Have you heard about the new Federal retirement account myRA?

MSgt Private RallyPoint Member — Sat, 10 Jan 2015 05:06:38 -0500

The myRA is touted as a no-cost to employer and no fee investment option for employees who lack an employer sponsored retirement savings plan. The Treasury Department authorized a new “nonmarketable, electronic retirement savings bond” that will only be available to participants in the myRA. The bond will provide a principal protected investment while earning interest at the same rate available in the Government Investment Fund (G-Fund) of the Federal Thrift Savings Plan.

There also has been talk by some to make it a mandatory program alongside Social Security.

What are your thoughts?

https://myra.treasury.gov

myRA - my Retirement Account | Home

myRA is a retirement savings account for individuals looking for a simple, safe and affordable way to save for their retirement. There will be no fees to open and maintain a myRA and the account will never lose value. The investment will be backed by the United States Treasury. Soon, individuals will be able to open myRA accounts and begin contributing to them every payday. myRA will be initially offered through participating employers.

Response by Cpl Private RallyPoint Member made Jan 10 at 2015 8:49 AM

Cpl Private RallyPoint Member — Sat, 10 Jan 2015 08:49:54 -0500

I hate to play the devils advocate, but this looks a lot like a "new" Social Security program where the "guaranteed funds" will be locked into a trust fund. Like the Social Security Trust Fund, the Retirement Account Trust Fund will be raided some time later to pay the countries bills with an IOU of a "government bond". A government bond backed by a government who has increased the public debt over $18 Trillion in less than 2 decades and having unfunded liabilities well over the $100 Trillion mark.

I see a black hole of "public" consumption that exponentially consumes until it collapses. When you see the daily balance sheet with a negative $47 Million Net Change in Operating Cash Balance (1) in just 7 days into the new year, it doesn't lend credibility to their guarantees. Especially when the CBO, OMB, and HCB all see ~$20 Trillion in public debt (2) by 2019.

(1) https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=15010700.pdf
(2) http://www.usdebtclock.org/cbo-omb-gop-budget-estimates.html