British rock group Dire Straits had a monster hit back in the 1980s with their song Money for Nothing. While the instantly recognizable guitar riff was arguably the song's main appeal, its sentiment is attractive, too. Most people would love to have money for nothing. That's what passive income is all about. You reap rewards without having to work for them beyond the initial steps.

If you want to enjoy decades of passive income, I think Vanguard offers a good way to achieve your goal. Here's one of its exchange-traded funds (ETFs) to buy and hold forever.

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A proven winner

Since we're talking about passive income and Vanguard, you might think the ETF I have in mind is the Vanguard High Dividend Yield ETF. After all, this fund has "high dividend yield" in its name. That will sound great to income investors.

As good of a pick as the Vanguard High Dividend Yield ETF is, though, I'd argue there's an even better choice in the Vanguard family right now: the Vanguard Utilities ETF (NYSEMKT: VPU). This ETF offers a 30-day SEC yield of 2.89%, higher than any other stock ETF Vanguard offers (including the Vanguard High Dividend Yield ETF). A fund's SEC yield is calculated via a formula developed by the Securities and Exchange Commission that looks at a fund's hypothetical annualized income as a percentage of its assets.

Unsurprisingly, the Vanguard Utilities ETF invests in utility stocks. It currently owns 69 stocks, with top holdings including NextEra Energy, Southern Company, Duke Energy, Constellation Energy, and American Electric Power. These five stocks comprise nearly 35% of the ETF's assets.

This Vanguard ETF has delivered an average annual total return of 9.58% since its inception in January 2004. It's been an especially strong performer over the last 12 months, soaring close to 19%. The fund has even held up well during the recent stock market plunge.

Like all Vanguard ETFs, the Vanguard Utilities ETF is inexpensive to own. Its annual expense ratio is only 0.09%, well below the average expense ratio of 1.01% for similar funds.

Why this Vanguard ETF is a passive income machine

I don't think there's any question that the Vanguard Utilities ETF is a passive income machine. But why? Several reasons stand out.

First, many of the utility companies in the fund's portfolio are regulated monopolies. This means they have predictable and stable cash flow. And that translates to steady dividends.

Are utilities risk-free? Unfortunately not. Utility companies sometimes borrow too much and have to cut their dividends. Their share prices aren't immune to volatility, either. However, utility stocks are typically less risky than most stocks.

Importantly, dividends often make up a core part of the investment thesis for utility stocks. The management teams of utility companies recognize this. As a result, they emphasize consistent dividend payments and dividend growth as a key part of the corporate culture. For example, NextEra Energy and Southern Company (the Vanguard Utilities ETF's top two holdings) have increased their dividends for 31 and 24 consecutive years, respectively.

Also, utilities usually compete in relatively mature markets. This gives them flexibility to return more of their profits to shareholders via dividends.

One caveat

The Vanguard Utilities ETF is a great pick for investors seeking passive income. However, growth-oriented investors might prefer other ETFs offered by Vanguard. The Vanguard Utilities ETF ranks behind 29 other Vanguard ETFs based on average annual total return since inception.

That said, I think the Vanguard Utilities ETF could be poised for stronger growth in the coming years than it has delivered in the past. The rising adoption of artificial intelligence (AI) is fueling the construction of more data centers. These data centers require massive amounts of electric power. This presents great growth prospects for electric utility companies, natural gas utility companies, and renewable power companies that make up the lion's share of this Vanguard ETF's portfolio.

Should you invest $1,000 in Vanguard Utilities ETF right now?

Before you buy stock in Vanguard Utilities ETF, consider this:

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy, NextEra Energy, and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool recommends Duke Energy. The Motley Fool has a disclosure policy.

The U.S. Congress might not be the place you want to look for guidance on anything financial-related. After all, the national debt is over $36.7 trillion and growing, and every penny of the money spent by the federal government had to be approved by Congress.

On the other hand, quite a few individual congressional representatives and senators have made some excellent stock picks through the years. Following their trades has become a pastime for some investors looking for stocks to buy. It doesn't make sense to mimic anyone's stock trades without thought, but Congress can be a place to find stocks worth checking out.

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While the so-called "Magnificent Seven" stocks aren't very magnificent in 2025 so far, several members of the group remain popular on Capitol Hill. Members of Congress are especially buying one beaten-down Magnificent Seven stock.

The favored "Magnificent Seven" stock

Nvidia and Tesla have taken the worst shellacking among the Magnificent Seven stocks this year. Nvidia's shares are down more than 30% from the peak set earlier in 2025, while Tesla's shares have plunged more than 40%.

So, do these two rank among the favorite Magnificent Seven stocks of Congress right now? Nope. Representatives and senators have sold Nvidia and Tesla more often than they've bought the stocks over the last 90 days, according to data at capitoltrades.com. It's a similar story for Apple, Google parent Alphabet, and Microsoft.

Members of Congress have bought shares of Meta Platforms (NASDAQ: META) more than they've sold the stock. However, their favorite Magnificent Seven stock based on net buying versus selling these days is Amazon (NASDAQ: AMZN).

The stock of the e-commerce and cloud services giant has enjoyed bipartisan support on Capitol Hill. Democratic representatives Dwight Evans of Pennsylvania and Ro Khanna of California have bought Amazon stock over the last 90 days (including four separate purchases for Khanna). Four GOP House members -- Marjorie Taylor Greene of Georgia, Scott Franklin of Florida, David Taylor of Ohio, and Thomas Kean Jr. of New Jersey -- picked up shares of Amazon. So have two Republican senators, John Boozman of Arkansas and Markwayne Mullin of Oklahoma.

Amazon's appeal

Federal regulations require members of Congress to disclose their stock trades, but not the reason behind them. We don't know why any of these people bought Amazon stock. However, we can make a pretty good guess as to why Amazon has been so appealing to multiple representatives and senators. It likely appeals to them for the same reasons it appeals to all kinds of investors.

Amazon's business remains rock-solid. The company raked in revenue of $638 billion last year. Its profits totaled $59.2 billion, a greater amount than the market caps of over two-thirds of stocks in the S&P 500.

Growth isn't a problem for Amazon, either. The rising demand for artificial intelligence (AI) continues to provide a seemingly unstoppable tailwind for its cloud division, Amazon Web Services (AWS). The Amazon Prime membership program has proven to be a cash cow that attracts consumers to the company's e-commerce platform.

One knock against Amazon stock in the past has been its sky-high valuation. That's not nearly as much of an issue now, though, with the stock's price-to-earnings-to-growth (PEG) ratio at 1.3.

Granted, President Donald Trump's tariffs could take a toll on Amazon over the near term. The good news on that front, however, is that cost-conscious consumers should still purchase heavily from Amazon. The company recently launched Amazon Haul, which offers ultra-low prices.

Should you buy Amazon stock,too?

Don't buy any stock solely because a politician bought it. For that matter, don't sell a stock just because a politician sold it. However, I think the Democrats and Republicans who bought Amazon in recent weeks made smart moves, if they hold onto their shares.

The current pullback presents a tremendous opportunity for long-term investors to buy Amazon at a discount. I expect AWS to continue to deliver strong growth as AI adoption rises. I predict Amazon's efforts to improve operational efficiency will keep driving profits higher. And I think the company's expansion initiatives into healthcare, satellite internet, and other areas will pay off.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Here's a Social Security trivia question for you: What's the most popular age for Americans to claim their retirement benefits? You win 10,000 points if your answer was 62. Those points can be used anywhere they're accepted (which, unfortunately, is nowhere -- but at least you can enjoy the satisfaction of being right).

You probably already know this, but 62 is the earliest age Social Security retirement benefits can be received. Should you claim benefits as early as possible, like so many other Americans? It depends on your reason for doing so.

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Image source: Getty Images.

Some good reasons to claim Social Security at 62

Most financial planners could rattle off several great reasons to wait at least until you reach your full retirement age (which is 67 for anyone born in 1960 or afterward) to claim Social Security retirement benefits. The most important of those reasons is that you'll avoid the early retirement penalties that can add up to 30% of your benefits if you begin receiving Social Security at age 62.

However, there are also some good reasons to claim Social Security as early as you can. For example, I know a man whose close relatives all died at relatively early ages. He believes genetics aren't in his favor for living beyond his early 70s. As a result, he plans to claim Social Security at age 62 because doing so could increase his total lifetime benefits. If you're in a similar situation, this approach could make sense for you as well.

Another good reason for taking Social Security at 62 is that you have health problems that don't allow you to work full-time. Before you claim retirement benefits, though, you should first check to see if you qualify for Social Security disability benefits. However, if not, claiming Social Security at 62 could be your smartest move.

Some people lose their jobs and opt to retire early. If you're in this boat, Social Security benefits at 62 could be the difference-maker financially.

The best reason of all

I think the No. 1 reason to claim Social Security at age 62, though, is that it's the best option to achieve your retirement goals. How do you determine if the strategy is your best option? You'll have to make that call (ideally, with input from your family and help from a respected financial planner). However, several steps are important in making the decision.

First, you'll need to nail down what your retirement goals are. Do you want to travel extensively? Do you want to volunteer with non-profit organizations? Spend more time with family? Whatever your goals are, write them down.

Second, create a detailed budget to make sure you can afford to quit working at 62. Don't forget to include any costs related to your retirement goals. If you want to travel around the world, it can be expensive. Also, be sure to factor in the likelihood that your healthcare costs will rise as you grow older.

Third, consider alternatives that could still allow you to achieve your retirement goals while holding off on claiming Social Security. Maybe you could work part-time for a while to make enough money to delay receiving benefits while still being able to do much of what you want to do in retirement. It's possible that claiming at 62 is still the best option for you, but evaluating alternatives can help you make a better decision.

Different strokes for different folks

Both of my parents claimed Social Security benefits at age 62. However, I don't plan to do so.

I have a flexible job that will allow me to cut back on working gradually while doing most of the things I want to do in retirement. I don't have any health problems that would force me to retire early. Most of my older close relatives have lived into their 80s, 90s, or even past 100. Genetics (I hope) are on my side.

Studies have found that delaying filing for Social Security retirement benefits increases the lifetime amount received for most Americans. But you're not "most Americans." And while financial considerations are important, they're not the only thing to consider in deciding when to claim Social Security. As the old saying goes, "Different strokes for different folks."

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Shares of Tempus AI (NASDAQ: TEM) were skyrocketing 16.5% higher as of 10:39 a.m. ET on Wednesday. The big gain came after the healthcare artificial intelligence (AI) company announced a multiyear partnership with AstraZeneca and Pathos AI to build a multimodal foundation model for cancer drug discovery and development.

Tempus AI has invested heavily over the last decade to create one of the world's largest libraries of multimodal data that can be used in developing precision medicines. The company's de-identified oncology data will be critical in building the foundation model that AstraZeneca hopes to use to accelerate its development of new cancer drugs and increase the chances of success in clinical testing for its candidates.

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What this deal means for Tempus AI

Tempus AI will receive $200 million in data licensing and model development fees from AstraZeneca. This amount almost exactly matches the amount of revenue the company generated in the fourth quarter of 2024.

The healthcare AI company will also be able to use the multimodal foundation model it's building in collaboration with AstraZeneca and Pathos AI in its own efforts to improve patient care. This could bode well for Tempus AI's appeal to other big drugmakers seeking to harness the power of AI in their drug development processes.

Is Tempus AI stock a smart pick to buy now?

Risk-averse investors probably should look to other stocks to buy instead of Tempus AI. The company continues to lose money and is difficult to value. However, I think Tempus AI could be a smart pick for aggressive growth investors to buy and hold. The deal with AstraZeneca underscores the promise of its AI platform and data.

Should you invest $1,000 in Tempus Ai right now?

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends AstraZeneca Plc. The Motley Fool has a disclosure policy.

Americans work hard and pay taxes throughout their career. When they retire, they no longer have to work as hard.

But paying taxes? That's a different story. Taxes are seemingly inescapable, no matter how old you are.

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However, there's some good news for retirees, depending on where you live. As of 2025, 41 states don't tax Social Security benefits.

Image source: Getty Images.

The nine states that do tax Social Security

Before we get to those 41 states that don't tax Social Security, let's look at the outliers that do. Nine U.S. states continue to require retirees to pay state income taxes on their Social Security benefits:

1. Colorado
2. Connecticut
3. Minnesota
4. Montana
5. New Mexico
6. Rhode Island
7. Utah
8. Vermont
9. West Virginia

Not every retiree will have to pay state taxes on Social Security in these states, though. For example, Connecticut seniors who are single filers or married filing separately are exempt from state taxes on Social Security benefits if their adjusted gross income (AGI) is below $75,000. Those who are married filing jointly or who file as head of household don't have to pay state taxes if their AGI is below $100,000. Minnesota, New Mexico, Rhode Island, and Vermont have similar income tax regulations with different AGI thresholds.

Also, West Virginia is transitioning from taxing Social Security benefits. The Mountain State allows residents to subtract 65% of their Social Security benefits from their AGI in 2025. However, next year, the amount will increase to 100%.

States that don't tax Social Security

Now for the states that don't tax Social Security. The list currently includes 41 states, up from 39 just a couple of years ago:

1. Alabama
2. Alaska
3. Arizona
4. Arkansas
5. California
6. Delaware
7. Florida
8. Georgia
9. Hawaii
10. Idaho
11. Illinois
12. Indiana
13. Iowa
14. Kansas
15. Kentucky
16. Louisiana
17. Maine
18. Maryland
19. Massachusetts
20. Michigan
21. Mississippi
22. Missouri
23. Nebraska
24. Nevada
25. New Hampshire
26. New Jersey
27. New York
28. North Carolina
29. North Dakota
30. Ohio
31. Oklahoma
32. Oregon
33. Pennsylvania
34. South Carolina
35. South Dakota
36. Tennessee
37. Texas
38. Virginia
39. Washington
40. Wisconsin
41. Wyoming

Nine of these states don't tax any income:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Mississippi also recently passed legislation that could phase out its state income tax by 2040. However, specific triggers related to revenue and spending must be met for the Magnolia State's planned tax cuts.

Speaking of Mississippi, it's one of 13 states that don't tax any retirement income from 401(k) plans, IRAs, or pensions. Of course, this list includes the nine states without income taxes. It also includes Illinois, Iowa, and Pennsylvania.

Uncle Sam still has his hand out

Regardless of which state you live in, you could have to pay federal taxes on your Social Security benefits. Whether your benefits will be taxed and how much tax you'll have to pay depends on how much money you make. The table shows what the current levels are:

Data source: Social Security Administration. Table created by author.

To determine your combined annual income, add half of your Social Security benefits plus all other income. Other income includes money received from capital gains, dividends, interest, pensions, and wages.

Could Uncle Sam join the 41 states that don't tax Social Security benefits? Maybe. President Trump has proposed eliminating federal taxes on retirees' Social Security benefits. While the idea is relatively popular, though, it comes with a significant downside: Ending federal taxation on Social Security could speed up how quickly the program's trust funds run out of money.

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Income investors could pay attention to the price fluctuations of the assets they own. But they don't have to. What really matters for them is that the dividends and distributions keep flowing steadily -- and the higher the yield, the better.

Where can you find great candidates to achieve these objectives? Investing $60,000 in these three closed-end funds (CEFs) could generate an annual income of over $6,500.

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1. BlackRock Debt Strategies Fund

The BlackRock Debt Strategies Fund (NYSE: DSU), which is managed by giant investment company BlackRock, boasts a lofty distribution rate of 12%. If you invested $20,000 (one-third of your initial $60,000) in this CEF, your annual income would total $2,400 at that rate.

This CEF invests primarily in secured and unsecured U.S. corporate loans. Its portfolio includes 1,253 holdings. None comprise more than 3% of total assets, with most holdings below 1%.

Why should income investors like the BlackRock Debt Strategies Fund (aside from its juicy yield)? For one thing, Morningstar gives it a five-star rating (the highest score possible) based on its risk-adjusted total return. The CEF pays a monthly distribution and is trading at a discount of more than 3% below its net asset value (NAV).

There are some downsides to the fund, though. It's exposed to some risk if companies default on their loans (although that risk is mitigated somewhat by its highly diversified portfolio). The BlackRock Debt Strategies Fund uses leverage, which increases its risk to sharp interest rate spikes. However, its leverage ratio of 15.43% isn't super high. The CEF also has a gross expense ratio of 2.33%. The good news on that front is that its distribution is net of expenses.

2. abrdn Healthcare Opportunities Fund

Aberdeen Investments' Abrdn Healthcare Opportunities Fund (NYSE: THQ) currently offers a distribution yield of 11.33%. Buying $20,000 worth of this CEF would generate $2,266 in annual income at that level.

As its name hints, this fund invests in the healthcare sector. It owns 110 holdings, including common stocks, preferred stocks, and debt of healthcare companies. The CEF's top holdings are Eli Lilly, UnitedHealth Group, AbbVie, Abbott Laboratories, and Merck stocks.

The Abrdn Healthcare Opportunities Fund pays its distributions monthly. The CEF is also available at a small discount right now, trading at 0.78% below its NAV. Since healthcare stocks often hold up relatively well in volatile markets, the fund could be an especially good pick in the current environment.

On the negative side, this fund uses more leverage than some investors will prefer, with its leverage ratio of 22%. It also has a high annual expense ratio of 3.1%.

3. BlackRock Enhanced Large Cap Core Fund

Investing in another CEF managed by BlackRock could also enable income investors to rake in money. The BlackRock Enhanced Large Cap Core Fund (NYSE: CII) pays a distribution yield of 9.28%. Buying $20,000 of this fund would give you $1,856 in annual income at that rate, bringing our total income for these three CEFs to $6,522.

This CEF owns 222 large-cap stocks, of which nearly 95% are based in the U.S. Its top holdings include Microsoft, Amazon, Meta Platforms, Visa, and Cardinal Health. The fund also sells call and put options to boost income and reduce portfolio volatility.

Morningstar gave the BlackRock Enhanced Large Cap Core Fund four out of five stars. Like the other two CEFs on our list, it pays distributions monthly. The fund's annual expense ratio of 0.93% is relatively low for CEFs. You can also buy the fund at a discount of roughly 7% below its NAV.

The main drawback to owning the BlackRock Enhanced Large Cap Core Fund is that its price can decline significantly at times (such as during the recent market sell-off). However, the fund's options strategy provides a cushion to some extent.

Should you invest $1,000 in BlackRock Enhanced Large Cap Core Fund right now?

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Speights has positions in AbbVie, Abrdn Healthcare Opportunities Fund, Amazon, BlackRock Debt Strategies Fund, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, Amazon, Merck, Meta Platforms, Microsoft, and Visa. The Motley Fool recommends UnitedHealth Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Many retirees are watching their 401(k) and individual retirement account (IRA) balances sink further seemingly daily. Whatever you might think about President Donald Trump's steep tariffs, they're indisputably wreaking havoc on the stock market.

Could tariffs even impact retirees' Social Security benefits? The answer just might be "yes." Here's what President Trump's tariff turmoil could mean for your next Social Security cost-of-living adjustment (COLA).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Calculating the COLA

To understand how the president's tariffs could impact your next Social Security COLA, we must first delve into how the COLA is calculated. The good news is that the formula is simple, and the math is easy.

For decades after Social Security was created, any adjustment to benefits required an act of Congress. However, an automatic annual adjustment went into effect in 1975. This adjustment was intended to keep Social Security benefits from being eroded by inflation.

With this goal, it makes sense that inflation would be the key factor used to calculate the COLA. Economists use several inflation metrics. However, the Social Security Administration (SSA) uses one called the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This inflation metric measures price changes for primarily blue-collar workers in urban areas.

The CPI-W is published monthly by the U.S. Bureau of Labor Statistics. The SSA calculates the COLA using the difference between the average CPI-W for the third quarter of the current year and the average for the same period in the prior year, rounded to the nearest one-tenth of a percent. If the Q3 average CPI-W for the current year is less than the Q3 average for the previous year, no adjustment is made to Social Security benefits.

How tariffs could impact your next Social Security COLA

President Trump's tariffs will impact your next Social Security COLA if and only if they affect the CPI-W in the third quarter of 2025. Could that happen? It's a definite maybe.

Some might think tariffs are paid by the countries on which they're levied. However, that's not how tariffs work. Instead, the companies importing products from other countries must pay the U.S. government any tariffs due.

The big question relates to how those importers handle the higher costs incurred. Some importers might absorb most of the tariffs as a cost of doing business in the U.S. Others, though, could pass the higher costs along to their customers. When this happens, the prices of imported products increase. This could lead to a higher inflation rate, which could then cause the next Social Security COLA to be higher than it would otherwise be.

Tariffs could even impact the prices of products made in the U.S. One way this can happen is when components used in those products are imported from countries impacted by high tariffs. Another is if U.S. companies raise their prices to take advantage of an opportunity to make more money when their foreign rivals' prices are higher.

Many economists project higher inflation if the president's tariffs remain in effect. Predictions vary for just how much higher inflation will go. For example, Comerica Bank chief economist Bill Adams told CNBC he thinks tariffs could cause inflation to jump 2% this year from 2.8% to 4.8%. EY Chief Economist Gregory Daco expects a smaller impact, telling CBS News recently that he expects inflation will rise by 1% to nearly 4%.

The potential for a higher Social Security COLA might sound good to some retirees. However, benefit adjustments don't always fully keep up with price increases incurred by older Americans. Also, higher-than-anticipated COLAs could cause the Social Security trust funds to run out of money sooner than projected.

Don't put the cart before the horse

There are several potential scenarios wherein inflation doesn't rise in the third quarter of this year. The president could again pause tariffs or reduce them as he did last week. A lawsuit claiming that President Trump's tariffs are unconstitutional could be affirmed by federal courts. Some economists think steep tariffs could cause a recession, which could hold inflation down.

Retirees shouldn't count on higher Social Security COLAs yet. However, the president's tariffs could very well impact your next COLA.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Shares of Recursion Pharmaceuticals (NASDAQ: RXRX) were skyrocketing around 20% higher as of 11 a.m. ET on Friday. The big gain for the biotech stock came after the U.S. Food and Drug Administration (FDA) announced on Thursday that it plans to replace the use of animals in testing drugs with "more effective, human-relevant methods," including artificial intelligence (AI) models.

Recursion uses AI in its drug discovery and development processes. The company built one of the largest datasets in the biopharmaceutical industry with over 60 petabytes of data.

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What will the FDA's move mean for Recursion?

The FDA will initially focus on monoclonal antibodies with its initiative to replace animal testing and later expand to other types of drugs. How will the agency's move impact Recursion? It's too soon to know for sure.

However, it's possible that other drugmakers could be more interested in teaming up with Recursion with the FDA promoting the use of AI models in drug development. Recursion already partners with four big pharmaceutical companies: Bayer, Merck KGaA, Roche's Genentech unit, and Sanofi.

Is Recursion Pharmaceuticals stock a buy?

Recursion Pharmaceuticals stock isn't a good fit for risk-averse investors. The company remains unprofitable and is losing more money as it ramps up clinical development of several candidates. Recursion's most advanced program is only in phase 1/2 testing. There's no guarantee that any of the pipeline candidates will be successful in clinical studies and win regulatory approvals.

However, aggressive investors could find Recursion Pharmaceuticals attractive. Its collaborations with big drugmakers give it more stability than many clinical-stage biotech companies have. The company is also backed by Nvidia. Recursion's AI-driven processes hold significant potential. This is a risky pick, but one that just might pay off handsomely over the long run.

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From TV star to powerful government official. That's the path taken by President Donald Trump and his new administrator of the Centers for Medicare and Medicaid Services (CMS) -- Dr. Mehmet Oz.

Oz was a heart surgeon and medical school professor for years. He achieved fame thanks to frequent appearances on The Oprah Winfrey Show, which led to his hosting his own TV program, The Dr. Oz Show. Oz ran unsuccessfully for a U.S. Senate seat in Pennsylvania in 2022.

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But that didn't end his political career. The Senate officially confirmed Oz to head CMS on April 3. Here's what retirees need to know so far.

Image source: Getty Images.

1. Oz's confirmation went along party lines

All 53 Republican senators voted to confirm Oz to head CMS. None of the 45 Democratic senators voted for his confirmation. What were the minority party's objections to having Oz run CMS?

For one thing, some Democrats were concerned about Oz's potential conflicts of interest. He has disclosed investments in big drugmakers AbbVie and Eli Lilly and giant health insurer UnitedHealth Group, among others. These healthcare companies receive payments from Medicare. Oz did commit to divesting any financial interests in these companies.

There were also questions raised during Oz's Senate confirmation hearing about his past support for controversial therapies. For example, ranking Democratic member of the Senate Finance Committee, Sen. Ron Wyden of Oregon, asked Oz about his advocacy of green coffee extract, which the senator said was fraudently marketed as a "miracle weight-loss drug."

Probably the biggest objection to Oz's confirmation, though, was that he wouldn't commit to fighting attempts to cut Medicaid.

2. Oz has previously promoted Medicare Advantage

Oz has been a longtime proponent of Medicare Advantage plans. He and former Kaiser Permanente CEO George Halvorson proposed expanding Medicare Advantage because they believed it's better than traditional Medicare.

It remains to be seen how aggressively Oz will promote Medicare Advantage now that he's running CMS. During his Senate confirmation hearing, he promised to "go after" a fraudulent practice that can be problematic for Medicare Advantage called upcoding, by which healthcare providers file claims for more expensive procedures or diagnoses than the actual procedure or diagnosis to receive a higher reimbursement from Medicare.

3. What Oz says his Medicare priorities are

Oz acknowledged several problems for Medicare during his confirmation hearing, including the fact that healthcare costs are growing faster than the economy and that the Medicare Trust Fund will run out of money within the next decade. He told the told the Senate Finance Committee that he had three top priorities as the administrator of CMS.

First, Oz wants to "empower beneficiaries with better tools and more transparency, so the American people can better navigate their health, as well as dealing with the complex healthcare system we have created for them." He specifically mentioned increasing transparency related to prescription drug costs.

Second, he wants to provide incentives to healthcare providers to "optimize care." Oz thinks that using artificial intelligence (AI) can "liberate doctors and nurses from all the paperwork" and allow them to focus more on patients.

Third, Oz plans to aggressively reduce waste, fraud, and abuse with Medicare and Medicaid. The previously mentioned upcoding issue was one area that he discussed targeting.

4. There has been one Medicare surprise so far

Oz has been at the helm of CMS for less than a week. There has already been one Medicare surprise. On April 8, 2025, CMS announced a higher-than-expected payment increase for Medicare Advantage plans. It's unclear if Oz was involved in the decision, but the move could indicate that he'll continue his previous support for Medicare Advantage plans as head of CMS.

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Keith Speights has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.