Have you heard about the MyRA President Obama introduced in 2014? It is a federal program whereby American workers will be able to contribute to a retirement savings plan not tied to an employer.<\/p>\n
Illinois passed a bill 12\/3\/14 that will be begin their own similar plan in 2017 called Secure Choice. Companies of >25 employees will be required to offer this program. Those employed in these companies will be automatically enrolled in the state\u2019s program deducting 3% of their salary and putting it into a Roth IRA (opt-outs will be allowed). These funds will be portable from job to job.<\/p>\n
While this program is designed to help those who don\u2019t have access to employer offered savings programs, the saver will bear the cost of administration surrendering just under 1% of their balance to administrative costs. The bill\u2019s fact sheet states: \u201cOnly employees will be allowed to contribute tho their accounts. Neither the state nor employers can contribute or have any fiduciary responsibility or liability.\u201d Read more at links below.\u00a0 http:\/\/tinyurl.com\/npx5r4z, http:\/\/tinyurl.com\/pvcsxqc<\/a><\/p>\n MyRA Preview<\/b><\/p>\n The Problem<\/b><\/p>\n According to the National Institute on Retirement Security, \u201cthe median retirement account balance is $3,000 for all working-age households and $12,000 for near-retirement households.<\/p>\n The administration claims that almost half of Americans do not have access to 401k plans or the like making it difficult to set money aside for retirement.<\/p>\n How it works<\/b><\/p>\n \u2022Earn $191,000 a year or less to be eligible<\/p>\n \u2022Initial investment= $25 minimum<\/p>\n \u2022Ongoing contributions via payroll deductions as little as $5<\/p>\n Pros:<\/b><\/p>\n \u2022High safety- government guarantee balance will never decrease<\/p>\n \u2022Not tied to employer<\/p>\n \u2022People are saving for retirement<\/p>\n Cons:<\/b><\/p>\n \u2022Interest rate based on Thrift Savings Plan offered to federal employees. (2013=1.83% return)<\/p>\n \u2022Profitability base on market performance<\/p>\n Want to read more?<\/b><\/p>\n http:\/\/tinyurl.com\/pma88k9<\/b><\/a> \u00a0 \u00a0 \u00a0 \u00a0 <\/b>NIRS Study<\/b><\/p>\n http:\/\/tinyurl.com\/qabgjnt<\/b><\/a> \u00a0 \u00a0 <\/b>MyRa fact sheet<\/b><\/p>\n