It’s Only Money: myRA is a pass, not an assist

in In the News
February 10th, 2014

From The Oregonian/OREGONLIVE
By Brent Hunsberger
February 8, 2014

 

In basketball, there’s an undervalued statistic called the assist. A player earns one by passing to a teammate who’s well-enough positioned to make a quick basket.

myRA, President Obama’s new retirement savings initiative, isn’t an assist. It’s not even a lob into the paint.

It’s a pass on the perimeter of an increasingly crowded court. And the goal – financial security in retirement — is getting further away as the game of life ticks on.

Obama announced the initiative Jan. 28 during his State of the Union address. He then directed the U.S. Department of Treasury to use its authority to create a new savings bond with an add-on feature. It allows savers to incrementally increase their original bond purchase.

Yes, myRA, short for “My Retirement Account” will at least get you a ball on the court. It has some attractive, though limited, features. And it tries to address a serious problem – the fact that nearly half of all workers in the United States lack access to a retirement plan at work.

But it doesn’t go far enough. Its limitations, in some cases, could actually hurt your savings. And one of them seems made to head off the ire of Wall Street…

 

Read the full article at: oregonlive.com