Strategies to Pay for Retiree Health Care Costs

Plan ahead by including medical expenses as a line item in your retirement budget.By Susan B. Garland., From Kiplinger's Retirement Report, August 2014 Follow @susanbgarland

 

When you draw up a retirement-spending budget, you're likely to account for utilities, car insurance and lawn care. But have you given the cost of health care a hard look—or are the numbers too scary to contemplate?
One of the most important moves preretirees can make is to see that “their financial plan explicitly accounts for health costs in retirement,” says Sunit Patel, senior vice-president of Fidelity Benefits Consulting. On average, a couple age 65 will spend $220,000 on health care costs during retirement—and that does not include potential long-term-care costs, according to new estimates by Fidelity Investments.

How Much It Costs to Boost Life Insurance Coverage

With term life insurance rates relatively low, it’s a good time to add coverage.

By Kimberly Lankford, September 16, 2014

I just moved for a new job and bought a new house, and I’d like to increase the amount of my life insurance. I have a $500,000 20-year term policy. How much would it cost to boost it to $1 million?
If you’re pretty young and healthy, it costs a lot less than you’d expect. A 30-year-old woman could pay as little as $214 per year for a $500,000 20-year term insurance policy and $354 for $1 million, says Byron Udell, CEO of AccuQuote.com. A healthy 30-year-old man would pay $244 for $500,000 and $421 for $1 million.

How to Cut Your Textbook Costs in Half -- or More

Don’t fall into the trap of buying all your course materials new at the campus store.
By Kathryn Moody, August 21, 2014

With a little luck and a lot of digital savvy, today’s college students may not have to lug a single hard-copy textbook around campus. But their course materials can still carry a heavy price tag.
Let us show you how to beat rising textbook prices (last year the average textbook cost $72 new, up from $68 the year before) by licensing e-books, tapping open-source course materials, and buying or renting used textbooks. These trends and tactics are paying off, with the average student actually spending less in total for their books each year, down to $638 in 2013 from $662 the year before and $702 six years ago, according to the National Association of College Stores.