myRA...obama retirement accounts

[Linda]

In his State of the Union address, President Obama announced plans to create a new 'myRA' retirement account aimed at helping millions of Americans to start building a nest egg.

http://money.cnn.com/2014/01/29/retirement/myra-accounts/

Who can open a myRA? The accounts are targeted at the millions of low- and middle-income Americans who don't have access to employer-sponsored retirement plans. That includes roughly half of all workers and 75% of part-time workers.

The White House says it will "aggressively" encourage employers to offer the program, noting that they won't have to administer or contribute to the accounts. myRAs will initially be offered through a pilot program to workers whose employers sign on by the end of the year.

Once the program reaches full implementation, anyone who has direct deposit for their paycheck will be eligible to sign up, Treasury said.

I am sure the (D)'s will shout to the heavens how great this program will be...

But if memory serves me right, Didn't President G.W. Bush offer up a program that would not only start a savings account for everyone who pays into social security by taking  2% to 4% of the money ALREADY deducted from their paychecks (% of social security deductions) to go to the retirement account. AND it could be passed down to their hiers, not lost like social security when you die.

But that was shot down as Bad bad bad....

Personal accounts reduce racial disparity of retirement

http://www.ontheissues.org/Celeb/George_W__Bush_Social_Security.htm

[During my 2005 trip] to a Nissan auto plant in Mississippi, many in the audience were African American workers. I asked how many had money invested in a 401(k). Almost every hand in the room shot up. I loved the idea of people who had not traditionally owned assets having a nest egg they could call their own. I also thought about how much more was possible. Social Security was especially unfair to African Americans. Because their life expectancy was shorter, black workers received an average of $21,000 less in benefits than whites of comparable income levels. Personal accounts, which could be passed along to the next generation, would go a long way toward reducing that disparity.

Democratic leaders alleged I wanted to "privatize" Social Security. That was obviously poll-tested language designed to scare people. It wasn't true. My plan saved Social Security, modernized Social Security, and gave Americans the opportunity to own a piece of their Social Security. It did not privatize Social Security.

[Wineslob]

But if memory serves me right, Didn't President G.W. Bush offer up a program

Same here. I also remember the Dems screaming bloody hell NO at the idea.

Of course now that a black prezzy wants to do it.....

[Linda]

I guess since obozo has ruined the health care industry, now he is going after the savings account industry. I wonder what kind of rules he will impose on us, will we have to give a % of our saving to the poor and less fortunate? 

[JohnnyReb]

I'm as old as dirt so I can remember when Barry Goldwater said he wanted to fix social security.....in 1964..... So, 50 years later damn democrats finally admit it's broken and now they want to steal Mr. Conservatives plan.....

If it had been fixed in 1964, we would all be better off today.   

[Linda]

You know, I was all for it when Bush suggested it and the way he described how it would work. BUT with obama and the (D)'s in charge, I worry that no one will have a penny left when they get through with the system.

[JohnnyReb]

You know, I was all for it when Bush suggested it and the way he described how it would work. BUT with obama and the (D)'s in charge, I worry that no one will have a penny left when they get through with the system.

True....they always have something up their sleeve they don't tell anyone about.

[Karin]

Linda, I feel exactly the same way.  I thought it was a great idea under GWB.  I don't trust these clowns one iota.  Who knows what kind of bizarre rules and caveats and unreadable crap they'll bake into something like this.  Not touching it with a ten-foot pole.

Plus, just like SS funds, they'll change the rules midstream to be able to "borrow" it.   

[Carl]

The way I took it this is a program completely outside of SS and is configured like a Roth 401k.
You make a voluntary contribution from after tax money.

First 2 things that came to mind was...

1)Is it not just another slush fund to use while promising payouts down the road.

2)It was claimed employers would not have to administer it and the contributor would not face fees.
If so how are the transactions paid for?

[JohnnyReb]

The way I took it this is a program completely outside of SS and is configured like a Roth 401k.
You make a voluntary contribution from after tax money.

First 2 things that came to mind was...

1)Is it not just another slush fund to use while promising payouts down the road.

2)It was claimed employers would not have to administer it and the contributor would not face fees.
If so how are the transactions paid for?

Take a wild guess....as to who will administer the accounts.

A- Union thugs.

B- Democrat crooks.

C- Socialist do gooders.

D- Homeless people.

.....and you will pay.....dearly.

[Linda]

He is planning this for low income and part time workers at the center of it...these are the same people that live off of food stamps and other government hand outs, what makes him think these people will donate a single penny towards any type of savings? All I see with him behind it is another fiasco like obamacare. More destruction of the American way of life.

[Chris_]

Take a wild guess....as to who will administer the accounts.

A- Union thugs.

B- Democrat crooks.

C- Socialist do gooders.

D- Homeless people.

.....and you will pay.....dearly.

I think you have D) and A) in the wrong places.

Barry gots to watch out for his peeps.

[Carl]

Found this...

http://blogs.marketwatch.com/encore/2014/01/29/meet-myra-obama-offers-ira-plan-details/


Talk about a convoluted pipe dream and open season on fraud.

[DLR Pyro]

Hey, what a great idea.  Give my money to the government for safe keeping and have them pay me back down the road.  Win/Win, right?

I'm heading out to the gun range right now to test out my new gun:


As soon I get back, I'll look into signing up for this wonderful program.

[Chris_]

Hey, what a great idea.  Give my money to the government for safe keeping and have them pay me back down the road.  Win/Win, right?

I'm heading out to the gun range right now to test out my new gun:


As soon I get back, I'll look into signing up for this wonderful program.

This sounds like that same old plan Clinton floated in the 90s.  Confiscate money from existing IRAs and retirement accounts to fund more government handouts for the "poor".

[RobJohnson]

I guess since obozo has ruined the health care industry, now he is going after the savings account industry. I wonder what kind of rules he will impose on us, will we have to give a % of our saving to the poor and less fortunate? 

We will have to put 8% of our income in our neighbor's account if they are not working.

[DumbAss Tanker]

The way I took it this is a program completely outside of SS and is configured like a Roth 401k.
You make a voluntary contribution from after tax money.

First 2 things that came to mind was...

1)Is it not just another slush fund to use while promising payouts down the road.

2)It was claimed employers would not have to administer it and the contributor would not face fees.
If so how are the transactions paid for?

Taxpayers, one way or another.  Though the rate of return on it is reportedly so low that the fund income could pay for it, meaning there really is a fee, you just don't get to look at it as one.

Given the limitations both financial and administrative, low return, and the meddling and slow reaction time inherent in any government-run plan, I fail to see any advantage over an ordinary IRA.

[SaintLouieWoman]

Linda, I feel exactly the same way.  I thought it was a great idea under GWB.  I don't trust these clowns one iota.  Who knows what kind of bizarre rules and caveats and unreadable crap they'll bake into something like this.  Not touching it with a ten-foot pole.

Plus, just like SS funds, they'll change the rules midstream to be able to "borrow" it.   

Agree with you totally. I don't trust anything Obama says or does. He's proved over and over that he can't be trusted.

One thing they're not saying--people can start an IRA now, already established, even if they don't have access to a 401k. There will be extra cost to the employers, having to do the payroll deduct thing. The small businesses of the USA are already overburdened.

Obama is just trying to do in a stupid government way what the private sector is already capably doing.

[SaintLouieWoman]

Taxpayers, one way or another.  Though the rate of return on it is reportedly so low that the fund income could pay for it, meaning there really is a fee, you just don't get to look at it as one.

Given the limitations both financial and administrative, low return, and the meddling and slow reaction time inherent in any government-run plan, I fail to see any advantage over an ordinary IRA.

Oops, sorry that I didn't read beyond Karin's post til the end before commenting. You had already said the IRA thing that I mentioned. I guess great minds think alike.    Wasn't trying to repeat your comment.

[DumbAss Tanker]

Oops, sorry that I didn't read beyond Karin's post til the end before commenting. You had already said the IRA thing that I mentioned. I guess great minds think alike.    Wasn't trying to repeat your comment.

Oh, I don't mind, SLW...I don't always read threads through to the end before I comment, either.

[NHSparky]

Frankly, if it wasn't going to result in a major collapse of the system, I don't know why people couldn't just get a conventional IRA/savings and deduct that amount from their taxes (meaning they'd pay no SS tax), even if the employer was still required to send their 6.2 percent to the government to prop up the system until all the elderly dependent on SS moved on.

I know, I know--never happen.

[Chris_]

If the Affordable Care Act is any indication, he'll just make it mandatory for everyone to have an IRA and subsidize those that can't afford to contribute their 2%.

Problem solved.

[thundley4]

Obama may have to come up with a different name for his folly.  It seems MyRA is already trademarked by a financial institution.

http://cnsnews.com/news/article/barbara-hollingsworth/myra-oops-ceo-name-obama-s-new-ira-program-already-taken

Do trademark laws apply to the federal government?

[JohnnyReb]

Obama may have to come up with a different name for his folly.  It seems MyRA is already trademarked by a financial institution.

http://cnsnews.com/news/article/barbara-hollingsworth/myra-oops-ceo-name-obama-s-new-ira-program-already-taken

Do trademark laws apply to the federal government?

Might but definitely not to Obama.

[Carl]

It is a farce.

http://money.cnn.com/2014/01/29/retirement/myra-accounts/

[thundley4]

It is a farce.

http://money.cnn.com/2014/01/29/retirement/myra-accounts/

But unlike traditional Roth IRAs, the accounts will solely invest in government savings bonds.

It's just another scheme/scam to get people to loan money to the government at low interest rates.