Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Two years after the president*used his State of the Union speech to direct the Treasury Department to “create a new way for working Americans to start their own retirement savings plan” and a year after its national rollout, the myRA program has a long way to go to*help the millions of Americans that a White House blog about the program envisions.
The tally: 20,000 myRA accounts have been opened, with assets of about $17 million.*
The starter retirement account*is designed for low- and moderate-income Americans without access to workplace retirement savings programs. It has no fees that could gobble up the small amounts invested and holds funds in*a new Treasury security created for the program. Those retirement savings bonds pay a small amount of interest and are guaranteed not to lose money.1
Doesn't bode well for lower income retirees down the road If the current pattern holds. Then what?
The problem is not lack of government sponsored retirement plans; we have too many confusing plans (IRA, Roth IRA, SEP IRA, Simple IRA, Keogh, 401k, etc.) as it is. The real problem is low and moderate income Americans finding enough money to contribute to a plan. The rotten politicians sending the jobs overseas created that problem.
If the government wanted to help, they should consolidate the plans and simplify the rules, or better yet, get rid of all the plans and tax breaks that are a joke and let people save money on their own.
On the surface, it sounds like a great idea! -- I'll bet if Trump sponsored a similar plan, it would take-off - because people might think it involved some level of sound business sense, instead of assuming it is only another government expansion boondoggle.
Perhaps I'm mistaken (or biased), but I believe Obama shot himself in the foot with so many overt, one-sided, "pen and phone" power grabs that only he and the FAR left sponsored ... he lost both credibility (and his legacy).
The problem is not lack of government sponsored retirement plans; we have too many confusing plans (IRA, Roth IRA, SEP IRA, Simple IRA, Keogh, 401k, etc.) as it is. The real problem is low and moderate income Americans finding enough money to contribute to a plan. The rotten politicians sending the jobs overseas created that problem.
If the government wanted to help, they should consolidate the plans and simplify the rules, or better yet, get rid of all the plans and tax breaks that are a joke and let people save money on their own.
I was making less than $25k a few years ago. Saving for retirement is not the priority at income levels like that.
Our government needs to make a decision.
Do we want to keep interest rates artificially low so sheeple will blow every dollar they earn on crap.
Our do we want to make saving worthwhile.
We each have a MyRA and it is part of our emergency stash.
The "G" fund(using the TSP name) that the money gets put into is a damned near perfect place for us to park some after tax cash that we won't be needing/using for awhile.. Last I looked it was going to be paying +2% with zero market risk. Being 60 some of the Roth restrictions didn't apply to us.
I think the real problem with it is with any retirement/savings account-- getting people to use what is available. Where I worked, only 7-8 people out of 40 or so eliglible participated in the 401k. It was dropped about 4 years ago do to costs for such little participation. The employee base was mostly retirees or college kids with a few middle aged such as myself.
I realize that this goes against all that many hold sacred-- but I believe that forced savings is a real necessity. We also know what happens to economic growth when people pull back spending and the two don't seem to be complimentary.
Sadly we no longer contribute to the MyRA------ we moved and I retired.
First off the real trouble is most people just do not make enough to drop in a buck or two. Well really they do have the resources but they spend it on things that they truly do not need. This is not a knock on them. I was one at one point as well.
The second reason that it started off slow is it is not mandated. How it should be started is to mandate employers put 1% or more if they do not offer a 401k. Make it an opt out with a 2% minimum start. Add in 1% out of the FICA tax only again on those that do not offer a 401k.
I would change it though and give the MyRA to the Blackrock group who run the TSP for the Feds. But I am not in charge. I am interested in seeing how the 4 states that have started retirement accounts do in the coming years.
The hardest part is many people just do not make enough to make ends meet as it is.
It seems like a good idea since, unlike a 401k it doesn't cost the employer anything. But some hate anything Obama and won't participate. Of course some employees say they can't afford it, or won't live that long. But you'd be surprised how many hillbillies buy the latest toys for the children and eat fast food every meal.
There's nothing wrong with Obama seeking to do something but it shows he and his staff don't really understand economics very much. You have to expand jobs and incomes for people to save for retirement....this is where our government has failed over the last 10 years.
I was making less than $25k a few years ago. Saving for retirement is not the priority at income levels like that.
This right here. When you can choose only two, myFood and myRent will beat out myIRA every time.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
