MyRA : The IRA Wannabe

Hey, kids…are you in your 20s or 30s?  Earning a decent income but looking to save a little in a tax advantaged retirement account?  Your employer does not private a 401(k) plan?  Forget the IRAs of yesteryear.  Try the new MyRA.  For only $25, you can open your own MyRA account and contribute as little as $7 a month.  As long as your employer can make automatic payroll deductions into your account, you are set to go!  No fees on the account, no thinking long and hard about investment choices, and no dealing with pesky rollover paperwork if you quit your job.  All you need to do is be willing to buy a little government debt.  Sign up now – and receive a free set of…

Oops, sorry!  Wrong blog post.  For a real analysis of MyRA, read my recent publication.

 

Comments (4)

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  1. Wes Baker says:

    Any significant amount of financial literacy should lead one to the fact that treasury investments have not, will not, and cannot compete with the returns of index funds. The players in that space (Vanguard the most notable) have become very good at practically removing risk of capital loss and minimizing fees and expenses and have decades of performance to prove it. Swerve away from MyRA, kids!

  2. JW Chen says:

    Look at the table in the real analysis, data make things clearer! Nothing can be worth than G Fund, no matter you want to invest long-run or short-run. There is no reason to choose MyRA, and index fund is always a better choice.

  3. Frank says:

    I agree with the other posters that this is not a good investment option for young Americans. The only positive is this might encourage saving among those who currently are not. Hopefully, if people are interested enough in a myRA, they will do enough research to see they have better options!

  4. Nafis Nasim says:

    This is a great article as currently my age falls within the 25-30 age group and this article helped me to make a decision about my future plans. Although MyRA provides interest free retirement savings, I believe it is not economical to make investments in this type of plan. This program only allows an individual to make investments on government bonds and can go up to a limit of $15,000. On the other hand, people can earn more by investing in private stocks starting at an early age of the career. Hence, overall, it is a sound decision to invest in private bonds and stocks over MyRA

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