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Archive for February 2010

US Consumers who buy individual health policies feel trapped

US health insurers across the country are dramatically increasing rates and slashing benefits for many of the estimated 17 million consumers with individual insurance policies, while making it almost impossible to obtain affordable alternatives.

The cost of health insurance has gone up as much as 39%,

“Millions of Americans are in the least secure marketplace . . . the one in which people have virtually no options,” Sebelius said. “Their only choice is to pay increases or drop the coverage.”

More daunting is the prospect of millions more workers being forced to buy individual policies as employers look to further slash or eliminate company-paid group health benefits.

The Canadian health care system with all its warts continues to serve Canadians well. Most Canadians have no idea of the pain and financial anguish many Americans face in regards to health-care.

Read more at the LA Times here.

Why You Should be Concerned with Exchange Traded Funds

Its called tracking error. Tracking error is any deviation (positive or negative) from the return of a fund’s benchmark index. Viewed through this lens, investors should always expect some tracking error in their funds, as the drag of expenses will cause most ETFs to lag their benchmarks over time.

Morgan Stanley attributed the increase in tracking error to many factors, read more here.

401K Plans - How Much Are You Paying in Fees?

More companies are trying to calculate the cost but do not and the reason  companies cite for having not calculated the total cost? Complexity.

There are several cost factors to an 401K Plan that may have a bearing on whether you should contibute the maximum or the minimum required for comany matched funding.

Check it out here.

If you’re a US billionaire, this is a great time to die.

Chalk it up to political gridlock. For the first time since 1916 there is no estate tax in force in the United States.

Amid all the wrangling and finger-pointing about the budget, government spending and taxes, Congress — under the Democrats’ control, no less — is right now, very quietly, passing the biggest tax break for billionaires in history.

Read more here.

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