Author: Vishesh Raisinghani

Concerns about a lack of job-ready skills have dominated workforce debates, but Mike Rowe, CEO of the mikeroweWORKS Foundation, is pointing to another crisis: a diminishing desire to work.

“The skills gap is real, but the will gap is also real,” said the 63-year-old former TV host in a recent interview with Fox Business.

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According to him, 6.8 million “able-bodied men” are not just unemployed but not even seeking employment. “That’s never happened in peacetime,” he argued.

Here’s why he believes America’s famous work ethic is gradually eroding.

Men abandoning the workforce

Data from the Bureau of Labor Statistics (BLS) shows that women’s participation in the workforce has remained relatively stable since the early-1990s. However, men’s participation has steadily declined, dropping from 86.6% in 1948 to 68% in 2024.

According to the Bipartisan Policy Center (BPC), the participation rate for men in their prime working years (ages of 25 to 54) has fallen from 98% in September 1954 to 89% in January 2024.

Notably, 28% of these men said they were not working by choice, validating Rowe’s claim that the desire for employment has diminished. However, the survey also found that 57% of prime-age men cite mental or physical health issues as barriers to working or job-seeking, suggesting that many are not as “able-bodied” as Rowe assumes.

Additionally, 47% of these men cite a lack of training and education, obsolete skills, or a lacklustre work history as major obstacles to employment. Fortunately, Rowe has a solution for this specific group.

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 crisis

Expanding opportunities for skills training could help bring some men back into the labor force.

Through his foundation, Rowe has given away $8.5 million in scholarships since 2008, supporting more than 1,800 men and women enrolled in skilled trades programs across the country.

“My goal with mikeroweWORKS is not to help the maximum number of people,” he told Fox Business. “It is to help a number of people who comport with our view of the world and are willing to go to where the work is. Who are willing to demonstrate something that looks a lot like work ethic here in 2025.”

Similarly, the BPC calls for expanding Pell Grant eligibility so that more people can access financial aid. As of 2024, roughly 34% of undergraduate students receive a Pell Grant, according to the Education Data Initiative.

Expanding workplace support programs could be key to reentering the workforce for men struggling with mental and physical health challenges. More than half of prime-age unemployed men surveyed by BPC said health insurance is a major factor in deciding whether to return to work.

Other critical benefits include paid sick leave, disability accommodations, flexible schedules and medical leave. Additionally, 40% of respondents said mental health benefits are very important, and 28% said they might have stayed at their previous job if they had access to paid medical leave.

While these solutions may be complex and expensive, improving male workforce participation could yield significant economic benefits, including lower inflation and higher growth, according to a 2023 study by the Center for American Progress.

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

What do you do if you’re 29 years old, at the prime of your career and earning tens of millions of dollars? For Jason Brown, it meant giving it all up to become a farmer.

Brown shocked the sports world in 2012 when he walked away from a $37.5 million contract with the St. Louis Rams — and the prestige of being the highest-paid center in the NFL — to buy a 1,000-acre plot in Louisburg, North Carolina, now known as First Fruits Farm.

The farm’s name hints at the fact that the Browns [donated the first yield of every harvest to local food banks, indicating that this wasn’t just a career shift for the professional athlete, but a personal mission. And, as the farm’s yields have increased, so too have their donations.

“We are a donation-first farm,” Brown told the University of North Carolina at Chapel Hill in 2017. “My wife and I made a covenant with God that whatever we produce on his farm, that we’re going to give our local communities our first fruits of whatever is grown from our farm.”

The leap from touchdowns to tractors may sound radical, but Brown’s fascinating story offers a blueprint for finding your true calling without going broke.

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Build a financial cushion

If giving back is your goal, don’t skip the foundational step: financial stability. Jason Brown’s journey from NFL star to full-time farmer-philanthropist was made possible by years of high-earning groundwork.

Like many impact-driven leaders, he built his safety net first, ensuring his mission wouldn’t be derailed by outside funding pressures or donor fatigue.

Rising operational costs and a lack of financial resources were cited as the top challenges by American non-profits, according to the 2024 State of the Nonprofit Sector Report by accounting firm Forvis Mazars. Roughly 68% of them are expected to cut back services in the next two years as a result.

By accumulating wealth and self-funding your philanthropic efforts, you can avoid these issues and prolong the life of your social venture.

Align your financial freedom with a deeper mission

A 2024 survey by ResumeBuilder revealed that 13% of retired seniors plan to re-enter the workforce in 2025. Notably, 26% of these retirees expressed strong enthusiasm about returning to work — with 42% citing boredom as their primary motivation.

This trend highlights a broader issue: while many people dedicate years striving for financial freedom, few invest the same energy into envisioning how they’ll spend their time once they achieve it.

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Financial freedom often brings unexpected challenges, like a loss of purpose or daily structure, leading some to return to work — not out of necessity — but to regain a sense of fulfillment and engagement.

To combat this, align your long-term financial goals with a deeper personal mission. Whether it’s fighting food insecurity like Jason Brown or tackling malaria in India, like Bill Gates, dedicating your life and resources to a cause that means a lot to you could be the best way to spend your financially free years.

Learn to make an impact

Philanthropy isn’t just about good intentions — it requires specific skills. If you’re planning to launch a non-profit or social enterprise, invest time in understanding the competencies needed to succeed in this space.

Brown, for instance, says he knew nothing about farming or agriculture before he launched First Fruit Farms. “I went to the online University of YouTube, while playing football,” he joked in an interview with TODAY’s Carig Melvin. “I watched hours and hours of film every single day.”

Similarly, your passion project or social mission might involve a learning curve. Acquiring these skills early could boost your chances of success.

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

According to the 2025 Northwestern Mutual Planning & Progress study, the average American now believes they need $1.26 million to retire. That’s $200,000 less than they said they needed last year and nearly the same as the figure quoted in 2022.

The fact that the target hasn’t moved much in the last three years hasn’t made it more accessible, however. The vast majority of U.S. adults are still falling short of this benchmark and are hurtling towards a difficult and uncomfortable retirement. Here’s why, and what you can do to help yourself reach that figure.

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Lack of savings and investments

Although most Americans agree that they need to enter the seven-figure club to retire comfortably, only a small fraction of the population has actually achieved this target.

As of 2024, the U.S. was home to 7.9 million millionaires, according to Capgemini Research. That’s roughly 3% of the country’s total adult population, which means that 97% of Americans haven’t yet reached millionaire status. And keep in mind: that figure includes people of all ages and wealth levels, not just those nearing retirement. Several factors contribute to this shortfall. While some Americans may not prioritize retirement savings, many face barriers that make it difficult to set aside money, including rising housing costs, student loan debt and inflation. Even those who are diligently saving can find it challenging to keep up with the growing cost of a comfortable retirement.

Starting early is key to saving for retirement

Although 97% of people aren’t millionaires, many could meet that target eventually if they start investing at a young enough age.

A 20-year old, for instance, needs to invest just $330 a month into an asset class that delivers a steady 7% annual return to reach $1.26 million by the time they turn 65. Having the luxury of time significantly boosts your chances of becoming a millionaire.

This doesn’t mean it’s too late for middle-aged savers, but it takes a significantly greater investment. If a 50-year-old hasn’t started saving for retirement, they’d need to invest $3,958 a month at a steady 7% return to reach $1.26 million by retirement.

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The real ‘retire comfortably’ number will be unique to your situation

Saving $1.26 million doesn’t guarantee a comfortable retirement for everyone. For example, if your net worth is $1 million but your annual living expenses are $200,000 or $300,000, you need much more than $1 million in savings to continue living the same lifestyle in retirement.

In fact, two thirds of millionaires don’t consider themselves “wealthy” and half of them say their financial planning needs improvement, according to another study by Northwestern Mutual. In short, being a millionaire doesn’t mean you’re ready for retirement.

If you live in a state or another country with a lower cost of living, your target might be smaller. According to Empower’s calculations of tax burdens and costs of living, states like Alaska and New Hampshire might be ideal for retirees looking to minimize their expenses. Try using a retirement calculator or consulting a financial planner to determine your personal target. With enough time and meticulous planning, you can be on track for almost any type of retirement you might want.

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

After 233 years in circulation, the U.S. government is finally phasing out the penny. According to a Treasury Department spokesperson, the U.S. Mint has made its last purchase of penny blanks and will halt production of the coin once that supply is exhausted, likely by early next year.

The move is part of the Trump administration’s efforts to cut operational costs.

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“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” President Donald Trump said in February.

The cost of producing a single penny has surged over the past decade — climbing from 1.3 cents to 3.69 cents — with a sharp 20% increase in fiscal year 2024 alone, according to the Mint. Still, penny production accounts for just 0.00003% of the U.S. federal budget, according to CNBC — a tiny drop in a multi-trillion-dollar ocean.

While the move won’t make much of a dent in the federal deficit, it could change the way Americans save and spend. Here’s how.

Impact on savers

Saving cash and pinching pennies isn’t as common as it used to be, but many Americans — especially seniors and low-income consumers — still like to keep some coins around. The Federal Reserve estimates that a typical household could have $60 to $90 in coins at home.

If you or your grandparents have a stash of pennies, this could be a good time to convert them into digital savings that can earn interest or capital appreciation instead of steadily losing value to inflation.

Impact on collectors

Since the Mint plans to stop producing pennies, the number in circulation will gradually decline. But experts say most pennies aren’t likely to become rare collectibles.

One exception is the 1943 copper Lincoln wheat cent — a famous minting mistake that slipped through during World War II, when copper was supposed to be conserved for the war effort and pennies were made from zinc. According to John Feigenbaum, publisher of the Greysheet Rare Coin Price Guide, these elusive coins have occasionally sold for as much as $1 million at auction.

Still, the odds of finding one in your spare change are incredibly slim. Feigenbaum told USA TODAY it’s about as likely as finding a forgotten winning lottery ticket in your junk drawer.

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Impact on shoppers

Despite the rise of digital payments, cash and coins remain popular. A recent YouGov poll found that 67% of U.S. adults used cash for at least one transaction in the previous 30 days.

Consumers will still be able to use pennies after production stops. But as they gradually disappear from circulation, the Treasury Department told the Wall Street Journal that businesses will need to adjust. Prices may be rounded up or down to the nearest 5 cents.

That means the days of 99-cent pricing may be numbered. And don’t be surprised if businesses more often round up than down.

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

In a recent interview with Shannon Sharpe on Club Shay Shay, entrepreneur and Barstool Sports founder Dave Portnoy made a surprising admission: his ex-wife Renee still has “full access” to his bank account.

Portnoy, who is reportedly worth $150 million, said, “I trust her implicitly. If she wanted to take it, she could… to be honest, she was there when we were living at the in-laws house, she was there when we couldn’t afford a hamburger, she was there through the grind. We kind of separated when we started making it, so she doesn’t get to enjoy any of that? To me, that’s not right.”

Though the couple has been separated for years, Portnoy said in a previous interview with ESPN’s Sage Steele that their divorce proceedings stalled when a judge insisted their financial agreement was unfair to Renee. But she didn’t want half, he explained, so they agreed to a private arrangement outside of court. While Portnoy’s story may sound unconventional, it highlights just how messy and expensive divorce can be.

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Divorce can be a costly and drawn-out process

Unless your breakup is as amicable as the Portnoys’, divorce is likely to be both time-consuming and expensive.

A typical case can take anywhere from a few months to a few years, depending on where the couple lives and how intense the conflict is, according to FindLaw, a Thomson Reuters company. The average divorce involves $11,300 in attorney’s fees alone and the total costs can exceed $20,000 if it goes to trial, according to Martindale-Nolo Research.

And those figures only reflect the legal process — not the long-term financial aftermath.

Splitting assets can disrupt your finances

Couples who go through a divorce often underestimate the impact on their finances and post-divorce lives, according experts interviewed by The Wall Street Journal.

Dividing up shared assets is typically the most contentious and complicated part of any divorce. Disagreements over real estate, retirement accounts, or illiquid investments can delay proceedings and cause lasting damage to both parties’ financial health.

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But the damage isn’t limited to splitting assets. A study by the Federal Reserve Bank of St.Louis found that on average women lose 9% of their income after a divorce while men lose an average of 17%. Though the reasons vary, factors like new living arrangements, tax filing status changes and healthcare coverage often contribute to a loss of income after a divorce.

For couples over 50, the impact is even more dramatic: A study in The Journals of Gerontology found that women experienced a 45% decline in their standard of living after divorce, while men saw a 21% drop.

Why it pays to plan early for divorce

While Portnoy’s situation is unique, his story underscores the importance of open financial communication before and during divorce. If you’re heading toward separation, it’s wise to consult a financial advisor or attorney to help divide assets fairly and minimize long-term fallout.

Even in the best cases, divorce takes a toll. “But with early planning and the right support, it’s possible to protect your finances and move forward with greater security.

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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.

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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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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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

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: 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

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.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe 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 this year 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

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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?
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• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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

If you’re planning your own retirement, you probably have a retirement savings goal in mind. Americans believe the “magic number” they need to retire comfortably is $1.26 million, according to a survey by Northwestern Mutual.

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• 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

Comparing your number with the actual net worth of retirement-age seniors should give you an idea of how realistic your long-term financial plan is and what kind of lifestyle you can expect in your golden years.

Since the average age Americans expect to retire is 66 and medicare is available to those 65 and older, we looked at the net worth of households led by seniors of ages 65 to 69. Net worth is the total value of everything owned minus what is owed (liabilities).

Here are the six levels of wealth for these senior-led households, based on the Federal Reserve’s Survey of Consumer Finances from 2022.

1. Financial vulnerable (Household net worth $69,500 and under)**

Seniors with less than $69,500 in net worth fall into the bottom 25% of retirees. This group is particularly vulnerable to financial shocks and highly dependent on public safety net programs such as Social Security and Medicare.

If you’re approaching retirement with less than this number, it could be a good idea to look for additional income, more ways to save money or even a potential delay to your retirement so that you can be less vulnerable in your senior years.

2. Lower middle class (Household net worth between $69,500 and $394,300)**

The median net worth of these households is $394,000, according to the Federal Reserve. That means if your wealth is under this benchmark, around half of all senior households in this age group are wealthier than you.

This cohort, which can best be described as lower-middle class, isn’t necessarily financially vulnerable. However, this is far from a comfortable retirement. Seniors in this wealth category may have to stick to a tight budget.

3. Solidly middle class (Household net worth between $394,300 and $1.16 million)**

Seniors with a net worth that places them between the 50th and 75th percentiles could be described as middle class.

This means you have access to a more comfortable retirement. However, if much of your net worth is trapped in an illiquid asset, such as your house or private business, you may need to find ways to create liquidity in your senior years.

Even if your assets are liquid and easily accessible, you probably still need a stringent budget and conservative spending habits to ensure you don’t deplete your funds in retirement.

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. Upper middle class (Household net worth between $1.2 million and $2.9 million)**

Congratulations, you’re officially upper middle class. It’s possible you have even achieved the “magic number” for retirement savings according to most Americans.

A comfortable lifestyle is nearly guaranteed. However, it’s easy to succumb to lifestyle inflation and unnecessary splurges which can quickly erode your financial security.

5. Affluent (Household net worth $2.9 million or more)**

Only the top 10% of senior households in this age bracket have a net worth above $2.9 million. These affluent retirees are usually former bankers, lawyers, C-suite executives or business owners who are accustomed to a lavish and financially unrestrained lifestyle.

If you’re a high earner who is currently planning for retirement, the gates to this affluent club should be within reach. However, you will need a robust savings habit and diligent investments over the long-term to get to this target.

6. Top 1% (Household net worth $21.7 million or more)**

Only the top 1% in this category have a net worth over $21.7 million. This is the ultra-wealthy bracket that most Americans can only dream of belonging to.

Your retirement plan probably looks very unconventional. You may be less focused on budgeting and more focused on asset allocation, tax optimization and estate planning.

Dealing with this level of wealth could be complicated, especially if your assets are spread across multiple jurisdictions. This is why many ultra-wealthy seniors rely on an army of tax accountants, wealth managers, lawyers, investment advisors and senior bankers to help them navigate this exclusive arena.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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

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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• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• 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
• 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

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

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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