Are You Saving Enough for Health Care in Retirement?

You’ve heard this before, I know, and yet it remains as disturbing as ever. Health care costs, along with housing, are likely to be your biggest expenses in retirement. Boston-based Fidelity Investments found that premiums, deductibles and other out-of-pocket expenses could cost a 65-year-old couple retiring today a jaw-dropping $220,000 – and that’s in addition to Medicare premiums. Some boomers are heeding that forewarning: In a survey of 1,002 workers age 50 and older, 62 percent say they’re socking away money for …

Pay Less for Your Prescription Drugs

By Nicole Duritz The dog days of August are the most likely time for Medicare Part D participants to fall into the “doughnut hole” and see their prescription costs rise. With AARP resources, you can see if you’re at risk of falling in, and find options for lowering your drug costs. The Doughnut Hole Each year, 19 percent of Medicare Part D beneficiaries fall into the doughnut hole. Once the amount of money you and your insurance company pay for …

Tips for Empty Nesters on Selling the Family Home

Last spring Cathy and Gary Chester put their ranch home in Morris County, N.J., on the market. Come August, the house is unsold and Cathy admits that she’s enjoying another summer in the home that the couple built 21 years ago. What saddens her is the prospect of closing a chapter in her life. “This is where – young, married, pregnant with my son – I started a new part of my life that ends when I sell the house,” …

Are Medical Credit Cards Unhealthy for Your Finances?

You need some expensive medical care yet don’t have the insurance or money to pay for it. Should you use a medical credit card that’s pitched at some doctors’ offices? A new report by the nonprofit Consumer Action warns that some of these cards can be unhealthy for your finances. They usually offer a zero percent introductory rate, though after that period, card terms can vary greatly. The problem is that these terms often are difficult to uncover. So patients …

Retiring Early? Pony Up $51,000 Extra for Health Care, Fidelity Says

Are you and your spouse thinking about retiring early? Doing so can cost you, as a couple, an extra $17,000 a year in medical costs, according to a Fidelity Investments analysis. The Boston-based investment company compared the projected average health care costs of couples retiring this year at age 65 with those of couples retiring as early as age 62 and as late as 67. It assumed they would have Medicare coverage at 65, although the analysis doesn’t include costs for nursing home and …

Why Your Children Should Help Pay for College

Spring means college admissions, and we still recall the agonizing wait for the mail carrier. A thin envelope brought bad news, a thick envelope acceptance. Today, though, the “envelope” arrives via email – and that’s not all that’s changed. These days, the sticker price for private colleges starts at about $40,000 a year, going much higher for a prestigious institution; in-state schools run about half that. Nearly as soon as the anxiety on the admissions front dissipates, it’s replaced by …