Archives May 2025

After working for decades and being disciplined about saving, your primary instinct may be to guard your growing wealth.

But you don’t want to take that impulse too far. Overprotecting wealth can lead to the loss of some of the wealth that you’re so eager to protect.

Understanding Wealth Protection

“At its core, wealth protection is about anticipating the biggest threats to your nest egg and addressing them in cost-effective ways,” said Douglas Boneparth, a certified financial planner and president of Bone Fide Wealth.

For appropriate wealth protection, Boneparth recommends having the following:

• An emergency fund: Three to nine months of expenses in cash or cash-like securities so you’re not forced to sell in a down market
• Insurance based on your needs: This could be home and auto insurance as well as umbrella liability insurance if your net worth exceeds six figures
• Legal structures: Work with a lawyer to create wills, trusts, or LLCs for real estate and business assets
• A diversified portfolio: Think about diversifying across asset classes, sectors, and geographies.

“These strategies can feel especially appealing for those in or near retirement when the shift from earning income to relying solely on their nest egg… Even those far from retirement may find a wealth protection strategy alluring during times of market volatility,” said Carla Adams, a certified financial planner and founder of Ametrine Wealth.

Signs You Might Be Overprotecting Your Wealth

If more than 75% of your assets are in cash or bonds with short maturities, this may indicate that you’re overprotecting your wealth.

Other indicators include multiple overlapping insurance riders such as over-insuring jewelry that you rarely wear, and steering clear of growth-oriented assets, Boneparth explained.

Even young people in their 30s and 40s may find themselves overprotecting their wealth.

“Overprotecting is less of a concern for 30-somethings. But it still shows up in the form of sitting on too much cash, investing too conservatively, or carrying more insurance than necessary. Often this happens because they cross paths with an insurance salesperson eager to capitalize on their high-earning status, which is unfortunate, but true,” said Priya Malani, founder of Stash Wealth.

The Costs of Overprotection

Being too conservative with your investments can come at a cost, as you may be missing out on higher returns by not investing more of your money in high-growth assets like stocks.

And overprotection taken to the extreme can hamper your retirement savings. Beware of high fees on annuities, which can erode your returns, and allocating too much of your portfolio towards CDs, money market funds, and fixed income—which can offer paltry interest rates in low interest rate environments.

“Holding excessive amounts of cash and/or bonds may provide short-term peace of mind but in actuality can cause the portfolio to lose substantial value over time relative to inflation,” said Adams. “Annuities, which promise protection, come with high fees and limited upside potential, dampening portfolio growth.”

As Boneparth says, “every dollar parked in an ultra-safe vehicle is a dollar not compounding in equities or other growth assets, over decades that difference can amount to hundreds of thousands of dollars.”

Craft a Financial Strategy Based On Your Goals

Rather than keep your money mostly in cash and bonds, diversify your portfolio so that it has the best opportunity for growth. You’ll also want to periodically rebalance your portfolio to ensure that your investments still align with your financial goals.

“Building a diversified portfolio with the right mix of bonds as well as stocks is key so that the bonds provide stability and modest growth while stocks allow for meaningful portfolio growth over the long term,” Adams recommends. If you’re younger, you likely want to have a higher allocation of your portfolio in equities, yet as you age, you may shift your portfolio more towards fixed-income.

Additionally, try to only buy insurance policies that you need. For example, a whole life insurance policy may not be necessary if you have no dependents and are young and healthy. You want to avoid signing up for too many policies, as premiums can add up.

“We recommend carrying only essential insurance: health, disability, renters or homeowners, and auto,” Malani says. “You want to invest the rest in a diversified portfolio that aligns with your goals and timeline.”

The Bottom Line

Wanting to protect the wealth you’ve accumulated is a natural instinct. But you don’t want to overprotect it and miss the opportunity to grow it further.

You may be overprotecting your wealth if you have more than 75% of your money in cash or short-term bonds and unnecessary or overlapping insurance coverage.

If you think that’s you, try to strike a balance between capital preservation and growth by crafting a well-diversified investment portfolio. Additionally, avoid signing up for insurance policies that you don’t really need.

There comes a time in the lives of many older adults when moving to a retirement community becomes more attractive because of the services, support, and amenities they offer.

Retirement communities throughout the U.S. can offer many of these features along with the opportunity to live among others. To discover what’s out there and whether there’s a retirement community for you, tours are a must.

It’s important to do research and go in with plenty of questions prepared, which, unfortunately, many prospective visitors forget to ask.

Getting answers to questions about services, costs, healthcare, and more can give you a clearer view of what a retirement community has to offer and whether it’s a good fit.

Services and Monthly Fees

You’ll want to ask for details about the various services a community offers and its monthly fees. Find out which services are included in the monthly fees and which cost extra.

“Typically, retirement communities advertise all of the amazing amenities and services they offer, but some may cost extra fees. I recommend making a list of the services that are the most important to you and asking if they are included in monthly fees when you go on a tour,” says Taylor Shuman, senior tech expert and editor at SeniorLiving.org, a site that provides resources and information for seniors.

Resident Experience

When visiting a retirement community, reach out to residents to inquire about their experiences. Ask them about the benefits and drawbacks of living in that community.

“When you tour a retirement community, make sure to talk to current residents. The staff will always paint the most positive picture of the community, as they are trying to sell you on it. On the other hand, residents are more likely to be honest about any drawbacks or things to note before moving in. They’ll give you the real inside scoop,” Shuman said.

And by reaching out before you potentially move in, you could make new friends. Jimmy Zollo, co-founder of Joe & Bella, an adaptive apparel brand for older adults, named his company for the friends he and his grandparents made on a retirement community tour.

“On that tour, we were able to find a wonderful group of residents, some of whom actually joined and eventually led our tour. They took my grandmother under their wing, eating meals with her from that first day,” said Zollo. “We were lucky enough to meet them, and hear directly from them on the tour what their day-to-day life is like. It brought us a ton of ease and comfort.”

Dining Options

Is dining with others important to you? Is good food and service a priority? Are you a picky eater, a vegetarian, someone with food restrictions?

When you make an in-person visit, check out the options for residential dining and request to eat a meal with current residents.

“Not only will you get a feel for the quality of the food and how accommodating they are to dietary restrictions, but you’ll also get a sense of the community,” Shuman says.

“Meal times are when residents gather and socialize, so it offers a great inside look at what daily life is like in the community.”

Activities and Recreation

If you want to live in a community that regularly holds events—like crafting meet-ups, swim classes, and concerts—consider asking the tour guide about what activities are available to residents.

“Before touring a facility, make a list of the activities and social events that are the most important to you. Then, when you tour, ask to see the community’s social calendar,” said Shuman. “Most importantly, ask about attendance and residence involvement. If the community offers many events but no one shows up, the facility may not have as much resident engagement and socialization, which is incredibly important.”

Health and Medical Services

Many retirement community residents have or will have health concerns, so it’s essential that you make note of what type of healthcare and medical services are available.

These services can make a huge difference—it could either mean needing to seek help outside of the community or getting the care that you need easily and conveniently where you live.

Some retirement communities may offer a wellness center where residents can get care and see doctors. Others offer continuing care, from independent living to assisted living to skilled nursing.

“Don’t forget to explore health services, including the type of care available on-site and how emergencies are managed,” says Michael Smith, managing director of corporate communications for Acts Retirement-Life Communities, a nonprofit provider of continuing care retirement communities. “Lastly, think long-term and the process for transitioning to higher levels of care if your needs evolve.”

Figuring Out If a Community Is Right for You

Another important question is for you to answer: Is a retirement community the right one for you? Here are a few things to think about.

“Determining whether a retirement community is the right fit requires evaluating both your current lifestyle and your future needs. Begin by considering if the community aligns with your personal preferences. Do you enjoy the atmosphere, and does it cater to your hobbies and interests?” said Smith.

“Pay close attention to the culture and overall vibe during your visit. Are the residents and staff warm, welcoming, and inclusive? Assess the community’s ability to meet your needs over time.”

Remember to ask about a retirement community’s financial policies and make sure you understand them. Additionally, read online reviews to learn what current residents or their relatives think about it.

“Are its financial policies and long-term plans transparent and easy to understand? Finally, take the time to research the community’s reputation. Check online reviews and explore its standing with professional organizations,” Smith advises.

“By weighing these factors, you can determine whether the community offers an environment where you can truly thrive.”

And don’t forget to check in with your feelings about a place after your tour.

“Every community has a different feel. You find the one that fits for you,” says Meagan Buckley chief executive officer and president of Wake Robin, a life plan retirement community. “It’s a gut feeling. This could be my home.”

The Bottom Line

There are a lot of things to think about when touring a retirement community. Importantly, there are a lot of questions you’ll need answers to. Make a list before you go and, if necessary, add to it while you’re on tour.

Answers to questions about dining options, social activities, fitness, healthcare and medical services can help you figure out if it’s the right community for you.

Major U.S. equities indexes pulled back from their early gains Friday as investors wait for new developments on tariffs ahead of a weekend meeting between U.S. and Chinese officials.

The S&P 500 finished lower by 0.1% as the benchmark index broke a two-day winning streak to end the week lower by about 0.5%. The Dow Jones Industrial Average was down about 0.3% Friday, while the Nasdaq was unchanged. Both indexes also finished the week in negative territory.

Shares of insulin pump maker Insulet (PODD) surged by more than 20% Friday to pace the S&P 500, after the company reported stronger-than-anticipated quarterly results and lifted its full-year revenue outlook. Jefferies analysts lifted their price target on the stock to $360 from $350, suggesting significant upside from the stock’s close near $311 Friday.

Microchip Technology (MCHP) jumped by 12.6% after several analysts raised their price targets for the stock on the chipmaker’s better-than-expected outlook. While Microchip’s fourth-quarter sales fell 27% year-over-year, analysts were expecting a steeper drop.

Tesla (TSLA) shares jumped 4.7% to post gains for the third straight week amid optimism about new U.S. trade deals. The surge came after a weak start to the week following a string of reports on declining sales in Europe and China.

Akamai Technologies (AKAM) stock declined more than 10% after Scotiabank lowered its price target on the cybersecurity and cloud computing company to $105 from $107, with its shares closing just above $76 on Friday.

Expedia Group (EXPE) shares tumbled nearly 8% after the travel booking service delivered worse-than-expected first quarter results and lowered its full-year outlook amid weak U.S. travel demand. CEO Ariane Gorin said the company managed to grow bookings and revenue “despite weaker than expected demand in the U.S.”

Shares of TKO Group Holdings (TKO), the parent of World Wrestling Entertainment and Ultimate Fighting Championship, fell 5.5% after earnings missed analysts’ expectations. The company lifted its full-year revenue forecast.

If you’ve been a homeowner for a while and built up considerable equity in your home, you can use this equity to generate needed retirement income without having to sell your home.

Understanding Home Equity

If you have owned your home for a number of years, there’s a good chance you’ve built up a good chunk of home equity. This can be a valuable resource in your retirement years.

“Home equity is the difference between the market value of a home and the amount still owed on the mortgage,” said Shaun Osher, founder and chief executive officer of Core Real Estate. “Generally, as homeowners pay down and contribute to their mortgage, their property value increases, and their equity grows in the background. This is mostly why people consider their homes to be a major asset—sometimes their most significant asset—as they approach retirement.”

For retirees without many other resources, tapping the home equity in their homes can provide needed retirement income that can be used to pay for medical and other expenses.

Options for Generating Income From Home Equity

Here is a closer look at three options for tapping into a home’s equity: a cash-out refinance, a reverse mortgage, and a home equity line of credit (HELOC).

Cash-out Refinance

With a cash-out refinance, you get a new mortgage and access to cash.

“A cash-out refinance is when a homeowner replaces their current mortgage with a new, larger mortgage. They then will receive the difference between the two loans in cash,” Osher says. “Essentially, it’s a way of benefiting your home’s growth in equity without having to sell.”

A cash-out refinance is one way of getting a lot of cash out of your home in a hurry.

“This approach is particularly appealing to retirees who need a large sum of money quickly for unexpected expenses,” Osher says.

But there are downsides. With a cash-out refinance, you increase the size of your mortgage, and that means larger and longer mortgage payments.

“One of the main issues with a cash-out refinance is that it resets your mortgage timeline, so your debt extends into the later years of your life,” Osher says. “If the home value drops, that could leave the homeowner with less equity than they previously thought.”

Reverse Mortgage

Taking out a reverse mortgage is another way to turn equity in your home into cash.

“A reverse mortgage turns your home’s equity into income, but rather than paying a lender, the homeowner receives it,” Osher says. “It’s only available to homeowners age 62 and older, and allows them to stay in their homes. They receive a lump sum, monthly payout, or a line of credit, depending on their preference.”

But there are drawbacks to consider—since reverse mortgages involve borrowing against the equity in your home, they can add to your debt and reduce your home equity. Additionally, many reverse mortgages have variable interest rates, which means that the interest rate may increased based on the economic environment.

“While the loan doesn’t require monthly payments, there are strings attached. Fees can be higher than the average loan, the interest on the loan accumulates, and the equity that’s left to heirs in the event of the homeowner’s passing is significantly reduced,” Osher says.

To qualify for a reverse mortgage, your credit will be evaluated. If your credit is not great, you could get stuck paying high fees.

“The fees charged by the lender can be significantly higher when poor credit comes into play,” says Bruce Maginn, an advisor at Solomon Financial.

Before taking on a reverse mortgage, you may want to seek out the advice of a financial advisor who can guide you through whether it’s the right decision for you.

“It’s a relatively complicated financial move, and often can be an emotional one, so it’s important to consult a financial advisor who can take a holistic look at your financial situation and make an informed, objective recommendation,” Osher says.

Home Equity Line of Credit (HELOC)

A simple way to access your home’s equity is with a home equity line of credit (HELOC).

“Basically a credit card secured by your home, HELOCs give you access to a line of credit, up to a certain limit, allowing you to borrow what you need and repay it over time,” Osher says. “The biggest advantage of a HELOC for retirees is the flexibility it offers, especially if your expenses are not set in stone. They usually carry a lower interest rate.”

Like reverse mortgages, there are downsides to using HELOCs as well—because they have variable interest rates, interest rates can increase and monthly payments can be hard to budget for.

“If you fail to pay the balance, your home is then at risk,” Osher says. “If you’re particularly disciplined with money and a wise spender, this could be a great option, as long as you have a long-term plan to manage the new debt.”

Advantages and Disadvantages of Using Home Equity for Retirement Income

Before using your home’s equity to boost your retirement income, consider the advantages and disadvantages of such a move.

“Using home equity to fund retirement can increase cash flow and create financial breathing room, for sure. Its biggest benefit is that you can stay in the home you love, keep your routine and neighbors, and avoid any major disruptions to your everyday,” Osher says. “It does, however, also mean taking on new financial burdens, and if you can’t keep up with payments, there’s always the risk of foreclosure.”

Financial Considerations and Risks

Tapping into your home’s equity may be convenient, but it isn’t free. There are interest rates and fees to consider. Your home is a valuable asset, and you make it less valuable when you use up some of its equity. Before deciding to use your home’s equity for short-term cash flow, carefully consider your long-term financial plans as well.

You will also need to be careful with the amount of equity that you tap from your home.

“If you’re especially responsible with money, [tapping home equity] could be a solid option for you, but if you struggle to stay on top of your finances, taking out new debt may be more trouble than it’s worth,” Osher says.

Alternative Strategies for Generating Retirement Income

There are other ways to use your home to increase your retirement income, such as renting out a room. If you have a larger home, you could even convert the lower level into an apartment. Monthly rent checks will go a long way in boosting your retirement income.

“Renting out a guest suite, starting a short-term rental, or investing in income-generating assets with pulled equity are all creative ways I’ve seen retirees generate income while keeping their home intact,” says Adriana Trigg, owner of Legionary REI.

Retirees can also rent out other parts of their home for some additional income.

“Other parts of the home, such as garages, driveways, basements, and attics, can be rented out for storage or parking spaces,” says Ryan Barone, chief executive officer of RentRedi. “Retirees can also convert parts of their home into spaces that can be used for social gatherings to fulfill certain hobbies and activities.”

Those hobbies could be everything from arts and crafts and sewing to yoga classes.

“This will also generate some extra income while helping retirees remain active and connected to their communities,” Barone says.

The Bottom Line

Tapping into your home’s equity is one way to increase your retirement income, pay for unexpected expenses, and stay in your home. The simplest way to tap into your home’s equity is with a HELOC. It works like a credit card, and no interest gets applied to any of the unused credit line.

A reverse mortgage is another way to convert equity in your home into cash, but you’ll need to be 62 or older to qualify. Reverse mortgages also come with high fees.

A cash-out refinance gives you a new, bigger mortgage and access to cash. But you will also have larger mortgage payments.

Your home is a valuable asset, but tapping into its equity may make it less valuable, so carefully weigh the pros and cons of doing so. Receiving the cash can be helpful, but interest and fees accumulate over time, and your home, which you may intend to leave to heirs, could end up being worth less.

Tesla (TSLA) shares jumped Friday, extending Thursday’s gains fueled by trade deal optimism after President Donald Trump announced a trade agreement with the U.K. and suggested more deals are on the way.

The stock climbed nearly 5% to close at $298.26, its highest price since February, logging gains for the third straight week.

Markets could get more good news this weekend, as U.S. representatives are set to meet with Chinese officials for trade talks in Switzerland. (Read Investopedia’s full coverage of today’s trading here.)

The gains for Tesla’s stock come after a downbeat start to the week following a string of bad news about declining sales and registrations in several countries across Europe and China. The shares have still lost about one-quarter of their value since the start of the year.

Investors will be looking for updates in the coming weeks on Tesla’s plans for its self-driving robotaxis, as the company said in last month’s earnings report that it still plans to start offering paid rides in Model Y vehicles in Austin, Texas by the end of next month.

This article has been updated since it was first published to reflect more recent share price values.

You may see some price increases from tariffs in your recent shopping trips, but you won’t see them in Wednesday’s official report on inflation in April, forecasters say. 

A report on the Consumer Price Index by the Bureau of Labor Statistics on Tuesday is likely to show the cost of living rose 2.3% over the 12 months ending in April, according to a survey of economists by Dow Jones Newswires and the Wall Street Journal. That would be the lowest inflation since February 2021, before inflation flared in the wake of the pandemic.

President Donald Trump’s sweeping tariffs against U.S. trading partners are still likely to push up consumer prices, economists said. Merchants are expected to pass the cost of the import taxes on to consumers.

However, since many of the tariffs announced so far weren’t implemented until April, tariff inflation may not make much of a dent in official data for at least a few months. Some businesses had stockpiled inventory from abroad before the tariffs went into effect, giving them some financial breathing room to wait and see if the tariffs stay in place before adjusting their prices.

“Despite the actualization of tariffs, we do not expect April to be a light-switch moment in goods inflation,” economists at Wells Fargo Securities wrote in a commentary. “The pull-forward of imports, efforts not to alienate customers and general confusion over policy changes are likely to result in a more incremental strengthening in prices.”

Forecasters at Goldman Sachs said tariff price increases would likely hit in the three months following them going into effect, with other prices continuing to rise through the rest of the year as the effects ripple through the economy.

As for April, price increases likely stayed relatively tame by most measures. “Core” inflation, which excludes volatile prices for food and energy, is expected to rise 2.8% over the year, the same as in March, according to the median forecast.

If you’re waiting for the Federal Reserve to lower borrowing costs, don’t hold your breath. Out of the multiple Federal Reserve officials who spoke Friday, none sounded in a big hurry to cut the central bank’s benchmark interest rate.

In speeches and interviews, Fed officials gave their take on how the economy is holding up under President Donald Trump’s campaign of tariffs, and how the central bank is likely to respond. Although Trump has demanded lower interest rates, which would boost the economy, the central bank has so far resisted, holding rates steady out of concern that lower rates would stoke inflation.

Fed officials pushed back against both the idea of lowering rates soon, and the idea that the independent central bank should take direction from elected officials. Economists predict Trump’s tariffs, which mainly took effect in April, will push up consumer prices and discourage job growth the longer they stay in effect, potentially damaging both sides of the Fed’s dual mission to keep inflation in check and employment high.

As of Friday, financial markets were pricing in a probability that the Fed would lower its benchmark interest rate in July, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data. However, the outlook for the economy, and interest rates, are more uncertain than usual—no one knows for sure how the modern economy and its vastly complex supply chains will react to the highest tariffs in generations.

Concerns About Public’s Inflation Expectations

John C. Williams, president of the Federal Reserve Bank of New York, emphasized the importance of the price stability side of the Fed’s “dual mandate” Friday in an interview on Bloomberg Television.

“One thing we’ve learned from history is that having well-anchored inflation expectations, having the public have confidence that regardless of whatever’s happening today that inflation will come back to 2% and that we’ll make sure that happens, is very important for price stability,” Williams said. “It actually helps reinforce our ability to achieve both of our goals.”

Fed officials and many economists closely watch surveys of consumer expectations for how much prices will rise in the future, in the belief that inflation expectations can be a self-fulfilling prophecy: people could rush to buy things before prices rise. That could create a rush of demand that would allow businesses to raise prices.

Fed governor Adriana Kugler also put inflation concerns first and foremost when explaining why the Federal Open Market Committee, the bank’s policymaking group, had chosen to keep interest rates flat, at an elevated rate, in its meeting last week, speaking in a separate interview with Bloomberg. Kugler said the progress against inflation had been slowing down before the tariffs shook up the outlook, and echoed Williams’s concerns about keeping the public’s expectations of inflation in check.

“We see some upside risks to inflation from the tariffs that are currently in place, and given that, it makes sense to make sure we keep the federal funds rate moderately restrictive,” she said.

Kugler noted that so far, the job market has stayed resilient, so she saw little need to lower rates to boost employment.

Federal Reserve governor Michael S. Barr said it was unclear whether the tariffs would do more damage on the inflation or the employment front, so he favored waiting and seeing which emerged as the bigger threat.

“I am equally concerned that tariffs will lead to higher unemployment as the economy slows,” he said in a speech at the Reykjavík Economic Conference in Iceland, according to prepared remarks. “Thus, the FOMC may be in a difficult position if we were to see both rising inflation and rising unemployment.”

The Importance of Central Bank Independence

At least one Fed official, however, was uncertain about how much the tariffs will actually push up prices. While many economists expect companies to pass the costs of the import taxes on to their customers, Tom Barkin, president of the Federal Reserve Bank of Richmond, showed some skepticism about how much that would happen.

“What I’m hearing from retailers is that consumers are about tapped out,” Barkin said at an event at the Loudoun County Chamber of Commerce, Bloomberg reported. “And that means that it’s nice to say you’re going to pass it on, but it’s not as easy to pass it on as you might think.”

Fed governor Christopher Waller focused on the value of the central bank’s independence. The Fed is structured so that its officials cannot be fired by the president. That gives them the leeway to make decisions that might be beneficial in the long run, but unpopular, and politically damaging to a president in the short run. Waller pointed to his own research, and that of other economists, showing that independent central banks were better for nations’ economies than ones that were influenced by politicians.

“I would argue that it has stood the test of time, and I hope that it continues to be in place for years to come,” Waller said at the The Hoover Institution think tank in Stanford, California, according to prepared remarks.

Major U.S. equities indexes pulled back from their early gains Friday as investors wait for new developments on tariffs ahead of a weekend meeting between U.S. and Chinese officials.

The S&P 500 finished lower by 0.1% as the benchmark index broke a two-day winning streak to end the week lower by about 0.5%. The Dow Jones Industrial Average was down about 0.3% Friday, while the Nasdaq was unchanged. Both indexes also finished the week in negative territory.

Shares of insulin pump maker Insulet (PODD) surged by more than 20% Friday to pace the S&P 500, after the company reported stronger-than-anticipated quarterly results and lifted its full-year revenue outlook. Jefferies analysts lifted their price target on the stock to $360 from $350, suggesting significant upside from the stock’s close near $311 Friday.

Microchip Technology (MCHP) jumped by 12.6% after several analysts raised their price targets for the stock on the chipmaker’s better-than-expected outlook. While Microchip’s fourth-quarter sales fell 27% year-over-year, analysts were expecting a steeper drop.

Tesla (TSLA) shares jumped 4.7% to post gains for the third straight week amid optimism about new U.S. trade deals. The surge came after a weak start to the week following a string of reports on declining sales in Europe and China.

Akamai Technologies (AKAM) stock declined more than 10% after Scotiabank lowered its price target on the cybersecurity and cloud computing company to $105 from $107, with its shares closing just above $76 on Friday.

Expedia Group (EXPE) shares tumbled nearly 8% after the travel booking service delivered worse-than-expected first quarter results and lowered its full-year outlook amid weak U.S. travel demand. CEO Ariane Gorin said the company managed to grow bookings and revenue “despite weaker than expected demand in the U.S.”

Shares of TKO Group Holdings (TKO), the parent of World Wrestling Entertainment and Ultimate Fighting Championship, fell 5.5% after earnings missed analysts’ expectations. The company lifted its full-year revenue forecast.

Trump suggests lower tariffs on China … more AI-based layoffs … labor force pain “gradually then suddenly” … Eric Fry is eyeing nuclear power … cute tiger cubs

Let’s begin with the latest trade war chatter.

This morning, President Trump floated the idea of dropping the 145% tariff on China to 80%, while also hinting at additional deals on the way.

From Trump on Truth Social:

80% Tariff on China seems right! Up to Scott B.

Many Trade Deals in the hopper, all good (GREAT!) ones!

While lower, an 80% tariff would still largely be prohibitive to trade.

On that note, today, the first cargo ships carrying Chinese products hit with the 145% tariff arrived at Los Angeles ports. According to the port’s executive director, Gene Seroka, the volume of cargo on these ships has fallen by more than 50%.

Here’s Marine Insight:

Initially, 80 ships were scheduled to arrive in Los Angeles during May, but about 20% of those have already been cancelled.

Another 13 sailings for June have also been scrapped, a clear sign of businesses pulling back from sourcing goods from China due to cost concerns.

Flexport CEO Ryan Petersen explained that some retailers are opting to store goods in Chinese warehouses instead of bringing them to the US, as the storage costs are now lower than the import taxes.

Petersen estimated that if this continues, there could be a 60% drop in deliveries.

If/when too many deliveries disappear and the current inventory glut in U.S. warehouses dries up, that’s when we’ll face higher prices.

All eyes are on Treasury Secretary Scott Bessent and his negotiations with Chinese officials taking place in Switzerland this weekend.

We’ll report back on Monday.

On Wednesday, Cybersecurity company CrowdStrike announced it is cutting 500 jobs – roughly 5% of its workforce

Here’s MarketWatch with the explanation:

[Behind the layoffs is] both the security threat posed by artificial intelligence and the growing use of AI to move faster and operate more efficiently.

On Tuesday, The Wall Street Journal reported a similar story from tech blue blood IBM:

International Business Machines Chief Executive Arvind Krishna said the tech giant has used artificial intelligence, and specifically AI agents, to replace the work of a couple hundred human resources workers. 

And just a few days ago, language-learning app Duolingo unapologetically cannonballed into AI. From TechCrunch:

Duolingo announced plans this week to replace contractors with AI and become an “AI-first” company — a move that journalist Brian Merchant pointed to as a sign that the AI jobs crisis “is here, now.”

Meanwhile, in January, a World Economic Forum (WEF) survey found that 41% of employers plan on downsizing their workforce over the next five years as AI automates certain tasks.

And here’s more color from the International Monetary Fund:

In advanced economies, about 60 percent of jobs may be impacted by AI.

Roughly half the exposed jobs may benefit from AI integration, enhancing productivity. For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring.

 In the most extreme cases, some of these jobs may disappear.

What are we to make of all this?

Well, we’re not yet at the tipping point of AI’s economic creative destruction, but it’s coming.

“Jeff, stop right there. No fearmongering. If AI is such a job threat, explain why our unemployment rate remains at just 4.2%”

Well, first, while high-profile companies like IBM and CrowdStrike are making AI-related cuts, they represent a small slice of the overall labor market. Most AI-related layoffs so far have hit white-collar or tech jobs that are only a portion of the broader workforce.

Plus, job losses are being offset by new jobs in areas like healthcare, construction, hospitality, and transportation, which aren’t as vulnerable to AI… yet. For example, so far in 2025, service sector job growth has remained solid.

Next, many laid-off workers are finding new roles, often in companies adopting AI but needing people to manage, prompt, or train the systems. In other words, for the time being, AI is being used to augment rather than replace workers. So, many companies are restructuring workflows rather than eliminating full positions.

But let’s be clear…

This is a phase. It’s a temporary evolution point – not an end point.

An analogy comes from Ernest Hemingway’s novel “The Sun Also Rises.” When asked how he went bankrupt, a character replies, “Two ways. Gradually, then suddenly.”

The problem with “Jeff, stop fearmongering” is that is focuses on the “gradually” that’s here today, rather than the “suddenly” that’s coming tomorrow.

Legendary investor Louis Navellier has been researching this transition from a cultural, economic, and investment perspective

It was through Louis and his team that I was introduced to the term “double exponential.”

Originally used (in the context of technology) by futurist Ray Kurzweil, author of “The Singularity is Near,” the term describes the idea that technological progress doesn’t just follow a single exponential trend but often accelerates at an even faster rate.

“Double exponential” growth means that not only is the growth rate increasing, but the rate at which it increases is also accelerating.

Here’s Louis tying this idea to our economy and labor market:

Today, we find ourselves at a moment I call the “Economic Singularity.”

This is the moment when AI crosses a threshold and makes most human labor economically irrelevant.

We’re past the point of no return. AI is improving itself now. It’s creating its own agents. And writing its own code.

What comes next?

In short, the biggest transformation of wealth and labor in human history…

Folks, I know this sounds dramatic, but I’m telling you straight.

It’s the way innovation works. It happens slowly at first… and then, all of a sudden, everything is different.

To Louis’ point about human-labor irrelevancy, let’s check in on a key economic “canary in the coal” mine: software developers.

For years, these tech hires commanded fantastic salaries as they wrote the code that powered our cutting-edge software products. This was a next-gen, in-demand career.

With this context, let’s jump to Anthropic CEO Dario Amodei from March:

If I look at coding, programming, which is one area where AI is making the most progress – what we are finding is that we’re 3 to 6 months from a world where AI is writing 90% of the code.

And then in 12 months, we may be in a world where AI is writing essentially all of the code.

Louis makes an important point: You don’t have to like this change – but you must choose how you’ll respond to it.

To help investors safely cross this AI Rubicon, Louis just released a new batch of research.

As part of it, there are four special reports covering )1 the top stocks for this age of the Singularity, 2) which physical AI (think “humanoids/robots”) to buy today, 3) a “Complete Portfolio Protection” Plan, and 4) how to find pre-IPO, potential Unicorn AI investments before they’ve gone public.

You can learn more about accessing all this by clicking here.

By the way – be sure to catch tomorrow’s Digest by our Editor-in-Chief and co-Digest writer Luis Hernandez. He names one of Louis’ recent AI picks.

Here’s another idea for AI preparation, courtesy of our macro expert Eric Fry

As we’ve been hammering home in the Digest for months, AI consumes enormous volumes of energy. This demand will only increase as AI continues to integrate seamlessly with our day-to-day lives. We’ve urged investors to get exposure to the broad AI datacenter ecosystem that powers this demand.

Eric has been positioning his readers for this for many months in his flagship newsletter Fry’s Investment Report.

Let’s jump to his update from Wednesday:

Artificial intelligence relies on data centers to handle its computational needs. AI requires immense amounts of processing power for training and running large language models (LLMs), and data centers provide this power.

But there’s a problem: As we get further and further down the Road to Artificial General Intelligence (AGI), the technology demands such spectacular volumes of electric power that existing sources are not able to provide enough.

During the last three years alone, the combined electricity consumption of data center giants like Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), Microsoft Corp. (MSFT), and Alphabet Inc. (GOOGL) soared more than 80%.

That explosive growth is certain to continue.

This shortfall is an opportunity for investors who know where to look. So, where’s Eric looking?

Nuclear energy.

On Wednesday, nuclear developer Elementl Power reported that it signed an agreement with Google to develop three sites for advanced reactors.

This comes on the heels of Google’s deal announced in October with Kairos Power, a developer of “small modular reactors” (SMRs).

Plus, Eric notes that around the same time that Google inked its deal with Kairos, Amazon announced that Amazon Web Services (AWS) is set to invest more than $500 million in nuclear power.

And in September, Microsoft made a deal with Constellation Energy Corp. (CEG) to restart a reactor at the infamous Three Mile Island nuclear facility.

With this background, here’s Eric:

This new high-profile demand for nuclear power from Big Tech and, sooner than we think, AGI could accelerate growth and profitability in the uranium industry.

To capitalize on that potential, I recommend investing in what’s turning into one of the “soundest” plays in the stock market: the uranium sector.

One name for your research that Eric mentions is Cameco Corp. (CCJ), one of the world’s largest uranium producers.

It has high-grade assets such as the McArthur River and Cigar Lake mines that offer significant cost advantages over competitors. Plus, it has a 49% stake in Westinghouse Electric, giving it exposure to the growing demand for SMRs, which Eric highlighted a moment ago.

I’ll also note that CCJ is in the middle of a blistering rally. Since April 9, it’s exploded 36%.

Other ideas for your research include Uranium Energy (UEC), Energy Fuels (UUUU), and Centrus Energy Corp (LEU).

For more on the specific way Eric is investing in Investment Report, click here to learn more about join him. He recently recommended a unique energy play that should be a direct beneficiary of snowballing AI adoption.

Wrapping up, if you remain skeptical about the significance of AI and the need for preparation…

Then I’d point to comments from the “Godfather of AI,” Geoffrey Hinton, made less than two weeks ago.

If you’re less familiar with Hinton, he earned his nickname due to his groundbreaking work in artificial neural networks, particularly his contributions to the development of deep learning.

From Hinton in his recent CBS interview:

People haven’t got it yet. People haven’t understood what’s coming…

The best way to understand it emotionally is we are like somebody who has this really cute tiger cub.

Unless you can be very sure that it’s not gonna want to kill you when it’s grown up, you should worry.

A tweak on Hinton’s comments…

Let’s not worry – that’s pointless and accomplishes nothing. Instead, let’s be deliberate about preparation.

On a general basis, there’s a limit to what that means. But from an investment perspective, there are plenty of moves we can make today to shore up our economic vulnerability.

If you haven’t done so yet, carve out some time to dig into how you’re preparing for AI today.

Have a good evening,

Jeff Remsburg

Below you’ll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.

A 4.50% Rate You Can Enjoy Until Late 2026

Today’s highest CD rate in the country is 4.50%—and you have plenty of ways to lock that in. The shortest option with that return is a 3-month certificate available from PonceBankDirect. Then, eight institutions offer a 4.50% rate for terms of 6 to 13 months, including a 9-month certificate from OMB that debuted in our rankings yesterday and a 12-month option from Greenwood Credit Union that was unveiled Monday.

At the longest end, XCEL Federal Credit Union will guarantee its 4.50% APY for 18 months, which would secure your return until November 2026.

All Federally Insured Institutions Are Equally Protected

Your deposits at any FDIC bank or NCUA credit union are federally insured, meaning you’re protected by the U.S. government in the unlikely case that the institution fails. Not only that, but the coverage is identical—deposits are insured up to $250,000 per person and per institution—no matter the size of the bank or credit union.

Consider Multiyear CDs to Guarantee Your Rate Further Down the Road

For a rate lock you can enjoy for almost two years, PenAir Credit Union is paying 4.40% APY for 21 months, promising its rate until February 2027. Or, stretch your guarantee further by taking a slightly lower APY of 4.32%, available for 30 months from Genisys Credit Union.

Savers who want to stash their money away for even longer might like the leading 4-year or 5-year certificates. You can lock in a 4.28% rate for 4 years from Lafayette Federal Credit Union. In fact, Lafayette promises the same 4.28% APY on all its certificates from 7 months through 5 years, letting you secure that rate as far as 2030.

Multiyear CDs are likely smart right now, given the possibility of Fed rate cuts in 2025 and perhaps 2026. The central bank lowered the federal funds rate by a full percentage point in late 2024 and could resume rate cuts later this year. While any interest-rate reductions from the Fed will push bank APYs lower, a CD rate you secure now will be yours to enjoy until it matures.

Today’s Best CDs Still Pay Historically High Returns

It’s true that CD rates are no longer at their peak. But despite the pullback, the best CDs still offer a stellar return. October 2023 saw the highest CD rates push briefly to 6%, while today’s leading rate is down to 4.50%. But compare that to early 2022, before the Federal Reserve embarked on its fast-and-furious rate-hike campaign. The most you could earn from the very best CDs in the country ranged from just 0.50% to 1.70% APY, depending on the term.

Jumbo CDs Beat Regular CDs in 4 Terms

Jumbo CDs require much larger deposits and sometimes pay premium rates—but not always. In fact, the best jumbo CD rates right now are the same or lower than the top standard rates in four of the eight CD terms we track.

Among 1-year and 18-month CDs, the top standard and top jumbo CDs pay the same rate of 4.50% APY. Meanwhile, institutions are offering higher jumbo rates in the following terms:

• 6 months: Credit One Bank offers 4.55% for a 6–7 month jumbo CD vs. 4.50% for the highest standard rate.
• 3 years: Hughes Federal Credit Union offers 4.34% for a 3-year jumbo CD vs. 4.32% for the highest standard rate.
• 4 years: Lafayette Federal Credit Union offers 4.33% for a 4-year jumbo CD vs. 4.28% for the highest standard rate.
• 5 years: Both GTE Financial and Lafayette Federal Credit Union offer 4.33% for jumbo 5-year CDs vs. 4.28% for the highest standard rate.

That makes it smart to always check both types of offerings when CD shopping. If your best rate option is a standard CD, simply open it with a jumbo-sized deposit.

Where Are CD Rates Headed in 2025?

In December, the Federal Reserve announced a third rate cut to the federal funds rate in as many meetings, reducing it a full percentage point since September. But with its announcement this week, the central bank has opted to hold rates steady at all three of its 2025 meetings to date.

The Fed’s three rate cuts last year represented a pivot from the central bank’s historic 2022–2023 rate-hike campaign, in which the committee aggressively raised interest rates to combat decades-high inflation. At its 2023 peak, the federal funds rate climbed to its highest level since 2001—and remained there for nearly 14 months.

Fed rate moves are significant to savers, as reductions to the fed funds rate push down the rates banks and credit unions are willing to pay consumers for their deposits. Both CD rates and savings account rates reflect changes to the fed funds rate.

Time will tell what exactly will happen to the federal funds rate in 2025 and 2026—as tariff activity from the Trump administration has paused the Fed’s course as policymakers await clear data. But with more Fed rate cuts possibly arriving this year, today’s CD rates could be the best you’ll see in a while—making now a smart time to lock in the best rate that suits your personal timeline.

Daily Rankings of the Best CDs and Savings Accounts

We update these rankings every business day to give you the best deposit rates available:

Important

Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.

How We Find the Best CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD’s minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.