Markets Are Learning to Keep Calm and Carry On
So the remainder of 2025 will follow the same pattern, right? Well. The TACO trade in equities — 'Trump Always Chickens Out' — will be reexamined early this month when the tariff pauses end. The independence of the Federal Reserve looks set to be sorely tested. The fiscal implications of NATO's 32 members belatedly agreeing to increase defense spending to 5% of gross domestic product will reverberate around bond markets, particularly in Europe.
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Yahoo
13 minutes ago
- Yahoo
How to build a portfolio you don't have to babysit
If you're a do-it-yourself investor aiming to build a 'no babysitter required' portfolio, here are the key steps to take. Step 1: Find your portfolio's true north Give due consideration to your asset allocation. That decision will have the biggest impact on how your portfolio behaves in the future. The tricky part about asset allocation, even a hands-off approach, is that the 'right' asset allocation is often a moving target as retirement approaches. Target-date funds elegantly address this issue by transitioning to a more conservative stance as the years go by. If you're OK with an asset allocation that's not necessarily customized to your particular situation, your quest for a low- or no-maintenance portfolio could begin and end with a good-quality target-date fund. If you'd like to have more control over your asset allocation, think through your risk capacity and risk tolerance. Target-date funds' asset allocations can be a decent starting point when deciding how to allocate assets depending on life stage. You can also tailor your mix of aggressive and conservative investments, which is particularly valuable if you're retired and actively spending from your portfolio. Also give some thought to how your asset allocation will change over time. A good-quality target-date fund can help you visualize your portfolio's glide path. Step 2: Eliminate redundant accounts If your aim is to reduce complexity and oversight in your portfolio, you can slim down your number of accounts. Multiple rollover IRAs from previous employers, as well as straggler 401(k) assets, can create unnecessary complexity. Just remember that the consolidation process can only go so far because some of your accounts will need to remain distinct for tax purposes. You can combine multiple IRAs in your name, for example, but you won't typically be able to combine your 401(k) with those IRAs unless you've retired or left your employer. Taxable nonretirement assets will need to remain distinct from IRAs and company retirement plans. If you and your spouse each have assets in your own names, those accounts will need to remain distinct, too. Step 3: Identify low-cost, well-diversified building blocks Now, you can turn your attention to identifying the building blocks to populate the portfolio(s). For your long-term investments, broad 'total market' index funds and exchange-traded funds are the lowest-maintenance choices. The best aspect of these products is that a single fund will provide all (or almost all) of the exposure you need to a given asset class. One fork in the road is whether to obtain your total market exposure via a traditional index fund or exchange-traded fund. For your cash holdings, focus on products that are low-cost, well-diversified, and low-maintenance, like online savings accounts and money market mutual funds. Step 4: Document your maintenance regimen If you've followed the steps above, a thorough annual review should be enough. This will be essential if you're already retired because you'll need to figure out how to extract cash for living expenses from your portfolio, and to take required minimum distributions from your tax-deferred accounts once you hit age 73. I like the idea of using an investment policy statement that documents the basic outlines of your portfolio, how often you'll check on your portfolio, and how you'll do it. If you're retired, maintaining your portfolio will be a bit more complicated: Not only will you need to determine where you'll go for cash to meet your living expenses, but you'll also have to ensure that your portfolio withdrawals aren't so rich that you risk early depletion of your portfolio. A retirement policy statement can help ensure that you're thinking through and documenting all of these issues. ___ This article was provided to The Associated Press by Morningstar. For more personal finance content, go to Christine Benz is director of personal finance and retirement planning at Morningstar. Sign in to access your portfolio
Yahoo
13 minutes ago
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Can closed accounts be removed from your credit report?
Accounts that have been closed for years often remain on your credit report. Closed accounts with a history of on-time payments may continue to boost your credit score slightly. You can try to remove closed accounts from your credit profile by asking a creditor for a 'goodwill removal' or waiting for them to disappear on their own after 10 years. Your credit report is essentially a timeline of your financial decisions. It provides lenders with important information needed to evaluate whether you're likely to repay a loan on time. This includes a summary of the total amount of debt you're carrying, the amount of time you've had credit lines and your history of on-time payments. Many people are surprised to see their report also includes accounts that have been closed for years. If you've made all your payments on time, these accounts aren't hurting anything — they may even improve your credit. Old accounts that show a history of late payments or defaults, however, could also be dragging down your credit score. You may want to take some steps to remove a closed account that is negatively impacting your credit score. This would include accounts that include late payments or other negative remarks. You do not need to remove a closed account from your credit report if it is in good standing. An account that has a history of on-time payments and responsible management can have a positive impact on your overall score — especially since payment history makes up 35 percent of your FICO credit score. Keep in mind: When you eliminate a closed account that was in good standing from your credit profile, you're erasing a positive part of your credit history. It's often best to leave these types of accounts on your credit profile for as long as possible. If a closed account is hurting your credit score, you have a few options for trying to remove this old debt from your credit report. Removal isn't guaranteed unless the account contains a true error, as it ultimately depends on each credit bureau's policies. The options outlined are also not limited to addressing closed accounts. Some of them can also be used to address incorrect information you find on your credit report. Many consumers are surprised to learn how common it is for credit reports to contain inaccurate information. A 2024 Consumer Reports study found that almost half of volunteers who could access their credit reports (44 percent) noted errors in their credit reports. Most errors are simple, like a wrong middle initial or address, and don't negatively affect your credit. Some mistakes, however, can negatively impact your credit. In fact, the same Consumer Reports study found that more than a quarter of the volunteer participants who could access their reports found serious errors involving debts that could damage their credit scores. To dispute errors on your credit report, including inaccuracies about closed accounts, you need to contact the credit bureaus reporting the error and ask them to correct the record. In addition to your contact information, you'll want to include the following in your dispute: The account number for the account in question. A written explanation of the incorrect information and why it's wrong. A copy of your credit report with the incorrect information highlighted. Any documents that prove your dispute is valid, such as receipts of payment. Credit reporting agencies are legally required to investigate your claim within 30 days and notify you of their response. According to the Consumer Financial Protection Bureau (CFPB), you should also contact the creditor who reported the information. If the credit bureau determines the account doesn't belong to you, it will likely be removed from your report. For other types of errors, the account may stay on your report with corrected information. With the correction made, the account may actually improve your credit rather than lower it. If the information on your closed account is accurate but it's lowering your score, you can try requesting its removal by sending the creditor a goodwill letter. Goodwill letters are requests to have information removed from your credit report. They're typically used when a borrower has missed a single payment due to unexpected and unavoidable consequences. You could use the letter to ask for the closed account to be removed completely, or you could ask for the negative marks to be removed from that record. Keep in mind: While you may get the result you're hoping for, there are no guarantees. When seeking a goodwill removal, there's no need to contact the credit bureaus directly. They won't remove accurate information upon request. If your creditor agrees to your goodwill request, they can ask the bureaus to remove the negative information from your report. But keep in mind that the bureaus may not agree. Closed accounts on your report will eventually disappear on their own. Generally, negative information on your reports is removed after seven years, while accounts closed in good standing will disappear from your report after 10 years. If you're curious about which accounts are still on your report or want to monitor the information on your reports over time, it's easy to get a copy of your credit reports. Federal law allows you to request a free weekly credit report by visiting If you're feeling overwhelmed by the idea of filing disputes with the credit bureaus or writing goodwill letters to creditors, you can consider hiring a credit repair company to handle it. These companies may also offer additional services, such as credit score monitoring, identity theft insurance and sending cease-and-desist letters to debt collectors. Credit repair companies won't dispute accurate information, and they can't do anything to improve your credit that you can't do yourself. If you don't have time for DIY credit repair — and have room in your budget to hire someone — hiring a company may help. You may also find some benefit in working with experts who may have established relationships with creditors or credit bureaus and more experience disputing errors. Unfortunately, with so many Americans struggling with credit score issues, credit repair scammers have emerged to take advantage of people who need help. If you decide to hire assistance, choose your credit repair company carefully. Knowing which factors influence your credit score can help you decide which closed accounts might be worth removing. Your FICO credit score, which is the most common model used by creditors, is based on the following five factors: Your payment history, 35 percent. Your credit utilization ratio, 30 percent. The average length of your credit history, 15 percent. New credit, 10 percent. Your credit mix, 10 percent. The three credit bureaus — Equifax, TransUnion and Experian — compile your credit information. Credit-scoring companies then use it to calculate your credit score. As a result, a closed account that shows a history of on-time payments may continue to boost your credit score slightly for up to 10 years after the account was closed. On the other hand, closed accounts that show late payments, missed payments or balances going to debt collections can negatively impact your credit score for up to seven years. There's no need to remove closed accounts in good standing from your credit report. They can positively influence the average length of your credit history and your on-time payment rate, helping to boost your credit score until they naturally fall off your report. If you believe an old account is pulling down your credit score, however, you can take some steps to try to remove it. Still, it's important to keep in mind that removing old, negative accounts may give your credit score a quick little boost, but it typically takes years to build good credit. Responsibly managing your debt and making payments on time can positively impact your credit well into the future. Should I close an account once the balance is paid? Closing an account could harm your credit score in two ways. First, it reduces the average length of your credit history. Secondly, it can change your credit utilization ratio. For example, if you close a credit card with a $10,000 limit, your available credit is reduced by $10,000, and any debt you carry is now a larger percentage of your available credit. However, you may want to close inactive accounts that charge annual fees, or ask if you can downgrade to one without. How long do closed accounts stay on my credit report? Unless you remove them early through a dispute or successful goodwill request, closed accounts can stay on your reports for seven to 10 years. Is there a way to quickly improve my credit score? Removing negative marks from your credit report through a dispute or goodwill request may boost your credit score quickly. Good credit habits are the best way to keep your score up over time. Make your payments on time and keep your debt below 30 percent of your available credit limit to improve and maintain your credit score. Recent accounts and payments are weighed more heavily than old ones, so new, positive information may help offset past missteps. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBS News
16 minutes ago
- CBS News
Colorado says Republican budget bill will cut billions in federal funding for Medicaid in the state
State says Republican budget bill will cut billions in federal funding for Medicaid in Colorado State says Republican budget bill will cut billions in federal funding for Medicaid in Colorado State says Republican budget bill will cut billions in federal funding for Medicaid in Colorado Colorado is expected to lose up to $2.5 billion dollars annually in federal Medicaid funding under the Republican Party's massive tax and spending cuts bill. The measure passed the U.S. Senate Tuesday after Vice President JD Vance cast the tie-breaking vote. It would extend Republican 2017 tax cuts permanently, increase funding for defense and immigration enforcement and cut funding for Medicaid, food stamps and green energy programs. The Congressional Budget Office estimates it would increase the deficit by about $3 trillion over ten years. The bill now goes back to the U.S. House of Representatives for approval. Among the differences between the Senate and House versions are changes to Medicaid, which provides health coverage for one in four Coloradans. The Congressional Budget Office says the Senate bill will reduce spending on Medicaid by nearly $1 trillion over the next decade, and maybe nowhere will those cuts be felt more than in rural Colorado, where half of all hospitals are already operating in the red. Lincoln Health in Hugo is among them. It is the only hospital on the I-70 corridor for 160 miles. The survival of those who live in the area depends on the survival of the hospital, which also operates family practice clinics, a nursing home and assisted living center. Lincoln Health CEO Kevin Stansbury CBS CEO Kevin Stansbury says those services are at risk under the bill. "We will have to close down some services," Stansbury told CBS Colorado. "And the challenge will be what services are not essential." Stansbury says 80% of the patients at Lincoln Health are on Medicaid or Medicare. The Colorado Department of Health Care Policy and Financing (HCPF) -- which administers Medicaid -- says the bill would mean a loss of between $900 million and $2.5 billion a year in federal funding for Medicaid. It says the state would lose another $550 million a year due to a provision that caps a fee many states assess on hospitals at 3.5%. The bill also creates new verification requirements that HCPF says could cost the state $57 million to administer. It says the red tape will also result in thousands of Coloradans losing coverage. The bill requires recipients to provide proof they're going to school, volunteering, or working every month, and provide proof of their income and citizenship every six months. Stansbury says some recipients in Lincoln County don't have internet and will need to travel 80 miles to Fort Morgan to re-certify in person. He says many will drop off the rolls and end up uninsured. "Our patients have to travel to Fort Morgan for in-person revalidation of their Medicaid," Stansbury explained. "You're cutting access to care, which ironically could drive up the cost of care and put more financial stress on hospitals." Stansbury says Lincoln Health expects to lose about 25% of its Medicaid reimbursement under the bill. While it creates a new $50 billion rural hospital fund, he says it's unclear who would qualify for the money and how it would be distributed. "Where you live shouldn't determine if you live," Stansbury said. He notes many of the people who live in Lincoln County are conservatives. "I'm not sure that's what people out here voted for," Stansbury said. "I don't think they voted to have their hospital decimated." Lincoln Health may have to scale back services, but Stansbury says the hospital will survive. "This is a mission for us, and we're going to stick here. We're going to provide care to our patients," Stansbury said. "All we're asking is that we get paid equitably for it." The Senate dropped a provision in the House bill that would have cut federal Medicaid funding by 10% in states like Colorado that use their own tax dollars to cover Medicaid for non-citizens. The bill could also impact Medicare reimbursement. Because it adds to the deficit, it triggers the "Pay As You Go Act," which makes automatic cuts to federal spending. Medicare reimbursement could drop by an estimated 4%. Stansbury says rural hospitals are not only underpaid by Medicaid and Medicare, but by commercial insurers. He says Lincoln Health receives 100% less reimbursement from commercial carriers than hospitals in the Denver metro area. Both the Senate and House bills allow a subsidy program enacted during the COVID-19 pandemic to expire at the end of the year. It caps premiums for those who buy insurance on the Health Exchange at 8.5% of a household's income. People who live in rural or mountain communities could see their premiums double.
