Obama?s MyRA: What It Means To You

In his most recent State of the Union Address, President Obama announced the arrival of MyRA, a new retirement savings plan that allows individuals that don’t have retirement plans from employers to save their money as well. This program promises to be federally run, be deducted from after-tax pay, and will offer a fair return rate. However, because the President is creating it by Executive Order, employers are not obligated to offer it to their employees. There are strengths and weaknesses to MyRA; while you are guaranteed to not lose money that you invest and can borrow from it without penalty, the return rate is extremely low compared to inflation and the S&P 500, which may not be enough incentive for low income individuals to invest in it. Read more at Obama?s MyRA: What It Means To You