Democrat 'MyRA Accounts' for 2015 : Ready Made Slush Fund for Democrats?

What this looks like is the Obama administration making a move to mislead the public about the MyRA accounts. Mr Obama looks at the MyRA as a source of revenue that he and his friends will access when they need funding to buy votes or some other corrupt purpose. One way or the other, the progressive democrats will take these funds for own purposes.

Mr Obama and his friends know the general pubic as well as Mr Gruber, they both believe their is sucker born every minute and three democrats to take him.

Impossible? I wonder who would have thought that Mr Obama would have taken over General Motors over by force and he alone decided that the unions will get 56% of the company, stock holders get 16% now matter what their total investment might have been,  and the taxpayer get the rest.

By the way, the taxpayers lost $10 billion on this deal!! Who knew or who cared?

Do you actually think that the democrats won't arbitrarily step in and take the money for own use? Does history tell us anything about what the democrats will or won't do to gain an advantage? The progressive democrat believes there is no limit to what they can do to others to gain power over others.

MyRA or the Highway?
Source: Pamela Villarreal, "MyRA or the Highway?" National Center for Policy Analysis, February 12, 2015.

February 12, 2015

The Obama administration directed the Treasury to establish individual retirement accounts known as "MyRA" accounts beginning January 2015.  The MyRA uses after-tax dollars and, like the Roth IRA, allows the money plus any accrued interest or dividends to be withdrawn tax-free upon retirement.  

But there are more limitations on the MyRA than the Roth IRA, writes Pam Villarreal, senior fellow at the National Center for Policy Analysis.  Roth IRAs established through an investment firm, for instance, can be invested in individual stocks, bonds, cash or mutual funds.  The MyRA is limited to Treasury bond investments.

Thus, the MyRA has several significant drawbacks:

• Because the MyRA only invests in government debt (bonds), it is not the wisest choice for workers who have decades before retirement.
• The MyRA is only available to workers whose employers are set up to make automatic payroll deductions.
• The MyRA account is limited to 30 years or a $15,000 balance, at which time the account must be rolled over into a private IRA.

MyRA investments will produce rates of return similar to the Government Securities Investment Fund (G) in the Federal Thrift Savings Plan available to federal employees.  Since 1987, the average annual rate of return of the G fund has ranged from 1.89 percent to 5.54 percent, depending on the length of time the bond is held.

Arguably, there are better options for savers than the MyRA.  To illustrate this, consider a stock fund, such as the The Vanguard Windsor II fund, which has been around as long as the FTSP G fund, earned a 9.4 percent annual return on investment (before adjusting for inflation) since 1987. Over the same span of 26 years, the FTSP G Treasury bond fund yielded an annual return on investment of only 5.54 percent (before inflation).

With all the available retirement account services in the market now, the MyRA is just a poor attempt to reinvent the IRA wheel, says Villarreal.