Author: Vishesh Raisinghani

The future of Social Security is one of the top concerns of Americans, and Professor Scott Galloway recently made comments that may provoke strong reactions.

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The New York University (NYU) professor, who is known for his controversial takes, said in an episode of his podcast that "somewhere between 10% and 30% of people who get Social Security right now should not receive it. Because they don’t need it."

He said, "I’ll go as high as a third of senior citizens should not be getting Social Security."

Galloway suggests this not just as a way to reduce economic inequality in the U.S., but also as a potential solution to cuts costs in a program that faces insolvency issues due to shifting demographics. Without any reform, the Social Security trust funds will be depleted by 2035. Benefits for all would be automatically cut at that point by 17%.

Here’s why Galloway thinks serious reform and dramatic benefit cuts are required.

"Something is wrong"

Galloway described American seniors as “the wealthiest generation in the history of this planet.”

“The fact that every year we affect a $1.2 trillion transfer from young people, who are not doing as well as they have in past generations, to the wealthiest generation in history means something is wrong,” said the professor.

What Galloway is possibly referring to is the total benefits distributed to retired workers and their dependents every year. This group accounts for around 80% of total benefits paid, which is expected to be about $1.6 trillion in 2025.

Gen Z and millennials are struggling with debt, cost of living and stagnant wages, and payroll taxes makes up most of the program’s revenue. Eliminating benefits for the top 10% or 30% of wealthiest retirees, according to Galloway, could address some of the wealth imbalance and reduce the burden on young workers.

"I think the reason they call it the Social Security tax, not the Social Security pension fund is I don’t think you or me have rights to Social Security when we hit 65," he said. "The notion that I paid into it, I should get my money back, actually the majority of people take out way more than they actually put in."

Given that the average net worth of the top 10% Americans is $7.8 million, according to the latest Federal Reserve data, it’s likely that many of these individuals wouldn’t notice if their monthly benefits checks stopped.

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

Higher taxes to fund Social Security?

Galloway complained how due to the payroll tax cap, people who make significantly different incomes wind up contributing the same amount to the program.

In 2025, American taxpayers only need to pay Social Security contributions on the first $176,100 they earn. Because of this cap, a CEO who earns multiple millions this year might contribute the same amount of money to the social pension fund as a nurse or accountant who earns $176,100.

Eliminating the payroll tax cap for earnings above $400,000 is the most popular policy option to address the program’s financing gap, according to a survey by the National Academy of Social Insurance survey (NASI).

Eliminating this cap entirely isn’t a silver bullet and wouldn’t solve Social Security’s funding issue on its own, according to a report by the Manhattan Institute, a conservative think tank. Citing the Social Security trustees project, it said that this way the Social Security trust-fund exhaustion date would only be delayed by around 20 years.

However, the Manhattan Institute echoes Galloway’s belief about an unfair wealth transfer taking place and his call for limiting benefits to wealthy retirees.

"Because most retirees are wealthier than the taxpayers financing their benefits, Social Security today largely redistributes income upward, not downward … pledging that today’s workers will pay any tax necessary to ensure that even multimillionaire seniors can continue to receive benefits far exceeding their lifetime Social Security contributions is neither progressive nor sensible. In fact, raising Social Security taxes (rather than addressing benefits) would accelerate the largest and most inequitable intergenerational wealth transfer in world history," says the report. “A more progressive reform would scale back the unaffordable (and, in many cases, not fully earned) spending promises made to wealthier baby boomers."

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

Age 59 ½ isn’t considered a popular milestone, but it probably should be. At this age, a flurry of new financial options and benefits become available to you.

It’s also a good time to double-down on your investment strategy so that you can make your retirement as comfortable as possible.

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If you’re quickly approaching or already at this underrated milestone, here’s what you should know.

New options available at 59 ½

According to the Internal Revenue Service (IRS), “most retirement plan distributions are subject to income tax and may be subject to an additional 10% tax.”

However, at age 59 ½, withdrawals are no longer subject to that 10% penalty. That means it’s easier to start drawing down cash from your 401(k) plan, Roth IRA or any other qualified retirement program.

To be clear, just because you can easily withdraw money doesn’t necessarily mean you should. But having the option to start living off some of your nest egg gives you the flexibility and peace of mind you need as you rapidly approach retirement.

One way to take advantage of this flexibility is to consider commencing a Roth IRA conversion. This maneuver is when you take money from a traditional retirement account (like a traditional IRA or 401(k)) and move it into a Roth IRA.

When you do this, you pay taxes now on the money you move, but then it can grow tax-free — and you won’t owe taxes when you take it out in retirement.

At age 59 ½, your withdrawals are no longer subject to a 10% penalty, which means it’s cheaper to start moving money to the Roth IRA. This age is also a sweet spot because it’s roughly 13 years away from age 73, which is when you have to start making Required Minimum Distributions (RMDs).

To be fair, most Americans retire before the age of 65, while the median retirement age is 62, according to research from the Transamerica Center for Retirement Studies. That means you may be just a few years away from retirement at 59 ½, and should be ramping up your efforts in this final stretch.

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Final sprint before retirement

Every single year of added income or compounded growth can make a big difference to your lifestyle in retirement. With that in mind, 59 ½ is the ideal age to set yourself up so your golden years are as comfortable as possible.

Aggressively paying down any outstanding debt is a great idea at this age. According to the 2022 Survey of Consumer Finances, many retirees are still carrying debt.

Households headed by people aged 65 to 74 had a median debt balance of $45,000. But if you aggressively pay down debt from the age of 59 ½ to retirement, you could put yourself in a better position than most of your peers.

You could also double down on your savings and investment strategy before your income stops. You can start making catch-up contributions to your 401(k) and other retirement plans from the age of 50, according to the IRS, but 59 ½ isn’t too late to start doing so.

Finally, this is the right age to consider all the subjective aspects of your retirement lifestyle. Take the time to figure out what you value most and create a strategy to make that possible in this final stretch before you leave the workforce.

If you want to spend more time with family, consider moving closer to where they are, and if you don’t enjoy home maintenance, consider moving to a condo where management takes care of it all.

Consider this age a pivotal period from your old life to your new one.

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

Americans are growing increasingly worried that Elon Musk and his team of young engineers 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.

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

Like many people his age, Ethan from South Carolina is waiting for the perfect moment to hop onto the property ladder.

In an email to The Ramsey Show, the 28-year-old said he and his wife earn more than $200,000 a year and have roughly $180,000 in savings and investments. They’re just waiting for home prices to slide lower before snapping up their dream home.

But according to finance personality Dave Ramsey, that’s a big mistake.

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“Interest rates are going to do what they’re going to do,” he told Ethan during a recent episode. “House prices are not coming down … there’s no fix on the horizon for that."

Here’s why the veteran property investor is so confident about the resilience of the property market in 2025 and beyond.

‘Seventh-grade economics’

In theory, home prices are correlated to interest rates. When the cost of borrowing money for a mortgage rises, housing affordability craters, dragging demand lower.

However, Ramsey highlights the fact that interest rates have been elevated for a while but that so far, the impact on housing has been minimal.

As of late April, the average 30-year mortgage rate is 6.81%, according to the Federal Reserve — significantly higher than the 3% rate during much of 2021.

However, the median sales price of a U.S. home has declined a mere 5.8% from its peak at the end of 2022, according to the Fed.

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

Put simply, home prices have softened, but not nearly as much as expected. To understand why, Ramsey points to another factor: supply.

“There’s a serious shortage of housing,” he says, which is effectively putting a floor on the price of a home.

According to him, this supply-demand imbalance is “seventh-grade economics.”

The formation of new households has exceeded the rate of home-building for an extended period. That, according to calculations by the Brooking Institute, has created a shortage of approximately 4.9 million housing units as of 2023.

With that in mind, Ramsey and his co-host Jade Warshaw encourage Ethan to pull the trigger right away.

“I would say the right time to buy a house is when you can afford it,” Warshaw says.

Ramsey, meanwhile, believes Ethan could miss out on home price appreciation in the years ahead if he waits too long.

“The next round of real estate prospering these houses are going to shoot up again,” he says.

However, this advice overlooks another important characteristic of the housing market — that housing is local.

Housing is local

The national housing market is highly fragmented and influenced by several local factors. The market for condominiums in New York, for example, is strikingly different from the market for cottages in rural Nebraska.

Over the past year, San Francisco, Austin, and Miami have seen home prices decline between 7.7% to 10.9%, according to Realtor.com.

Factors such as over-construction in Texas, insurance costs in Florida and migration out of California could be some of the reasons driving these changes.

National statistics do not necessarily reflect these granular details for each market.

With that in mind, potential homebuyers should speak to local property experts and experienced investors to understand their local market before making what could potentially be one of the largest purchases of their life.

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• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

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

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• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

Legendary 49ers quarterback Steve Young earned nearly $49 million playing football, according to Spotrac, but you’d never guess it from the beaten-up 2011 Toyota Sienna he drives.

In a recent interview with journalist Graham Bensinger, the two-time NFL MVP admitted he could easily afford a replacement for the car, which has 132,000 miles on it. However, he’s reluctant to let it go because of advice from his father, who always told him to “get the most out of it.” And he’s not the only Young family member who’s emotionally attached to the vehicle.

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“This is a car that the kids all grew up in,” he told Bensinger. “My youngest Laila — that seat over there with the camera is the seat that she won’t give up. That’s her seat for life … she’s like, ‘No, I love this car [and] how it smells.’”

Surprisingly, multimillionaires driving modest cars isn’t as unusual as some might think.

The modest cars of millionaires

Contrary to the common stereotype, most wealthy people aren’t driving around in flashy Ferraris and bright orange Lamborghinis. A 2022 study by Experian Automotive, found that the top car brands for households earning over $250,000 were Toyota, Ford and Honda.

Even billionaires opt for relatively inconspicuous cars. Warren Buffett reportedly drives a Cadillac XTS — no Bugatti for the Oracle of Omaha.

In other words, most affluent people who could splurge on luxury vehicles simply choose not to. Meanwhile, many ordinary consumers are stretching their budgets to the limit. A recent survey by CDK Global found that 57% of car buyers said they hit the top end of their budget, while 7% exceeded it.

The strain on consumers is also reflected in auto loan data. As of mid-2024, one in every 24 drivers with a car loan was paying more than $1,000 in monthly payments per vehicle, according to Experian — a ratio that has nearly quadrupled since 2020.

For many, the family car is becoming a significant financial burden. Here’s how you can avoid the growing auto loan crisis.

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

Drive smart

For most consumers, cutting transportation costs is one of the most effective ways to improve their finances. According to a 2022 report by the U.S. Bureau of Transportation Statistics, transportation is the second-largest annual expense for the average household.

One way to reduce this expense is by purchasing a car that’s within — or even below — your means. Buying a used car, for example, helps you avoid significant depreciation and can lower transportation costs substantially. As of 2024, the average used car costs roughly $20,000 less than a new one, according to Edmunds.

To figure out whether a vehicle fits your budget, consider the 20/4/10 rule:

• Put at least 20% down.
• Choose a loan term of no more than four years.
• Keep all car related expenses below 10% of your gross income.

By setting up firm financial guardrails, you can avoid the auto loan debt trap many consumers are driving into.

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

American TV host and philanthropist Mike Rowe believes there’s a “horror story” unfolding in the American labor market.

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“The stat that sticks with me and worries me today is 7.2 million able-bodied men, today in their prime working years, are not only unemployed … [they’re] officially not even looking,” he said in an interview with non-profit Moms For America.

Rowe did not provide a source for this statistic, but the number of prime-age men (ages 25 to 54) not participating in the labor market was around 7 million in March 2025, according to the Bureau of Labor Statistics. There is no information on whether they are “able-bodied” or not.

Rowe also pointed to the shortage of tradespeople in the U.S. and said the nation’s labor force is “wildly out of balance.” Here’s why many men have abandoned the formal economy.

Able-bodied men? Not really

According to the Bureau of Labor Statistics (BLS), men between the ages of 25 and 54 saw their labor force participation rate drop from 98% in September 1954 to 89.1% in March 2025.

To understand why men in their prime were participating less, the Bipartisan Policy Center (BPC) conducted a survey in 2024.

Fifty-seven percent of prime-age men not seeking work cited physical, mental or behavioral health reasons. Close to 30% said they are not working by choice, and 9% said they are busy caring for others. "This was significantly different from men who are looking for work, of whom only 16% said their physical or mental health was the main reason they were out of work," said the study.

Put simply, men who are not employed and not looking for work may not be as “able-bodied” or mentally fit as Rowe assumes. However, his thesis about an unbalanced labor market seems justified. Men seem to have acquired skills that are no longer a good fit for the labor market.

Fortunately, there are solutions for both issues.

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

Solving the male participation crisis

Since mental and physical health concerns are keeping many men out of the workforce, a better framework for supporting employees in the workplace could address some of the participation challenges.

A majority of men (52%) not looking for work in the Bipartisan Policy Center survey said that better health insurance coverage from their employers would be an important factor for them to consider going back to work.

Between 40% and 47% also said they would like to see paid sick leave, accommodations for disabilities, flexible working arrangements and mental health benefits.

Meanwhile, Rowe is trying to address the talent gap by compensating young Americans who try to gain new skills and enter sectors with severe talent shortages.

His foundation, mikeroweWORKS, has given out nearly $12 million in scholarships to over 2,000 recipients across the country since 2008.

President Trump recently signed an executive order titled “Preparing Americans for High-Paying Skilled Trade Jobs of the Future” to expand the Department of Labor’s Registered Apprenticeships program.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

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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• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

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

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

If you’ve ever met someone whose lifestyle just doesn’t quite add up, you might be dealing with a high-class illusionist — someone pretending to be wealthy.

Amidst all the social pressure to keep up with your neighbors and achieve that dream lifestyle, many ordinary Americans are simply faking it until they make it.

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However, that’s a recipe for financial disaster according to financial experts Rachel Cruze and George Kamel.

"If you live fake rich, you’ll become real broke," Kamel quipped on a recent episode of The Ramsey Show.

Cruze pointed to the other end of the spectrum where the richest families are adopting a “stealth wealth” lifestyle to cover their true fortune.

“People that are actually really wealthy, you won’t really know it,” she said.

With that in mind, they offer a list of the top six signs that someone is pretending to be upper-class and living a lifestyle they probably can’t afford.

Sign 1: Flashy designer brands

Many consumers are buying fashion they can’t afford. Roughly 51% of Americans surveyed by LendingTree last year said they overspent to impress others, with 29% of them saying they wanted to feel successful.

The most common way to achieve this feeling, for 19% of respondents, was to spend on clothes, shoes and accessories. However, this perception of luxury brands and expensive clothing is an illusion.

If you’re looking to save money and build genuine wealth, maybe it’s time to ditch the flashy logos and invest in your future, especially when a potential recession could be looming.

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

Sign 2: Expensive wine on a beer budget

Being a wine snob is something most people would consider a sign of affluence, but research suggests expensive wine isn’t necessarily better than the budget bottles.

A study published in the Journal of Wine Economics found that members of the Princeton Wine Group, which has blind tested over 1,700 different wines since the 1980s, found little correlation between a wine’s taste, quality and price.

So the next time you’re at a restaurant, focus on your own preferences rather than the judgment of others.

Sign 3: Talking about money too much

During Cruze and Kamel’s conversation, Kamel took a dig at “crypto bros” who never miss an opportunity to tell you about how many billions the currency is worth “for the moment.”

“All these people talking loudly about money is usually a red flag to me,” Kamel said.

A 2023 study by Empower found that 62% of Americans actually struggle to discuss money with their friends and family, which also isn’t great.

But, excessively bragging about your finances could be a sign of insecurity that you may need to deal with.

Sign 4: Flaunting wealth on social media

Influencer and hustle culture has been around long enough that a growing number of social media users are suspicious of the glamorous lifestyles they see on their feed.

In 2021, HBO’s documentary “Fake Famous” pulled back the curtain on the industry’s underhanded tricks by turning three “nobodies” into relatively successful online influencers.

So, the next time you see someone posting pictures of a luxury resort or designer purse on Instagram, swap your sense of financial anxiety for a healthy dose of skepticism.

Sign 5: Leasing luxury cars

Leasing cars has become more common in recent years as consumers struggle with rising interest rates and look for more affordable options.

According to Experian, roughly 25% of new vehicles were leased in 2024, up from 21% in 2023 and 19% in 2022.

That means one in every four cars you see on the road are probably rented. Your friends or neighbors with fancy SUVs are likely stretching their budgets to keep those wheels.

"If you’re a dude and you’ve ever posed in front of any vehicle, it’s a hard no for me,” Kamel joked. “Your dad didn’t hug you enough.”

Sign 6: Over-accessorizing

One last sign that you may be faking your riches is if you’re going above and beyond with your appearance.

“Over accessorizing, flashy nails, expensive watches, loud hair/makeup,” are all indicators of an unsustainable need to appear wealthier, according to Cruze.

Genuinely rich people don’t necessarily feel the need to remind everyone about it. Ditching the bling may be the first step to rescuing your bank account.

If any of the above signs sound like someone you know, remember you’re only seeing the tip of the iceberg. What really counts is living within your means and feeling confident that if you were to stumble into a period of financial misfortune, you’d have enough saved to bridge the gap.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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