Posted on 01/30/2014 2:57:38 AM PST by Cincinatus' Wife
".......... After the tour and speech, he signed an executive order directing Treasury Secretary Jacob Lew to establish the savings bonds. Named and modeled after existing Individual Retirement Accounts or IRAs, the bonds offer tax benefits that regular savings accounts do not, don't lose value and can be withdrawn tax-free any time.
“It's safe. These balances will never go down in value,” Obama said.
Lew, whose agency will set up the bonds, accompanied the president, whose directive is one in a series of executive orders Obama said he's using to circumvent a divided Congress that's on pace to be the least productive in decades.
Obama said he hoped Congress would adjust the tax code to provide more incentives for people to save for retirement, but “I'm not going to wait for Congress.”
..........The MyRA offers an early example of Obama's limits. He wants to revamp the tax laws to give middle-class workers more motivation to invest, but he needs Congress to act on that.
The program Obama is establishing on his own doesn't offer the retirement security he desires, said Bob Fragasso, founder and CEO of Downtown firm Fragasso Financial Advisors.
“People will not retire successfully earning four, five, six percent interest,” he said.
MyRA could make a useful piece of a person's retirement plan, but if workers rely too heavily on the low-interest growth, it could undermine Obama's goal of offering more people a comfortable retirement, Fragasso said.
“Allowing people a false sense of security by peddling MyRAs does them a disservice,” Fragasso said.
Preparing for retirement security should begin in grade school, he said.....
(Excerpt) Read more at triblive.com ...
Obama says it’s safe! The government will never grab your money!
If you like your life savings, you can keep your life savings.
So has anybody said yet how much these so called bonds will pay?
Period!
Forget about whether these are a good idea or not. You’re missing the big picture. You need legislation to create these. He is just legislating by executive fiat, and taking it to a whole new level, in my opinion.
If I like your IRA I willl keep your IRA. I guess that is the operative phrase here. Meanwhile, I guess the Treasury under this scheme will be the custodian of these accounts. Seems to me that is not a financial institution covered by any of the IRA legislation to date. Ah, the operative word, legislation.
Every manufacturing facility he wanders into goes out of business shortly after. The Irvin works is going to end up like it’s neighbor across the street (Fisher Body).
$870 billion dollar stimulus bill, tax the rich for economic growth, Solyndra and other global warming ventures, and now more investment advice?
“Never go down in value” means that they are tax payer guaranteed.
The program Obama is establishing on his own doesn’t offer the retirement security he desires, said Bob Fragasso, founder and CEO of Downtown firm Fragasso Financial Advisors.
“People will not retire successfully earning four, five, six percent interest,” he said.
MyRA could make a useful piece of a person’s retirement plan, but if workers rely too heavily on the low-interest growth, it could undermine Obama’s goal of offering more people a comfortable retirement, Fragasso said.
“Allowing people a false sense of security by peddling MyRAs does them a disservice,” Fragasso said.
The MyRA as far as I can see has nothing to do with giving a retirement income. It’s all about providing a path for confiscation of 401(k)’s and IRA’s in the name of ‘fairness’ or ‘Income inequality’.
Soon I predict we will see the return of the ideas of ‘Negative Income Tax and the Guaranteed Annual Income’.
Even if the dollars you are given won’t buy a postage stamp, their face value will be greater in the end than the beginning. Yippee!
I see these accounts as a place for the communists to dump our 401K and IRA funds when they take them from us in the name of fairness and equality.
Another doomed project by Obama.
Yes, as the FED inflates and inflates, the value will never go down!
“You’re missing the big picture. You need legislation to create these.”
Even more basic: You need jobs to buy these.
“It’s safe. These balances will never go down in value,”
Note that he’s saying that the “balances” will never go down in value. The dollars themselves sure as hell will go down in value. More focus-group tested bullsh*t from the Dear Leader.
It’s only a matter of time before we’re told that if our 401Ks are going to enjoy tax advantages it’s only right that they be invested solely in “safe” government bonds.
It’s all just a matter of doing our Fair Share.
Once these get established how long do you think it will take before the left proposeds that all private retirement accounts be forced to be rolled over into MyRA accounts. It’s the first step toward the socialization of all private retirement accounts.
“The government will never grab your money! If you like your life savings, you can keep your life savings.”
Really; is there anything easier for the government to attach? When I get a fishing license online, I have to attest to all kinds of nonsense about child support payments before I can get it (and I’ve never had anything to do with child support payments). Shows just one small bit of how far the long arm of the law can reach...
Exactly!
Sometimes these politicians are just too obvious in their maneuverings. On the other hand we’ve become a lot more cynical and suspicious of everything they do.
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