Health

Fidelity Investments released their annual estimate of the amount required to cover health care costs in retirement. The $240,000 estimate is for a 65 year old couple retiring in 2009. This amount is in excess of what is provided by Medicare. In other words, the $240K is for costs over and above what is covered by Medicare. The $240,000 is up 50% from 2002, highlighting the fact that retirees face vastly different rates of inflation than the rest of the population. Source: Fidelity Investments...

Certain living benefit guarantees--particularly guaranteed minimum withdrawal benefits--embedded in variable annuities have provided owners with downside protection during the recent financial market turmoil. A popular variable annuity -- the one with guaranteed “living benefits” -- may be the riskiest product ever sold by the insurance industry. Risky to the health of the insurance carriers, that is. If you bought one of these annuities, you will collect your promised, fixed, minimum income...