Thennes tried to contest the charge with the hospital system, but to no avail. “I’m going to get sick just worrying about it.” These kinds of facility fees are common at hospitals, where they help pay the hospital system’s overhead costs. The Centers for Medicare and Medicaid Services will no longer pay facilities located off a hospital’s grounds the same as those based at a hospital, if the facility in question started billing Medicare after November 2015. Reducing how much Medicare pays for cardiac imaging services alone would save $500 million in one year, the report found. That change could filter into the wider patient population, said Georgetown’s Hoadley, since many health insurers base their rates on the Medicare fee schedule. Thennes’ immediate care facility, for example, has been charging facility fees since April 2015. And, even if a hospital-owned doctor’s practice doesn’t charge a facility fee, patients may be paying in other ways, such as through higher costs to their health plans, which could increase premiums, Hoadley said. The experience has left Salmi wondering whether she’ll be charged the fee elsewhere, too. There is one foolproof option, though, Bell said: ask pre-emptively. Still, “why should patients have to do this?” Bell said.
The Vanguard Target Retirement 2025 Fund (NASDAQMUTFUND:VTTVX) is a target-date retirement fund that invests in an age-appropriate asset allocation of stocks and bonds, and is intended for investors who plan to retire between 2023 and 2027. The fund has a low 0.14% expense ratio and pays a dividend yield of approximately 2.1% as of June 2017.
What is a target-date fund?
Target-date retirement funds, also known as lifecycle or age-based funds, are commonly offered by 401(k) and other retirement plans, and are also available for purchase directly through IRAs and standard brokerage accounts. Basically, these funds are designed to be an all-in-one retirement investment.
Vanguard’s target-date funds all hold a combination of stocks and bonds. Stocks have the highest growth potential, but are also rather volatile. Bonds, on the other hand, are less volatile, but have limited upside potential. So, younger investors with long investment time horizons should keep stock-heavy portfolios, while a greater emphasis on bonds would be more appropriate for older investors.
The idea behind target-date funds is to make the asset allocation process automatic. When you buy a target-date fund, it will have an appropriate mix of stocks and bonds, based on how long you have until retirement. As you get older, the fund’s focus will gradually shift toward a more income-oriented portfolio by allocating more money to bonds.
The Vanguard Target Retirement 2025 Fund
The Vanguard Target Retirement 2025 Fund is designed for people who are between the ages of 55 and 59 years old now, based on a target retirement age of 65, however the appropriateness of the fund for you can vary, especially if you plan to retire significantly earlier or later than 65.
Vanguard’s target-date retirement investment funds are passive investment vehicles, and the general strategy is easy to understand. Vanguard takes the fund’s capital and invests in some of the company’s well-known, low-cost index funds. Because of this approach, expenses are low –- all the fund costs investors is 0.14% in passed-through expense ratios.
As of this writing, the fund has approximately 65% of its assets in stock-based Vanguard index funds, with the remaining 35% in bonds. Specifically, here is the fund’s current portfolio composition:
% of Total Assets