Month: June 2016

Investment Returns Beat Benchmark in Difficult Year

Posted on by planeteria

PERA investments in 2015 beat their policy benchmark and earned a positive return in a challenging year, according to the Comprehensive Annual Financial Report released by the PERA Board of Trustees.

The total PERA fund returned 1.5 percent for the year ending December 31, 2015, outperforming the public fund median return for 2015 and the policy benchmark for one-, three-, and five-year time periods.

With long-term investment performance consistently performing close to the assumed rate of 7.5 percent over three-year, five-year and even 35-year averages, retiree benefits for PERA members and retirees are projected to be secure as a result of benefit structure changes that primarily resulted from reform legislation enacted in 2010.

“As a long-term investor, we understand there are ebbs and flows to the market and are built to withstand them,” said PERA Executive Director Gregory W. Smith.

Read the news release or view an infographic (click the images below) to learn more.

Retirement Roundup: 10 ways to get ready for retirement after age 50

Posted on by planeteria

A digest of timely information and insight about finance, investing, and retirement.

10 ways to get ready for retirement after age 50 | U.S. News & World Report

The decade leading up to retirement is your last chance to build a significant nest egg. The decisions made in your 50s will impact the retirement benefits you receive and how much you will be able to spend safely for the rest of your life. 10 tips can help build your savings and cut back on spending to keep your retirement plans on track.

The secret to a happier, healthier life: Just retire | MarketWatch

Retirement is likely to improve your overall happiness and health, according to a working paper from the National Bureau of Economic Research that looked at the effect of retirement on people’s well being and health. And that improvement happens immediately.

These 3 tips from the rich can help you build wealth | Time-Money

For its recent Insights on Wealth and Worth report, U.S. Trust asked more than 600 high-net-worth individuals how they built their wealth and what behaviors they attribute most to their financial success. Three practical tips that came from multiple responses can be used by ordinary savers to enhance their financial security.

For many women, adequate pensions are still a far reach | The New York Times

The majority of women over age 70 rely on Social Security for most of their income, with an average monthly check of around $1,300. Many women of that generation did not qualify for retirement benefits because they took time away from the workplace, or worked part time, to raise children or tend to aging parents. But workers in disciplines like health care, education and public administration are more secure than their peers. For example, according to a report released in March by the National Institute on Retirement Security, only 4 percent of retired women over 65 who worked in education are poor.

Medicare vs. Medicaid in nursing homes | Squared Away Blog

When a spouse or parent requires long-term care, quality is the top priority. But a report last year by the US Government Accountability Office cited concerns about the quality of the federal data essential for monitoring the quality of care in nursing homes. And care quality is intertwined with affordability, payment sources, and dramatic changes under way in nursing home economics.

The truth about retiring by 70 | CNBC

Americans are retiring later, but that’s not the whole story. While there’s plenty of evidence that financial pressures on retirees are growing, there are also clues that Americans are growing more prepared for the challenges they’ll face in their golden years.

Investing in Colorado, For Colorado

Posted on by planeteria

As profiled in a recent article in ColoradoBiz, Colorado PERA’s investment in a Boulder-based broadband company named Zayo paid off for the Colorado economy and investors. PERA invests $43 billion in trust fund assets wherever it believes it can generate the greatest return while managing risk.

Rand Lewis, managing director of Centennial Ventures and co-founder/managing director of Delta-v Capital writes:

“Zayo was one of those Colorado-based opportunities where PERA was able to meet its dual goals of serving its members while also investing in the state.

PERA invested $6 million in venture capital firms who in turn invested in Zayo. PERA’s initial investment returned more than 10 times that amount to the PERA trusts, and these returns were reinvested to support the retirements of Colorado’s public employees. Such a high return is welcome although not common and PERA’s diversified portfolio seeks to earn strong returns over many decades.”

Read more about how this “virtuous circle” of prudently investing PERA members’ assets benefits more than just PERA.

Retirement Roundup: The 5 most important things you need to know about the Brexit

Posted on by planeteria

A digest of timely information and insight about finance, investing, and retirement.

The 5 most important things you need to know about the Brexit | Forbes

With 52 percent of the United Kingdom’s voting population choosing to leave the European Union, the world is reeling from the idea of an EU without the U.K. It will take years for the full ramifications of the Brexit to unfold, but there are some important things to know right now about such an historic decision.

Social Security will be there for you, millennials | Bloomberg

The Social Security Administration released its annual trustees report earlier in June, including the estimate that the Social Security trust fund will run out of money in 2034. But the program should still be able to pay three-quarters of benefits at that time and for decades afterward, backed by a steady stream of payroll taxes from future generations.

Are you on track for retirement? Do the math | Los Angeles Times

The answer to the question, “Am I on track for retirement” could quickly lead to a frustrating exercise. But thinking about the amount of money you’ve saved as a multiple of your final salary – or the retirement account multiple (RAM) – could be a more practical approach. This can help determine if your retirement savings are in decent shape, or if you’ll have enough to protect against even the worst that financial markets have offered in modern history.

5 must-have tech tools and apps for retirees | Time-Money

Forget the rocking chairs and early-bird discounts. What will really improve your life in retirement is an internet connection. New devices, apps and other software make it easier for retirees to stay healthy, live independently, and enjoy their lives to the fullest.

The sharing economy booms for boomers | CNBC

It’s not just young people who are taking advantage of the sharing economy. A Burson-Marsteller survey found that 28 percent of those ages 50 and older have used a sharing economy service, from escorted rides to living with roommates to pet sitting in homes abroad in exchange for a place to stay. The sharing economy provides older Americans with much needed income, achieved through a flexible schedule. At the same time, it satisfies a crucial need for older Americans – a group faced with dwindling retirement resources.

The money letter that every parent should write | The New York Times

An old-fashioned letter can be a way for parents or grandparents to pass along wisdom about how to handle financial affairs. If it’s written with enough soul, there’s a good chance that the recipient will keep it for a long time. Plus, it’s a literal conversation piece.

Colorado PERA Board Serves the Membership

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The results are in, and four members will begin serving on the PERA Board of Trustees on July 1. Colorado PERA members elected the Honorable Will Bain from the Judicial Division, David Hall from the State Division, Robert Lamb from the Local Government Division, and William N. Parker from the School Division to the 16-member Board.

  • Bain is a District Judge in the 4th Judicial District and replaces Judge Brian T. Campbell who has served on the Board since 2015 and did not seek re-election.
  • Hall is a Sergeant and Legislative Liaison with the Colorado State Patrol and replaces Richard Delk who has served on the Board since 2008 and did not seek re-election.
  • Lamb is the Finance Director for Boulder County and fills the seat he was appointed to in 2015.
  • Parker is the International Baccalaureate Coordinator and Literacy Teacher at Northeast Elementary School in Brighton School District 27J and replaces Amy Nichols who has served on the Board since 2000 and did not seek re-election.

Even though Trustees are elected by certain segments of the PERA membership, all Trustees serve as fiduciaries. This means they must act in the best interests of all plan members and benefit recipients. However, acting in the best interest of the membership does not mean the Board only advocates for benefit improvements. In fact, the opposite has often been true. (Note though that only the Colorado General Assembly, with the approval of the Governor, can change PERA member benefits.)

In 2009, the General Assembly asked that the Board develop recommendations to return the trust funds to long-term sustainability after the Great Recession. The Board put together a comprehensive package of benefit reductions and contribution increases that was largely enacted by the legislature in 2010 and signed by former Governor Ritter in late February of that year.

The PERA Board of Trustees, a majority of whom are elected by the PERA membership, voted unanimously in 2009 for the Legislature to cut benefits for all PERA members – including themselves. The results of the Trustees’ decision led to successful recommendations and bipartisan support for a reform package that was one of the first in the country to implement responsible reforms for a public retirement plan. As fiduciaries, Trustees understood that taking a shared sacrifice approach to returning PERA to financial stability meant that everyone had to give up something in order for everyone to benefit in the long run.