Friday Open Thread

34
  by: Colorado Pols May 11, 2018 at 6:23 AM MDT

“We create monsters and then we can’t control them.”

–Joel Coen

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34 Community Comments, Facebook Comments

  1. Voyageur says:
    May 11, 2018 at 6:58 AM MDT

    Trump stinks!

    Stay upwind, America.

     

  2. JohnInDenver says:
    May 11, 2018 at 8:29 AM MDT

    The PERA bill, as described by Erica Meltzer in Chalkbeat yesterday afternoon:

    To address the unfunded liability in the public employee retirement system, legislators raised the retirement age to 64, increased employee contributions by 2 percentage points, and cut retirement benefits. They also boosted contributions from school districts by 0.25 percentage points.

    The deal also promises that $225 million a year in taxpayer money will go into the public pension fund, something Republicans had long opposed.

    This sounds a bit more balanced than earlier descriptions I read, showing a state commitment of $225 million per year, school districts increasing their contribution by 0.25%. Those retired lose 2% COLAs this year and next, and have a reduced COLA after that. Those still working will pay 2% more into the system.

    Still haven't seen a consistent dollar-to-dollar comparison of the fix. Dollars on one side, percentages on the other — hard to tell the balance of the different stakeholders in the "fix." One segment unmentioned by ALL of the coverage I've seen — the fees paid to "professional managers" who are advising PERA on their investments.

  3. Voyageur says:
    May 11, 2018 at 8:37 AM MDT

    Put the money in an SandP 500 fund, with a side of Russell 2k, and go where the market takes you.  That 's basically what I do with my IRA and fees are very low.  

    • JohnInDenver says:
      May 11, 2018 at 9:05 AM MDT

      The numbers I've seen say PERA has a bit less than $50 billion to manage and paid $1 billion in fees over the last 8 years (average of about $125 million per year).  That works out to a management "advice" fee of 0.25% — which for a retail investment, would be fine.

      For a large, diversified endowment, the limited amount of reading I've done says there could be either more limited fees or a limited fee plus a proportion of returns above some agreed upon benchmark. More to the point: if all other stakeholders are going to be contributing to a solution, it seems to me administrators and advisors should, too.

  4. Diogenesdemar says:
    May 11, 2018 at 9:05 AM MDT

    On monsters created and uncontrolled . . . 

    Is it just me . . . 

    . . . or is this not the face of unimaginable pure evil, incarnate?

  5. Gilpin Guy says:
    May 11, 2018 at 12:39 PM MDT

    Was he talking about kids?

  7. MichaelBowman says:
    May 11, 2018 at 1:36 PM MDT

    These are worth a gander in case you were tuned into Fox last night and missed the interview with George and Steve…

     

  8. Davie says:
    May 11, 2018 at 2:06 PM MDT

    Unsurprising news of the day:

    Cities across the country are turning down the opportunity to host the 2020 Republican National Convention, where President Trump is expected to be nominated for a second term.

    Hey Wichita — your time is now!  Or are the Koch brothers too cheap to pitch in?

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