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.