In last week’s State of the Union Speech, President Obama threw in a number of ideas, “to see which ones stick”, as the saying goes. One of those was the MyRA retirement savings plan.
Hopefully this idea will be like many of the others that Mr. Obama has proposed but not delivered on, because MyRA is not worth the time it took the President to mention it.
* Mr. Obama said these savings plans would be for those who do not have a 401K plan available through work. But anyone can go to a bank or other financial institution and open a traditional IRA or Roth IRA.
* Money put into a MyRA account would be invested in government bonds. The good part of that is you couldn’t lose your principle as you might in an IRA or 401K, and you would earn more interest than a bank savings account. The bad news is that these investments in government bonds will earn less than regular IRAs and 401Ks which often invest in the private sector.
* This is just another way for the federal government to get more revenue and more control over our money. Since there are already a variety of retirement savings plans available to most everyone, the government does not need to get involved.
Mr. Obama seems desperate to raise his public approval numbers, but the MyRA plan will not accomplish that goal, nor provide any benefits to citizens that they could not obtain elsewhere.