Obama's MyRA - Maybe, but Retirees Beware
By Glenn Mollette
Every American needs to save more money. Millions of Americans are struggling in retirement part-time jobs to keep food on the table. Fast food restaurants are filled with American seniors working for minimum wage in order to survive.
Every dollar put toward retirement will eventually be needed for shelter, food and medical expenses. Each year millions of people live longer than the money they had saved for retirement lasts.
President Obama has an idea with a new government backed IRA account called MyRA that will encourage all Americans to contribute up to 15,000 a year. The contributions would not be tax deductible but like a Roth IRA the interest would be tax-free. Contributions can be as low as $25 to start and people earning up to $191,000 a year may contribute through their employers. Savings can last as long as thirty years before being transferred to a private Roth IRA. Earnings on the savings will be the same as the federal employees Thrift Savings Plan - Government Securities Investment Fund. This fund earned 1.74% last year.
I'm glad for any safe and inexpensive way for Americans to save money.
Some things make me nervous.
- Our government handles our Social Security. Aging Americans are now waiting longer and longer to collect earned benefits. The funds really do not even exist. Every month our government robs Peter to pay Paul in order to keep the Social Security checks coming. Our government has mismanaged Social Security. Do we feel secure about this government run supplemental retirement plan?
- Our government is handling our medical coverage through Medicare, Medicaid and now the Affordable Care Act. Each year the government will need more and more of your money through taxes to keep all of this solvent. We are in a crisis already.
- Our infrastructure is hurting. Funds for American interstates, bridges, our national parks, research to find cures for cancer and other diseases is lean.
- Will this new savings plan and other ideas eventually eliminate the current military retirement plan? Is this a slick new way to eventually cut out the Federal retirement plan? Could this idea and other ideas eliminate our current Social Security? We need to at least beware. Our government is struggling to keep Federal, military and Social security checks moving. I agree that all Americans need safe and accessible ways to save money. However, don't be blindsided by easy new programs that could eliminate what millions of Americans have already spent twenty to thirty years working toward.