| Fidelity Investments Estimates $215000 Needed to Cover Retiree ...
Retirees' Future Social Security Benefits Business Editors MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5364904 BOSTON--(BUSINESS WIRE)--March 27, 2007--A 65-year-old couple retiring in 2007 will need approximately $215,000(1) to cover medical costs in retirement(2), according to Fidelity Investments' latest health care cost estimate, released today. This figure is a 7.5 percent increase over the 2006 estimate of $200,000. The retiree health care cost estimate is calculated annually by Fidelity Investments. Since the estimate first was computed in 2002, the number has risen a total of 34 percent, with an average annual increase of 6.1 percent. The 2007 estimate assumes individuals do not have employer-sponsored retiree health care coverage and includes expenses associated with Medicare Part B and D premiums(3) (32%), Medicare cost-sharing provisions -- co-payments, co-insurance, deductibles and excluded benefits (35%) -- and prescription drug out-of-pocket costs (33%).
Fidelity Ventures closes acquisitions
Fidelity Ventures, the venture capital arm of financial services giant Fidelity Investments in Boston, has purchased a majority stake in data-management concern Asset Control and appointed one of its own investment partners to oversee the newly acquired company's "next phase of growth." The deal's terms were not disclosed. .
Don't Get Sick After You Retire
Here's another good reason to eat your leafy green vegetables and dig your running shoes out of the back of the closet. Fidelity Investments estimates that a 65-year-old couple who retires this year will need about $215,000 to cover medical costs in retirement. That's a pretty mind-boggling pile of cash. It's also lot more -- 7.5% more -- than last year's figure. In 2006, Fidelity calculated that retirees would need $200,000 to cover their post-retirement health costs. In the five years that the investment and mutual funds company has been calculating the size that your health-care nest egg needs to be in order to stretch through retirement, the amount has gone up an average of 6.1% every year. If you happen to be among the dwindling minority of people who have retiree health coverage through your employer, you won't need quite so much.
Equity reliance challenged
A study from Fidelity Investment's research arm isn't going to bring a smile to the face of real estate agents trying market oversized mansions as investment property. The Fidelity Research Institute cautions investors about over-relying on home equity to finance their retirement. .
Fidelity poised to launch 3 global funds in Canada
Fidelity Investments, the world's largest mutual fund company, plans to start three global funds in Canada because of demand for international stocks and bonds. The Boston-based company will offer the Global Dividend Fund, which invests in dividend-paying shares and real estate securities; the Global Monthly Fund, which is split between equities and bonds; and the Global Bond Fund, which holds government and corporate debt. Investors have been turning to global funds on expectations Canadian stocks, driven higher by record prices for oil, natural gas and metals, may be peaking. AGF Management Ltd., Canada's third-biggest publicly traded mutual fund company, is generating higher net sales because of its international funds. "The market is clearly demanding global offerings," Stephanie Nacawa, Fidelity Investments Canada's vice-president of product research, said in an interview yesterday.
|
