Retirement insights from a Colorado PERA perspective

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Colorado PERA Invests $50M in Boulder Firm

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Photo credit: Foundry Group – 519831592-iStock/Thinkstock

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

Colorado PERA invests $50M in Foundry Group’s new $500M fund | BizWest

Local venture-capital firm Foundry Group closed on a new $500 million fund earlier in September that will allow the company to invest in growth-stage companies outside its existing portfolio. The new fund is Foundry’s sixth. Last year, the firm closed on its fifth $225 million investment fund. The new fund aligns with the Foundry Group Select fund strategy of providing growth investments for startups from its early-stage funds but will also invest in growing companies that the firm has not previously invested in. Foundry Group is welcoming a few new limited partners with the new fund, including $50 million from PERA’s private equity class investment group.

Why California’s new retirement savings plan may become a national model | Time-Money

A new state retirement saving plan has just been launched in California, which could help millions of workers – both in the state and around the country. The retirement savings plan, called Secure Choice, will provide coverage to some 7.5 million small-business employees in the state who lack workplace plans. The Secure Choice plan will require small employers to auto-enroll workers in an IRA. Having access to a workplace plan is crucial to successful retirement savings. Without that nudge from an employer, especially through auto-enrollment, most workers procrastinate and fail to save. Some 90 percent of workers with employer plans are saving for retirement vs. just 20 percent of those without one, data from Employee Benefit Research Institute show. The launch of an auto-IRA by California, the largest state, adds major momentum to a burgeoning movement to improve retirement security for workers without 401(k)s or other employer plans.

Military prepares for overhaul in retirement benefits | RetirementRevised

The military, which currently has as a traditional defined benefit plan, will adopt a new hybrid program next year that blends an existing defined benefit for career personnel with a matching contribution to a 401(k)-style account aimed at covering those who don’t make a lifelong career of the military. It’s the biggest overhaul in retirement benefits in years – and it’s a mix of good and bad news for military personnel.

Millennials: You’re still not saving enough | CNBC

If you’re young and saving for retirement, you should plan to sock away nearly a quarter of your pay. A recent survey from personal finance website NerdWallet found that a 25-year-old who is earning $40,000 a year will need to have saved 22 percent of pay in a retirement account over the course of his or her career in order to replace 80 percent of annual income by age 67.

Attention, Gen Xers: You’re making a major retirement mistake | The Motley Fool

Caught in a perpetual juggling act of raising children, building careers, and caring for aging parents, Generation Xers (roughly late 30-and 40-somethings) face challenges that extend far beyond the realm of personal finance. But while some Gen Xers are doing a good job of saving for retirement, others are slipping up big-time. According to Transamerica’s latest retirement survey, only 77 percent of Gen Xers are saving for retirement, which means almost a quarter are neglecting to put money aside for the future. Worse yet, they are starting too late and aren’t saving enough.

5 things to do now to get ready for retirement | Washington Post

You are five to 10 years away from retirement and worry that you are behind in planning. You probably are. You certainly are not alone. A third of Americans between 55 and 65 have saved nothing for retirement, according to the . The good news is that if you act now, you can do some catching up. The worst thing to do is sit back and do nothing. Five tips can help you prepare, starting by figuring out where you are in retirement preparation.

Defined benefitA mandatory retirement savings plan in which a participant’s future benefits are known or can be calculated, but contributions are subject to adjustments.

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