Hello again from SeniorS SuperStoreS.

Welcome to our new subscribers; and to our established subscribers of Keeping in Touch, a special Welcome Back. We're glad to see you again.

If you like the content of Keeping in Touch, please feel free to forward each copy on to as many folks as you wish. And, encourage your friends and family to visit with us at SeniorS SuperStoreS and sign up for their own subscriptions. Or, they may sign up for their own subscriptions by emailing us at "seniors-request@seniorssuperstores.com" and include the word "join" in the body of the email message.

This issue of Keeping in Touch deals with more matters of interest to Prime Time Surfers:
1.) Pfizer Launches Drug Card for Low-Income Seniors. On the heels of a similar announcement by Novartis Pharmaceuticals, more help may be on the way for a large segment of American seniors.
2.) Giving Assets to Family Members. Did you know that there have been some recent tax changes that can affect how and why you may want to give some of your assets to family members in order to reduce taxes?
3.) More information about cold feet.

1.) Pfizer Launches Drug Card for Low-Income Seniors

Pharmaceutical giant, Pfizer, recently announced that, beginning March 1, 2002, it will offer low-income seniors some savings on some of its most widely used prescriptions. This program will allow qualifying seniors to buy a 30-day supply of a Pfizer prescription medicine for $15 per month. Included are drugs for lowering cholesterol and blood pressure and treating depression.

(This announcement comes on the heels of a similar announcement by Novartis Pharmaceuticals. To read about that program go to our November 29, 2001 Keeping In Touch.)

To qualify, seniors must be enrolled in Medicare and have an annual Gross income below $18,000, or less than $24,000 for couples. Recipients can have no other prescription drug coverage.

Other drug companies, like GlaxoSmithKline and Novartis, have discount drug cards but many of those charge seniors a modest fee, usually $12 to $25 per year, in exchange for a discount. Those programs are less restrictive, however, with income limits of $26,000 for singles and $35,000 for couples.

Pfizer medicines most often used by Medicare recipients include the cholesterol-lowering drug Lipitor, Neurontin for acute epilepsy, Norvasc for high blood pressure and angina, Zoloft for depression and Viagra.

The new Pfizer Share Card can be used at retail pharmacies. Already, CVS, the nation's largest retail drugstore chain, and Wal-Mart Stores, Inc., the largest U.S. retailer, have agreed to join Pfizer in promoting the drug card.

There will be no enrollment fee and no limit on the number of drugs a patient can receive. Those applying will have to provide proof of their income, such as the first page of a tax return.

Company officials expect the program to be temporary but in place until Congress is able to pass a prescription drug benefit. Congress is expected to try to pass prescription drug proposals for seniors this year.

Some analysts praised Pfizer's action but questioned whether the company was trying to stem off criticism about escalating drug costs. Pfizer, which is the world's largest drug company, recently released figures showing it expects a 20 percent hike in earnings for 2002.

The Pfizer drug card will be administered through the Pfizer for Living program, which will include a help line and educational materials for low-income seniors. Also, Pfizer plans to launch a campaign informing seniors about the program by focusing on local emergency rooms, health clinics, physicians' offices, pharmacies and senior centers.

Card applications are available by calling 1-800-717-6005 or on the Web at www.pfizerforliving.com. And, you may visit the Pfizer web site at www.pfizer.com to learn more details.

We at SeniorSSuperStoreS will monitor the situation to keep you informed.

2.) Giving Assets to Family Members

Parents and grandparents give financial gifts to their children and grandchildren for many and varied reasons, and, it's not just Christmas and birthdays. Many parents and grandparents give money to family members in order to reduce the size of estates that will be subject to estate tax.

Any person can give up to $10,000 per year to each of an unlimited number of people without triggering gift or income tax. So, this means that you and your spouse are able to each give $10,000, for a total of $20,000, per year to anyone you choose to get the money out of your estate without incurring any gift tax or income tax.

However, for many people, the tax incentive for big gifts is withering away. That's because, in the year 2002, federal estate tax will apply only to the portions of an individual's estate that exceed $1,000,000. That's up from $675,000 in 2001. Furthermore, the threshold gradually increases to $3,500,000 in 2009. In 2010, there will be no federal estate tax at all. But, the tax will come back in 2011, again with a $1 million threshold unless the federal government makes the repeal permanent. If you are trying to decide whether to give cash, buy securities for a child or give as a gift securities that you already own, keep these changes in mind.

What income tax benefits are in store if you do give away an asset that has increased in value? Most children, if they are over the age of 14, are in the bottom income tax bracket. (If the child is under the age of 14, his/her tax rate on unearned income is the same as the parents' rate, and selling the asset you gave him/her would be unearned income.)

So, if you sold the asset and then gave the child the proceeds as a gift, you would be taxed on the gain at your sale. On the other hand, if you gave the appreciated asset to the child over the age of 14, and he/she sold it, the sale would be taxed at much less. In fact, if a security has been held for at least 5 years, the tax rate to the child is even lower (only 8 percent).

Also new this year are the rules on state-sponsored investment plans used for college tuition. Previously, taxes on profits in these investments were postponed until the money was withdrawn to pay for college under the premise that the child-owner of the funds would be in a low tax bracket. But, profits taken out starting in 2002 will be tax-exempt so long as the investments were held at least a year in the college fund plan. Remember, these are special investment plans sponsored by the states specifically for paying college tuition and are governed under Section 529 of the Internal Revenue Code.

There is also another vehicle you can use to help a child with his/her college tuition yet get the funds out of your estate: the Education IRA. The earnings in these special college savings vehicles (now known as Coverdell Education Savings Accounts) are tax exempt, and the annual investment limit has now increased to $2,000 per year, up from the previous $500 per year. You must be careful, however, about whether the child qualifies for a Coverdell account, so it is best to discuss these rules with a broker or investment fund company.

In conclusion, if your estate is sizeable enough to perhaps be subject to federal estate taxes despite these new higher thresholds or if you just want to help out a child or grandchild, keep these new and expanded options in mind.

3.) Do you have cold feet?

No, we don't mean are you hesitant about something. We really mean are your feet cold?

During these winter months cold feet is a real problem for many of us as we age and develop circulation problems. Really, our blood doesn't circulate as well as we grow older compared to when we were younger.

Poor circulation and cold weather induced cold feet can cause both discomfort and eventual health problems. You can relieve these discomforts and reduce the other risks by providing a supplemental heating source to your feet and legs, but be careful. All space heaters, including electric and kerosene, have some inherent fire risk if the user is not careful.

Although we carry a line of excellent and safe space heaters, we always express concern to our buyers that the user must be careful and attentive to fire risks, such as getting too close to the unit and letting clothing, drapes, bed linens, etc., get too close.

Now, we can offer you another alternative - the Cozy-Toes Carpeted Foot Warmer. This product can be found in our Foot Care department.

The Cozy Foot Warmer line of products has several advantages over space heaters. You don't need to heat an entire room or large area if all you want to do is keep your feet warm; the Cozy Foot is much more economical to operate; and, your skin doesn't dry out as much as with space heaters. Why not check it out for yourself or for a relative or friend?

If you like the content of Keeping in Touch, please feel free to forward each copy on to as many folks as you wish. And, encourage your friends and family to visit with us at SeniorS SuperStoreS and sign up for their own subscriptions. Or, they may sign up for their own subscriptions by emailing us at "seniors-request@seniorssuperstores.com" and include the word "join" in the body of the email message.

So, until next time, here's goodbye. Remember, if you want us to add any resources or items of interest, just drop us an email from the SeniorSSuperStoreS Contact Us page. Watch your email box for future newsletters!

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Until next time, happy Prime Time Surfing!