Question:
I didn’t enroll in Medicare when I was eligible at age 65, even though I wasn’t working at the time. Now I want to enroll, but heard I can only do this during certain times. Is this true?
Answer:
You can sign up for Medicare Parts A and B during the general enrollment period, which is January 1 – March 31 each year, if you didn’t sign up when first eligible and you weren’t eligible for a special enrollment period. If you didn’t have health insurance through your employer or spouse’s employer and you didn’t take Medicare when eligible, you may have to pay higher premiums for late enrollment.
Question:
Last year, I lost some principal in a mutual fund that invested only in U.S. Treasury securities. How could I lose money with them when there are federal guarantees?
Answer:
Treasury bills, bonds and notes held until maturity are guaranteed. Not so for these securities if you sell them before maturity or a fund manager sells them within a mutual fund. When interest rates go up, your lower-rate bonds aren’t as attractive if you try to sell them before maturity. Mutual funds, including those with bonds, can lose money at any time if they buy and sell these securities at less than peak values.