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MyRA - Government Backed Retirement Savings Program
Posted on 1/29/14 at 7:13 am
Posted on 1/29/14 at 7:13 am
Not quite sure how I feel about this yet.
LINK
I find this statement hard to believe, but if true, why would an individual want to invest with the government?
LINK
quote:
The Obama administration is scheduled on Wednesday to launch a retirement savings vehicle called "myRA," aimed at enrolling more Americans in a government-backed investment option.
In details provided by the White House on Wednesday, the retirement savings proposal would be similar to a Roth Individual Retirement Account, but with holdings backed by the U.S. government like savings bonds.
"MyRA guarantees a decent return with no risk of losing what you put in," President Barack Obama said in introducing the program on Tuesday night in his State of the Union Speech
I find this statement hard to believe, but if true, why would an individual want to invest with the government?
quote:
About half of all workers and 75 percent of part-time workers lack access to employer-sponsored retirement plans, the White House said.
5
Posted on 1/29/14 at 7:19 am to OnTheBrink
The problem I see is the rate of return will be so low that I'm not sure if it will make a difference.
Even if they use 30 year US Treasuries, the return will be low as it is 3.68% today. So it will take 18 years to double your money. Meanwhile if another person buys a low cost index fund and keeps it 18 years there is a high probability that the index return would be greater than 8 %.
So we want poor people to invest at lower rates of return?
Even if they use 30 year US Treasuries, the return will be low as it is 3.68% today. So it will take 18 years to double your money. Meanwhile if another person buys a low cost index fund and keeps it 18 years there is a high probability that the index return would be greater than 8 %.
So we want poor people to invest at lower rates of return?
Posted on 1/29/14 at 9:03 am to OnTheBrink
I agree, to people already with retirement accounts it sounds dumb, but the reality is a large amount of people haven't the slightest clue about saving money. They couldn't tell you what an IRA or 401k is, and probably think the stock market is the devil and a bond is some kind of glue you buy at Lowe's.
These are the people it's meant for, and although I would never give my money to the gov for saving, it's better than them living paycheck to paycheck with zero savings.
These are the people it's meant for, and although I would never give my money to the gov for saving, it's better than them living paycheck to paycheck with zero savings.
Posted on 1/29/14 at 9:06 am to OnTheBrink
This will be a hard sell to most investors.
Posted on 1/29/14 at 9:35 am to OnTheBrink
Maybe the point is to create a receptacle where all 401k and IRAs can be rolled to one day.
By government mandate?
I can hear it now:
"If you like your retirement plan, you can keep it"
By government mandate?
I can hear it now:
"If you like your retirement plan, you can keep it"
Posted on 1/29/14 at 11:40 pm to OnTheBrink
quote:
Retirement Savings Program
quote:
Government Backed Retirement Savings Program
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