MyRA...We'll See

The President announced a new retirement savings account last night in his State of the Union Address.  Here is what I know so far...

  • MyRAs will be offered through employers
  • Apparently the only investment option allowed will be or be very similar to the TSP G Fund
  • While there are advantages to the G Fund, as a single asset in a retirement portfolio it has its limits
    • In 2013 the G Fund returned 1.89% and Inflation was 1.5% (as measured by CPI)
    • So, an investor in the G Fund only, beat inflation by 0.39%
  • In a balanced portfolio it could have a place as a replacement for "Cash"

From what I understand the Treasury Department will roll out the program today.

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Comment   |  5 years, 12 months ago from Alexandria, VA