I agree 100%. If the concern really is people’s inability to manage their money, then don’t let them manage it…put it into a myIRA type account.
I thought President Obama was slurring his words during the State of the Union speech when he spoke about “myRA” accounts. It turns out it is a new program he is proposing, saying that it does not require new legislation to create (not sure how that works). Some details on the program are given in this Reuters article.
It certainly is a great thing to get people saving for retirement. Almost everyone will need to have money for retirement and almost everyone makes enough during their lives to provide for a comfortable retirement if they would save and invest. Still, with a limit of $15,000 and yields of 2% or less, I’m not sure that this new myRA is the best way to go. With that low a limit, and that low a rate of growth, someone might only be able to pay for a year of retirement expenses before the funds were depleted, and that…
View original post 631 more words