Category: Moneywise

With the Trump administration’s political and economic policies shocking many around the world, some strategists are pondering if American exceptionalism is at risk.

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U.S. exceptionalism is the belief among investors and businesses that the country is unique and superior to others. This idea bolsters its economy.

Predictability and the rule of law have given the U.S. this “edge,” according to Mohamed El-Erian, president of Queens’ College in Cambridge and chief economic advisor at Allianz, but he worries that it is being “eroded.”

“The more these two things are questioned, the more that people are going to start questioning U.S. exceptionalism,” he told Bloomberg last month. He stopped short of announcing the death of U.S. exceptionalism, but said it is “under enormous pressure."

When President Donald Trump was elected in November, investors were betting on his policies like tax cuts to spur economic growth and boost U.S. stocks.

But an on-again-off-again trade war, along with an “aggressive posture toward Ukraine and a wave of Elon Musk-driven government cuts,” are instead undermining sentiment, according to BNN Bloomberg, which noted that the “Trump bump is now the Trump slump.”

The dollar has been weakened. The U.S. stock market is also lagging behind the rest of the world this year. U.S.-listed international stock ETFs saw inflows of $13 billion in March and $28 billion in the first quarter, according to Morningstar. "Europe-stock category jumped off the page in the first quarter. It reeled in $5.7 billion in March — its best month in exactly 10 years — to cap off an $8 billion first quarter."

“There’s been an enormous upending of all the consensus trades that were in place at the beginning of the year,” El-Erian told Bloomberg. “All those trades have been turned on their heads.”

Questioning American exceptionalism

Back in November, Oxford Economics remained optimistic that U.S. exceptionalism would continue in 2025, noting that it’s not the first time the economy “has dealt with elevated uncertainty” and that businesses would be able to “quickly adapt.”

With “the prospects for expansionary fiscal policy on top of an already solid backdrop for U.S. consumer spending and investment, the U.S. economy will likely further distance itself from the rest of the pack,” it noted.

Fast-forward a couple of months, and a lot has changed. U.S. CEO confidence plummeted in March, according to one survey, and the Trump administration’s gyrating tariff threats was the most commonly cited reason for declining optimism. U.S. consumer confidence has also tumbled. The Federal Reserve has lowered its gross domestic product (GDP) growth forecast for this year to 1.7% from 2.1%. Strategists at Morgan Stanley and Goldman Sachs downgraded GDP growth forecasts for the U.S. in 2025 over tariff concerns.

Citi strategists are saying U.S. exceptionalism has “paused” under the Trump administration. Not only has the bank downgraded U.S. stocks to “neutral,” it has upgraded Chinese stocks to “overweight,” and recommends taking profits in U.S. stocks to invest in Chinese companies.

J.P Morgan’s chief economist Bruce Kasman told Reuters the country’s standing as an investment destination and its “exorbitant privilege” are at risk of lasting damage if the administration undermines trust in U.S. governance.

El-Erian also told Bloomberg that there’s hope for a “Sputnik moment” in Germany, as the country shifts fiscal policy to support a surge of spending on defense and infrastructure.

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

How can investors make sure they’re well diversified?

This may be a good time to make sure your portfolio is diversified geographically.

Vanguard, for example, recommends having 20% of your portfolio invested in international stocks and bonds, but “to get the full diversification benefits, consider investing about 40% of your stock allocation in international stocks and about 30% of your bond allocation in international bonds.”

One of the easier ways to gain broad exposure to international assets is ETFs. You have a choice of investing in developed markets (which would include the U.K., France and Japan) or emerging markets, like China, India and Mexico. Since emerging markets tend to be more volatile, Vanguard recommends “that you don’t overweight your allocation to emerging markets.”

When it comes to buying foreign stocks, ETFs are often a better choice than mutual funds, according to Forbes, since “ETFs are very portable from one brokerage account to another” and they’re “better at tax time.”

You’ll want to do your research or talk to your adviser about the potential risks involved such as market risk and liquidity, as well as costs, fees and tax issues. There are a number of ETF providers to choose from, including iShares by BlackRock, Vanguard, Charles Schwab, Invesco, WisdomTree and VanEck, among many others.

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

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

President Donald Trump’s sweeping tariffs are sending shockwaves across industries — and the auto world is feeling the impact. A 25% levy on imported vehicles is shaking up the market, prompting bold moves from major automakers.

Ford has launched its “From America, For America” initiative, extending employee pricing to all U.S. customers on most models from April 3 to June 2. The company says it’s more than just a promotion — it’s “a handshake deal with every American.”

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Employee pricing typically means paying below the dealer invoice, potentially saving buyers hundreds or even thousands of dollars.

Ford isn’t alone. Stellantis — the parent company of Chrysler, Dodge, Jeep and Ram — has rolled out a similar offer, expanding employee discounts across most of its new lineup.

Sticker shock ahead — so save where you can

For car buyers, uncertainty is the new normal. While Ford and Stellantis are stepping in with incentives, others — including Audi and Jaguar Land Rover — have paused U.S. shipments in response to new import tariffs.

Industry experts at Cox Automotive warn that prices on new vehicles are likely to rise this year as the effects of Trump’s 25% tariff ripple through the market. The firm estimates that imported vehicles could cost $6,000 more, while U.S.-assembled cars may see a $3,600 increase due to tariffs on automotive parts.

That would be an added burden for consumers at a time when car ownership is already becoming more expensive. According to the American Automobile Association, the total cost of owning and operating a new vehicle in 2024 has climbed to around $12,297 per year — or $1,024.71 per month.

One major recurring expense is car insurance, and many people overpay without realizing it. According to Forbes, the national average cost for full-coverage car insurance in 2024 was $2,149 per year (or $179 per month). However, rates can vary widely depending on your state, driving history and vehicle type.

By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you’re getting the best deal.

In just two minutes, you could find rates as low as $29 per month.

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 inflation, slower growth — and 1 time-tested safe haven

The tariffs have only just taken effect, but many experts are already sounding the alarm about their impact.

Federal Reserve Chair Jerome Powell recently warned that the tariffs could trigger widespread economic fallout, including “higher inflation and slower growth.”

JPMorgan CEO Jamie Dimon echoed the concern, warning that inflation would hit “not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”

Billionaire hedge fund manager Ray Dalio sounded an even more dire note, pointing to stagflation — a toxic mix of high inflation, weak growth and rising unemployment.

“The first order consequences of [tariffs] will be significantly stagflationary in the U.S.,” Dalio wrote on X.

To brace for economic turbulence, Dalio recently emphasized the power of diversification and the role of one time-tested asset.

“People don’t have, typically, an adequate amount of gold in their portfolio,” he noted in an interview with CNBC. “When bad times come, gold is a very effective diversifier.”

Gold has long served as a hedge against inflation. It can’t be printed out of thin air like fiat money, and because it’s not tied to any single currency or economy, investors flock to it during periods of economic turmoil or geopolitical uncertainty, driving up its value.

Over the past 12 months, gold prices have surged by 29%.

For those looking to capitalize on gold’s potential while also securing tax advantages, one option is opening a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those seeking to ensure their retirement funds are well-shielded against economic uncertainties.

When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in silver for free.

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

There’s been plenty of debate about the stubborn wealth and income gap in our economy. But according to NYU Professor Scott Galloway, the real chasm isn’t just between the rich and the poor. It’s between the old and the young.

In a recent conversation with Simon Sinek, Galloway proposed the theory that the economic system favors people who were born early enough to accumulate assets such as real estate cheaply, and now enjoy inflated valuations.

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This generational divide is the fundamental cause for widespread economic dissatisfaction, according to him.

“Everything we do is ‘how do we buttress the wealth of incumbents and old people and make it more expensive for young people?” he said. “Their housing has gone up 4x, their education has gone up 2x and, on an inflation-adjusted basis, their income has gone down.”

While recent data confirms a wide wealth divide between generations, subtle shifts suggest the gap is starting to close gradually.

Generational wealth divide

As of Q4 2024, baby boomers held 51% of household wealth in America, according to Federal Reserve data. Altogether, their assets were worth $82.48 trillion. By comparison, millennials had just $16.26 trillion in total assets.

This wealth disparity could be the root cause of dissatisfaction for many young Americans, many of whom are now old enough to start families and need larger homes.

At the same time, there are some encouraging signs. Millennials have been accumulating assets rapidly in recent years, as their share of the national total surged from nearly 1% in 2010 to 10% in 2024. Boomers, on the other hand, now see a drop over the same period.

And according to a 2024 Wall Street Journal report, millennials and older members of Generation Z now have 25% more wealth than Generation X and baby boomers did at a similar age, when adjusted for inflation.

Inheritances could be helping some younger people achieve prosperity. According to NorthWestern Mutual, experts predict the Great Wealth Transfer from baby boomers and Gen Xers to their children will be worth $90 trillion.

However, having wealthy parents isn’t the only path to wealth accumulation.

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

Beating the odds

If you’re a young person in America from a low- or middle-income family, the odds are stacked against you. However, there are ways to beat the system and out-perform your peers in the wealth accumulation race.

Avoiding or minimizing debt could put you ahead of the game. Roughly 97% of retirement-age U.S. adults still have nonmortgage debt, according to a recent retirement study. This includes things like student loans, auto loans and credit card debt. If you can minimize debt during your working years, you could come out on top in retirement.

Another way to beat the odds is to accumulate assets as rapidly as you can. As of February, the personal savings rate is just 4.6%, according to the U.S. Bureau of Economic Analysis. If your debt burden is lower than most Americans, you could afford to set aside more of your disposable income for savings and investments.

By saving slightly more and investing in a low-cost index fund that tracks the broad stock market, for example, you could gain exposure to the country’s most robust wealth creation engine.

Even on a modest salary, saving 10% or 15% of your income and investing in ETFs or stocks could help you accumulate more than $35,649, the median net worth of an American in their 30s, according to Empower.

Finding side gigs or upgrading your professional skills to boost your earnings could be another way to supercharge this strategy.

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

Sweeping tariffs imposed by President Donald Trump are sparking concern among Tampa Bay lawmakers and small business owners who say the financial impact will be felt by consumers.

As of April 10, a baseline 10% tariff has been placed on imported goods from most countries, along with a 25% tariff on steel and aluminum products, a 25% tariff on many foreign-made vehicles and auto parts, and a minimum 145% tariff on Chinese goods. There’s also the promise of more to come, as Trump put a 90-day pause on previously announced reciprocal tariffs.

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Local business leaders in the Tampa Bay area believe these tariffs will raise the cost of doing business — and ultimately it’s the customers who will pay.

Here’s what businesses and legislators are saying on the topic.

How could this impact Tampa Bay residents?

In St. Petersburg, Florida, Rubber City Tire & Auto Repair CEO Cesar Grajales expects prices to be impacted, as tires and replacement parts become more expensive due to the tariffs.

“Everything is going to go up. All the parts are going to go up — wheels, everything,” he told News Channel 8 in a story published April 1. “There’s a lot of stuff we get imported that we have no choice on.”

He noted the last time Trump was in power and imposed tariffs that the price of imported tires spiked. When asked who would carry the burden of added costs, according to the broadcaster, Grajales and other business owners pointed to consumers.

“We’re going to pay for it up front, but we’re going to be forced to raise our prices,” Grajales said.

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

Tampa-area lawmakers are also expressing concern, warning the tariffs could increase prices on everyday items — from groceries to building suplies. Congresswoman Kathy Castor worries the tariffs will financially devastate Tampa Bay families and small businesses.

“All of that is going to be passed on to the hard-working people in our community,” Castor said of increased costs. “A lot of experts say that this is going to throw the country into a recession, and we can just cannot afford that.”

Indeed, institutions such as JP Morgan have raised their probability forecast toward the brink of a recession due to trade uncertainty.

In addition to the sweeping tariffs mentioned above, Trump previously imposed levies on certain goods from Mexico and Canada, the country’s largest trading partners. Further tariffs could place even greater pressure on key sectors.

How to protect your personal and business finances

With U.S. trade drama likely to continue, both households and small businesses can take steps to soften the blow:

• Budget for higher prices: Bake price increases into your budget and adjust accordingly — cut other areas as needed.
• Focus on efficiency: When prices go higher, look for ways to spend more efficiently. Plan ahead for what’s needed and limit waste. Streamline operations if possible. Small changes add up.
• Buy local when possible: Supporting local products can reduce exposure to tariff-driven price hikes and support the regional economy.
• Review recurring expenses: Cutting back on subscriptions or non-essential services can help individuals. For businesses, consider shipping, software, or vendor contracts for savings.
• Diversify suppliers: Small businesses may want to consider sourcing from multiple suppliers to avoid relying too heavily on imported goods.
• Increase self-sufficiency: You may be able to find some savings if you can grow or create things on your own.

While the full scope of the tariffs’ impact remains to be seen, experts and local leaders agree that now is the time to prepare. Even if the tariffs are revised later, the immediate financial hit could have lasting effects on families and businesses.

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

Danish pharmaceutical company Novo Nordisk — best known for its blockbuster weight-loss drugs Ozempic and Wegovy — has signed a $2 billion deal to acquire the global rights to an experimental obesity treatment from China’s United Bio-Technology (Hengqin) Co.

The March 24 agreement includes milestone payments of up to $1.8 billion, plus tiered royalties.

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The new drug in question, UBT251, is a next-generation therapy designed to tackle obesity and type 2 diabetes by targeting three key hormones including, GLP-1 and GIP — which regulate appetite and blood sugar — and glucagon, which helps stabilize blood sugar levels.

Roughly 15.5 million U.S. adults have already used injectables for weight loss, according to Gallup. With access to weight-loss medications still limited by patchy insurance coverage, UBT251 may face the same barriers, even as it promises new possibilities.

Here’s what this deal means for Americans looking for alternate treatments for their diabetes or chronic obesity.

Taking over the market

In the past, Senator Bernie Sanders has criticized Novo Nordisk (NYSE:NVO) for charging American patients far more than their international peers for the same medications. However, CEO Lars Fruergaard Jorgensen has blamed the U.S. health care system’s bureaucracy and markups for the high prices.

But now, Novo Nordisk has changed its pricing model with the launch of NovoCare Pharmacy — a direct-to-patient service offering all doses of Wegovy at $499 per month for patients paying cash. This strategy was designed for those without insurance or whose plans don’t cover weight-loss drugs.

Ozempic’s insurance coverage dropped 22% from 2024 to 2025, according to GoodRx, leading to 1.1 million Americans having no access to these medications.

"If only certain patient populations get access to these medications — those primarily with private insurance, more generous health plans — then there’s a huge percentage of the U.S. population that isn’t getting access to these medications," lead author Christopher Scannell told Axios.

When Novo unveiled its latest retail gambit, Wall Street raised a glass as the stock also surged nearly 4%. However, it remains unclear — in a system rife with co-pays and corporate contracts — whether this will translate into improved access or affordability for American consumers.

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

Will this make a change?

Despite the excitement surrounding NovoCare, the company’s U.S. strategy has faced some ups and downs. Since last summer, Novo Nordisk’s stock has dropped by nearly 50% — reflecting investor concerns about pricing pressure, increased competition and lingering supply chain issues.

Last year, the overwhelming demand for Ozempic and Wegovy led to widespread shortages in the U.S., prompting regulators to allow compounding pharmacies to replicate the drugs — often at a lower cost. That shift disrupted the market and Novo Nordisk responded with a renewed push for its own branded products. NovoCare is part of that strategy.

"Novo Nordisk continues to advance solutions for patients that improve affordability and access to our medicines, whether they have insurance or not,” said Dave Moore, President of Novo Nordisk Inc.

But with insurance coverage for weight-loss drugs still limited and ongoing questions about affordability, it’s too early to tell whether this latest deal — and the rollout of UBT251 — will meaningfully lower costs or intensify market competition. For now, Novo Nordisk seems determined to dominate the playing field — but the question remains: will everyday Americans be able to afford to join the game?

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

Retirees, brace yourselves: The golden rule of retirement withdrawals just got a cold dose of reality. A new report from Morningstar recommends the safe withdrawal rate for retirees in 2025 is a mere 3.7% — a significant adjustment from the decades-old 4% rule that had dominated retirement planning.

Amid rising costs, volatile markets and new prospects for inflation, a lower rate could disrupt the way many retirees think about their financial strategies.

If you’re wondering what Morningstart’s updated benchmark means for your golden years — and whether you’ll have enough to sustain a 30-plus-year retirement — it’s time to dig deeper into how you can adjust your plan for success.

What is the safe withdrawal rate for 2025?

A safe withdrawal rate is the percentage of your retirement savings you should be able to withdraw annually without risk of your money running out too soon.

For decades, the 4% rule was the de facto standard, offering retirees a simple formula for how much of their nest egg they could withdraw each year in order to make it last for 30 years. (Remember: the safe withdrawal rate is not law, but rather a suggested guide from financial planners.)

In recent years, the benchmark has come under fire from finance experts, including Suze Orman, who say the rule has become a cookie-cutter prescription that doesn’t account for retirees’ varied financial needs.

Orman says says those who need a target should consider 3%to stretch their money as long as possible, while the financial adviser credited with coining the rule, Bill Bengen, now says the rate should be 4.7%.

Morningstar’s updated analysis points to 3.7% as its new suggested rate, down slightly from 4% in 2024, but what is the reason behind this?

Why has the rate dropped?

Morningstar’s downward revision stems from a combination of economic and demographic factors:

• Market uncertainty: After years of market turbulence, including fluctuating interest rates, retirees face increased risks to their investments.
• Persistent inflation: Although inflation has cooled somewhat since its peak in 2022-2023, it remains above pre-pandemic levels, making everyday expenses more costly.
• Longevity trends: Canadians are living longer, which means retirees must plan for more years of spending — potentially, 30 to 40 years in retirement.

These factors underscore the need for a cautious approach to withdrawals, especially in the early years of retirement when overspending can have long-term consequences.

How to calculate your safe withdrawal rate

Knowing what rate is best for you starts with understanding your retirement savings and expected expenses. Let’s say you’ve saved $900,000 for retirement.

Using the new 3.7% guideline, you’d withdraw $33,300 annually. By contrast, the 4% rule equates to withdrawing $36,000 annually.

Now, compare this number to your expected yearly expenses. If your spending exceeds your withdrawal amount, you may need to explore ways to cut costs, boost income or supplement withdrawals with other savings or investments.

For retirees with diverse portfolios, adjusting withdrawals based on market conditions can also help preserve savings. For example, in years when the market performs well, you might take out slightly more, while pulling back during downturns to protect your principal.

Withdrawal strategies for 2025

Adopting the right withdrawal strategy is crucial for retirees navigating today’s uncertain economic landscape. Here are a few approaches to consider:

• The 3.7% rule: Stick to the updated safe withdrawal rate, recalibrating annually to account for changes in expenses and portfolio performance. This conservative approach prioritizes long-term stability.
• Bucket strategy: Divide your assets into “buckets” based on short-, medium- and long-term needs. For example, cash or bonds for immediate expenses and stocks for long-term growth.
• Dynamic withdrawals: Adjust withdrawals based on portfolio returns. In good years, withdraw more; in bad years, reduce spending to extend the longevity of your savings.

Each strategy has its risks and rewards. The 3.7% rule offers simplicity and a steady income but may feel too restrictive for retirees with large savings or shorter life expectancies. Dynamic strategies provide flexibility, but require careful monitoring and may not work for those who prefer predictable income.

Pros and cons of a higher withdrawal rate

Taking out more than 3.7% annually might seem tempting, especially if you have a substantial nest egg or immediate financial needs.

But there are risks: Withdrawing too much early in retirement increases the likelihood of depleting your savings later — particularly if market conditions worsen.

On the flip side, retirees with shorter life expectancies or guaranteed income sources, like pensions, may justify higher withdrawal rates.

For instance, someone with $900,000 saved and a $30,000 annual pension might comfortably withdraw 4% to 5% of their savings without jeopardizing their financial future.

Planning for success

The lower safe withdrawal rate for 2025 is a wake-up call for retirees to reassess their financial plans.

If you’re nearing retirement or already retired, consider reevaluating your budget to identify discretionary expenses you can trim to reduce withdrawals. Explore part-time work, annuities or rental income to supplement savings.

A professional can help you create a tailored withdrawal strategy that aligns with your goals and risk tolerance.

Sources

1. Morningstar: Retirees, Here’s What Your Withdrawal Rate Should Be in 2025 by Christine Benz and Susan Dziubinski (Jan 2, 2025)

2. YouTube: Suze Orman: Why High Income Earners Are Living Paycheck To Paycheck by Moneywise (May 26, 2023)

3. Statistics Canada: Top five highlights from a new report on the health of Canadians, 2023 (Sept 13, 2023)

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

If you’re a young adult and feel like your finances aren’t in order, you’re not alone. A 2024 Bank of America survey found that 52% of Americans aged 18 to 27 say they don’t make enough money to live the life they want, and that sky-high living costs are a top barrier to financial success.

Furthermore, adults in this age group are delaying major financial milestones, such as buying a house and saving for retirement. And 46% have to rely on financial support from parents and family just to stay afloat.

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Let’s say you’re 27 years old and ready to get serious about your finances, but are struggling to get by with the high cost of living. Here are some steps you can take toward securing your financial future en route to achieving major life goals.

Emergency fund

One of the most important things you can do right away is get started on an emergency fund. This is cash you can easily access in case something unexpected happens, such as losing your job. Having a cushion to fall back on can help prevent you from falling (further) into debt.

Many experts recommend stashing away three to six months’ worth of expenses, however, since you’re just starting out you might want to think a bit smaller. Personal finance expert Dave Ramsey, for example, recommends setting aside $1,000 at first. Over time, you can build up your emergency fund. Since this cash isn’t meant for everyday spending, it’s also a good idea to keep it in a high-yield savings account so it can earn interest.

Tackling debt

Take a look at your debt situation. You may already be on a payment plan when it comes to student debt or auto loan debt. But if you have any high-interest debt, including credit card debt, it’s in your best interest to pay it off as quickly as possible. The last thing you want to do is continue digging yourself a bigger hole. Come up with a plan to tackle your debt so you can get to saving. Drawing up a budget with this goal in mind may be helpful.

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

Saving for retirement

Does your employer offer a 401(k) plan? If so, you can sign up and direct a portion of your paycheck, pre-tax, into an account and invest it in the market. This is a good idea especially if your employer offers matching contributions (up to a certain percentage of your pay), which essentially amounts to free money. It’s recommended you contribute as much as you can afford, at least up until the maximum employer match amount.

Otherwise, you can start building your retirement savings through an individual retirement account (IRA), which can also be invested in the market. Keep in mind there are yearly contribution limits for 401(k) and IRA accounts.

Long-term goals

At age 27, you still have most of your adult life ahead of you, but you may have long-term goals beyond achieving financial security. These can include starting a family, buying a home or simply generating as much wealth as possible. A financial adviser can help you plot a path toward achieving them.

Think about how your finances might impact your life goals. There are costs associated with many personal milestones, so look at the big picture in the course of mapping out your long-term plan.

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

Graduation typically brings with it great excitement. And to get to this point, college graduates entering the job market today likely already had to navigate their studies during a pandemic, in addition to managing the costs and usual rigours of their academic preparation. They’ve also likely heard that degrees alone are no longer enough to land them that dream job, even in steadier economic times.

Still, they might have spent a significant chunk of their college years planning out what their careers would look like on the other end of this effort. But, it’s now looking as if an uncertain job market may derail even best laid plans.

Maybe it’s you or someone close to you about to graduate. Maybe you are hoping to work in the tech industry, but the wave of recent layoffs leaves you feeling shaky. So, being the highly agile and adaptive individual that you are, you pivot to what you believe is a “stable” choice — aiming for a job in public service — only to face the now-equally unsettling landscape of DOGE government layoffs and spending cuts.

So what is someone just entering the job market to do?

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Graduating into a job market desert

College seniors, especially those who were hoping for job prospects in the tech startup scene or Silicon Valley, probably won’t find as many opportunities as their predecessors did.

In 2024, there were 150,000 job layoffs across 549 tech companies, according to TechCrunch.

And though we’re only a quarter of the way into this year, 2025 is serving up an even bleaker outlook: Between January and April alone, more than 105,000 tech workers were laid off. Some of these are from major companies like Siemens, which slashed 5,600 positions in March and Hewlett Packard Enterprise (HPE), which laid off 2,500 of its employees in the same month.

And in addition to the layoffs, there are fewer jobs to go around between in increasing pool of prospective candidates: Analysis from the U.S. Bureau of Labor Statistics shows that companies in the tech industry netted 8,428 fewer positions in March — most of these in tech services and telecommunications.

What’s more, LinkedIn research suggests that 37% of those who are job hunting are applying to more positions, but aren’t necessarily receiving more responses from those who are hiring.

Additionally, getting hired in the public sector isn’t proving any easier due to the hiring freeze for federal jobs since the creation of DOGE.

Add to the mix that the World Economic Forum predicts that inflation in recent years may have an impact on job growth all the way to 2030, and young graduates are facing the perfect storm for dwindling job prospects. This slower growth translates to 1.6 million fewer jobs around the world in total, putting those in the sunrise stages of their career at a disadvantage from the get-go.

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Navigating potential career chaos

The world of work is evolving constantly (what isn’t?), and it pays (literally and figuratively) to be prepared.

If you feel stressed about all this, you aren’t alone. According to a Gallup poll, only 15% of respondents strongly believe that their company’s leadership helps them feel enthusiastic about the future.

Despite what your current or prospective jobs may be, it’s important to do all you can to set yourself apart in a competitive job market, within a competitive industry.

Ongoing professional development is crucial to helping you remain competitive as a job candidate. Even if you’re not actively looking for a job, your newfound skills could offer opportunities for job promotions or other positions in a different department with your current employer.

To start, look at your employee handbook or ask your HR department to see whether your employer offers any professional development opportunities.

You may be reimbursed for taking courses or certification programs that could bolster your resume and professional experience. Check what the requirements may be and how to meet them.

Leveraging your experience with your industry’s related emerging technology could be useful as many employers desire this skill, even if it may not seem relevant to the job specifically. Stay up to date on technologies that could impact the industry you work in and follow relevant thought leaders online.

According to CompTIA, a credentialing organization for tech workers, found that around half of job postings in tech don’t require a four-year degree, which could imply that skills are just as — if not more — important than your degree.

Lastly, don’t overlook the power of a handshake. Building relationships, no matter how old you are, is a timeless skill.

For instance, employee referral programs are one of the most popular ways to land a new job. It could be that a professional contact through your networking efforts could help you get your foot in the door at your next company or may at least point you towards the right person.

To start networking, reach out to family and friends to see who they know that works in a particular industry you’re trying to enter. Other options include going to networking events, connecting with professional organizations, and speaking with internship coordinators at your school or supervisors at your past or potential internships. You never know if the next person you meet could end up being your mentor, who could introduce you to more relevant people in your field.

Resources like the one for Yale students offer perks like contact lists for networking purposes and a reimbursement program for expenses related to joining professional organizations, which are in themselves great networking magnets. See if your school offers anything similar.

Remind yourself, too, that the point of networking isn’t only short term — to help you land a job immediately. Rather, it’s so you can build your network of contacts to help you get insights and learn from others. Think of it as a longer-term career building strategy — one sure to come in handy during uncertain times.

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

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

President Donald Trump’s sweeping tariffs have sent shockwaves across the globe, as he attempts to rein in the massive trade deficits the U.S. has with other nations.

While many economists have criticized Trump’s blunt approach — and markets have reacted poorly — the issue he’s targeting is far from trivial. While the president has since gone back and forth on levying the tariffs, legendary investor Warren Buffett has been sounding the alarm on America’s growing trade deficit for decades.

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Back in 2003, Buffett wrote a Fortune article with the striking title: “America’s Growing Trade Deficit Is Selling The Nation Out From Under Us. Here’s A Way To Fix The Problem — And We Need To Do It Now.” In it, he issued a stark warning about the long-term risks of persistent trade imbalances.

A trade deficit occurs when a country imports more than it exports. While that might sound harmless, Buffett warned that over time it leads to something far more serious: a steady transfer of national wealth to foreign hands.

To drive the point home, he introduced a parable involving two fictional islands: Thriftville, whose industrious citizens produce more than they consume and export the surplus, and Squanderville, whose inhabitants consume more than they produce, financing their excess consumption by issuing IOUs to Thriftville.

Over time, Thriftville accumulates substantial claims on Squanderville’s future output, leading to a scenario where Squanderville’s citizens must work harder just to repay the debt, effectively becoming economically subservient to Thriftville.

Buffett took the analogy further, warning that Thriftville’s citizens might lose faith in Squanderville’s IOUs.

“Just how good, they ask, are the IOUs of a shiftless island?” Buffett wrote.

“So the Thrifts change strategy: Though they continue to hold some bonds, they sell most of them to Squanderville residents for Squanderbucks and use the proceeds to buy Squanderville land. And eventually the Thrifts own all of Squanderville.”

Buffett’s central concern was that the U.S. was behaving just like Squanderville — consuming far more than it produced, and becoming increasingly indebted to the rest of the world.

He warned that, at the trade deficit level at the time, foreign ownership of U.S. assets would “grow at about $500 billion per year.” As that ownership increases, he cautioned, so too will the net investment income flowing out of the country.

“That will leave us paying ever-increasing dividends and interest to the world rather than being a net receiver of them, as in the past,” he wrote. “We have entered the world of negative compounding — goodbye pleasure, hello pain.”

That was more than two decades ago. But Buffett’s warning still resonates today. By the end of 2024, the U.S. net international investment position had plunged to -$26.2 trillion — meaning foreign investors now own over $26 trillion more in U.S. assets than Americans own abroad.

Buffett’s market-based fix: a ‘tariff called by another name’

Buffett proposed a bold fix: a concept he calls the “Import Certificate” system — a market-based solution to reduce the U.S. trade deficit.

Here’s how it works:

Exporters earn certificates — For every dollar an American company earns by exporting goods or services, it receives an Import Certificate of equal value.

Importers must buy certificates — To bring goods into the U.S., importers must purchase these certificates from exporters.

This effectively limits total imports to the value of exports, achieving trade balance. It also creates a powerful financial incentive to export, since companies can sell their certificates on the open market to importers.

How does Buffett’s idea compare to the sweeping tariffs currently being implemented by Trump?

Buffett himself acknowledged that, “in truth,” his import certificate system is “a tariff called by another name.” But he was quick to note that it avoids the typical pitfalls of traditional tariffs — namely, industry favoritism, geopolitical tension, and the risk of escalating trade wars.

“This is a tariff that retains most free-market virtues, neither protecting specific industries nor punishing specific countries nor encouraging trade wars,” he wrote. “This plan would increase our exports and might well lead to increased overall world trade. And it would balance our books without there being a significant decline in the value of the dollar, which I believe is otherwise almost certain to occur.”

In other words, Buffett’s proposal is designed to nudge markets toward equilibrium — not to punish America’s trading partners.

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‘The best thing to do’ for everyday investors

While Buffett’s solution was never implemented, it’s clear that investors haven’t responded well to Trump’s version. Markets around the world have tumbled in the wake of his tariff announcements, with the sell-off wiping out trillions of dollars in global equity value.

And while headlines are dominated by recession fears and rising geopolitical tensions, Buffett has consistently emphasized one unwavering belief — his confidence in America.

“American business — and consequently a basket of stocks — is virtually certain to be worth far more in the years ahead,” Buffett wrote in his 2016 letter to shareholders.

That same optimism carried through in his 2022 letter:

“I have yet to see a time when it made sense to make a long-term bet against America. And I doubt very much that any reader of this letter will have a different experience in the future.”

When it comes to individual investors, Buffett’s advice is as simple as it is enduring.

“In my view, for most people, the best thing to do is own the S&P 500 index fund,” he famously stated. This straightforward approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.

The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns — a popular app that automatically invests your spare change.

Signing up for Acorns takes just minutes: simply link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

While investing in an index fund is straightforward, some investors may want guidance on building a portfolio tailored to their specific financial goals. That’s where a professional can help.

With Vanguard, you can connect with a personal advisor who can help assess how you’re doing so far and make sure you’ve got the right portfolio to meet your goals on time.

Vanguard’s hybrid advisory system combines advice from professional advisors and automated portfolio management to make sure your investments are working to achieve your financial goals.

All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisors will help you set a tailored plan and stick to it.

Once you’re set, you can sit back as Vanguard’s advisors manage your portfolio. Because they’re fiduciaries, they don’t earn commissions, so you can trust that the advice you’re getting is unbiased.

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• Trump warns his tariffs will spark a ‘disturbance’ in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP

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