Last night in President Barack Obama’s State of the Union address, he proposed the MyRA (my retirement account), which helps companies encourage workers to save for retirement. The White House released a fact sheet with details about the plan, but most early reactions to MyRA concerned the program’s name, and not its ramifications. To help you understand MyRA, here are the five resources to better explain how MyRA might affect your retirement planning.
1) The Wall Street Journal offers key facts about the President’s proposed MyRA plan. For example, MyRA accounts would have investments principal protection, so that the account balance will never go down in value.
Obama’s myRA accounts are aimed at workers whose employers do not offer traditional retirement accounts like 401(k)s. http://t.co/bkzbgLVsYt
— Wall Street Journal (@WSJ) January 29, 2014
2) The Wire compares the proposed MyRA to traditional retirement tools. When compared to traditional IRAs, myRAs are not as risky and do not have a penalty for early withdrawals.
3) CNN Money does a great job of breaking down who can open up a myRA and how the accounts will work. MyRA accounts will be targeted at low- and middle-income Americans without access to employer-sponsored retirement plans. MyRA savers will operate like traditional IRAs, except that they will invest solely in government savings bonds.
— CNNMoney.com (@CNNMoney) January 29, 2014
4) Bloomberg’s Richard Rubin believes MyRA would be a “limited step that may help retirement savings.” He notes, however, that MyRA accounts would have fewer investment options than 401(k) retirement accounts.
How big will MyRA be? “I don’t think anyone thinks this is going to magically turn us into a nation of savers.” http://t.co/cuQKHom1Hz
— Richard Rubin (@RichardRubinDC) January 29, 2014
5) Upon hearing about MyRA, many pundits laughed about the program’s name. Marketwatch’s Charle’s Passy believes MyRA’s clunky name might hinder its chances of success.
What do a British pianist, a Gore Vidal novel and an Obama retirement plan have in common? They’re all Myras. http://t.co/YoTrtiaW5T
— Charles Passy (@CharlesPassy) January 29, 2014
Read More from Nerdwallet:
- NerdWallet’s Recommended Free Stock Trading Promotions
Barack Obama via Shutterstock