Josh Brown once had this idea that in order to be a financial advisor, you needed to be buttoned up and fit a particular mold.
Brown, a CNBC contributor who often takes a casual and accessible tack with investors for his commentary, has since learned that there’s more than meets the eye to a lot of things in the world of money.
Throughout his new book, “You Weren’t Supposed To See That: Secrets Every Investor Should Know,” Brown encourages investors to look beyond the surface level of financial advice you see in traditional and social media. Take the American Dream, for example:
“We all grow up being taught about the American Dream and why it can work for everyone,” said Brown, who is the CEO of Ritholtz Wealth Management, a New York City-based investment advisory firm. “I still believe that’s true, but what we learned in the pandemic is it can’t work for everyone all at once. That’s the thing that you weren’t supposed to see.
“The hidden truth about American-style capitalism is that if everybody is good all at once, the whole thing breaks down. We need people to be successful, but we also need people who are still striving to get there, who are willing to take jobs and do things that others won’t do.”
What we learned in the pandemic is it can’t work for everyone all at once.
Joshua Brown
CEO of Ritholtz Wealth Management, a New York City-based advisory firm
CNBC spoke with Brown in early October about his experience in the field as a financial advisor and some of his top takeaways for investors across generations.
This interview has been edited and condensed for clarity.
‘One of the biggest lies on Wall Street’
Ana Teresa Solá: What led you to write this book?
Joshua Brown: I had been writing a blog [The Reformed Broker] for about 15 years, and I was writing seven days a week at one point. Then the momentum started to slow down as my career took over.
At the end of last year, I decided to put an end to it and just say, “This is as far as I could take this.” But I didn’t want to not give it the proper send off, because it was a huge part of my life.
When you put your heart and soul into that much writing over that length of time, you kind of want to say, “All right … these are the most important insights, and these are the things that I think were important at the time. And let me do something that recognizes that.”
I wanted to collect all those insights in a book, revisit some of the greatest hits, and then bring them up to the present so that there is a value to the reader today.
ATS:You echo this idea throughout the book, that you can’t reap the rewards of the stock market without some impact.
JB: One of the biggest lies on Wall Street is that investors can avoid risk and still have the upside of whatever asset class, the markets, etc. It will always be the biggest lie because it’s the easiest thing on earth to sell.
Everybody wants it, and even very intellectually secure people who understand logic will still fall for that.
When you’re a salesperson, one of the things you learn is to figure out who you’re talking to and what their buttons are, and then you push those buttons.
Josh Brown on the CNBC set at the New York Stock Exchange.
Photo: James Moock
The thing that we have done very well in our content as a firm, is we have pointed out the ways in which people are convinced to do one thing or the other, and how much human nature plays into that and why it’s really important to fight those instincts, whether it’s fear or greed, as the markets are unfolding.
You really don’t want to veer too far into one of those buckets. You want to be right down the middle. Take enough risk that you can make money, but not take so much risk that you’re about to get the knockout punch.
Financial advice industry ‘has come a long way’
ATS: In the book, there’s a story about how you walked into this financial advisor’s office and her technique was not what you expected.
JB: That’s about more than 10 years ago, and it was a really eye-opening moment for me. Prior to that, I was very intimidated to make the transition from being a retail stockbroker to an investment advisor.
I had this idea in my head that all the people who were serving as investment advisors were like these serious, buttoned up professionals who knew exactly what to do — and it really turned out not to be that. It turned out to be a lot of people pretending.
The industry has come a long way since then. The average advisor is significantly better equipped to deal with clients and more professionalized than what I had seen in that era.
That’s kind of a relic of another time that no longer exists. I don’t think that you can fake it to the degree that you used to be able to. [Many advisors are] operating on a fiduciary standard, I don’t think you could fool people anymore.
Gen Z doesn’t need financial planning advice. They need asset allocation advice.
Joshua Brown
CEO of Ritholtz Wealth Management, a New York City-based advisory firm
ATS: You say young advisors are equipped with the expertise, but they lack something prior generations of advisors have. What is it?
JB: You have this new generation of incredibly qualified financial planning talent. They’re coming out of college knowing more at 23 than many advisors at 43 have ever learned about the planning process.
This is my opinion — I’m sure people [will] get mad when they hear this — but what they’re missing is the ability to convert an audience of prospective clients into real relationships.
They don’t yet have the life experience. Generationally, they’ve been able to get away with doing a lot less face-to-face. They haven’t dealt with as much rejection as Gen X, certainly the boomers.
Let’s put them in some rooms with important meetings going on. Let’s give them opportunities to have these face-to-face interactions, because they really know what they’re doing.
Where they’re lacking is what my generation and older has — which is the ability to sell, to persuade, to make people feel comfortable and the ability to deal with awkward social circumstances.
‘Gen Z doesn’t need financial planning advice’
ATS: What are you observing with Gen Z and how they’re seeking financial advice?
JB: Gen Z, they don’t need financial planning advice. They need asset allocation advice. They don’t have the assets accumulated. There are no estate issues. There aren’t really tax things worth discussing.
Whatever they’re encountering on TikTok is whatever the algorithm is serving them, and the algorithm is going to serve them the most outrageous content, it’s going to serve them shortcuts, facts, tricks, stories about people making wild, Bonanza size trades.
It’s not advice … Most of it is being delivered by completely unqualified people who are not registered, who are not beholden to any sort of standard, and could just say whatever they want.
But I think what ends up happening with that generation, just like every generation prior, is things in their life become more complex. The level of responsibility goes up, the amount of money that they’re dealing with goes up, and they will, in turn, start looking for help.
Under the Biden administration, the U.S. Department of Education made regular announcements that it was forgiving student debt for thousands of people under various relief programs and repayment plans.
“You have the administration trying to limit PSLF credits, and clear attacks on the income-based repayment with forgiveness options,” said Malissa Giles, a consumer bankruptcy attorney in Virginia.
The White House did not respond to CNBC’s request for comment.
Here’s what to know about the current status of federal student loan forgiveness opportunities.
Forgiveness chances narrow on repayment plans
The Biden administration’s new student loan repayment plan,Saving on a Valuable Education, or SAVE, isn’t expected to survive under Trump, experts say. A U.S. appeals court already blocked the plan in February after a GOP-led challenge to the program.
SAVE came with two key provisions that lawsuits targeted: It had lower monthly payments than any other federal student loan repayment plan, and it led to quicker debt erasure for those with small balances.
“I personally think you will see SAVE dismantled through the courts or the administration,” Giles said.
But the Education Department under Trump is now arguing that the ruling by the 8th U.S. Circuit Court of Appeals required it to end the loan forgiveness under repayment plans beyond SAVE. As a result, the Pay As You Earn and Income-Contingent Repayment options no longer wipe debt away after a certain number of years.
There’s some good news: At least one repayment plan still leads to debt erasure, said higher education expert Mark Kantrowitz. That plan is called Income-Based Repayment.
If a borrower enrolled in ICR or PAYE eventually switches to IBR, their previous payments made under the other plans will count toward loan forgiveness under IBR, as long as they meet the IBR’s other requirements, Kantrowitz said. (Some borrowers may opt to take that strategy if they have a lower monthly bill under ICR or PAYE than they would on IBR.)
Public Service Loan Forgiveness remains
Despite Trump‘s executive order in March aimed at limiting eligibility for Public Service Loan Forgiveness, the program remains intact. Any changes to the program would likely take months or longer to materialize, and may even need congressional approval, experts say.
PSLF, which President George W. Bush signed into law in 2007, allows many not-for-profit and government employees to have their federal student loans canceled after 10 years of payments.
What’s more, any changes to PSLF can’t be retroactive, consumer advocates say. That means that if you are currently working for or previously worked for an organization that the Trump administration later excludes from the program, you’ll still get credit for that time — at least up until when the changes go into effect.
For now, the language in the president’s executive order was fairly vague. As a result, it remains unclear exactly which organizations will no longer be considered a qualifying employer under PSLF, experts said.
However, in his first few months in office, Trump has targeted immigrants, transgender and nonbinary people and those who work to increase diversity across the private and public sector. Many nonprofits work in these spaces, providing legal support or doing advocacy and education work.
For now, those pursuing PSLF should print out a copy of their payment history on StudentAid.gov or request one from their loan servicer. They should keep a record of the number of qualifying payments they’ve made so far, said Jessica Thompson, senior vice president of The Institute for College Access & Success.
“We urge borrowers to save all documentation of their payments, payment counts, and employer certifications to ensure they have any information that might be useful in the future,” Thompson said.
Other loan cancellation opportunities to consider
Federal student loan borrowers also remain entitled to a number of other student loan forgiveness opportunities.
The Teacher Loan Forgiveness program offers up to $17,500 in loan cancellation to those who’ve worked full time for “complete and consecutive academic years in a low-income school or educational service agency,” among other requirements, according to the Education Department.
(One thing to note: This program can’t be combined with PSLF, and so borrowers should decide which avenue makes the most sense for them.)
In less common circumstances, you may be eligible for a full discharge of your federal student loans under Borrower Defense if your school closed while you were enrolled or if you were misled by your school or didn’t receive a quality education.
Borrowers may qualify for a Total and Permanent Disability discharge if they suffer from a mental or physical disability that is severe and permanent and prevents them from working. Proof of the disability can come from a doctor, the Social Security Administration or the Department of Veterans Affairs.
With the federal government rolling back student loan forgiveness measures, experts also recommend that borrowers explore the many state-level relief programs available. The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.
Many Americans are worried they’ll run out of money in retirement.
In fact, a new survey from Allianz Life finds that 64% Americans worry more about running out of money than they do about dying. Among the reasons cited for those fears include high inflation, Social Security benefits not providing enough support and high taxes.
The fear of running out of money was most prominent for Gen Xers who are approaching retirement. However, a majority of millennials and baby boomers also said they worry about their money lasting, according to the online survey of 1,000 individuals conducted between January and February.
Separately, a new Employee Benefit Research Institute report finds most retirees say they are living the lifestyle they envisioned and are able to spend money within reason. Yet more than half of those surveyed agreed at least somewhat that they spend less because of worries they will run out of money, according to the survey of more than 2,700 individuals conducted between January and February.
Meanwhile, a Northwestern Mutual survey reported that 51% of Americans think it’s “somewhat or very likely” they will outlive their savings. The survey polled 4,626 U.S. adults aged 18 and older in January.
Since those studies were conducted, new tariff policies have caused disturbance in the stock markets and prompted speculation that inflation may increase. Meanwhile, new leadership at the Social Security Administration has prompted fears about the continuity of benefits. Those headlines may negatively affect retirement confidence, experts say.
With employers now providing a 401(k) plan and other savings plans versus pensions, it is largely up to workers to manage how much they save heading into retirement and how much they spend once they reach that life stage. That responsibility can also lead to worries of running out of money in the future, experts say.
How to manage the ‘fear of outliving your resources’
Because of the unique risks every individual or couple faces when planning for retirement, the best approach is typically to transfer some of that burden to a third party, said David Blanchett, head of retirement research at PGIM DC Solutions.
Creating a guaranteed lifetime income stream that covers essential expenses can help reduce the financial impact of any events that require retirees to cut back on spending, Blanchett explained.
That should first start with delaying Social Security benefits, he said. While eligible retirees can claim benefits as early as 62, holding off up until age 70 can provide the biggest monthly benefits. Social Security is also unique in that it provides annual adjustments for inflation.
Next, retirees may want to consider buying a lifetime income annuity that can help amplify the monthly income they can expect. Admittedly, those products can be complicated to understand. Therefore Blanchett recommends starting out by comparing very basic products like single premium immediate annuities that are easier to compare.
“Unless you do those things, you just can’t get rid of that fear of outliving your resources,” Blanchett said.
Without a guaranteed income stream, retirees bear all of the financial risk themselves, he said.
“Retirement could last 10 years; it could last 40 years,” Blanchett said. “You just don’t know how long it’s going to be.”
Among retirees, there has been some hesitation to buy annuities, said Craig Copeland, EBRI’s director of wealth benefits research. Such a purchase requires parting with a lump sum of money in exchange for the promise of a guaranteed income stream.
“We see great increase in interest, but we aren’t seeing upticks in take up yet,” Copeland said. “I do think that’s going to start to change.”
What can help boost retirement confidence
To effectively plan for retirement, it helps to seek professional financial assistance, experts say.
Meanwhile, few people have a plan of their own for how they may live on the assets they’ve worked hard to accumulate, according to Kelly LaVigne, vice president of consumer insights at Allianz Life.
“This is something that you should not plan on doing on your own,” LaVigne said.
While the survey from Northwestern Mutual separately found individuals think they need $1.26 million to retire comfortably, the real number individuals need is based on their personal situation, said Kyle Menke, founder and wealth management advisor at Menke Financial, a Northwestern Mutual company.
In thinking about how life will look in 30 years, there are a variety of things to consider, Menke said. This includes stock market returns, taxes, inflation and medical expenses, he said.
Even people who have enough money for retirement often don’t feel confident in their ability to manage all of those factors on their own, he said. Financial advisors have the ability to run different simulations and stress test a plan, which can help give retirees and aspiring retirees the confidence they’re lacking.
“I think that’s where the biggest gap is,” said Menke, referring to the confidence Americans are lacking without a plan.
Shipping containers at the Port of Seattle on April 16, 2025.
David Ryder/Bloomberg via Getty Images
Tariffs levied by President Donald Trump during his second term would hurt the poorest U.S. households more than the richest over the short term, according to a new analysis.
Tariffs are a tax that importers pay on foreign goods. Economists expect consumers to shoulder at least some of that tax burden in the form of higher prices, depending on how businesses pass along the costs.
In 2026, taxes for the poorest 20% of households would rise about four times more than those in the top 1%, if the current tariff policies were to stay in place. Those were findings according to an analysis published Wednesday by the Institute on Taxation and Economic Policy.
For the bottom 20% of households — who will have incomes of less than $29,000 in 2026 — the tariffs will impose a tax increase equal to 6.2% of their income that year, on average, according to ITEP’s analysis.
Meanwhile, those in the top 1%, with an income of more than $915,000 a year, would see their taxes rise 1.7% relative to their income, on average, ITEP found.
Economists analyze the financial impact of policy relative to household income because it illustrates how their disposable income — and quality of life — are impacted.
Taxes by ‘another name’
“Tariffs are just taxes on Americans by another name,” researchers at the Heritage Foundation, a conservative think tank, wrote in 2017, during Trump’s first term.
“[They] raise the price of food and clothing, which make up a larger share of a low-income household’s budget,” they wrote, adding: “In fact, cutting tariffs could be the biggest tax cut low-income families will ever see.”
A recent analysis by the Yale Budget Lab also found that Trump tariffs are a “regressive” policy, meaning they hurt those at the bottom more than the top.
The short-term tax burden of tariffs is about 2.5 times greater for those at the bottom, the Yale analysis found. It examined tariffs and retaliatory trade measures through April 15.
“Lower income consumers are going to get pinched more by tariffs,” said Ernie Tedeschi, director of economics at the Yale Budget Lab and former chief economist at the White House Council of Economic Advisers during the Biden administration.
Treasury Secretary Scott Bessent has said tariffs may lead to a “one-time price adjustment” for consumers. But he also coupled trade policy as part of a broader White House economic agenda that includes a forthcoming legislative package of tax cuts.
“We’re also working on the tax bill and for working Americans, I believe that the reduction in taxes is going to be substantially more,” Bessent said April 2.
It’s also unclear how current tariff policy might change. The White House has signaled trade deals with certain nations and exemptions for certain products may be in the offing.
Trump has imposed a 10% tariff on imports from most U.S. trading partners. Mexico and Canada face 25% levies on a tranche of goods, and many Chinese goods face import duties of 145%. Specific products also face tariffs, like a 25% duty on aluminum, steel and automobiles.