Monday, February 03, 2014

RETIREMENT - MyIRA Micro-Accounts

MyIRAs sound similar to the micro-loan organizations.

"Obama announces retirement savings initiative" PBS Newshour 2/1/2014


HARI SREENIVASAN (Newshour):  During his State of the Union address earlier this week, President Obama unveiled a plan designed to help Americans save for retirement. Something he called a My IRA, or MyIRA.  For more about this we’re joined now from Washington by Alexis Simendinger.  She is the White House Correspondent for Real Clear Politics.  Thanks for joining us.  So, first of all, explain it to us, what’s the problem the administration says this is going to address?

ALEXIS SIMENDINGER (Real Clear Politics):  Well, the administration, like many people, are very worried that many workers in the United States don’t have any option through their workplace to save for retirement, and in fact are not putting money away for retirement and will find that social security isn’t enough, or that they should have been looking for private options like Individual Retirement Accounts.  So as part of his executive initiatives, the president with the Treasury Department, established a new pilot program that they hope to finish by the end of this year, get it up and running, use a private financial management firm as the administrator, but give millions of workers who don’t have options through their employment a chance to save in little micro-accounts — very risk free, there will be low returns, but it will be very safe.  And they’re describing this as a way to almost have a training or a beginner savings account that would allow workers to get more used to putting money away for retirement, and eventually accrue enough that they could roll it over into regular IRA that we’re all used to, where we chose the funds we want to invest in.

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