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Challenges of Long-Term Care

An article in the Wall Street Journal titled "They Look Like CDs, but They’re Annuities-and Sales Are Booming”  by Anne Tergensen, December 19, 2024, highlights how these fixed-rate deferred annuities work.  Given their popularity, I wanted to write about some of the things you may want to consider before making your purchase.  For those who do not know, a fixed-rate deferred annuity (FRDA) is issued by an insurance company and has a fixed rate and fixed maturity period. Depe

What is the Income-Related Monthly Adjustment Amount (IRMAA), and how does it work? It is an income-based table used to adjust Medicare Part B and Part D prescription drug coverage premiums. The higher a beneficiary’s range of modified adjusted gross income (MAGI), the higher your premium or IRMAA. There are different scales depending on your filing status. There is a 2-year look back at income to determine your IRMAA. This is sometimes confusing when looking at the scale. Yo