One of the most talked about - and often least understood - aspects of any pension plan is its "funded status," the percent of future liabilities that is currently funded (or, actually, projected to be funded) by current assets. This is certainly true of Colorado PERA, which will be the focus of this post. By … Continue reading Colorado PERA’s Funded Status, the Signal Light Report, and the AAP
I wrote previously about the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) and how unlike many of my colleagues I actually think the intent is good, although the formula used to compute them is a very blunt instrument and could be improved. (We have each individual's earnings data, and we have, you … Continue reading Some Nuances of the WEP and GPO
I've mentioned the books I've written (and am continuing to write) a few times on here, but I realized I haven't really shared why I'm writing them or what got me started. I talked about it a little on the Teach and Retire Rich podcast, but I haven't put it all together in one place. … Continue reading Why I’m Writing the Personal Financial Literacy for Educators Series of Books
I’ve written before about purchasing service credit, but I wanted to dive in a bit more here. Note that the following is specific to Colorado PERA and uses Littleton Public Schools’ 2021-22 salary schedule for reference. Having said that, the same logic will generally apply to almost all pension systems, although the details will be … Continue reading More on Purchasing Service Credit
The Individual Retirement Account (IRA) is well-named. (Technically, the 'A' actually stands for "arrangement", not account, but everyone just says account.) It describes really well what the account is for (although the details around it can still be confusing), and people quickly grasp the concept. The same can't be said, unfortunately, about employer-sponsored retirement plans. … Continue reading 401ks and 403bs and 457bs, Oh My!
A while back I read How I Invest My Money, a fairly short book that is comprised of 25 financial "experts" describing how they invest their money. It was interesting to see the different perspectives and rationales, so I thought it might be helpful (to somebody?) if I shared my1 portfolio. I look at our … Continue reading What’s In My Portfolio?