Obama's MyRA

[Norwayguy]

How does one pay for these accounts?

I know.......

by raising the Minimum wage from $7.25 to $10.10.......I wonder if they have though about that.....How else can we afford to retire without making more money.

I would bet (and I am by no means certain) that they will use the same type of system use in the federal allotment programs. Just think if all your employer had to do was a direct deposit to a routing # and account # just like your bank account and the account number is a set number begining with or ending in your social security number....Anyone that has worked the federal allotment system will understand what I am saying.

Still requires something done on the part of the employer. I would think allowing SAR-SEPs to be set up again would be an easier solution. Little to no hassle to set up and employer contribution is totally in thier control.

 

[TwiLight]

I would bet (and I am by no means certain) that they will use the same type of system use in the federal allotment programs. Just think if all your employer had to do was a direct deposit to a routing # and account # just like your bank account and the account number is a set number begining with or ending in your social security number....Anyone that has worked the federal allotment system will understand what I am saying.

Still requires something done on the part of the employer. I would think allowing SAR-SEPs to be set up again would be an easier solution. Little to no hassle to set up and employer contribution is totally in thier control.

This is already done with Simple IRA plans....Fidelity comes to mind as my payroll company sponsors this plan because of the ease of depositing contributions and matches by using the NACHA system or Direct Deposit. Many 401k TPA's already do this.

My opinion is simply, they want to take that money out of the private investment group and use it for their own EVIL ways. SOCIAL RETIREMENT SYSTEM......Just changing the name.

 

[scagnt83]

The reason people mention the government taking over retirement accounts is because our elected officials have proposed just that.

To be fair, very few of our elected officials have publicly proposed it. But plenty of left leaning "think groups" and advisors have.

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I would think the expenses would eat the crap out of these type of investments. A contribution of $5 or $500 still has the same servicing costs. Are employers who don't offer a plan now, going to want to commit the time and cost for this? doubtful.


While the idea is welcome, who pays for the execution?


I mean we can solve a lot of problems if we didn't have to worry about paying for them.

The Gov acts as Plan Admin/Trustee and just eats all of the costs.

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The article I read implied the contributions would be automatic from a persons paycheck and seemed as if it were a requirement. I'll see if I can find that same article and link it.

I have seen nothing that says it is required. Its an option. Just like an IRA is an option. Although I could see this as becoming an "opt-out" type of thing for all employers who do not offer a retirement plan....

 

[VolAgent]

So, for all the guys knocking this.

How many of you will open an IRA with just a $25 monthly contribution?

Now please, don't rush me all at once.

 

[Norwayguy]

So, for all the guys knocking this.

How many of you will open an IRA with just a $25 monthly contribution?

Now please, don't rush me all at once.

I would and did back when I was a registered rep. I would do an annuity for you if I had a carrier offering flexible premiums that low.

 

[VolAgent]

I would and did back when I was a registered rep. I would do an annuity for you if I had a carrier offering flexible premiums that low.

As I recall, that was also in a worksite setting. How many did you open otherwise?

I'm not saying this to be superior. I opened $50/mo American Fund accounts when I had my 6. But I sure wasn't looking for them. And not many would even bother.

There are not a lot of agents lining up to do IRAs at these contribution levels. And most people who have so little to invest really aren't looking for the stock market roller coaster either.

For better or worse, this is a chance for people to save money. It may not be the best idea, but so far our current ideas aren't knocking it out of the park either.

EE Series bonds use to be very popular for children. But they fell out of favor as we chased returned and now the Treasury took it away from banks and their is no physical bond. They use to be a wonderful gift from older generations to kids.

 

[Norwayguy]

As I recall, that was also in a worksite setting. How many did you open otherwise?

I'm not saying this to be superior. I opened $50/mo American Fund accounts when I had my 6. But I sure wasn't looking for them. And not many would even bother.

There are not a lot of agents lining up to do IRAs at these contribution levels. And most people who have so little to invest really aren't looking for the stock market roller coaster either.

For better or worse, this is a chance for people to save money. It may not be the best idea, but so far our current ideas aren't knocking it out of the park either.

EE Series bonds use to be very popular for children. But they fell out of favor as we chased returned and now the Treasury took it away from banks and their is no physical bond. They use to be a wonderful gift from older generations to kids.

Last I knew the myRA is also a worksite setting. And no one in thier right mind would be looking for $300 annual contributions at the commission rate would not make it profitable. But I would not walk away from it if I came across it.

 

[bobson]

Just out from the US Treasury Department, "In an op-ed to be published in the January 31, 2014 editions of McClatchy Newspapers, Treasury Secretary Jacob J. Lew discusses myRA - a simple, safe and affordable starter savings account to help low and moderate-income Americans begin building towards a more secure financial future."

myRA: A start to a secure retirement

Over the past five years, our country has accomplished a number of big things. The economy has grown stronger after being shaken to the core by the worst recession in our lifetimes. Our businesses have created more than 8 million jobs. The financial system is more resilient, with better protections for consumers and investors. And investments in domestic energy production have helped put the promise of American energy independence in sight.

In the meantime, health care costs have grown at their slowest rates in years while millions of families now have access to affordable health care coverage so they are not one hospital visit away from falling into financial ruin. Our auto industry is surging even as home values are rebounding. And the federal deficit has been cut by more than half.

So we have made clear progress. But we all understand that we are not where we want to be yet. Too many Americans cannot find a job. Too many Americans who do have a job are not getting paid enough to support their families and make ends meet. And too many Americans do not have the skills they need to succeed in today’s economy.

As President Barack Obama made clear in his State of the Union address, it is time to focus on restoring opportunity for all. That means helping to make sure more Americans can take part in our growing economy and build some economic security for the long term. To get that done, we are putting forward real, concrete solutions to our most pressing problems—from college affordability and job training to fair wages and a stable retirement.

Now, when it comes to retirement, you would think that the vast majority of working Americans would be putting some money away for their future. But the truth is, many are not. For millions of working men and women, it is not easy to save for the long haul. Many employers do not offer a retirement plan. And setting up a retirement account and maintaining it can often be too difficult, expensive and time-consuming.

The statistics paint a stark picture. Only about half of all workers have access to an employer-based retirement plan, such as a 401(k). And left on their own, few workers save. It is estimated that fewer than one out of 10 eligible workers actually contribute to an IRA.

Still, every American deserves the chance to build a secure retirement. That is why the Obama administration has designed a new way for working Americans to start saving for the future. This program, which will begin later this year, is called myRA or My Retirement Account.

This account is designed to help low- and middle-income workers, who are too often overlooked or ignored, begin saving for retirement. We are talking about the waitress who is holding down two part-time jobs to support her kids; the recent graduate who landed a job but is grappling with student loans; the janitor who has never been given the chance to invest in a retirement account.

Here is how myRA, which is simple, safe and affordable, will work.

You will be able to start saving with an initial deposit of as little as $25 and contribute as little as $5 each payday. If an employer chooses to participate, contributions are made through automatic payroll deductions, making them hassle-free.

There are no fees—100% of any contribution goes into the account and is invested in a Treasury security. That means it will be backed by the full faith and credit of the United States, will earn the same interest rate that is available to federal employees for their retirement savings, and the balance will never go down.

Finally, myRA is not tied to any one employer—it belongs to the worker, not the workplace. In other words, the account is portable and can be easily rolled into a Roth IRA. And if myRA savers ever need to, they can withdraw their contributions tax-free, at any time.

MyRA is a specific way in which we can help hardworking Americans save for the future. But there are other things we can do. In particular, the President has consistently called on Congress to help tens of millions of middle class Americans save for the future by opening up access to automatic IRAs in the workplace.

And we will continue to look for ways to help increase economic security, strengthen the middle class, and provide more ladders of opportunity into the middle class. That is how we will help make sure every American can take part in this recovery. And that is how we will help usher in a stronger, more prosperous future for our country.

Jacob J. Lew is the secretary of the Treasury.

What a bunch of bologna.

 

[Justin Bilyj]

As I recall, that was also in a worksite setting. How many did you open otherwise?

I'm not saying this to be superior. I opened $50/mo American Fund accounts when I had my 6. But I sure wasn't looking for them. And not many would even bother.

There are not a lot of agents lining up to do IRAs at these contribution levels. And most people who have so little to invest really aren't looking for the stock market roller coaster either.

For better or worse, this is a chance for people to save money. It may not be the best idea, but so far our current ideas aren't knocking it out of the park either.

EE Series bonds use to be very popular for children. But they fell out of favor as we chased returned and now the Treasury took it away from banks and their is no physical bond. They use to be a wonderful gift from older generations to kids.

This assumes their intent is to help people save for retirment, this is just a stepping stone disguised as government concern.
This is to cover their ass plain and simple.

 

[VolAgent]

This assumes their intent is to help people save for retirment, this is just a stepping stone disguised as government concern.
This is to cover their ass plain and simple.

Ah, so the government is going to get workers putting $25 a month into an account that requires they move it at $15,000. They are then going to come and confiscate all that to solve our debt problem....

Yes, that will really fix things. It will take so many years for the amount to build up to be of any significance, Obama will be long gone. Also, very much a burn me once and I'll never trust you again situation.

All these guys can think about is the next election cycle. They really aren't capable of executing long term plans. They can barely sit still long enough for the R&D cycle on new weapon systems.