Planning for Healthcare Costs in Retirement

How much will you need to save?

According to recent data published by the Employee Benefits Research Institute (EBRI) the average American couple with median prescription drug expenses will need to save $265,000 in order to have a 90% probability of covering just their out-of-pocket healthcare costs (e.g., Medicare premiums, deductibles and copays, as well as dental, vision and hearing) over the course of their retirement.

 

 

Closing out the first half of 2017

As we close out the first half of 2017, many of the major U.S. equity indices are at or very near all-time highs, equity market volatility is exceptionally low (Vix hovering around 10), unemployment, at just 4.3%, is at levels not seen since mid-2001, and inflation, although creeping upwards ever so slightly, remains benign. At the same time, the yield curve is flattening as intermediate and longer term bond yields are trending lower once again as are the prices for some commodities – most notably oil which is now below $44/bbl.