Retirement insights from a Colorado PERA perspective

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Retirement Roundup: How 10 Types of Retirement Income Get Taxed

Retirement Expenses
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A digest of news from publications around the nation about finance, investing, and retirement.

How 10 Types of Retirement Income Get Taxed | Kiplinger

During your working years, all of your monthly cash flow might come from one source—your paycheck. But in retirement, you might draw income from a handful of sources. That means filing taxes can become more complex, so creating a plan to minimize your tax burden might become even more important. How should you coordinate a pension with 401(k) withdrawals? Should you withdraw from a Roth IRA throughout retirement or save it for later? Whether you’ve been retired for years and just need a refresher or your retirement is just around the corner and you’re curious about what taxes might look like, this article is a good place to start.

Colorado’s Public Option Is (The Big) One Of Many Health Care Fights Lawmakers Will Have This Year | CPR

In the opening weeks of the 2020 legislative session, it’s
already clear that health care will dominate headlines. Of the many issues
lawmakers are discussing, the creation of a public option takes top billing,
according to this article. Insurance Commissioner Michael Conway, said the plan
could save consumers 9 to 18 percent in health care costs. Supports say savings
can be found by limiting hospital charges, increasing the amount insurance
companies spend on patient care, passing rebates from drug companies on to
consumers, and increasing competition in Colorado’s 22 counties where residents
currently only have one option on the individual market. Amanda Massey,
executive director of the Colorado Association of Health Plans warns the plan
“will result in a one-size-fits-all approach replacing market choice and
competition.” She predicts a public option would result in cost increases for
Coloradans who get health insurance through an employer.

Do’s and don’ts of spending wisely in retirement | MarketWatch

You spend a lifetime saving. Switching gears into spending mode can be an adjustment. The author of this article says it’s helpful to think of retirement spending occurring in three phases. Phase one: three to five years of jubilation—increased travel, bucket list items, higher spending overall. Phase two: spending decreases as retirement life normalizes. Phase three: you stay close to home, and spending, except health care, typically decreases. For each phase, the author include tips to reduce the risk of running out of savings too soon.

2020’s Best States to Retire | WalletHub

WalletHub reviewed how each state ranked in affordability, health-related factors, and overall quality of life. WalletHub incorporated 47 different data points to inform their conclusions. Overall, Colorado took silver, finishing behind perennial retiree favorite, Florida. More specifically, Colorado ranked fourth for health care, eleventh for quality of life, and seventeenth for affordability.

Comments

  1. Donald McCabe says:

    What is happening with the bill to eliminate the WEP?

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