"My IRA"

[fadedrose]

The President introduced a new term, MyIRA, and it sounds like an acknowledgment of a problem many people have had since the end of the sale of paper US Bonds, starting at $25, and taken by companies either in payments or whole bond price from employees' checks.

I bought for grandkids and they ended the program before I could get about 6 more to complete my giving (and restarting the list).

I sent emails to the White House, my Senators, Representative, CNN and MSNBC
networks as well as individual tv hosts on these stations about reinstating the savings bond program. Maybe one or more of them hit pay dirt. I got nice acknowledgments from several.

There's no way we can make any money on interest by saving. You get more value by spending it while products/groceries, etc, are on sale.

If you give your kids a check for $25.00 it will go to some piece of junk made in China. If you buy them a bond, it's for their schooling or retirement. And a lot of folks on social security can squeeze out $25 a month, or any month where there's a low gas or electric bill without car repairs....

Let's hope that the proposed MIRA uses paper that can be saved, and not just internet accounts, and let's hope it happens soon.

The old people and everyone else will benefit - everyone but China if we stop borrowing from them. I think the bonds paid for WWII as well as other causes.

[Scuba]

1. Devastating to see a twice-elected Democratic President propose the replacement for Social Security.

[fadedrose]

2. I don't connect it with SS

Trouble is, Scuba, that there's no way in hell you can earn money on your money unless you buy stocks. They are making so much money it is sickening.

A CD will give you 1/4 of 1%. You can't open a savings account for emergencies with less than $500. You take out some for new tires, and you can no longer have a savings account. They can take it from you as monthly penalties unless you put it in your checking account. It seems that WAll Street runs the country. We need something where even people who are on SS can invest small amounts because some people die at 66, and others die at 90.

And the folks who die close to retirement age don't get nothin' and their spouse is left high and dry.

This is good for the living and I applaud the effort - only if small increments are permissible to buy some MIRA. and I mean SMALL....

Anybody having details on the plan, please post. I am very interested.

To me this seems like a Warren idea...

[El_Johns]

12. But it is. It's half of the Republican plan for SS which is 1) defund SS & 2) replace it with

individual "retirement accounts".

If you want to save for retirement outside SS, and you have the money, it's perfectly possible to do so right now. You can set up an IRA, you can buy long-term savings bonds, etc.

About half the population doesn't have the money. The other other half doesn't particularly need "MyRA" as they have other options.

"MyRA" is a trojan horse.

[fadedrose]

14. The price of savings bonds has gone up

Also, no paper. Only people who can access your account know you have bonds, and if you die just before you had a chance to tell your beneficiaries, they have no way of accessing, no passwords, etc. You would have a hell of
a time accessing your account without passwords.

I looked into it when the paperbonds died. It is virtually impossible and no fun. Saving money should be a little bit of fun anyway.

And when things get tough, the first thing that goes is the internet, second is bird seed.

[frazzled]

3. More devastating that someone thinks that was what he was proposing

Is that a willful misreading or just a mistaken notion? Whichever, it's wrong.

There was absolutely no link whatsoever to Social Security or its continued strength. This is an additional savings plan for the half of American workers whose employers offer no retirement savings plan. It's meant to give people a way to put aside some savings, no matter how small, so that when retirement comes they have something IN ADDITION to Social Security, like the "other half" does.

About half of all American workers are employed by companies that don't offer retirement plans, according to a 2009 Brookings Institution report.
And those who do save, don't save much.

The Obama administration has been moving to try and promote savings through executive maneuvers. In 2010, Treasury set up a new program to allow Americans to automatically use their tax refunds to buy savings bonds.
The White House said the MyRA would be offered through Roth IRA accounts and that any saver with wages could set one up.
Roth IRAs allow users to put after-tax income into a savings account, where it grows tax free.
And then when savers hit retirement age, they can withdraw the money without additional tax penalties. In 2013, taxpayers could contribute up to $5,500 into a Roth IRA.

http://money.cnn.com/2014/01/28/retirement/savings-retirement-myra/

[Scuba]

5. Save your earning that exceed food and housing costs? Sorry, that's zero for many.

[frazzled]

8. Yes, for many; and that is why he was advocating other

measures, like raising minimum wage and attacking income inequality.

But if a young person saves even $15 a paycheck into something like this type of Roth IRA, which wasn't before possible because of minimum amounts needed to get into the game, he or she can end up with a substantial nest egg to supplement their Social Security income.

I have never been much of a saver, and I totally regret it. We never felt we had enough to spare. It's a mistake you don't want to learn too late.

[MADem]

4. Where did he say that was the replacement for social security?

FDR was a fan of bonds, ya know....

[fadedrose]

10. And I am a fan of FDR, consequently, of bonds..

[MADem]

16. Me, too--I used to do the "payroll savings plan."

Easy way to save money and not think about it....

[fadedrose]

18. Those were the days...

I hope there's a way that retirees could hook up again with small amounts, not from SS check, sometimes none to spare, but sometimes it could be done.

Something like that would make a wonderful gift for a young adult or child.. or a place to save if a mechanicallly improved car isn't quite in the budget...

[FSogol]

6. It wasn't a replacement for SS, it will be to supplement SS.

[JaneyVee]

7. I love Internet comments based on zero facts and data, thanks!

[PowerToThePeople]

9. Disposable income? What is that?

You have to have something left over to save. These ideas are beyond silly.

Someone else stated what I believe is the real truth here, "this is meant to get one step closer to Social Security privatization."

[Bluenorthwest]

11. Can you show me how this IRA is a bond?

What I've read says it is an IRA, and must be though an employer. How is that a bond, how is it paying for any national project?

[joeglow3]

13. Sorry, but most people don't want a paper bond and do want an e account

Times change.

[fadedrose]

15. My grandkids treasure theirs

Times don't change that much.

[PowerToThePeople]

17. I think that may change.

I got an Ameritrade account in the 90s and have had some form of online account ever since. I LOVE my e-accounts. Everything can be done online. Bills, investing, etc. can all be done at a touch of a button.

But, I see some issues with this account type. The main issue is "ease of access." These accounts give you instant access to pretty much anything under the sun, nearly at an instant. This can be very harmful for financial health. "Real" assets, property, stock certificated, physical bonds, precious metals, art, etc. can hold and gain much value over time. They also are more difficult to sell or move. You really do hold these investment types long term. Emotion can make you push a button online that maybe should not be pushed. Not every person is an investment genius, I do not understand why we are being forced into this role.