Financial Education for Colorado Educators (and those they love). Absolutely Free.
First, I need to apologize, because not every Colorado teacher just got a big raise. But due to a confluence of circumstances, quite a few did. These circumstances include: The state legislature having surplus dollars and finally deciding to try to make up for the years of underfunding of K-12 education (known, I kid you … Continue reading Colorado Teachers Just Got a Big Raise: Now What?
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 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!
One of the most helpful innovations in both investing and retirement planning has been the Target Date Fund. If you're not a familiar, a Target Date Fund is one investment that allows you to pick the date at which you anticipate needing your money (typically when you expect to retire), and the fund is setup … Continue reading Are Target Date Funds The Best Choice for Educators?
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