Obama creates ‘MyRa’ accounts

neo96

Investing ELSEWHERE.

Which is the GD point.

Myra will not be doing that.

You're right, MYRA is not a multi-faceted investment tool. But then it was never intended to be and no one ever claimed that is was, it's just a safe tool for first time investors.

I know you think that everyone should do everything on their own and without any help but most people who apply those principles to investing, are going to lose their asses. Especially early stage aggressive retirement investing.

For over 10yrs. prior to my retirement, I served as a labor trustee on the board of my benefit trust funds.

As a trustee, we were required to attend educational conferences at least annually, (preferred 2 times per year) where we would attend classes for 8hrs. a day for 5 days in order to insure that we were up to date with respect to new investment tools & strategies as well as legal aspects of institutional investing and recent court rulings.

At every board meeting, we had legal advisors, investment advisors and actuaries in attendance to insure that we were taking into account all pertinent information prior to making investment decisions and thats what it takes if you're going to demand that your investment managers beat their respective benchmarks.

Most individuals don't have the time or the will to do this on their own and not only that, as individuals, they don't even have privy to the full range of investment tools that are available to institutional investors. Our trust funds total in excess of $500 million and as an institutional investor of this size, our range of investment choices expands exponentially.

IMO, some things are best done collectively, (unless you're uber rich enough to go it alone) like building roads, educating our children, providing national defense and in some cases, retirement investment and planning.

I really think this new MYRA is just a tool to help the average Joe wake up to the fact that there are other investment tools that can be just as safe as their savings accounts while producing a better return. Once they get started and see their saving grow, I think they'll naturally seek out new strategies and more aggressive tools.

reply to post by rickymouse


rickymouse,


You beat me to it. The legacy builder Obama and his God-Like infinite wisdom at work for the people! He's "Not MyRA" by the way!

The bonds held by Social Security are backed by the full faith and credit of the U.S. government. (IOU is actually just another way of saying bond.) In theory, no president or Congress would risk defaulting on these bonds because it would ruin the nation’s financial standing.

www.washingtonpost.com...

So basically Myra is a repeat of the cluster eff of SS.

Ain't that sweet folks ?

reply to post by xuenchen

I was LMAO reading the first page, but stopped as the realization that Repub's have no broad "fix-it" plan like Newt Gingrich and his "Contract with America".
Sean Hannity started one during December and probably finished a draft to Boehner, etc.
But holy cow, what are Congressional Staff doing all this time?
Shocking...

Flatfish

And therein lies "you" and your minions problem. No basic understanding of how government works.

It seems you have absolutely no idea how govt works. Govt is controlled by the international money powers, the backbone of which is the central banking cartel.

Democratic govts are there to provide the illusion that people have choice with regard to their condition and the laws and policies enacted in their nation - they do not - they have owners, who direct the govts policy and laws.

The president is always evil (selfish, immoral, corrupt), or is assassinated - sometimes they just have so much dirt that is known to the money powers that they play along, or end up in prison - this is probably the case with the current gay, crack smoking kenyan who is running the USA. Really - who cares, they are just actors and completely meaningless, usually.

The Bush's and Clinton's however are actually connected, and are uniformly evil. If the American public had any clue about reality, then they would have exterminated all of the Bush's and Clinton's - every single one of them.

You stupid people running around saying 'oh this president this, and that and Republican and Democrat blah blah '' .. Jesus, you are the problem - until you can identify that live in a system designed to enslave you, you are not even human beings - just robots.

Wake the hell up - the political division is between collectivism and individualism - collectivism is represented by socialism, communism, fascism etc - which is the model of the current democratic nation states of the west, which are uniformly fascist, though maybe a couple could be described as communist.

Individualism is really only represented by an anarchic system, but the current culture is completely unable to move from total state dependence to a structured anarchic system, so a limited govt constitutional republic is a move in the right direction.

Wrabbit2000
reply to post by xuenchen

 

There has to be a BIG BIG "but" in here, since IRA's already exist and already have annual limits to invest, along with draconian penalties to early withdrawl which make it almost exclusive to the Middle Class now??

It's too small an ammount for the really wealthy to play with as anything but a 'while we're at it..may as well' situation and it's too much for poor to even consider ...so I'm missing why we needed another?

There has to be fine print with a real zinger here.

Maybe it'll be like the individual mandate. Remember how Obama eased into that? We have a right to healthcare so we don't have a right to refuse to buy insurance.

Akhenaten calling My Ra. Interesting.

reply to post by Wrabbit2000


My Guess is it will be MANDANTORY.
Kinda like OBOMACARE.
Another way to get into our Pockets.
What do you think ?

Redundancy, simple redundancy. I would never trust any program 0bama institutes, knowing that some thing about it will be a lie and self serving. Thats how this Chicago crook operates. 0bama does NOT tell the truth, that much is absolutely documented........... time and again. If you still trust this huckster, well then you must be ripe for fleecing.You do remember what they did with the Social Security fund don't you.... ? Clinton huckstered that one. AND you'r even considering Hillary for president ?????

Wake up America, it is almost too late as we speak........ But if you insist on these democratic pie in the sky scams and your own self serving reasons to choose them, then you deserve Everything you get and .........less...

reply to post by bluesman1955


I think you may well be right. Everything else seems to come by force of law or regulatory threat. Nothing seems to be a good idea they know folks will flock to on their own. Nope... It seems everything being done these days is variants of 'this will hurt you more than me' or 'take your medicine'.

Well.. I don't see the ones pushing it on us taking anything but privilege and obscene liberty with the offices they hold for the perks they're allowed. Maybe when the top dogs get their food cut a bit, I'll be more trusting about the 'all in it together'.

Until then? Heyyy... I liked the two IRA systems already in place. I still don't see why MyRa or whatever Obamatirement is being called, is needed at all. (Except this Government has a need to fix what isn't broke while ignoring entirely what is falling apart in front of them)

reply to post by bluesman1955


Exactly, thanks to the ACA and the precedent that has become for future forced commerce on the tax payer, as usual is not the poor and needy that is gong to be targeted but as usual the middle class tax payer, after somebody have to pay with Taxes the full backing of MyRa.

remember people all those promises of Federal government backing has not base as the federal government doesn't make any money, is the tax payers the ones that supply that money

beezzer
reply to post by xuenchen

 

Like Obamacare, like the auto bail outs, like the bank bail outs, this will need to be "bailed out" because. . .


It's the peoples money! So they are going to combine 401k's into this so government has a bigger pot to "redistribute" money.

Wait a minute here. This is all I really have left.

RT runs for reading glasses and puts them on.

Oh you said "bail outs", not "balls out"

For a minute there I was actually worried.

reply to post by neo96


Now thinking on this, it does have a "soon-to-be-mandatory" type of feel to it. And you made a good point about why employers must be involved...

the same way that they "must be involved" with healthcare.

Yep, another business killer. Businesses will hire people in as temporary employees or part time rather than full time to dodge it.

Clever name: MY RA, as if it it's the individual's money. It's really THEIR RA.

macman

Flatfish


For starters, it's voluntary.

Yeah, I will hold my breath as to it staying that way..

Or, it is voluntary, just like 0bamacare is. Where the Govt will push out all Private IRAs, thus making this new stupid Govt back crap sandwich the only option.

Macman, I agree with you completely.

My guess is that those who do not wish to create their MyRa accounts, via another technically challenged website, will be penalized at the end of the tax season, just like with Obamacare.

Oczara care was the precident..now another mandatory withholding from your paycheck or something similar?!?...they started talking about this iin 2010..a way to get more money from us and give to the govt to use....

Recent evidence suggests government officials continue to eye the multi-trillion dollar private retirement savings market, including IRAs and 401(k) plans, eyeing the opportunity to redistribute private retirement savings to less affluent Americans and to force the retirement savings out of the private market and into government-controlled programs investing in government-issued debt. Read more at www.wnd.com...

www.wnd.com...

back then it was talked about possibly getting rid of personel 401k's and making a mandatrory 401k thru your emplorer, like s.s.

how far do you think barry will go in the next 2 years??

reply to post by clearmind


Yes I have links of those issues, when the rumors that the government was going to seize retirement accounts, it is funny that we thought it was a joke, but hey you never know, very soon its going to be the federal government doing just that like the ACA and our choices to health care.

reply to post by xuenchen

Just after speaking at the U.S. Steel plant outside Pittsburgh, the president signed an order establishing the so-called “MyRa” savings plans, which will allow workers to deposit money into a secure interest-earning account that is backed by “the full faith and credit of the United States government.”

Doesn't that just give everyone a warm and fuzzy feeling LOL. It should actually read;

Just after speaking at the U.S. Steel plant outside Pittsburgh, the president signed an order establishing the so-called “MyRa” savings plans, which will allow workers to deposit money into a secure interest-earning account that is backed by “the full misdirected faith and shoddy credit of the presently in-power organized crime syndicate."

Cheers - Dave

I read somewhere that MyRA is for people in poverty, I didn't see it was for the struggling middle class. I'm always worried that I won't get my tax refund, so, I won't have them guard my money. Read the small print.

xuenchen


How does this differ from regular 401k style and individual IRA systems?

Let's pretend you are actually asking a question and ATS is still someplace where someone can come away better informed on an issue.

How it's different...

The gist of both, though, is that they are individual investment accounts with varying tax benefits.

How that breaks down:

◾Individual-owned: Where a 401(k) is an employer-sponsored plan, just about anyone with a sufficient income and the cash to start with can go to a bank or investment house and open an IRA.

◾Investments: Both a traditional and Roth IRA are, like a 401(k), accounts where the money in them is not only saved, but invested. Depending on whether the IRA is opened with a bank or with a brokerage firm, the investments might be in CDs, mutual funds, other stocks, or even something like real estate.

◾Tax time: In a traditional IRA, contributions to the account are tax-deductible but one must pay income tax when withdrawing the money. In a Roth IRA, contributions to the account are not tax-deductible but withdrawals from the account are not taxable income.

◾It takes money to make money: Annual contributions are capped, but one individual can own multiple accounts. In 2014, the maximum contribution to either a Traditional or Roth IRA for a person under 50 is around $5500; it’s higher for the 50-and-ups who are closer to retirement. Think of the return on $5000 per year over 30 years, and that’s a pretty penny.

MyRA has a different target audience. The program is designed to be accessible to workers not generally considered part of the “investor class,” and to help kickstart retirement planning among low-wage earners who generally do not have access to employer-sponsored plans (either pensions or a 401(k)).

The plan will be open to households making $191,000 or less annually. Workers can save up to $15,000 in the plan over a period of 30 years before having to roll their savings over to a Roth IRA.

The MyRA is not an investment account in the same way other IRAs are. Instead, it’s more like a structured way to buy savings bonds. In remarks the President delivered in Pennsylvania on Wednesday afternoon, he elaborated on some of the plan’s key features:

◾Employer-connected: A MyRA is opened via an employer, and employees contribute via automatic paycheck deduction each pay period.

◾Stability: A MyRA plan is essentially a savings bond: it can’t lose value, and it increases slowly over time. So unlike an investment plan, $50 you put in will always be worth at least $50 and, over time, will earn extra. The rate of return is a variable interest rate matching the Thrift Savings Plan (TSP) Government Securities Investment Fund, which is a retirement account program available to federal employees.

◾Affordability/Accessibility: A MyRA can be opened with a $25 minimum deposit to start the account and future contributions can be as low as $5.

◾Portability: A MyRA, though opened through an employer, travels with the employee when she or he changes jobs.

◾No penalties: The money an individual saves in a MyRA can be withdrawn at any time–without an age or other requirement–without paying a penalty. Like a Roth IRA, withdrawals from a MyRA are also not considered taxable income.

consumerist.com...

Forgive me if I don't stick around for the vitriolic BS that immediately follows anyone posting actual substance during a political debate...

reply to post by Indigo5


It is still a shell game, created by the Govt where the Govt has no business in.