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Yahoo
09-06-2025
- Business
- Yahoo
5 Ways Trump's ‘Big, Beautiful Bill' Could Impact Your Wallet
President Donald Trump's 'big, beautiful bill,' which has passed in the House of Representatives, has sparked fierce debate. While the bill promises growth and relief in some areas, it also introduces cuts, cost shifts and structural changes that could impact everything from healthcare premiums to loan payments — and affect the budgets of everyday Americans. Read Next: Check Out: Here are five key ways this sweeping legislation could affect your wallet. One of the bill's most consequential provisions is the move to make the 2017 tax cuts permanent. Experts said these tax cuts could extend financial relief to many individuals and families, encouraging long-term economic growth. 'These tax cuts provide much-needed relief to small businesses and individuals and encouraged billions of dollars in economic activity and investment,' said Javier Palomarez, founder and CEO of the United States Hispanic Business Council. 'Extending these cuts would allow businesses to invest and grow at a faster rate.' He explained that these cuts could have a positive impact overall. 'Extending these cuts could have a far greater, and a more positive impact than changes to SNAP or Medicaid,' he said. Learn More: One overlooked consequence of the bill is how it could quietly raise the cost of borrowing across the board. From home mortgages to car loans, everyday Americans could find themselves paying more to afford basic milestones. 'The proposed legislation could increase your expenses by increasing your mortgage payments for a house,' said Steven Conners, founder and president of Conners Wealth Management. 'Mortgage rates are high but still going up. Furthermore, this doesn't count higher loan rates for car loans and other purchases that are more significant in price, where we ordinarily buy them through a loan which is based off the bond market.' He added that the bond market is already reacting to the bill, signaling that borrowing costs could keep rising. With national debt on the rise and no clear ceiling for interest rates yet, Conners said that the overall trend points toward more expensive loans. According to a bill analysis by the Center on Budget and Policy Priorities, by 2034, about 16 million people could lose health coverage and become uninsured due to a variety of proposals in the bill, including Medicaid cuts. Middle-income families who rely on Affordable Care Act (ACA) support or Medicaid expansion could also be affected. 'Premiums will most likely increase,' Conners said. 'For those less fortunate, Medicaid will see less funding, which ultimately puts more pressure on this part of the population.' Working families who rely on SNAP benefits could feel the sting of the bill almost immediately. A combination of benefit reductions and new restrictions could make it more difficult for many households to afford sufficient food. 'The most immediate impact will be the reduction of benefits received by those enrolled in SNAP,' Palomarez said. He explained that these cuts, as well as the administration's push to have states restrict SNAP-eligible items, could result in strained food budgets for many Americans. While many assume that cutting SNAP benefits would affect only low-income households, the impact can ripple across entire communities and state economies. A Commonwealth Fund analysis found that reduced food assistance can lead to job losses and decreased business activity, even in places far from where the cuts occur. For instance, groceries purchased in Georgia might support farmers in Kansas or processors in Tennessee, and a clinic closure in Louisiana could result in a nurse losing her job in Texas, per The Commonwealth Fund. One of the bill's measures targets the opaque practices of pharmacy benefit managers. 'Certain provisions related to pharmacy benefit manager (PBM) reform have the potential to significantly lower prescription prices for everyday Americans,' Palomarez said. 'Unlike the strict price control measures threatened by the administration earlier this year, the Big Beautiful Bill relies on transparency with consumers and mandated reporting to NADAC to ensure consumers can make the most informed decisions.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 5 Cities You Need To Consider If You're Retiring in 2025 I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on 5 Ways Trump's 'Big, Beautiful Bill' Could Impact Your Wallet Sign in to access your portfolio
USA Today
22-04-2025
- Business
- USA Today
Age-based investment advice: How to navigate stock market crashes at any age
President Trump's aggressive tariff proposals, revisions, delays and other shifts and intermittent bouts of uncertainty have unnerved investors, as underscored by a nearly 20% decline in leading stock market indicators in the days after he disclosed the first round of new import taxes on April 2. The swift reshuffling of the financial landscape has many people wondering if they should make changes to their investment holdings. The answers may differ, depending on your age and how far along you are in your career. Young adults (ages 18 to 35 or so) People in this age group should view the current tumult as a learning experience. It won't be the last stock market meltdown in their lives and could prove to be a great opportunity to get into stocks, preferably using diversified portfolios such as mutual funds and exchange-traded funds. If you aren't yet participating in your 401(k) plan, get started now, especially if you can take advantage of free money in the form of matching funds, which many employers offer. Need a break? Play the USA TODAY Daily Crossword Puzzle. A key concept to understand for people in this group is that of dollar-cost averaging, or making relatively small purchases on a consistent basis, through thick or thin, said Steven Conners of Conners Wealth Management in Scottsdale. That's what you do with a 401(k) plan, as a small portion of each paycheck goes into the investments that you have selected. Middle-range investors (ages 36 to 50 or so) People in this group also can afford to maintain a relatively aggressive investment posture focused largely around stocks, stock funds and the like. So too for pouring money into the market, as you still will have many years, probably decades, to make up losses. Conners suggests 'target-date' funds so you don't need to think about rebalancing all the time. These funds hold mixes of stocks and bonds that start out aggressive (mostly with stock holdings) and gradually grow more conservative over time. Most large mutual-fund families offer target-date portfolios. Investment researcher Morningstar last year identified what it considers some of the best. Pre-retirement investors (ages 51 to 64 or so) People in this group typically should invest a bit more conservatively, with higher weightings to bonds and less to stocks. A traditional 60-40 mix might make sense. This is a portfolio allocated roughly 60% to stocks and 40% to bonds. One common rule of thumb is to hold a percentage equal to 100 minus your age in stocks. So, if you're 55 years old, you would hold 45% of your overall mix in the stock market and the rest in bonds or money-market funds. But you also could go a little more aggressive, with perhaps 110 minus your age, or 55% in stocks for someone who is 55. Part of this different tweak reflects longer life expectancies, which puts more pressure on an investment portfolio to deliver sound results over time. With this in mind, U.S. Bank generally recommends holding 90% or more in stocks if in your 20s, 80% or so in your 30s, roughly 70% for those in their 40s, 60% for people in their 50s, and so on. Retirement-age investors (65 or so and up) Many people in this group shouldn't be in the stock market at all, especially at older ages such as in the 80s or 90s. While the stock market historically has recovered from prior swoons within a couple of years, if not sooner, stock holdings might not be worth the stress for this demographic. Conners, for example, recommends conservative investments such as fixed annuities, and there are other choices. Still, the general admonition against stocks for retirees doesn't fit all sizes. For example, many older Americans have plenty of wealth and can afford to invest somewhat aggressively, especially if they want to pass along their assets to heirs or charities. While age influences investment decisions, it's not the only consideration. Wealth levels, access to other income sources such as Social Security, access to retirement accounts at work, personal debt levels and investment sophistication also play important roles. Over time, your investment holdings — part of your net worth — should greatly outweigh your salary and other annual income. For example, fund company T. Rowe Price suggests that someone at age 45 should have a retirement balance three times that of their current income, yet someone by age 55 should have a balance that's seven times that of income. Reach the writer at
CBS News
27-03-2025
- Business
- CBS News
What to know before investing in gold in 2025, according to experts
Gold has had quite the run-up in recent years. In fact, if you had invested in gold at the start of 2023, your investment would have grown by about 68% by March 2025. The surge in gold prices comes down to many factors, but high inflation and geopolitical tensions are chief among them. These uncertain economic influencers push investors toward safer, less volatile assets — among which gold is typically king. But gold isn't the same as other assets you might invest in. And while it can certainly be a good addition to your portfolio , it's important to be educated about the process before jumping in. Learn how to add gold to your investment portfolio today . Are you thinking of buying gold for your portfolio in 2025? Here's what experts say to know before you do: Gold prices have been rising for some time now, and the precious metal has hit record highs several times. But that growth isn't over yet, at least according to most projections. "Gold is currently trading at an all-time high, and analysts are forecasting gold to go higher," says Brett Elliott, director of content at precious metals marketplace APMEX. "Some revised forecasts suggest gold could run up another 14% this year from current levels. This is unusual and incredible. Gold normally averages about 8% per year." So if you're looking to buy in, the sooner you can act, the better — especially if you want to take advantage of those forecasted increases . Just take note: While you may be able to turn a profit on a short-term gold investment , this is one asset that's best for long-term financial goals. "Are you thinking inflation is going to be a longer-term issue for major economies?" says Steven Conners, president of Conners Wealth Management. "Are you concerned about fiat currency, which is essentially paper money? What is your asset allocation versus other assets in your portfolio? Does it represent a reasonable percentage of your overall asset allocation?" Get started with gold investing now, before prices climb again . If you're looking to buy physical gold , do your research first. There are all kinds of ways to buy in — coins, bars, jewelry, etc. And not all of them will suit every goal. "We carry over 30,000 products at APMEX and some of them are meant to be investments, some are meant to be collected, and some are art," Elliott says. "You want to match the right product to your purpose." Elliott advises new investors to "Focus on products that are well known and highly liquid, like American Gold Eagles or gold bars from MKS PAMP — something that's easy to sell when you're ready and carries a reasonable premium with low counterfeit risk." Keep in mind that you can invest in gold in other ways, too,, including gold individual retirement accounts (IRAs) , gold stocks or gold exchange-traded funds (ETFs) , to name a few. And just as you should compare your gold options, you should also compare gold dealers . "The most important decision you'll make is where to buy from," Elliott says. "Choose a reputable dealer, preferably one that has been in business for some time with good reviews and will also buy back from you when you're ready to sell." Be sure to compare at least a few different dealers. These can be online marketplaces, in-person precious metal exchanges or even pawn shops. Whatever they are, just make sure you do your research before purchasing from them. "You don't need to buy from the first dealer, website, or ETF you come across since other vendors might offer the same product with lower fees or premiums," says Ben Nadelstein, head of content at Monetary Metals. "Gold is fungible, meaning that one ounce of pure gold is chemically identical to any other ounce. If your main goal is to gain exposure to the price of gold, buyers can focus on buying bullion products with the lowest premiums available." Gold is typically a good investment if you're looking for a way to safeguard your wealth, protect against inflation and diversify your portfolio . But you might also consider investing in other precious metals, too. "Keep in mind that gold is currently at all-time highs, meaning we are in uncharted territory," Elliott says. "No one knows where the top is or when a reversal might come. Some investors are shifting towards silver right now because of that. It's about 40% to 45% below its current all-time high, meaning there's a lot of room for it to rise before it hits a theoretical ceiling." If you're not sure what the best precious metal investment is for your portfolio — or how to go about it, get in touch with a financial advisor. They can help you make the right decisions for your goals.
