Should you tap your retirement savings to buy a home?

It is the busiest January I can remember in the news cycle, especially when it comes to personal finance. 

The Trump administration is busy offering solutions to affordability, which is the key financial issue for Americans right now. 

One of the most interesting proposals would allow retirement savers to tap their savings to make a down payment on a home. 

High mortgage rates, surging real estate prices and low supply are all keeping ‌many would-be buyers on the sidelines. In the priciest housing markets like Miami, Los Angeles and San Diego, fewer than one in 50 listings are affordable to the typical household, according to Bankrate's analysis of Realtor.com data. That's understandable, given that average home prices in Los Angeles and San Diego exceed $1 million. 

But Wall Street is pushing back on some of the president's plans for lowering the cost of living. And we are still waiting for the details on exactly how a retirement-directed down payment plan will work.

Experts I trust are skeptical as well as intrigued. "I don't love all of these ideas," says Stephen Kates, a certified financial planner and financial analyst at Bankrate.com. "But I do want to give the administration some credit. I think that people appreciate that there is some discussion about the frustrations many younger people are feeling about (affordability)."

What are your thoughts on using your retirement savings to make a down payment? Write to me at onthemoney@thomsonreuters.com.

The other big personal finance story of 2026 is President Trump's call to cap credit card rates at 10% for one year. 

A 10% cap on interest rates is a big deal, considering the average credit card interest rate is 19.62%. And roughly half of all cardholders carry a balance, notes Matt Schulz, chief consumer finance analyst at LendingTree and author of "Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life."

Of course, the financial industry is not thrilled – they make money lending to consumers. In Davos this week, JPMorgan CEO Jamie Dimon also spoke out against the cap.

There are some logistical issues, too: a 10% cap on rates would make it harder for anyone with a less-than-stellar credit score (below 740-ish) to get a credit card.

And a cap would require legislation, which has ‍slim odds of passage, with Democrats and Republicans divided over supporting it.

"There are too many monied interests lined up against it for it to ever get serious traction in Congress," Schulz says. "Barring something really unexpected, the president's rate cap proposal is likely to go nowhere, just like all the proposals before it."

But I still want to hear your thoughts! Would you benefit from a credit card interest rate cap? Do you support the idea? Why or why not? Do you carry a credit card balance and need help paying it down? Write to me at onthemoney@thomsonreuters.com.

Is gold becoming more risky than stocks? The price of gold hit another record high after Trump issued new tariff threats to European countries over Greenland. While gold gained 64% in 2025, can its massive rise ever run out of steam? Watch our conversation here.

I love a good pivot! Courtesy Kauser Ali Bandukwala/Handout via REUTERS

Getting fired is never fun, but it can lead to a new career path.

I recently spoke to Kauser Ali Bandukwala of Vancouver about his journey to a Project Management Institute certification after a layoff.

In the process of my reporting, I learned that nearly half of learning and talent development professionals see a skills crisis in the workplace, according to a 2025 LinkedIn report. And up to 40% of the skills needed on the job are set to change by 2030, the World Economic Forum forecasts in its 2025 Future of Jobs report.

Indeed, workers are responding by managing their own path: 81% now invest their own time outside working hours to develop their skills and 83% intend to take greater control over their skills development in the future, Adecco's Workforce Trends 2026 report found.

After Bandukwala lost his job, he cut back on spending and borrowed money from family to cover rent as well as his car payments.

You can read more about his upskilling adventure here.

Have a layoff lesson to share? Tell us what worked for you — or what didn't — by emailing onthemoney@thomsonreuters.com.

The workplace is changing, thanks to AI. REUTERS/Hannah McKay

Four in five workers (!) believe artificial intelligence is going to impact their daily tasks at the workplace, with Gen Z among those most concerned as companies increasingly rely on AI chatbots and automation, a survey conducted by Randstad showed on Tuesday.

Job vacancies requiring "AI agent" skills have surged by 1,587%, Randstad said in its yearly "Workmonitor" report, with survey data suggesting that AI and automation are increasingly replacing low-complexity, transactional roles.

How is AI impacting your work and mindset? Share you thoughts, feelings and dreams with me at onthemoney@thomsonreuters.com

Do you need pet insurance? Are you considering an investment in bitcoin or other cryptocurrency? Send questions to onthemoney@thomsonreuters.com, and I'll tap my extensive source network and braintrust for expert advice.

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Are you following our Emotional Currency series, which explores the emotional side of personal finance through real stories from Gen Z and millennials around the world?

So far, we've highlighted young people who use social media to earn an income as well as to chronicle the struggle to pay down credit card debt. We also looked at the "boomerang" trend of living at home with parents to save money. And a recent piece looks at how one digital nomad turned house- and pet-sitting into free housing. 

We are looking for folks to profile! Have a money lesson or story to share? Tell us what worked for you — or what didn't — by emailing us at onthemoney@thomsonreuters.com.