President Barack Obama announced this week that he would establish a program to help low-income earners save for retirement

But the new “starter” savings program — called “My Retirement Account” (myRa), for “my Individual Retirement Account” (IRA) — has left a few analysts skeptical.

“His proposal might do some good — not by helping workers, most of whom are unlikely to take advantage of it, but by spurring a discussion about how to fix a broken retirement system,” theBloomberg editorial board said.

Others are more apprehensive.

“It’s a trap. It will make your savings highly visible to the government, very vulnerable to future special taxes and it drives investments in the direction of financing the government with your savings, rather than the productive private sector,” the Economic Policy Journal said after the president unveiled the plan. “That’s what myRA is all about.”

The program is aimed at Americans who lack the start-up funds required for many commercial IRAs.

“Starting with as little as $25, savers are expected to invest a little each month in Treasury bonds and then convert the accounts into traditional IRAs once the savings grow,” the Associated Press reported. “The president said that he wants all workers to be automatically enrolled in IRAs unless they specifically opt out. Under one scenario, monthly paycheck deductions would be invested in bonds unless workers choose another option.”

Read more; http://www.theblaze.com/stories/2014/01/31/obama-announced-a-new-pr...




Barack Obama apparently proposes to reinvent the savings bond. Does anybody know why savings bonds went out of fashion? Because they are a terrible way to save money.

The president promised that his MyRA (once he figured out how to say it) would combine a non-trivial rate of return with zero risk. Given that real interest rates on zero-risk propositions are generally right around zero of late, the only plausible way to get that done is with a subsidy. This sounds like a terrible idea.

Unless you have about $500 million or so, zero-risk investments are generally a bad idea, because returns are proportional to risk. (If there’s no risk, what are they paying you for, other than time?) Almost everybody, and certainly young people entering the work force (if they should be so lucky!), is better off with some significant amount of risk in his retirement portfolio, a well-diversified, long-term savings program being the most reliable path to a comfortable retirement. A zero-risk/decent-return instrument is a perpetual-motion machine.

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Comment by E B Boyd on February 3, 2014 at 12:48am

MyRA is the first step in confiscating all IRAs & 401ks just like Obamacare is just the first step in Nationalized Health care.

Comment by Chris Jurrians on February 2, 2014 at 10:35am

“...The president said that he wants all workers to be automatically enrolled in IRAs unless they specifically opt out..." MOST companies already HAVE that option for people they hire. Most companies will match dollar for dollar up to a certain point. However, with the cradle to grave entitlements that the people that Obama wants to help believe are their due, you won't have anybody working and taking advantage of any employer-sponsored program such as IRA, 403, etc. Therefore, those of us who work will be paying the bills for that as well.

I wish I could take my money out of my 403c and just bury it in the back yard. That way the gov't can't get their hands on it.

Comment by Mr G on February 2, 2014 at 9:11am
any money that accessible to the government can be seized. in their best interest of course. this will become another income stream like social security became. it will be filled with government I.O.U's.
Comment by Paul Szemanczky on February 2, 2014 at 8:34am

With National Debt increasing at a rate of $23,000.00 a SECOND and a service charge on that debt to foreign nations we've borrowed over $6,000,000,000,000 of $856,000,000 PER DAY the whole idea of saving to buy T-bills with a weekly $25.00 saving allotment from someone's meager paycheck is pure and ridiculous Obama-Entertainment for the strife of the millions that is coming. The real strife. The false liars' future! When we finally see the real 'crash' in secondaries and Nasdaq funds and the Dow becomes a swarming bee-hive of crushed futures with no warning to dividend holders in every utility stock...that 'day after tomorrow' will be Babylon.

Comment by Thomas on February 2, 2014 at 7:49am

Mike, Unless additional money is collected by some means from PRODUCTIVE PRIVATE CITIZENS, the government has no money with which to provide matching funds.  FIAT MONEY HAS NO NATURAL INTRINSIC WORTH; ONLY REPRESENTATIVE VALUE.  FIAT TREASURY NOTES AND BONDS HAVE NO MORE NATURAL INTRINSIC WORTH THAN DOES FIAT MONEY.  The only natural use for either is as scam fodder with which to rob the nation's Citizens. 

Comment by Mike Meeks on February 2, 2014 at 7:41am

MyRA could be funded by our IRS penalties for not being able to afford obamacare.

Just another government run program to go broke.  How about a 100%

government match? 

Comment by Thomas on February 2, 2014 at 7:40am

And the Islamic thief in chief spaketh -- again.

"Investments" that are "invested" in special issue Treasury debt sound a lot like the "investments" in the Social Security So-called 'Trust Fund' that are nothing more than fiat vaporware.  The United States federal government is the largest and most lucrative crime syndicate that has ever existed in this is just one more ploy to seize from Citizens, use and dissipate.     

Comment by JEAN MACALLISTER on February 1, 2014 at 9:21pm

When governments are going broke, the smell of trillions of dollars in retirement accounts is irresistible to them. Obama's plan is a con. If/when the Congress lets him get away with this, transfer all of your funds to an offshore bank. You will still have to pay taxes on the interest earned, but the principal balance will be safe from confiscation.

Comment by Robert Wyan on February 1, 2014 at 8:47pm

If any part of my previous comment is wrong, let me know. I do make mistakes.

Comment by Robert Wyan on February 1, 2014 at 8:46pm

Workers pay into Social Security out of their paychecks. Social Security is suppose to be for retirement. The retirement age was set at 65, because people weren't living past 55. As I understand it. the politicians raided the Social Security lock box, because they figured nobody would live long enough to collect any of it.

Now Obama comes up with this MyRA to get people's money. The liberals criticized George W Bush royally when he suggested letting young people invest in retirement savings accounts. The liberals said that would hurt the people who have been paying into Social Security. Wouldn't this hurt the same people?

Obama, Reid, Pelosi and all the other liberals in congress and the RINO's have proved they won't listen to the American people. They believe they know what is best for the American people. The sad part is that enough people believe them and will vote for them as long as they keep promising free money and other stuff. They believe whatever the news people tell them.

I don't trust politicians. To be a politician, you need to be a good liar and the best liar wins the election.

JESUS CHRIST is the only one I trust to run my life.

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