A digest of news from publications around the nation about finance, investing, and retirement.
Colorado has received $2.2 billion in federal aid. Major population centers received about a quarter of the funds directly. The state legislature is charged with sorting out the rest. Some are concerned the dollars won’t be spread around evenly. But nearly all agree: However the money is sorted out, communities everywhere will still face major shortfalls.
Colorado’s per capita income in 2018 was about $36,000. That means that the recent federal stimulus checks of up to $1,200 per person cover about two weeks of income. For those who have lost earned income, the big question is: “what happens next?” On the heels of the CARES Act, some legislators are talking about sending out additional stimulus checks.
Sales taxes tend to be a less volatile form of income for states relative to other taxes, such as corporate income or oil extraction. However, with a sudden, precipitous drop in consumer spending, this usually reliable revenue source is now shakier than in past recessions.
Investment returns, longevity assumptions, assumed rate of return—these are terms you might be familiar with when reading about PERA’s DB funds. But the same concepts apply to individual plans, like a 401(k), especially when asking how much you can safely withdraw from those accounts in retirement.