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Author: Vishesh Raisinghani

  • Here are the top 5 states in America most impacted by Trump’s new Social Security rule — do you live in one of them?

    Here are the top 5 states in America most impacted by Trump’s new Social Security rule — do you live in one of them?

    As the changes to Social Security continue, some older Americans may find themselves having to play catch-up.

    In March, President Donald Trump signed an executive order to stop issuing paper checks by September 30 and instead use direct deposit, prepaid cards or other digital payment options.

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    This move might seem inconsequential, but it impacts nearly half a million seniors nationwide. While the White House is determined to modernize the system, many retirees have yet to fully adopt new technologies, putting them at risk of missing essential benefits.

    According to the Social Security Administration (SSA), 485,766 beneficiaries received their monthly Social Security payments via physical check in April.

    With that in mind, here are the top five states where seniors are most exposed to this sudden change.

    Where the end of paper checks will be felt most

    There isn’t a state in the union that doesn’t have someone who still receives their benefits via the post. However, some states expect to weather the change better than others.

    For instance, in the District of Columbia, only 789 retirees received physical checks for Social Security in April. In North Dakota and Wyoming, that number is less than 940. Most seniors who rely on a more traditional form of payment live in one of the largest states or overseas territories.

    In U.S. territories such as Puerto Rico, approximately 6,785 individuals still receive their Social Security benefits through physical checks each month, rather than through direct deposit.

    Among the 50 states, California stands out with the highest number of residents still relying on paper checks for their monthly Social Security payments — exactly 51,649 people. Texas is a distant second with 35,504 recipients, while New York ranks third with 30,676 individuals.

    Despite the widespread push toward digital payments, tens of thousands of Americans remain dependent on traditional check delivery. Florida, often regarded as a top retirement destination for older Americans, is home to many seniors who still receive paper checks. According to SSA data, 30,016 Floridians continue to have their monthly payments delivered by mail.

    Finally, Ohio rounds out the top 5 with 19,769 Americans still preferring paper to digital payments.

    Still, many of these seniors may struggle to pivot to the Trump administration’s change in policy to online payments.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Barriers to modernization

    According to 2024 data from the Pew Research Center, roughly 10% of U.S. adults over 65 do not have an internet connection, which places them at a disadvantage.

    Although Trump’s executive order offers an exemption for individuals who do not have access to banking services or electronic payment systems, many seniors may not qualify for this exemption before the September deadline.

    Recent cuts to the SSA have seen field offices shuttered and staff reduced. That means beneficiaries who do not have internet or have mobility issues may have trouble connecting to the agency in person or by phone.

    Those impacted by the policy change are encouraged to call or visit the SSA to ensure their benefit payments are not disrupted.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

  • Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings

    Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings

    Most Canadians would consider $1.54 million the “magic number” for retirement savings, according to a BMO survey. Unfortunately, many are falling short of that goal.

    As of 2023, the median household net worth for people aged 55 to 64 was just $873,400, according to the Statistics Canada. Meanwhile, about 20% of adults over 55 have less than $5,000 in savings, the Healthcare of Ontario Pension Plan reports.

    In other words, many people are approaching retirement with little savings and not much time to turn things around. If you’re over 50 or 60 with no nest egg, typical wealth-building strategies like career changes, long-term investing and slow-and-steady savings likely won’t get you to your goal.

    But that doesn’t mean it’s impossible to retire comfortably. It just means the path is narrower and more difficult than it would have been in your 30s or 40s.

    Here’s one way to build wealth on a faster timeline.

    Eliminate debt

    The only thing worse than having no savings is having a negative net worth. Without a financial cushion, your loans and credit card balances are propped up by your income, putting you in a fragile financial position.

    That’s why the first step is tackling your debt. Consider using the avalanche or snowball method to start knocking down your liabilities. Once you free yourself from monthly interest payments, you can move on to the next step.

    Save aggressively

    With a short time frame, you’ll likely need to make bold moves to build up your savings. That could mean cutting back on spending, downsizing your home or even relocating to a more affordable area. Saving as much as 50% of your income may seem extreme, but it can help you reach a modest retirement goal faster.

    According to SmartAsset, the median income of someone between 55 and 64 is about $1,563.13 per week, or $75,030 per year according to StatCan. Saving 50% of that gives you about $37,515 a year, or $3,126.25 per month.

    Investing that $3,126.25 monthly in a low-cost index fund like Vanguard’s S&P 500 ETF (TSX: VFV) could help it grow significantly. The fund has delivered a 14.55% annualized return since its inception. If that performance continues, you could have $793,620 in 10 years.

    That might be enough for a bare-bones retirement, depending on your lifestyle. But if you want more flexibility, you’ll need to boost your income as well as cut expenses.

    Side hustles

    Starting a business or side hustle could help you increase your income enough to build a comfortable retirement within a decade.

    It’s not an uncommon career choice. According to RBC, 51% of Canadians are considering starting their own businesses. While building a business has its risks, it also offers high potential and relatively low barriers to entry.

    However, StatCan data shows that the "business survival rate for the goods-producing sector was 50.8%, compared with 35.2% for the services-producing sector" after 10 years in operation.

    If going all-in feels like too much, a side hustle may be a better option. It’s more common and less risky. Nearly one in four (23%) of Canadians say they have a side hustle to supplement their income, according to H&R Block.

    While a side hustle might not make you rich on its own, taking on high-skilled jobs like tutoring, interior design, public speaking or social media management could make a bigger difference.

    For example, adding $1,000 more per month to your investments in Vanguard’s ETF could grow your 10-year nest egg from $793,620 to about $1,047,477.

    When you’re playing catch-up, every extra dollar counts.

    Sources

    1. BMO: BMO Retirement Survey: Over Three Quarters of Canadians Worry They Will Not Have Enough Retirement Savings Amid Inflation (Feb 12, 2025)

    2. Statistics Canada: Median family after-tax income by family type and age of oldest adult, Canada, 2019 to 2022

    3. Healthcare of Ontario Pension Plan: 2024 Canadian Retirement Survey (Jun 20, 2024)

    4. RBC: A significant number of Canadians have started or are considering starting their own business in 2024: RBC Poll (Sept 18, 2024)

    5. Statistics Canada: Key Small Business Statistics 2023 (Feb 2, 2024)

    6. H&R Block: Around a third (30%) of Canadian gig workers didn’t plan to report all gig income this tax season; 71% had change-of-heart upon learning about new rules mandating gig platforms to share users’ earnings with CRA, reveals new H&R Block Canada survey (Mar 5, 2025)

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

  • Dave Ramsey just issued a blunt reality check to people under 40: ‘If you don’t retire a millionaire, that’s no one’s fault but yours.’ Here’s the math to hit $11,600,000 at 65

    Dave Ramsey just issued a blunt reality check to people under 40: ‘If you don’t retire a millionaire, that’s no one’s fault but yours.’ Here’s the math to hit $11,600,000 at 65

    While the headlines have been dominated by a rollercoaster in the stock market, financial guru Dave Ramsey isn’t going doom and gloom.

    In fact, the radio host believes every young North American has a shot at becoming a millionaire.

    “If you’re under 40 years old and you don’t retire a millionaire, that’s no one’s fault but yours,” the 64-year-old said on X, formerly known as Twitter..

    Here’s a closer look at the math behind his exhortation.

    Everyone can be a millionaire

    Despite the economic challenges facing young Canadians, Ramsey believes that the average 25-year-old needs to save just a fraction of their annual income to retire at 65 with over $1 million.

    However, his thesis assumes that this 25-year-old invests in “good growth stock mutual funds.” According to his calculations, diligently investing just $100 a month into such growth funds could create a $1,176,000 nest egg within 40 years.

    Ramsey doesn’t mention any specific growth funds, but his calculations imply a roughly 12.85% annual growth rate.

    For example, the Vanguard S&P 500 ETF (TSX: VFV) has delivered a compounded annual growth rate of 16.93% since its inception in 2012.

    In fact, the S&P 500 has delivered an average annual return of 10.13% since 1957, according to Investopedia.

    Given the long-term performance of these index funds, Ramsey’s assumption doesn’t seem unreasonable, even when you take into account the recent volatility in the stock market in response to U.S. President Donald Trump’s tariff announcements. There have been many shocks, dips, corrections and outright crashes in the past 100 years, and the market has always eventually bounced back.

    If you want to begin your investing journey but aren’t sure where to begin, Wealthsimple Invest creates a smart investment portfolio tailored to your needs to help you achieve your financial goals.

    With low fees, these expert-managed portfolios are designed to withstand market fluctuations, helping you make the most of your money.

    What’s more, you can automate your monthly contributions through RRSPs and TFSAs, and Wealthsimple takes care of the little things, like asset allocation, rebalancing your portfolio, and reinvesting dividends.

    Wealthsimple’s advisors are fiduciaries — meaning they are legally required to put your financial interests first.

    The best part? You’ll get $25 bonus when you open your first Wealthsimple account and fund at least C$1 within 30 days.

    Ramsey’s path to $11.6 million

    The four variables of the compound growth calculation are time, initial investment, regular investment and growth rate. Of these, the only variable you can somewhat control is regular investment.

    Investing $200 or $300 a month could help you create a nest egg significantly bigger than just $1 million. Ramsey recommends setting the bar even higher at 15% of gross annual income.

    “The average household income in America today is US$79,000. If you invested 15% of that (US$11,850 a year), you would retire with around US$11.6 million,” he said on X.

    The average household income for Canadians is C$70,500. Following Ramsey’s rule, you would need to invest C$10,575 per year to maximize your retirement fund.

    However, most Canadians are saving significantly less than Ramsey’s target. In the third quarter of 2024, the average household savings rate in Canada was 6.10%, down from 7.30% in the third quarter of 2024. The rising cost of living, stagnant wage growth and debt servicing costs are barriers most families face regardless of age.

    One common financial mistake is keeping your money in low-interest savings accounts. High-yield savings accounts can offer returns up to 10 times higher than those from traditional banks, according to NBC Select and Dynata Banking Behaviors.

    If you’re looking for the best bank for your savings, you can open a high-interest savings account with Simplii Financial and earn 4.25% APY on eligible deposits for the first four months. Plus, Simplii Financial charges no account, monthly, or transaction fees.

    Unlike Guaranteed Investment Certificates (GICs), you can access and withdraw funds anytime you want from your Simplii Financial account.

    Leveling up your investments

    Amid the ongoing market volatility and escalating tensions between the U.S. and Canada, it’s crucial to protect your portfolio against risks.

    Diversifying your investments across multiple asset classes — such as stocks, bonds and ETFs — can help you significantly hedge against market risk.

    Opening a discount brokerage account with CIBC Investor’s Edge can help you diversify your portfolio without having to pay exorbitant commissions on trades.

    Plus, you don’t have to pay any account or maintenance fees for RRSPs with a balance of over C$25,000, and TFSAs and non-registered accounts with a balance higher than C$10,000.

    CIBC Investor’s Edge charges a discounted commission rate of C$4.95 per trade for active traders making over 150 trades in a quarter.

    If you open your CIBC Investor’s Edge account before Sept. 30, you can get up to 100 free equity trades and over $200 in cash back.

    Other paths to become a millionaire

    Homeownership can be a key stepping stone to reaching millionaire status by retirement. Once you’ve decided on the kind of house you want to purchase, shop around and compare mortgage rates offered by reputable lenders near you through Loans Canada.

    Here’s how it works: Select the kind of loan you want to get and submit an application, and Loans Canada will sort through its network and display the best possible offers for you.

    Those who want to refinance their existing mortgage can compare refinancing rates offered by leading lenders through Loans Canada.

    Refinancing your home loan through Loans Canada could help you pay off your mortgage early in two ways. By securing a lower interest rate, you can either maintain your current monthly payment while more of it goes toward the principal, or you can opt for a shorter loan term to accelerate your path to homeownership.

    The best part? You can apply for a mortgage or refinance loans even with poor credit — and it’s 100% free.

    Sources

    1. X:@daveramsey

    2. Investopedia:S&P 500 Average Returns and Historical Performance (Dec 26, 2024)

    3. Statistics Canada:Quality of life Indicator

    4. Trading Economics:Canada Household Savings Rate

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

  • This retired teacher, 77, just moved onto a cruise ship for the next 15 years — claims it’s cheaper than living in California. Does the math make sense for you?

    This retired teacher, 77, just moved onto a cruise ship for the next 15 years — claims it’s cheaper than living in California. Does the math make sense for you?

    For many retirees, a cruise is a once-in-a-while indulgence but for 77-year-old Sharon Lane, it’s now home.

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    In June, the retired foreign language teacher from Orange County moved into a cabin on the Villa Vie Odyssey, described as the world’s first perpetual cruise ship, according to NBCLA and CNN.

    The contract enables her to make the cruise ship her permanent address for the next 15 years, an arrangement that Lane says is a better deal for her. Prior to this, she was renting a home in the Laguna Woods retirement village.

    “Not only was it affordable to me, it would actually cost me less money to live here like this, have everyone taking care of me instead of me taking care of everybody," she said to NBCLA.

    Her unconventional move highlights how the cost-of-living crisis in some states has spiraled out of control and why more retirees should consider moving to save money.

    Cheaper than California

    Unlike a typical cruise, the Villa Vie Odyssey is a residential cruise ship. That means customers don’t book short trips but purchase a cabin on the ship, which has an estimated lifetime of 15 years, according to CNN.

    Lane used her life savings to purchase an inside, windowless cabin, for which prices start at $129,000. She also has to pay $3,000 in monthly fees. This includes food, soft drinks, alcohol at dinner, Wi-Fi, and medical visits. Entertainment, room service, weekly housekeeping, and bi-weekly laundry are also provided at no additional charge.

    “All the chores you do in life? Done!” Lane told NBCLA. “If you put your to-do list on a piece of paper and you cross off anything that wasn’t a fun activity, then you end up with the life we have now.”

    Not only is this convenient, but it may be cheaper than living in the Golden State.

    The average rent for a one bedroom apartment in Laguna Woods, where Lane was formerly living, is $2,325, according to Zumper.The average rent for a studio apartment in the state is $1,856, according to Apartments.com.

    This means it’s possible Lane’s monthly expenses would have been higher than her cruise cabin if she decided to live in an apartment in California.

    However, it’s important to note that as she gets older she may need more assistance with daily tasks and medical care. It’s unclear if such perpetual cruises will be able to provide for the needs of such retirees. Lane may also find it difficult to participate in excursions as she gets older.

    CNN says those who purchase long-term cabins on Odyssey do have the option to sell. In such a situation, Lane would need to get a good price and consider senior housing. The median monthly cost of assisted living in California is $5,561, according to A Place for Mom.

    Altogether, Lane’s decision to set sail on a perpetual cruise may seem financially savvy, but complications could arise.

    For those who get easily sea-sick or are otherwise nervous about spending years on a ship, there are other ways to save costs in retirement.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Should you consider a move too?

    Relocating could be the best way to save costs in retirement, but you don’t need to book a cabin on a never-ending cruise.

    Instead, moving to a new state with relatively lower costs of living could be a more conventional approach to retirement.

    States like Missouri, Wyoming, Tennessee and Arizona can offer lower taxes, cheaper real estate and affordable living costs, according to the Institute of Financial Wellness.

    A Place for Mom says median independent living costs can be as low as approximately $2,250 per month depending on the state. It’s $3,500 a month in California.

    You could also consider moving to another country to unlock a more comfortable retirement.

    According to the International Living’s Global Retirement Index for 2025, Panama, Spain and Malaysia are some of the top options for American retirees seeking a cheaper lifestyle.

    Whether you swap zip codes, cross international borders, or opt for a floating home on a cruise ship, changing your address in retirement can help cut expenses and upgrade your quality of life.

    But don’t overlook the emotional side — being near family and friends often matters just as much as money. If your social circle is a top priority, you could consider aging in place despite the costs.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

  • Never reveal these 5 things to anyone if you’re an older Canadian — or it could backfire badly. How many have you disclosed already?

    Never reveal these 5 things to anyone if you’re an older Canadian — or it could backfire badly. How many have you disclosed already?

    Older Canadians have a lot to keep an eye on as they age, from health concerns to financial planning to long-term care. But one risk that’s often overlooked is the threat to their personal information.

    Sharing too much about your finances, legal matters or health, even with close friends or family, can leave you vulnerable to fraud, manipulation or unintended consequences.

    Here are five things you should never reveal unless you’re speaking with a trusted professional, and the reasons why keeping them private matters.

    Your net worth or salary

    Older Canadians are considerably wealthier than the average citizen, with a median household net worth of $1.1 million in 2023 according to Statistics Canada. In comparison, couples with children under 18 had a median household net worth of $645K. This makes seniors a prime target for scammers, fraudsters and even opportunistic acquaintances.

    Criminals zero in on retirees and older Canadians because of their financial standing. According to the Ontario Provincial Police, seniors lost over $180 million to fraud in 2024, which is nearly one third of the total losses ($648M) experienced by all age cohorts nationwide.

    When others know the details of your financial situation, like your salary, savings or net worth, it can increase your exposure to theft, manipulation or financial abuse.

    To protect yourself, keep that information private unless you’re working with a licensed financial advisor or another trusted professional.

    Passwords and other sensitive personal information

    Relying on family for tech support is common, but handing over your passwords, PINs or login details can put you at serious risk.

    Whether it’s your banking credentials, Canada Revenue Agency account or even just your email password, sharing that access opens the door to mistakes, misuse or, in worst cases, exploitation.

    Cyber criminals often target seniors who may be less familiar with online security practices or new and creative scams. And once your personal information is out there, it’s incredibly difficult to rein it back in.

    To stay safe, never share passwords unless it’s absolutely necessary. The more tightly you guard your digital life, the less vulnerable you are to scams and identity theft.

    Power of attorney

    A power of attorney (POA) is a smart and necessary tool as you age. It allows someone you trust to manage your affairs if you’re ever unable to do so yourself. But it’s also one of the most commonly misused legal documents.

    Granting someone POA gives them broad authority to act on your behalf, which can include accessing your bank accounts, selling property or making medical decisions. And when that authority falls into the wrong hands, it can lead to serious financial harm or even elder abuse.

    According to Carefull, misuse of power of attorney is a leading method of financial exploitation among older adults. Even well-meaning family members can overstep, especially if they feel entitled to manage your affairs their way.

    To protect yourself, don’t rush the process. Work with a qualified attorney to create a POA that clearly outlines limits and responsibilities. Only assign this role to someone you trust implicitly, and review the document regularly to ensure it still reflects your wishes.

    Details of your will

    Your will and estate plan contain some of your most sensitive information, from a full list of your assets to exactly who will receive what. In the wrong hands, those details can be used against you.

    Scammers may see your estate plan as a blueprint for potential fraud, while even close relatives might try to influence your decisions once they know what’s at stake. In some cases, that pressure can turn into manipulation or financial abuse.

    In fact, Statistics Canada warns elders that abusers usually have some closeknit bond with their victims. "They can include your spouse, son or daughter, other relative, friend, neighbour, or caregiver. They use their connection to take advantage of you and force you do what they want."

    To avoid putting yourself in a vulnerable position, don’t share the details of your will with anyone who doesn’t need to know. Keep those conversations between you, your lawyer and your executor — and make sure everything is stored securely and updated regularly.

    Mental health or other health-related issues

    As we age, health issues involving memory or cognitive function can become more common. Unfortunately, this can also make older adults more vulnerable to exploitation.

    A study published in the National Institute of Justice Journal found that cognitive decline is closely linked to an increased risk of fraud. When others are aware of your mental health challenges, it can open the door to manipulation.

    This doesn’t mean you should hide your health concerns. But it does mean you should be thoughtful about who you share them with. Stick to medical professionals and a small circle of trusted loved ones. Put protections in place, like legal safeguards and a medical power of attorney, to ensure your wishes are honored no matter what.

    Protecting your personal information is just as important as protecting your physical health or financial assets, especially as you get older. By keeping sensitive details private and working only with qualified professionals, you can safeguard your independence and avoid unnecessary risks down the line.

    Sources

    1. Statistics Canada: The assets, debts and net worth of Canadian families, 2023 (Oct 29, 2024)

    2. X: Fraud targeting seniors accounted for more than $180M in financial losses across Canada in 2024, with the most common scams being service fraud, by Ontario Provincial Police (Jun 24, 2025)

    3. Canadian Anti Fraud Centre: Recent scams and fraud

    4. Carefull: How to Prevent Power of Attorney Abuse, by Cameron Huddleston (Jan 25, 2023)

    5. Statistics Canada: What every older Canadian should know about: Financial abuse (May 7, 2025)

    6. National Institute of Justice: Examining Financial Fraud Against Older Adults, by Rachel E. Morgan and Susannah N. Tapp (Mar 20, 2024)

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

  • Here’s the 1 surprising thing that happens when you draw down your 401(k) to boost Social Security — shrewd move or bonehead choice?

    Here’s the 1 surprising thing that happens when you draw down your 401(k) to boost Social Security — shrewd move or bonehead choice?

    On paper, drawing down your 401(k) to delay Social Security benefits seems like a clever maneuver. After all, the monthly benefit check grows larger every year that you manage to delay retirement.

    However, there’s more to consider than just the size of the monthly payout. Here’s why you, and perhaps your financial advisor, should take a closer look at all the other variables that can impact your retirement income.

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    A surprising impact

    A simple calculation would have you believe that it’s best to delay collecting Social Security as long as possible.

    After all, your monthly benefit checks can be roughly 30% higher if you wait until retirement instead of collecting at the earliest possible age of 62, according to the Social Security Administration.

    However, this theoretical calculation is done in a vacuum and doesn’t consider any other factors.

    Surprisingly, for some people taking Social Security early might actually be the better option when they consider all the other factors. Your total payout from the day you retire until the end of life could be higher. Here’s a better approach to make this decision.

    Consider all the factors

    An often-overlooked complicating (and key) factor in the simple calculation above is the opportunity cost of your 401(k) investments. Every dollar you withdraw from this account is one less dollar that could be compounding with interest payments or the stock market.

    Over the past five years, the Vanguard S&P 500 ETF has delivered a compounded annual growth rate of 15.85%. In other words, you would boost your nest egg by roughly 30% in just under two years, outperforming the Social Security boost, which is capped.

    Even if the stock market returns are significantly lower — say 5% compounded annually — your nest egg would be 30% larger within five and a half years. Besides, if stocks are in a deep bear market when you turn 62, it might not be the best time to sell your assets at distressed valuations.

    Drawing down your 401(k) for monthly income might also be easier if you have a sizable nest egg to rely on. However, if your assets are limited, drawing down on it for several years could leave you feeling squeezed before you ultimately decide to take benefits.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Other factors to consider are your health and longevity. Average life expectancy for U.S. adults is 78.4, according to the CDC, which means you’re statistically likely to enjoy just seven or eight years collecting benefits if you wait until full retirement age.

    However, if your end of life is sooner or later it could dramatically shift the calculation. Waiting until full retirement age might be a better financial decision if you expect to live to 90, for example.

    There are also tax considerations. If you are still working in your mid-60s, drawing down your 401(k) might be a better move than taking Social Security benefits which are subject to taxes.

    There’s a lot of variables to consider, so the ultimate calculation depends on your personal preferences and financial situation.

    Which choice is right for you?

    For many retirees in good health with a long life expectancy, it’s often wiser to draw down their 401(k) first and delay Social Security to maximize guaranteed, inflation-adjusted income.

    This strategy offers more control over taxes and can reduce future required minimum distributions (RMDs).

    However, taking Social Security early may be better for those with health issues, immediate income needs, or smaller retirement savings.

    Speak to a financial professional and make sure they’re considering all these factors before they draft your long-term retirement plan.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

  • Paul Simon’s daughter says she still hates Richard Gere for breaking his promise — flipping her family’s Connecticut home to developers for millions before absconding to Spain

    Paul Simon’s daughter says she still hates Richard Gere for breaking his promise — flipping her family’s Connecticut home to developers for millions before absconding to Spain

    Lulu Simon, the daughter of music icons Paul Simon and Edie Brickell, took to Instagram to share her story of property-related heartbreak involving Hollywood legend Richard Gere.

    She says that the Pretty Woman star assured her parents that he would “take care of the land” when he purchased the family’s six-bedroom Connecticut mansion in 2022.

    But just two years later, Gere decided to flip the home to a developer for $10.75 million amid his move to Spain, according to People. The property is now being demolished to make way for a massive new development.

    “Just in case anyone was wondering if I still hate Richard Gere — I do!” Lulu wrote on Instagram. There’s no public record of any legal obligation preventing redevelopment, but the emotional betrayal clearly struck a nerve. Gere has not publicly responded to the post.

    Although she didn’t clarify if the sale agreement had any redevelopment restrictions built into it, her story highlights the pros and cons of selling your family home to developers, institutions or professional property investors.

    Don’t miss

    Pros of selling to professionals

    If you’re listing your home on the market, there’s a significant chance that you might get an offer from a professional developer or investor. In 2024, roughly 13% of homes were purchased by investors, according to Realtor.com.

    These could include landlords, developers, private investment companies or real estate investment trusts. What they all have in common is that they’re buying the home to make a profit rather than live in.

    Generally, these investors are well capitalized and have a readily-available pool of capital or robust relationships with lenders to finance the purchase.

    Nearly 62% of small investors and 68.9% of large investors paid all-cash for their transaction, according to Realtor.com. That means you can get paid quickly with minimal disruption.

    Another advantage of selling to professionals is that you don’t need to invest much in renovating or upgrading your property. Professional buyers often target tear-downs, where they can add value through redevelopment.

    Speaking of value, a strategic investor could also deliver a better offer for your property than a typical family because of the redevelopment potential. This gives you a chance to exit at a premium.

    However, it’s also worth considering some of the downsides of selling your home to a developer or investor.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Cons of selling to professionals

    Taking into consideration the emotional cost of selling to developers and real estate investors is one of the biggest factors that can come into play in a situation like this. Seeing your childhood home or marital property turned into an Airbnb or corporate headquarters isn’t easy, especially if you have pleasant memories attached to the home.

    The decision could also impact your relationship with your neighbors and the wider community. Demolition and construction is often fairly disruptive and could shift the neighborhood’s character in a way that frustrates your friends.

    There’s also some financial downsides. For instance, you could be leaving some money on the table when you sell to a developer rather than hiring a company to redevelop the property yourself.

    Self development gives you exposure to more cash flow and greater control. It could also offer you some flexibility to preserve some of the most cherished aspects of your home.

    What to read next

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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 made a colossal mess’: Dave Ramsey left speechless after Seattle man borrowed $80K from in-laws for trailer parked on their ‘dirt’ — now things are awkward. 3 crucial takeaways

    ‘You’ve made a colossal mess’: Dave Ramsey left speechless after Seattle man borrowed $80K from in-laws for trailer parked on their ‘dirt’ — now things are awkward. 3 crucial takeaways

    Jeremy from Seattle, Washington, believes his recent purchase of a recreational four-wheeler was a “dumb decision.”

    Speaking with finance guru Dave Ramsey on a recent episode of The Ramsey Show, the young man said his new “toy” is irritating his parents-in-law because they want him to focus on repaying $80,000 he borrowed from them to buy a manufactured home that sits on their property.

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    Ramsey quickly pointed out that purchasing the four-wheeler isn’t his biggest mistake: “You have a $80K trailer and you don’t own the dirt? Oh god, wow,” he said. “You guys have made a colossal mess.”

    “You’re playing Russian Roulette and there’s three bullets in the gun — not one,” Ramsey said.

    He offers three reasons why Jeremy’s deal with his family is a brewing financial disaster.

    1. Leaving collateral on “someone else’s dirt”

    Jeremy’s housing situation is precarious because he doesn’t have control over the land on which his home sits.

    Millions of Americans live in manufactured homes across the country, according to the Pew Charitable Trust, and 35% of those who financed their purchase have a “home only loan.”

    That means they owe money on something that almost always depreciates in value compared to a house. And on top of that, they lack control or ownership over the land, which is typically an appreciating asset.

    “You do not have control of the situation,” Ramsey explained to Jeremy. He points out that if anything were to happen — like say the in-laws were to cause a car accident and face a lawsuit as a result — the dirt under their trailer could be taken from them.

    “They have no control over that and you have no control over that. So you have set yourself up. And I’ve seen this a thousand times in 30 years of doing what I do — not owning the dirt under your trailer is a massive mistake.”

    2. Pitfalls of borrowing from friends and family

    Jeremy’s situation is exacerbated by the fact that his loan was borrowed from his family.

    Nearly 37% of recent homebuyers in the U.S. financed their purchase with some financial assistance from their parents or grandparents, whether that be co-buying, gifting them the deposit or allowing them to live rent free to save up for the purchase, according to Compare the Market.

    However, a study published in the Journal of Consumer Psychology found that borrowing money from loved ones complicates the relationship and can lead to feelings of animosity.

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    Jeremy is certainly feeling the strain in his relationship with his in-laws, which is why Ramsey recommends getting out of the deal. He wants Jeremy and his wife to sell the manufactured home (even if they’re to take a loss on it), repay their debt and start over renting somewhere else.

    “Borrowing 80,000 from your in-laws for anything for any reason is a massive mistake,” says the finance guru.

    3. Setting clear boundaries in every deal

    Unwinding Jeremy’s messy housing and financial situation could take some time. In the interim, Ramsey recommends having an open conversation with his in-laws to set clear expectations and boundaries.

    “You just sit down and say, ‘I thought our deal was I pay you monthly payments and you’re happy but now it’s I pay you monthly payments and I have to check with you before I buy anything and that’s not a deal I’m okay,” he recommended.

    Getting on the same page should help stabilize the relationship. While Ramsey doesn’t agree the in-laws were right about their indignation that Jeremy chose to indulge in a $6,000 toy as long as Jeremy was upholding his end of the deal, he does point out he put himself in this precarious position.

    Ramsey’s cohost Ken Coleman then piped up to offer Jeremy some “salve” after Ramsey’s scorching advice.

    “Walk away from this to realize it could have got a lot worse, and this thing can get nastier if you don’t fix it now. And I could not say that enough. You can dig out of this but I would start digging quickly.”

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  • The US car market is bankrupting Americans — and it’s only going to get worse. Here’s how to save thousands of dollars if you want to buy a car soon

    The US car market is bankrupting Americans — and it’s only going to get worse. Here’s how to save thousands of dollars if you want to buy a car soon

    The U.S. car market faces a perfect storm that is rapidly engulfing ordinary car owners across the country. The clearest sign of this is the rising rate of auto loan borrowers who are falling behind on their monthly payments.

    As of January this year, 6.6% of subprime auto borrowers were at least 60 days past due on their loans, according to a report by Fitch Ratings.

    This is the highest rate since Fitch started collecting this data in the early 1990s. And things are not expected to get better. The report says the subprime segment of the auto loan market faces a “deteriorating outlook” for the rest of 2025.

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    This is alarming given the size of the auto loan market. As of the first quarter of 2025, households collectively held $1.64 trillion in auto loan debt, according to the New York Federal Reserve.

    Not only is that larger than the outstanding student loan balance but it’s also the largest source of non-housing debt for all households in aggregate.

    Here’s how our cars transformed from symbols of freedom to symbols of unsustainable toxic debt.

    How did we get here?

    The foundation of today’s crisis was laid five years ago during the pandemic. Supply chain disruptions and factory closures at the time created strange dynamics that pushed car prices higher.

    In January 2022, 80% of new car buyers paid more than manufacturer’s suggested retail price, or MSRP, according to Edmunds. Used car prices were rising faster than new car prices at the time, according to Cox Automotive.

    In other words, car buyers paid too much for their cars. Now, values have declined while many owners have seen a steady rise in interest rates. This shift has pushed many car owners underwater on their purchase.

    In fact, 1 in 5 vehicle trade-ins near the end of last year had negative equity of $10,000 or more, according to Edmunds. The situation is grim and the outlook is just as bleak.

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    What comes next?

    While the auto market is dealing with rising interest rates and dropping prices, it’s now also facing the additional challenge of President Donald Trump’s trade war.

    Roughly 50% of the cars Americans purchased in 2024 were imported from other countries, usually Canada, Mexico, Japan and the EU, according to the Trump administration.

    Even domestic car makers rely on auto parts from other countries, which is why the administration recently stepped in to offer some rebates to domestic producers.

    Nonetheless, vehicles and auto parts currently face a 25% tariff. As a result, most cars under the price of $40,000 could see a price hike of roughly $6,000, according to Kelley Blue Book.

    Since the price hike comes at a time when consumers are already feeling squeezed, it’s unlikely that manufacturers can pass these costs along to them. Instead, many are cutting costs and reducing their workforce.

    Hundreds of General Motors and Stellantis autoworkers have been laid off, whhile Ford, having warned of potential layoffs, recently elimanted 350 softwarre jobs, saying the move was unrelated to tariffs, but "to make sure we are operating efficiently and effectively in a fast-paced and dynamic environment".

    Potential car buyers and owners need to prepare for this tough market.

    Protect yourself

    According to Kelley Blue Book, if you’re looking to buy a new car in this market it’s probably better to do so before the tariff impact trickles down to the price tag.

    However, given where interest rates and prices currently are, try to stick to a tight budget while shopping.

    Buying a relatively cheap used car or leasing one if you can find a good deal is probably a good idea.

    If you’re a car owner struggling with auto loan debt, consider trading it in for a cheaper model to reduce the burden. If you own multiple cars, it might also be a good time to sell one to reduce your loan exposure.

    It’s also worth considering refinancing or shopping around for a better auto loan interest rate. Locking in a good deal with attractive terms today could shield you from the volatility that potentially lays ahead in the car market.

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  • More Americans in their 20s are ditching college to get into the trades — but are blue collar jobs really more secure?

    More Americans in their 20s are ditching college to get into the trades — but are blue collar jobs 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.

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    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 35% year over year in May, 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.

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