Q: How much will health care cost me in retirement? - H.E., South Bend, Ind.

A: Retirees and pre-retirees should prepare to pay a lot out of their own pocket for medical expenses not covered by insurance or Medicare. According to Fidelity Investments, an average 65-year-old couple retiring this year will need to have $240,000 socked away just to cover health care costs for the next 20 years. (This doesn't include the cost of long-term care, which many people would find useful.)

Remember, though, that that's an average. Your ultimate cost could be significantly higher - or lower - than the average. Still, it's a useful reminder that health costs can be substantial and should be factored into your retirement planning. Get more guidance on that at

Foolish Trivia

Name that company

I'm the world's second-largest food and drink company, known for fizzy beverages and salty snacks. Twenty-two of my many brands deliver more than $1 billion in annual revenue each, and my brands include Gator­ade, Frito-Lay, Quaker, Tropicana, Mountain Dew, Aquafina, Tostitos, Lay's, Fritos, Cheetos, SoBe, Naked, Propel Zero, Aunt Jemima, Rice-a-Roni, Tazo, Lipton, Cap'n Crunch, Smartfood, Ruffles and SunChips, to name just a few. I operate almost 700 manufacturing plants globally, and my roughly 100,000 distribution routes serve about 10 million outlets regularly. The formula for my flagship product (which features my name) was developed in 1898. Who am I? Last Week's Answer: Union Pacific.


Is Baidu destined for greatness?

If you can handle a little extra risk, Chinese search-engine giant Baidu (Nasdaq: BIDU), often compared to Google, offers the possibility of extra reward. There's a lot to like about it, but a few cautions as well.

With a recent market capitalization of about $32 billion, Baidu has been growing rapidly. Its revenue has averaged annual growth of more than 60 percent over the past five years, with earnings averaging more than 70 percent.

There's much potential for further growth, too, as perhaps half of China's billion-plus population is not yet online. Baidu has irons in many fires. It's working with France Telecom to develop a browser for mobile devices in Africa and the Middle East, and recently introduced a product-search service.

Those wary of Baidu point to its growing debt, significant competition and China itself. Some worry about China's growth rate slowing, its government's restrictive regulations, and possible fraud. Still, given Baidu's heady growth rate, the stock recently sported a price-to-earnings ratio of just 19, making it seem quite undervalued. Its valuation would be compelling even if its growth rate slows some. (The Motley Fool owns shares of Baidu, Google and France Telecom, and its newsletters have recommended them.)

