hurt the U.S. economy.

    Unfortunately, these polls haven’t swayed the president’s position. Trump’s added tariffs on China now stand at 30% after the two sides resolved their differences and continued to talk.

    With no resolution in sight, consumers and investors should brace for a prolonged global trade conflict.

    Look for a safe haven

    If tariffs start back up again, consumers should build a margin of safety into their household budgets in anticipation of rising costs. Meanwhile, investors may want to seek refuge in hard assets like gold. The price of gold has surged 15.8% over the past six months.

    However, no asset class or nation is immune to the economic volatility that appears to be in store ahead.

    "Trade wars are, in fact, not good and not easy to win, particularly if you don’t actually have a plan," Shapiro said.

    What to read next

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

  • Here are 7 ‘bad assets’ that could cause you to retire poor in America — how many do you own?

    Here are 7 ‘bad assets’ that could cause you to retire poor in America — how many do you own?

    You probably know the importance of retiring with a hefty, well-diversified portfolio of assets. But what if you’ve spent some of your money accumulating things that look like ‘assets’ but are actually hidden liabilities.

    Here are the top seven tempting but deceptive money drains that many people trap themselves into before retirement.

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    1. Brand new cars

    If you’re relatively older and financially secure, splurging on your ‘dream car’ can be the ultimate temptation. Why not buy the toys you’ve always wanted and resell them to someone else who’s just as passionate about motors as you?

    Well, the typical new car loses roughly 30% of its value within the first two years alone, according to Kelley Blue Book. The depreciation rate slows down after those initial years, which means buying a modestly used car at an affordable price is a better way to secure your financial future.

    2. Timeshares

    Spending your retirement on the beach in Cabo Verde is undoubtedly attractive for many people. But there’s a difference between buying a vacation home somewhere exotic and buying a timeshare.

    Unlike property ownership, timeshare ownership involves steep initial costs, recurring maintenance fees, low resale potential, and rigid usage schedules.

    On top of that, the secondary market is notoriously poor, and many owners struggle to exit their agreements. Sales tactics can be aggressive, and the contracts themselves are often complex and difficult to navigate.

    Consider creating an annual budget for vacation rentals in your retirement plan instead of locking yourself into these bad deals.

    3. Luxury collectibles

    Yes, there is an active market for luxury collectibles such as vintage cars, designer handbags and luxury watches. But a Rolex probably doesn’t deserve a spot on your retirement portfolio.

    Luxury consumers are a fickle bunch and what’s considered valuable today may not be as valuable by the time you retire.

    Diamonds, for instance, were a popular collectible but have seen prices decline by 26% in just the last two years, according to The Guardian.

    With that in mind, avoid the glamorous “assets” and focus on safe but boring investments like corporate bonds or dividend stocks.

    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

    4. McMansion or home upgrades

    It’s nearly irresistible to think of your primary residence as the bedrock of your retirement. The median American homeowner is sitting on $327,000 in home equity as of 2024, according to the ICE Mortgage Monitor report.

    However, it’s possible to go overboard with this investment. Buying a house that is far beyond your budget or too big for your needs can make it tougher to pay off the mortgage or maintain the property when you’re on a fixed income. It’s also a good idea to avoid excessive and frequent renovations to try and add value to the property.

    Instead, focus on minimizing costs and debt and consider downsizing to tap into some of that built-up equity to make your retirement more flexible and comfortable.

    5. Lottery tickets or speculative investments

    Buying lottery tickets or pouring money into unproven and speculative investments is rarely a good idea, regardless of your age. But the risks are magnified when you’re older and approaching the end of your career.

    Instead of indulging in wishful thinking that a meme-worthy cryptocurrency or random penny stock is going to make you rich overnight, consider the safer path to retirement. Focus on blue chip dividend stocks, bonds or gold.

    6. Multiple or excessive mortgages

    Rental income from a robust portfolio of real estate is a great way to enhance your passive income in retirement. But if you’re at the end of your career and rely on a fixed income, you should recognize the fact that your capacity for risk is much lower.

    With this in mind, consider lowering or paying off all the mortgages on your rental properties. If you can’t, sell a few units to pay off the loans on others in your portfolio.

    As a retired landlord, you can’t afford a sudden housing market crash or interest rate volatility.

    7. Whole life insurance

    Despite what the insurance salesman has probably told you, whole life insurance isn’t an ideal retirement vehicle.

    These plans can be five to 15 times more expensive than term life insurance, according to Investopedia, and you have limited control over how the capital is invested.

    Instead, focus on relatively simple financial instruments that offer steady cash flow and greater control.

    What to read next

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

  • Trump has a plan to abolish the IRS forever — here are 5 crucial things it could mean for your money

    Trump has a plan to abolish the IRS forever — here are 5 crucial things it could mean for your money

    After rushing to file your taxes before the April 15 deadline, the fantasy of living in a world without the Internal Revenue Service (IRS) might feel especially tempting.

    It’s certainly on the mind of President Donald Trump, who wants to “abolish the IRS,” according to Commerce Secretary Howard Lutnick.

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    Given this administration’s history of bold and sometimes outlandish ideas — from threaten to use force to invade Greenland to abolishing the Department of Education — their stated goal shouldn’t be dismissed outright.

    Here’s how Trump and his allies in Congress are already taking steps to dismantle the national tax agency, and what that could mean for your finances.

    Trump’s plan

    The Trump administration has already taken tangible steps to disrupt the IRS. According to the Associated Press, the agency has seen three leadership changes in a single week and is expected to lose tens of thousands of employees due to layoffs and voluntary retirement offers.

    Abolishing the IRS entirely, however, poses a major challenge: how would the government fund its operations? Trump and Lutnick have proposed that tariffs, collected through a newly formed “External Revenue Agency” could replace the IRS.

    “Let all the outsiders pay,” Lutnick said on Fox News.

    But the math doesn’t add up. In 2023, the U.S. imported $3.1 trillion worth of goods but collected about $2 trillion in personal and corporate income taxes. According to the Peterson Institute for International Economics, “it is literally impossible for tariffs to fully replace income taxes.”

    Republicans in Congress are proposing an alternative plan: replacing income tax with a national sales tax. Representative Earl "Buddy" Carter introduced the FairTax Act of 2025, which calls for a tax-inclusive rate of 23% beginning in the 2027 tax year.

    However, the Tax Policy Center estimates that for every dollar spent, this would amount to taxpayers paying about 30 cents in federal sales tax for every dollar spent.

    Whether these proposals will ever be fully implemented remains unclear. However, with serious discussions underway about tariffs and consumption taxes — and with the IRS facing significant internal disruption — American consumers should start preparing for the potential fallout.

    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

    5 impacts on your finances

    Experts say the Trump administration’s attempts to replace income taxes with tariffs or sales taxes could have five impacts on your personal finances.

    • 1. Higher Costs: Perhaps the most noticeable impact is on costs. Tariffs and sales taxes raise the price of goods and services. As of April 9, the Yale Budget Lab estimates that the current tariff policies already cost the average household an additional $4,700 per year. Sales taxes are even more visible, showing up as a separate line item on receipts. Under the proposed 23% sales tax, a $30,000 car could cost $36,900.
    • ** 2. Regressive Effects:** This shift would disproportionately impact lower-income households. A CEO earning millions may not feel the pinch of a price hike on a new car, but for a working family, that increase represents a significant portion of their annual income. The Peterson Institute’s analysis shows that the cost burden on low- and middle-income households is much greater than on the top 10% or 1% earners.
    • 3. Market Volatility: Stock and bond markets could react negatively if the government’s revenue drops and isn’t fully offset by tariffs or sales taxes. A widening deficit could shake confidence and hit retirement portfolios, according to the Yale Budget Lab.
    • 4. Risk of Recession: JP Morgan estimates a 60% chance of a recession triggered by an escalation in the trade war. A downturn, combined with rising prices and potential job losses, could mean families face the worst of both worlds: higher costs and lower income.
    • 5. Job Losses: As industries react to higher tariffs and reduced consumer spending, layoffs could increase. Households may need to prepare for reduced job security in an already uncertain economic climate.

    In light of these risks, it’s wise to revisit your financial plan. Consider expanding your emergency fund and adding a margin of safety to your family’s annual budget.

    What to read next

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

  • Americans in their 20s are increasingly ditching college — and getting into trades. About 1.4M fewer students at 4-year universities. But are blue collar jobs in the US really more secure?

    Americans in their 20s are increasingly ditching college — and getting into trades. About 1.4M fewer students at 4-year universities. But are blue collar jobs in the US really more secure?

    Would you rather spend four years accumulating significant debt only to face a competitive job market or enroll in a program at a trade school that equips you with a steady income and leaves you with a managable loan balance?

    That’s the question many young Americans are asking themselves as the economy shifts in fundamental ways. Here’s why many twenty-somethings are trading business casual for steel-toed boots.

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    College isn’t as attractive anymore

    A key factor driving young Americans away from a typical degree could be the cost. College tuition at public four-year institutions has surged 141% over the past 20 years, according to the Education Data Initiative, outpacing the general rate of inflation over the same period.

    Unable to afford tuition, many have turned to student loans to get by. The average federal student loan borrower has $37,853 in debt and it could take roughly 20 years to pay off, says the Education Data Initiative.

    Paying off that debt is even more of a challenge when recent graduates face a tough job market. The unemployment rate for recent graduates is 5.8%, according to the Federal Reserve Bank of New York, up from 4.6% in May 2024.

    Perhaps unsurprisingly, college enrollment has been declining. According to data shared by the National Center for Education Statistics, the number of students enrolled in college in the U.S. decreased by roughly 1.4 million between 2012 and 2024.

    Increasingly, young Americans have turned to trade schools instead. Enrollment in trade schools grew 4.9% from 2020 to 2023, according to Validated Insights, a higher education marketing firm.

    The annual cost of going to trade school can be as low as $4,200, according to SoFi’s summary of Integrated Postsecondary Education Data System data. This price point can make it a cheaper alternative to a typical four-year college degree, depending on the school, program and number of years enrolled.

    Blue collar jobs in the trades also face a significant talent shortage. A whopping 86% of construction firms reported they were having a hard time filling salaried roles in 2023, according to a survey by the Associated General Contractors of America.

    The rising enrollment in trade schools could cover some of the skills gap in the long term, but many blue collar industries also face unpredictable hurdles that could limit employment opportunities.

    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

    Near-term pain

    Despite the skills shortage, blue collar workers are not immune to the economic cycle. Apollo Global Management expects a recession this summer triggered by tariffs that could impact employment in trucking and retail sectors.

    Job openings in the construction sector have already dropped just over 25% year over year in March, according to the Bureau of Labor Statistics.

    For a 20-something American who recently graduated from trade school or joined an apprenticeship program, these headwinds can be discouraging.

    But, as the economy stabilizes and the talent shortage persists, these trade skills could prove to be invaluable over the long-term.

    If you’re looking to start or switch to a new career, it’s always best to weigh which profession will offer the highest return on your investment and the most personal fulfillment.

    What to read next

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

  • This man from Toronto feels broke making $73,000 a year — his wife recently left him and he has an 18-month-old child. Here’s what Dave Ramsey told him

    This man from Toronto feels broke making $73,000 a year — his wife recently left him and he has an 18-month-old child. Here’s what Dave Ramsey told him

    Breakups can be painful, but the pain can be amplified if you relied on your ex-partner to handle your finances.

    Elliot from Toronto, called into The Ramsey Show explaining that his separation from his wife has left him both emotionally and financially vulnerable. Although he earns $73,000 a year — it’s unclear if this was in U.S. or Canadian dollars — he’s not confident in managing the family budget by himself.

    “She used to handle all of the money in the house, so I’m just kind of figuring things out for myself now,” Elliot said in a clip posted Jan. 6.

    At the same time, he’s also figuring out how to raise his 18-month-old daughter as a single parent. He admits he hasn’t been able to stick to a budget and has struggled to save any money.

    Ramsey took the opportunity to highlight how heartbreak can be reflected in bank statements.

    Budget duties

    It’s common in marriages for one partner to take the lead in handling the household budget.

    If you’re not used to doing this type of work, you may struggle, if the relationship falls apart and suddenly the responsibility drops on you. According to RBC’s 2024 Relationships and Money Poll, 77% of couples were stressed about money.

    To be fair, Elliot says he crafted a budget that should be leaving him $300 in savings every month. However, he hasn’t been able to stick to his plans and that excess money always seems to disappear.

    Ramsey believes Elliot’s emotional distress could be the reason why his budget plans haven’t worked out as expected.

    Emotional spending

    Following a budget is difficult enough in most circumstances, but having to do so while also grieving the end of a marriage can be even more difficult.

    “If you’re spending time eating out because you’re lonely or you’re spending time doing whatever that costs money because you’re lonely, make sure you recognize that and you’re writing it down,” Ramssey told Elliot. “I mean you’re going through a heartbreak right now. This is a hard time emotionally and that hard time will show up in the money if you don’t get on the other side of it and crack the whip on it.”

    Breakups often lead to changes in housing expenditures and child care expenses that must be taken into account. But it’s also common for consumers to spend when they’re feeling blue.

    Research conducted by the Bank of Canada suggests that acute financial stress is weighing on consumers’ spending decisions — and this can lead to spending less or more.

    Elliot didn’t confirm or deny that he’s overspent due to his emotional state, but he did admit he may not be very attentive of his spending throughout the month. Ramsey recommended a proactive approach by planning for every dollar spent before the month starts and tracking spending as time goes on.

    “The only way to make the money behave is, before the month starts, write every dollar down and where it’s going to go,” he advised. “You’re in charge of it, but you need to tell it what to do.”

    Sources

    1. YouTube: I feel Broke Making $73,000 a year (Jan 6, 2025)

    2. RBC: Finances and feelings: Harsh economic realities taking a toll on relationships among Canadian couples – RBC poll (Dec 12, 2024)

    3. Bank of Canada: Measuring household financial stress in Canada using consumer surveys (March 28, 2024)

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

  • Broke young Americans in their 20s may be suffering now — but they’re on track to become richer than you. How $74 trillion will turn ramen noodle dinners into caviar dreams

    Broke young Americans in their 20s may be suffering now — but they’re on track to become richer than you. How $74 trillion will turn ramen noodle dinners into caviar dreams

    Gen Z consumers across the world are so financially stretched right now they’re financing burritos with buy-now-pay-later schemes.

    But their financial lives could look remarkably different in just a few years, according to a recent report by the Bank of America.

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    “In roughly the next five years, they will have globally amassed $36 trillion in income, and that figure is expected to surge to $74 trillion by around 2040,” says the BofA Global Research report.

    Here’s why the youngest generation in the workforce is likely to see a huge bump in prosperity — and why it could slip through their fingers.

    Higher income and higher spending

    The Gen Z cohort earned roughly $9 trillion in aggregate income in 2023, the Bank of America estimates. As more of this cohort enters the workforce or climbs the corporate ladder, its aggregate income could quadruple by 2030.

    This group is also accumulating assets at a rapid pace. At the end of 2024, the median Gen Z American had a net worth of $86,945, according to Empower. That’s 22% higher than the previous year.

    Meanwhile, some young consumers are likely to experience a boost to their personal assets from inheritances. Cerulli Associates estimates that Gen Z could inherit roughly $11 trillion in assets by 2045.

    However, this generation is currently spending money at a faster rate than other generations because of the cost-of-living crisis.

    Gen Z household spending is growing at a faster rate than the rest of the global population, according to Bank of America’s analysis of credit and debit card data. By 2030, this cohort could be spending as much as $12.6 trillion a year in aggregate, compared to $2.7 trillion in 2024.

    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

    This means many younger consumers are struggling to save and piling on expensive debt. On average, a Gen Z consumer has $94,100 in personal debt, far higher than millennials ($59,180) and Gen X ($53,255), according to a recent survey by Talker Research conducted for Newsweek.

    For many people in their 20s and 30s, the best way to experience the full benefit of the great wealth and income transfer is to control debt and spending right away.

    Short-term sacrifices for long-term rewards

    Excessive spending and borrowing could diminish Gen Z’s chances of accumulating wealth in the future, regardless of the trillions of dollars that are expected to flow to the generation over the next decade.

    Creating a budget is an old but effective tool to limit discretionary spending. That can provide more room to either pay off debt or start accumulating savings.

    It’s also important to resist phantom debt. Buy-Now-Pay-Later (BNPL) platforms present themselves differently from traditional credit cards, but the impact on personal finances is strikingly similar.

    BNPL transaction volume is expected to surge 106% between 2024 and 2028, according to Juniper Research. This new form of debt is reshaping the consumer economy and could reshape Gen Z’s financial future if they don’t treat it the same way they would any other loan.

    Considering the pace of change on the horizon, just a few years of resisting debt, living within their means, focusing on their career and building up savings could put a young person well ahead of their peers.

    What to read next

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

  • Think you’re ‘middle class’ in America? This income level says you’re probably wrong

    Think you’re ‘middle class’ in America? This income level says you’re probably wrong

    The term ‘“middle class” is often discussed but rarely defined. It’s a term the majority of Americans would use to define themselves, yet most people don’t know whether their household truly fits into this category.

    Based on the Pew Research Center’s analysis of government data, roughly 49% of Americans don’t actually fall into the middle class income category.

    Don’t miss

    Here’s a closer look at why that is.

    The real middle class

    Pew Research Center defines the middle class as a household with income that is at least two-thirds of the U.S. median income to double the median income. Based on government data for 2022, this would imply a range of incomes from $56,600 to $169,800.

    As of 2023, 51% of American households fit into this category.

    Another study from Gallup found that 54% of Americans would describe themselves as middle class, so it seems most people are pretty self-aware of where they fall on the income spectrum.

    But, most Americans might not be aware that this cohort of middle-income earners is getting squeezed.

    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

    Squeezed middle

    The share of the American population that fits into the middle-class category has been shrinking for the past five decades, according to Pew Research.

    Roughly 61% of households across the country were part of this cohort in 1971 — a full 10 percentage points higher than the recent 51% rate.

    American families are being increasingly pushed to opposite ends of the income spectrum.

    From 1971 to 2023, the share of U.S. households in the lower-income bracket grew from 27% to 30%, while those in upper-income households increased from 11% to 19%.

    This trend may be a reflection of growing income inequality across the country. And many families feel like they’re on the brink of falling into a lower category.

    A recent survey by the National Foundation for Credit Counseling (NFCC) found that 53% of U.S. adults feel like they can’t make financial progress and 48% say they are “constantly treading water financially.”

    For those respondents, it may take just one unexpected expense — or loss of income — to set them back.

    Are you at risk?

    If you and your family are in the middle-income category and worried about falling behind, there are ways to cement your position.

    Reducing debt, especially consumer debt, could be a great way to secure yourself financially. In 2024, there were 494,201 personal bankruptcy filings in the U.S. — over 60,000 more than the previous year, according to Debt.org.

    By reducing your debt burden, you can mitigate the risks of bankruptcy and reduce the monthly cost burden of servicing the debt.

    Another way to secure your position is to have an emergency fund that can cover your living expenses if you suddenly lose income.

    A six-month emergency fund can give you enough time to find a new job or different source of income without putting your family’s living standards at risk.

    Finally, boosting your income to the upper-end of the spectrum could help you secure your middle-class lifestyle.

    Launching a side gig or finding a passive income opportunity could help you get close to or even surpass the $169,800 household income threshold for upper-class status. Not only does this give you more financial flexibility, but it also puts a protective buffer on your current lifestyle.

    What to read next

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