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There are tactical portfolio moves investors can make during the Trump administration’s aggressive tariff policies, market strategists say.
That includes considering how different sectors may be impacted by the levies, and looking at ways through target your investments.

Gantry cranes above a container ship.
Shaunl | E+ | Getty Images

President Donald Trump’s tariffs have redrawn the map of the global economy — sending stocks on an unpredictable ride over the last few months.
On Thursday, many trading partners were hit with “reciprocal” tariffs on their exports to the U.S. Trump also announced late Wednesday that he will impose a 100% tariff on imported semiconductor chips, with an exception for companies that are “building in the United States.”

Most investors would benefit from tuning out the market volatility triggered by a trade war with dozens of countries, financial advisors say. History shows that the stock market is remarkably resilient, and offers handsome returns to those who take a long view.
“Investor uncertainty escalated amid the initial developments of tariffs,” said Wes Crill, senior client solutions director and vice president at Dimensional Fund Advisors.
“[E]ven while the news headlines may be concerning, investors have good reasons to stay invested,” Crill said. “Prices are always set to provide positive expected returns.”

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Still, there are also some tactical moves investors can take in this environment if they don’t want to just sit tight and stay the course, market strategists say.
“Tariffs have made this investing environment very tricky,” said Callie Cox, chief market strategist at Ritholtz Wealth Management.

“[But] there are lots of opportunities if you’re willing to look for them.”

S&P 500 up 12% since Trump’s ‘Liberation Day’

Trump has announced and rescinded a flurry of actions around tariff policy since his so-called “Liberation Day” on April 2.
The U.S. effective tariff rate is estimated to rise to about 17% — from 2.3% last year — after tariffs Trump proposed last week on a swath of countries, Stephen Brown, deputy chief North America economist at Capital Economics, wrote in an Aug. 1 research note.

Patience often trumps panic.

Douglas Boneparth
certified financial planner

Those so-called “reciprocal tariffs” come on top of others, like duties placed on automobiles, steel, aluminum and copper, for example. A 17% effective rate would be the highest since the 1930s, Brown wrote.
But the stock market is still chugging along. Between the start of April and early August, the S&P 500 rose over 12%, according to Morningstar Direct. As reciprocal tariffs went into effect on Thursday, the market was little changed by midday.
That uptick “reinforces a timeless investing principle,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York.
“Patience often trumps panic,” said Boneparth, a member of the CNBC Financial Advisor Council.

ETFs can help target investing amid tariffs

For investors who want to try to allocate their money in a strategic way amid the era of tariffs, exchange-traded funds, or ETFs, may be one place to look, said Andrew Hiesinger, founder and CEO of Quant Data, a market information platform.
“ETFs let investors adjust exposure to entire sectors, regions or supply chains in a single trade,” Hiesinger said.
“When tariffs disrupt global markets, this flexibility can help smooth out risk compared to holding individual stocks that may be directly impacted by a single policy change,” he added.
Many of the best-performing ETFs since early April have been focused on cryptocurrencies, an analysis by Morningstar Direct found.

“Cryptocurrency ETFs have gained momentum because digital assets are not directly impacted by tariffs on physical goods,” Hiesinger said.
“Broader trade uncertainty can also drive investors toward crypto as a perceived hedge against geopolitical and currency risks.”
Meanwhile, nuclear energy ETFs have benefited from a growing demand for stable power sources and policy support, Hiesinger said.
“Tariffs on other energy inputs or technology components can indirectly make nuclear power more attractive,” he added.

There is no single rule for how much of their portfolio investors should allocate to ETFs, Hiesinger said.
“The key is ensuring the position fits within their overall risk tolerance and broader portfolio strategy, rather than a fixed percentage or amount they can afford to lose,” he said.

Tech and financial sectors stand to benefit

Among the challenges for investors is the whipsawing nature of the Trump administration’s tariff policy, experts said.
But tactical traders looking to pinpoint investment opportunities over a time frame of weeks or months — compared to the multiyear or multidecade time frames of long-term investors — “shine” in such a fast-moving, volatile environment, Ritholtz Wealth Management’s Cox said.
Technology, consumer discretionary, materials and industrials are among the investment sectors broadly poised for a negative tariff impact, Cox said. The consumer discretionary spending category encompasses retailers that sell good and services such as appliances, toys, electronics and apparel — many of which are manufactured overseas.
Meanwhile, the industrials sector includes transportation and logistics firms such as UPS, FedEx and other shippers that will need to adjust to a new reality of lower import volumes, Cox said.

On the other hand, the Trump administration has exempted many consumer tech products like smart phones and computers from tariffs. That somewhat insulates the tech sector from tariff impact, said Jacob Manoukian, U.S. head of investment strategy at J.P. Morgan Private Bank.
Cox and Manoukian view sectors like utilities and financials as being less exposed to tariffs, as well. These include more services-oriented businesses, which are less focused on physical goods, and are more U.S.-based, Cox said.
“You’re not importing bankers from Europe,” Cox said.

Beyond tariffs

Ultimately, tariffs will have at least some financial impact on “almost everything” because of the interconnected nature of global supply chains, Manoukian said.
But investors should consider their impact alongside other Trump administration policies, Manoukian said.
For example, a recently passed tax and spending package tweaked rules around bonus depreciation and expenses for research and development; changes that are likely to prove financially beneficial for many companies, Manoukian said. More

The Education Department said a beta test of the 2026-27 Free Application for Federal Student Aid is already underway.
Starting on Sept. 1, anyone can request to participate in the second phase of testing.
Submitting a FAFSA is one of the best predictors of whether a high school senior will go on to college, data shows.

Source: FAFSA

The U.S. Department of Education is making the Free Application for Federal Student Aid available earlier than usual this year as a beta test, which experts say may address some of the bugs that have plagued previous application cycles.
The FAFSA serves as the gateway to all federal aid money for college-bound students, including federal student loans, work-study and grants.

The 2026-27 FAFSA is already available to a limited group of students in a beta test. Starting on Sept. 1, anyone can request to participate in the second phase of testing, according to an announcement from the Education Department.
All students will have access to the coming academic year’s form at the beginning of October, in keeping with the typical start date.
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“We’re pleased to hear that Federal Student Aid has launched FAFSA beta testing sooner than expected,” said Melanie Storey, president and CEO of The National Association of Student Financial Aid Administrators.
“An earlier and longer testing window will give the Department of Education the time it needs to address any potential bugs or errors, with valuable feedback from applicants and financial aid professionals, which should lead to a smoother process when the application is opened to the broader public,” Storey said.

Kim Cook, CEO of the National College Attainment Network, said she was “pleased” that beta testing for the new FAFSA is underway and that the new FAFSA is on track to open to the public on Oct. 1.
“All these positive changes portend that the high school class of 2026 will achieve an all-time high FAFSA completion rate by the time they graduate next spring,” Cook said.

FAFSA completion is a predictor of college enrollment

For many families, financial aid is essential when it comes to covering the cost of college, which has jumped significantly in recent decades. Grants — including federal ones such as the Pell Grant — have become the most crucial kind of assistance, because they typically do not need to be repaid.
The earlier families fill out the form, the better their chances are of receiving aid, since some financial aid is awarded on a first-come, first-served basis, or from programs with limited funds, experts say.

Submitting a FAFSA is one of the best predictors of whether a high school senior will go on to college, according to the National College Attainment Network, or NCAN. Seniors who complete the FAFSA are 84% more likely to enroll in college directly after high school, according to an NCAN study of 2013 data. 
Yet, only 71% of families submitted the FAFSA for the 2024-25 academic year, down from 74% in the previous academic year, according to Sallie Mae’s recent How America Pays for College report. That’s in part because of previous complications with the new form, which initially launched in late December 2023 after a monthslong delay.
“Families reported having an easier time completing the FAFSA last year, but 58% indicated they still needed assistance, so having a head start can be beneficial especially for first time FAFSA filers,” said Rick Castellano, a spokesperson for Sallie Mae. 
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A provision in President Donald Trump’s “big beautiful bill” sets new limits on student loan borrowing for professional programs, such as medical school.
Experts say the new law will make it harder for aspiring doctors to finance their degree or force them to abandon their medical school plans.
“This is now a generation that has a big-time punch in the face,” said Bobby Mukkamala, president of the American Medical Association.

Drazen Zigic | Istock | Getty Images

A measure in President Donald Trump’s “big beautiful bill” that caps federal student loans could make it harder for medical students to finance their education or force them to abandon their medical school plans, experts say.
Starting next year, the legislation caps the amount of federal loans students can borrow for graduate school at $100,000 over a lifetime — and sets a lifetime loan limit of $200,000 for professional programs, such as medical, dental or law school. Grad PLUS loans will also be eliminated entirely. Those changes go into effect for new borrowers on July 1, 2026.

Some experts say the new loan limits will provide a much-needed check on soaring tuition costs, which have jumped significantly in recent decades, outpacing inflation and other household expenses. Higher costs have made college and graduate school seem out of reach for some while saddling others with crippling student loan debt.
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Families, too, support having additional guardrails. Roughly two-thirds, or 67%, of parents said there should be limits on how much federal student loan debt students can take on, according to Sallie Mae’s annual How America Pays for College report.
However, for aspiring doctors, the limits may mean drastic changes. The average cost of medical school already exceeds $200,000. At private institutions, the average cost is more than $300,000, according to 2024 data from the Association of American Medical Colleges.
“This is now a generation that has a big-time punch in the face,” said Bobby Mukkamala, president of the American Medical Association.

‘Crazy, crazy debt’ for a medical degree

Kylie Ruprecht, 24, is a third-year medical student at the University of Wisconsin.
Courtesy: Kylie Ruprecht

“People view medical students as future rich people and that’s not the case at all,” said Kylie Ruprecht, a third-year student at the University of Wisconsin School of Medicine.
“You go into crazy, crazy debt to go into medicine,” said Ruprecht, 24, “and then repay those loans over decades.”
Ruprecht relies on a combination of unsubsidized student loans and Grad PLUS loans to cover her costs. Once she graduates, she will begin a four-year residency to become an anesthesiologist. It will be years before she is on solid financial footing, she said.
Ruprecht declined to say how much she will owe, in total, when she graduates. Although Ruprecht is grandfathered into the old borrowing limits, her current debt load, with Grad Plus loans, would surpass the new loan caps, she said.
In fact, about 27.5% of medical school students and 60% of those in dentistry programs graduated with more debt in 2020 than is allowed under the new loan limits, according to calculations by higher education expert Mark Kantrowitz.

“Medical school is the ‘hair on fire’ situation because the numbers are big, period, and the gaps between the federal loan limits and the program costs are sizeable,” said Ken Ruggiero, co-founder and CEO of private education lender Ascent Funding.
Nearly every year, students and their families are borrowing more to make up the difference. Now, around 44 million Americans owe a combined $1.7 trillion for their education. Roughly 40% of that outstanding federal student loan debt is taken on for master’s and PhD programs.

A growing shortage of doctors

The new legislation “doesn’t affect everyone equally,”  Mukkamala said — it’s students from underserved communities who will be less likely to go into the medical field as the new loan limits fall short of the total cost of attendance, which is over $200,000. “If someone like that gets through college and looks at that number, they are going to say, ‘no way,'” he said.
According to 2024 projections by the Association of American Medical Colleges, the U.S. was already on track to have a shortage of up to 86,000 physicians by 2036.

“The new annual and aggregate loan limits could create challenges for some medical students to finance their education, resulting in an additional financial barrier to attending medical school and ultimately worsening the current and projected physician shortage,” said Kristen Earle, program leader for student financial aid services at the Association of American Medical Colleges.
“We are concerned that this added barrier could deter qualified candidates, particularly low-income students, from pursuing a medical career altogether,” Earle said.

‘An opportunity for private lenders’

It’s likely the new limits on federal student loans will spur borrowers to find other lenders to bridge the gap, Earle said. “The changing landscape does present an opportunity for private lenders.”
Private student loans often come into play once students have reached the federal loan limits and still need additional education financing.

“The new loan limits for Parent PLUS loans and graduate/professional school loans will shift some borrowing from federal loans to private student loans,” Kantrowitz also recently told CNBC. “This will particularly impact low-income students, who are less likely to qualify for private student loans.”
Unlike federal loans, private loans are not guaranteed. Private student loan lenders rely on a borrower’s credit score to determine eligibility and interest rate.
“We want to lend to people who can afford to pay us back, that’s how the model works,” said Ascent’s Ruggiero.
Private loans also come with fewer safety nets and less flexible repayment options compared with federal loans.
“The idea behind [the loan limits] is great, but it’s not putting the burden on the universities. It’s putting the burden on students,” said Ruprecht, the aspiring anesthesiologist. “It’s students who will have to scramble.”
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Borrowers pursuing Public Service Loan Forgiveness are hitting walls trying to access the relief, and the Trump administration wants to limit eligibility.
Here are three challenges impacting PSLF borrowers, and what you can do about them.

Fg Trade | E+ | Getty Images

A popular student loan forgiveness program, Public Service Loan Forgiveness, has always had its problems.
But borrowers pursuing PSLF have faced some especially challenging changes of late that have made it harder — if not impossible — to access the relief.

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 a decade of payments.
Here are three challenges impacting PSLF borrowers, and what you can do about them.

1. Eligibility may change under Trump

President Donald Trump signed an executive order on March 7 that aims to limit eligibility for PSLF.
According to Trump’s executive order, borrowers employed by organizations that do work involving “illegal immigration, human smuggling, child trafficking, pervasive damage to public property and disruption of the public order” will not be eligible for Public Service Loan Forgiveness.
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Experts say borrowers’ best option right now is to stay the course, assuming their current employer has previously been considered qualifying.
That’s because it remains unclear exactly which organizations will no longer be considered a qualifying employer for PSLF under Trump’s order. Some experts say the changes to eligibility could be challenged in court.
Whatever the outcome, the overhaul of the PSLF program can’t be retroactive, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit that helps borrowers navigate the repayment of their debt.
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 the changes go into effect.
“If an organization is deemed illegal, the borrower can switch jobs to another that isn’t considered illegal,” said higher education expert Mark Kantrowitz.

2. Repayment plan troubles stall progress

To get your student debt forgiven under PSLF, you need to make your 120 monthly payments while enrolled in an eligible repayment plan. That has been a challenge for some borrowers of late.
The Saving on a Valuable Education, or SAVE, plan, is now defunct and not a viable way for borrowers to repay their debt and eventually earn PSLF. But millions of borrowers enrolled in the Biden-era SAVE plan before it was blocked in the courts, and leaving the program hasn’t proven easy.
As of the end of June, there was a backlog of more than 1.5 million pending applications by borrowers trying to access a new student loan repayment plan, according to court documents.
“The problem is the forms to switch into another plan are not being processed,” Kantrowitz said.
(The Education Department has regularly shared the data on pending repayment plan requests as part of a lawsuit the American Federation of Teachers filed against it. The teacher’s union alleges the agency is blocking borrowers from their rights.)

Fortunately, “borrowers who are affected by the processing backlog will eventually be switched into a qualifying repayment plan,” Kantrowitz said.
When you apply for a new repayment plan, the first 60 days that your debt remains in a so-called processing forbearance do count toward PSLF, Kantrowitz added. It’s when, and if, your debt is switched into a general forbearance that your progress toward forgiveness is halted.

3. ‘Buyback’ backlog leaves borrowers waiting

The Biden administration created a program called PSLF Buyback, which allows borrowers who’ve hit 120 months of qualifying employment to submit a request to the Education Department to retroactively pay for any months they missed because of a forbearance or deferment. Historically, these periods of nonpayment didn’t earn borrowers PSLF credit.
However, buyback applications have also piled up under the Trump administration.
Roughly 65,448 PSLF buyback requests were pending with the government as of the end of June. The bottleneck has only worsened since May, when close to 59,000 applications were under review by the Trump administration.
“The Department is working its way through this backlog while ensuring that borrowers have submitted the required 120 payments of qualifying employment,” said Ellen Keast, deputy press secretary at the Education Department.

The problem is the forms to switch into another plan are not being processed.

Mark Kantrowitz
higher education expert

Despite the significant backlog, “if you are eligible for the Buyback, there’s no harm in submitting the application,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York.
You can apply for Buyback through the PSLF Reconsideration portal on your Federal Student Aid account, she said.
“But if you can afford payments in other repayment plans, don’t rely solely on the Buyback to get you to 120 qualifying payments, particularly if you only need a few months of credit to reach forgiveness,” Nierman said.
You can apply for Buyback and also submit paperwork to switch into another repayment plan at the same time.

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Soaring tuition bills have made it harder for families to shoulder the financial cost of college.
A recent report by Citizens Financial Group found a growing “confidence gap,” with 79% of parents reporting they now feel unprepared to pay the tuition tab. 
Although there are savings strategies that help, many families still don’t take advantage of them.

The Janss Steps at UCLA in Westwood, CA on Tuesday, April 8, 2025.
Myung J. Chun | Los Angeles Times | Getty Images

With the start of fall semester just weeks away, sky-high college costs are an extreme pain point for most students and their parents.
A recent report by Citizens Financial Group found a growing “confidence gap.” While 59% of parents said they were confident about managing college expenses when their child was accepted, just 21% said they felt prepared for the actual cost once tuition bills arrived.

“We know the cost of attendance continues to grow, and a lot of forms of federal lending and grants and aid have not kept pace,” said Chris Ebeling, head of student lending at Citizens.
“Families felt like they were going to be OK, but once those tuition bills arrived, that number plummeted,” Ebeling said.
In April and May, Citizens polled more than 1,000 parents of children aged 13 to 29 who are either planning on attending or have some experience with college.
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College costs have risen significantly in recent decades, with tuition increasing 5.6% a year, on average, since 1983 — outpacing inflation and other household expenses, according to a recent report by J.P. Morgan Asset Management.

A growing share of schools are now crossing the $100,000 threshold for total annual cost to attend, and tuition is still rising roughly 5% a year.

How much families really pay for college

To be sure, few families pay a school’s sticker price. As of the 2024-25 academic year, the amount families actually spent on education costs was closer to $31,000, on average, according to Sallie Mae’s annual How America Pays for College report — but that figure is still up nearly 10% from a year earlier. 
Sallie Mae polled 1,000 parents of undergraduate students between the ages of 18 and 24, as well as 1,000 undergraduate students.
In most cases, parent income and savings cover about half of college costs. Free money from scholarships and grants accounts for more than a quarter of the costs and student loans make up most of the rest, the education lender found.
Scholarships are a key source of funding, yet only about 60% of families use them, according to Sallie Mae. Those who do receive about $8,000, on average.
“Every dollar counts when it comes to paying for college,” said Rick Castellano, a spokesperson for Sallie Mae. “The last thing you want to do is leave free money on the table.”
There are other “stubborn statistics,” too, Castellano said, which are at odds with the growing cost-consciousness among families.
For example, only 71% of families submitted the Free Application for Federal Student Aid, or FAFSA, which serves as the gateway to all federal aid money, including loans, work study and grants. That’s down from 74% in the previous academic year.

And although most advisors say 529 college savings plans are a “no-brainer” when it comes to financial planning for college — largely because of the tax advantages — fewer than one-third of families utilize them, according to Sallie Mae.
“I think there is generally a lack of awareness around 529 plans,” Castellano said.
Recent data from Credit Karma paints an even starker picture: Fewer than one-quarter of the parents polled said they had a 529 account for their children and 43% said they’ve never heard of a 529 at all.
Roughly 18% said they aren’t contributing because they didn’t realize the funds could be used for education expenses beyond college, such as K-12 private school tuition or trade and vocational programs — not to mention that Donald Trump’s massive tax and spending package expanded 529 qualified education expenses even further to include educational therapies and tutoring, among other costs, for students starting in kindergarten.

Most experts say 529 plans are often misunderstood and overlooked. But even among families that do have a college plan, and have saved for years, few have enough stashed away to cover the entire cost.  
“Even those families that are really well prepared, most families are going to have a financial gap,” Ebeling said.
Another point of contention is the growing share of young adults rethinking their education altogether. The rising cost of attendance and ballooning student loan balances have played a large role in changing views about the higher education system, with students increasingly deciding to opt out.
“The last thing you want, as parents or students, is to feel like higher education is the ultimate goal and you get ready to pay and it’s just not possible,” Castellano said.
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Shares of Coinbase slid on Tuesday as the company announced a $2 billion private offering of convertible senior notes.
The crypto-related play is down more than 30% from the high it reached in mid-July.
Many analysts are optimistic on Coinbase’s long-term prospects, but some have warned that it may be time to take some chips off the table.

The Coinbase logo is reflected on a cellphone screen in London, England, on Nov. 9, 2021.
Leon Neal | Getty Images News | Getty Images

Coinbase shares slid on Tuesday after the company announced a $2 billion private offering of convertible senior notes.
Shares were last down more than 6%. The decline occurred as investors adopted a risk-off stance on Tuesday and the three major averages declined.

Stock chart icon

Coinbase shares over the past month

Coinbase is now off more than 30% from its all-time high of $444.65, reached on July 18. Shares popped in mid-July as legislators voted on a series of crypto-related bills, ending with President Donald Trump signing the GENIUS Act stablecoin legislation — the nation’s first-ever crypto law. Shares have been collapsing since then.
Shares of the crypto-trading platform have been running hot since May. That month, the cryptocurrency market started to lead the way back from the market’s April 8 low, and Coinbase joined the benchmark S&P 500. While investors remain optimistic on the crypto services company’s long-term opportunity prospects, some on Wall Street have warned it could be time to take some money off the table as the stock’s momentum starts to wane.
Last week, Citi hiked its price target to $505 from $270. The analyst said Coinbase stands to gain from legislative momentum as well as stronger bitcoin prices and improved custodial fee revenue.
An explosion in demand for crypto beyond bitcoin — particularly coins and companies in the Ethereum universe — are also widely viewed as a boon to Coinbase.
Coinbase reported disappointing second-quarter revenue last week, causing investors to sell their shares despite a stronger start to the third quarter. Coinbase is still up 20% year to date.
—CNBC’s Adrian van Hauwermeiren contributed reporting

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President Donald Trump’s “big beautiful bill” reduces the deduction on charitable donations for some higher earners starting in 2026.
Starting next year, there will be an itemized charitable deduction “floor,” which only allows the tax break once it exceeds 0.5% of adjusted gross income.
The new legislation also caps the benefit for filers in the top 37% income tax bracket beginning in 2026.

Beau Lark | Corbis | VCG | Getty Images

President Donald Trump’s “big beautiful bill” enacted trillions in tax breaks that could benefit wealthy Americans — but some will see a smaller deduction for charitable gifts starting in 2026, experts say.  
When you itemize tax breaks, you can claim the charitable deduction, depending on earnings and type of asset given. But Trump’s spending package added two key changes for itemizers.

Starting in 2026, there will be an itemized charitable deduction “floor,” which only allows the tax break once it exceeds 0.5% of your adjusted gross income. The new legislation also caps the benefit for filers in the top 37% income tax bracket, beginning in 2026.
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These changes require “proactive planning” for 2025 while the more generous charitable deduction is still available, according to certified financial planner Edward Jastrem, chief planning officer at Heritage Financial Services in Westwood, Massachusetts. 
For example, some clients may consider “bunching” multiple years of donations into 2025 via a donor-advised fund, he said. This offers an upfront deduction and works like a charitable checkbook for future gifts.
Trump’s legislation also added a new charitable deduction for non-itemizers who donate cash starting in 2026. That tax break is limited to $1,000 for single filers or $2,000 for married couples filing jointly. If 2025 gifts aren’t time sensitive, you can claim the benefit by holding the donation until January, Jastrem said.

Reduce taxes with a ‘very simple solution’

Justin Miller, partner and national director of wealth planning at Evercore Wealth Management, said the changes in Trump’s new legislation could be significant for top earners.
For example, if your adjusted gross income is $1 million, which is the 37% tax bracket, and you donate $100,000 to charity in 2025, the charitable deduction could save you $37,000, he wrote in a LinkedIn post last week. 
By comparison, the same $100,000 gift may only be worth $33,250 in 2026 under the two new provisions enacted via Trump’s legislation, he said. 
Here’s how it works: The 0.5% floor cuts the $100,000 gift by $5,000 to $95,000. The second new provision reduces the $95,000 donation by 2/37, which is $5,135.13. When added together, the limitations drop the deduction to $89,864.87. That figure multiplied by the 37% bracket is about $33,250, which is $3,750 less than $37,000.

“Many people, even those making $1 million, care about [saving] $3,750,” Miller told CNBC. “Especially if it’s a very simple solution of giving that money away this year … versus next year.”
Miller also recommends using a donor-advised fund in 2025 to “front load the next three to five years” of charitable donations. In many cases, higher earners already have these accounts set up, so they can easily fund them by year-end, he said. More

Collectively, Americans owe $1.21 trillion on their credit cards, according to a new report from the Federal Reserve Bank of New York.
A separate report by Equifax found that many consumers are continuing to spend, despite elevated prices and high borrowing costs.

Credit card balances are ticking higher in 2025, according to a new quarterly report on household debt from the Federal Reserve Bank of New York.
Balances rose by $27 billion in the second quarter to a collective $1.21 trillion — in line with last year’s all-time high. The total is up 2.3% from the previous quarter.

At the same time, “we are still seeing elevated delinquency rates for credit cards,” the New York Fed researchers found, with 6.93% of balances transitioning to delinquency over the last year.

“This looks to be a little bit of catch up,” the researchers said on a press call Tuesday, in part due to “unusual leniency during the pandemic” and because consumers “may have overextended themselves” as inflation spurred higher costs in the years since.
“Those are things we have been keeping an eye on,” the New York Fed researchers said.
Credit card debt had remained stable for decades. However, in the years since the pandemic, households largely spent down their excess savings while the cost of living jumped, which sparked a sharp rebound in credit card balances.

‘A growing K-shaped split’

Separate data from Equifax found that many consumers continue to spend, despite elevated prices and high borrowing costs, while credit card delinquency rates remain relatively flat.

But subprime borrowers show signs of strain, with a rising share of the overall debt, according to Equifax. Subprime generally refers to those with a credit score of 600 or below.
“There’s a growing K-shaped split in the consumer landscape, with subprime borrowers falling behind,” Tom O’Neill, market pulse advisor at Equifax, said in a statement.
Many subprime borrowers are younger cardholders with shorter credit histories. These are also the borrowers more at risk of facing debt repayment challenges now that the Trump administration has restarted collection efforts on defaulted federal student loans.
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“I think most people are generally doing OK, but it wouldn’t take much for them to not be OK,” said Matt Schulz, chief credit analyst at LendingTree. “So many Americans are a job loss, income reduction or medical emergency away from real financial trouble.”
On the other side of the divide, just over half of cardholders — or 54% — typically pay in full, thereby avoiding interest, according to another report by Bankrate. “Their card usage is counted among balances but isn’t true debt like the other 46% of cardholders are facing,” said Ted Rossman, Bankrate’s senior industry analyst.
By way of example: With annual percentage rates just over 20%, if you made minimum payments toward the average credit card balance ($6,371), it would take you more than 18 years to pay off the debt and cost you $9,259 in interest over that time period, Rossman calculated.
“There’s a huge difference between someone who uses credit cards for rewards and convenience versus someone who is carrying pricey debt for years.”
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