It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Which is the GD point.
Myra will not be doing that.
The bonds held by Social Security are backed by the full faith and credit of the U.S. government. (IOU is actually just another way of saying bond.) In theory, no president or Congress would risk defaulting on these bonds because it would ruin the nation’s financial standing.
And therein lies "you" and your minions problem. No basic understanding of how government works.
reply to post by xuenchen
There has to be a BIG BIG "but" in here, since IRA's already exist and already have annual limits to invest, along with draconian penalties to early withdrawl which make it almost exclusive to the Middle Class now??
It's too small an ammount for the really wealthy to play with as anything but a 'while we're at it..may as well' situation and it's too much for poor to even consider ...so I'm missing why we needed another?
There has to be fine print with a real zinger here.
reply to post by xuenchen
Like Obamacare, like the auto bail outs, like the bank bail outs, this will need to be "bailed out" because. . .
It's the peoples money! So they are going to combine 401k's into this so government has a bigger pot to "redistribute" money.
For starters, it's voluntary.
Yeah, I will hold my breath as to it staying that way..
Or, it is voluntary, just like 0bamacare is. Where the Govt will push out all Private IRAs, thus making this new stupid Govt back crap sandwich the only option.
Recent evidence suggests government officials continue to eye the multi-trillion dollar private retirement savings market, including IRAs and 401(k) plans, eyeing the opportunity to redistribute private retirement savings to less affluent Americans and to force the retirement savings out of the private market and into government-controlled programs investing in government-issued debt. Read more at www.wnd.com...
Just after speaking at the U.S. Steel plant outside Pittsburgh, the president signed an order establishing the so-called “MyRa” savings plans, which will allow workers to deposit money into a secure interest-earning account that is backed by “the full faith and credit of the United States government.”
Just after speaking at the U.S. Steel plant outside Pittsburgh, the president signed an order establishing the so-called “MyRa” savings plans, which will allow workers to deposit money into a secure interest-earning account that is backed by “the full misdirected faith and shoddy credit of the presently in-power organized crime syndicate."
How does this differ from regular 401k style and individual IRA systems?
The gist of both, though, is that they are individual investment accounts with varying tax benefits.
How that breaks down:
◾Individual-owned: Where a 401(k) is an employer-sponsored plan, just about anyone with a sufficient income and the cash to start with can go to a bank or investment house and open an IRA.
◾Investments: Both a traditional and Roth IRA are, like a 401(k), accounts where the money in them is not only saved, but invested. Depending on whether the IRA is opened with a bank or with a brokerage firm, the investments might be in CDs, mutual funds, other stocks, or even something like real estate.
◾Tax time: In a traditional IRA, contributions to the account are tax-deductible but one must pay income tax when withdrawing the money. In a Roth IRA, contributions to the account are not tax-deductible but withdrawals from the account are not taxable income.
◾It takes money to make money: Annual contributions are capped, but one individual can own multiple accounts. In 2014, the maximum contribution to either a Traditional or Roth IRA for a person under 50 is around $5500; it’s higher for the 50-and-ups who are closer to retirement. Think of the return on $5000 per year over 30 years, and that’s a pretty penny.
MyRA has a different target audience. The program is designed to be accessible to workers not generally considered part of the “investor class,” and to help kickstart retirement planning among low-wage earners who generally do not have access to employer-sponsored plans (either pensions or a 401(k)).
The plan will be open to households making $191,000 or less annually. Workers can save up to $15,000 in the plan over a period of 30 years before having to roll their savings over to a Roth IRA.
The MyRA is not an investment account in the same way other IRAs are. Instead, it’s more like a structured way to buy savings bonds. In remarks the President delivered in Pennsylvania on Wednesday afternoon, he elaborated on some of the plan’s key features:
◾Employer-connected: A MyRA is opened via an employer, and employees contribute via automatic paycheck deduction each pay period.
◾Stability: A MyRA plan is essentially a savings bond: it can’t lose value, and it increases slowly over time. So unlike an investment plan, $50 you put in will always be worth at least $50 and, over time, will earn extra. The rate of return is a variable interest rate matching the Thrift Savings Plan (TSP) Government Securities Investment Fund, which is a retirement account program available to federal employees.
◾Affordability/Accessibility: A MyRA can be opened with a $25 minimum deposit to start the account and future contributions can be as low as $5.
◾Portability: A MyRA, though opened through an employer, travels with the employee when she or he changes jobs.
◾No penalties: The money an individual saves in a MyRA can be withdrawn at any time–without an age or other requirement–without paying a penalty. Like a Roth IRA, withdrawals from a MyRA are also not considered taxable income.