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Did President Obama Steal His MyRA from AMAC’s Social Security Guarantee?

dan-weberNot Quite!  The President’s proposal does nothing to keep Social Security solvent or prevent future cuts – 

by John Grimaldi – WASHINGTON, DC, Jan 31 – President Obama took a tip from the Association of Mature American Citizens in his State of the Union speech on Tuesday, proposing a retirement savings program.  Dan Weber, AMAC president, noted that “the president’s MyRA plan sounds an awful lot like the Early Retirement Account [ERA] we’ve been proposing for more than a year and a half as an aspect of our Social Security Guarantee initiative.”

There are differences between the MyRA and AMAC’s proposed ERA, he noted.  “But it appears our message is getting through – an individual, discretionary retirement savings plan is a must have if we are to provide a true Social Security Guarantee for our children and future generations.  It’s a ‘starter savings account,’ as the president described it, but the MyRA would be government backed—and controlled, compared to the ERA we’ve proposed, which offers even greater benefits and incentives for users and puts control of their plans in their hands, not the government.”

The AMAC chief noted that the ERA is similar to an IRA or a 401(k) plan.  But, in order to ensure that the funds in the Early Retirement Account will not be lost through investment with extreme risk, half of the moneys in the ERA accounts would have to be invested in guaranteed interest products such as government bonds or annuity contracts.  Workers would be free to invest their balances in any other investment that meets certain suitability standards.”

Weber pointed out that workers opting for the supplemental ERA would earn a substantial amount of extra income when they retire, in addition to their regular earned Social Security benefits.  “For example a 25-year-old who contributes only $15 a week to an IRA would get $165,407 in additional income by retirement.  Increase the amount to $45 a week and the windfall would be $352,389 upon retirement.”

He said that polling suggests such a voluntary, personal Social Security supplement would be popular.  It’s easy to understand, it’s voluntary and it’s a logical hedge against the vagaries of the future.

Gallup has been tracking self-funded retirement options since 2011 and concludes that 401(k) plans and IRAs are the most commonly expected “major source” of retirement funds, followed by Social Security, among workers currently paying into the system.

This supports the AMAC notion that future retirees would like a way to enhance their Social Security income when they become eligible, Weber said.

“The ERA is not intended to privatize Social Security.  The basic benefits from Social Security would remain the same,” he concluded.

 

NOTE TO EDITORS: Dan Weber is available for telephone interviews on this issue.  Editors and reporters may contact John Grimaldi by phone at 917-846-8485 or via email at jpgrimaldi@verizon.net to set up a call.

ABOUT AMAC

The Association of Mature American Citizens [http://www.amac.us] is a vibrant, vital and conservative alternative to those organizations, such as AARP, that dominate the choices for mature Americans who want a say in the future of the nation.  Where those other organizations may boast of their power to set the agendas for their memberships, AMAC takes its marching orders from its members.  We act and speak on their behalf, protecting their interests, and offering a conservative insight on how to best solve the problems they face today.  Live long and make a difference by joining us today at http://amac.us/join-amac.

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Mark

The US government is far from broke. It DOES have a cash problem but there are huge assets to sell. Would not government do better to focus on the law, implementing and enforcing laws, rather than trying to manage giant real estate holdings? No other country has that philosophy yet, but we may yet show what’s moral and what’s wrong with government.

John E

Careful with MyRA. This administration hasn’t been forthright with any information on any subject. Interesting proposal at this time given that the FEDERAL RESERVE is pulling back from bond purchases, now this administration proposes a bond purchasing program for us the little people under the guise of a retirement program. The Fed has been buying ALL our deficit spending for the past couple of years. Now they are pulling back on those purchases, so who is going to fill the void that creates? That’s right, you the taxpayer through an ingenious new program called MyRA. You can automatically buy our bonds (our debt) and save this for retirement..!! This cute new program can keep rates from shooting to the moon when no one steps in to buy the debt after the Fed is completely out of QE3. An ingenious scam to sell worthless paper.

Nab

I would love to find an alternative for an organization that forgot its beginning and betrayed its original charter; to look after the seniors’ interests. But what assurance do we have that AMAK will not do the same??

Nab

what assurance do we have that this will not turn the wrong way like AARP. After All AARP started as an organization that will look after the seniors interests. and look at it now?

Grant Grant

Every one has done a good job on this case. I wish all citizens would wake up and plan to take care of their own money. If we could get citizens to set down and understand the way government is running and not make stuipd vote like in 2012 when they reelected Obama, we could have had l of about 3 runners for the white house who would have made our lives much better. No one is perfect except God. We certainly cannot trust government to do anything for us and that is not their job so we need to wake up. For those who think they need government to take care of them should move to a country where that is their life. If we can survive another 3 years we will be lucky. We must not let Hillary win and get a common sense president voted in. We… Read more »

Stanley Howey

I read your article below and for the fun of it I ran your numbers! I was AMAZED at the difference in the results between saving $15/week and $45/week. I would have expected you would have amassed a larger PERCENTAGE saving $45/week, because of compounding interest on a larger total, but that’s not the case according to your figures. Correct me if I’m wrong! $15 x 52 weeks x 40 years ((I’m assuming retirement at 65 for ease of calculations) 65-25) = $31,200 which nets you $165,400 (your figures), a gain of 5.30150641 times the money it cost ($31,200). Conversely $45 x 52 weeks x 40 years = $93,600 which nets you $353,389 (your figures) a gain of only 3.775523504 times the money it cost. Something is wrong with these numbers! ***************************************************************************************************************************************- Weber pointed out that workers opting for the supplemental ERA would earn a substantial amount of extra income… Read more »

Gloria Stouse

Good article. This past week I heard a pundit on Fox News remark, “I could almost hear Obama saying, ‘If you like your MyRA you can keep it!'” Buyer beware.

lewis1

This investment proposal has been discussed for many years.

Rus Sherfick

Since linden Johnson there has been NO social security trust fund congress devolved the trust and Johnson put all the funds into the general fund SS is now a Ponzie scheme !!

Kevin Seitz

Of course Osama bin Obama stole his MyRA plan from AMAC’s ERA plan ! Since liberals / socialists are insane, they can’t think rationally enough to come up with any plan that has the remotest possibility of working, so they steal ideas from sane people, then lie to themselves and everyone else by claiming it was their idea all along…..

Dave

Too bad there are no democrats on this site, I would like to see there response, at least the literate ones.

J Gromer

May be a good idea for those who will not save beyond their Social Security contributions but I far prefer to manage my retirement savings myself. I would recommend that AMAC begin offering some basics on investing. And or possibly screen and recommend some financial advisors, or better yet offer outline on how to interview a financial advisor for those who want to use one but still maintain total control of their own retirement savings outside of Social Security. I have had three advisors from major brokerage firms in the last 17 years and all have lost about 1/2 of my retirement account in three separate market corrections. About two years ago I took matters into my own hands and began educating my self. I have now developed a well diversified portfolio that is doing well. Not as well as the present stock market run, but when the next major… Read more »

Sue

If I transfer my pension to this account will I have to pay taxes on it, or is it registered like an IRA?

m

Your idea is grand but why not include an option to invest in a plain savings account, instead of or including stocks and investments? That should improve odds of some money not being solely invested in case of any losses in the picks of stocks? Just an inquiry. Thanks

Mark Terry

Yes, please do give us the details of the MyRA. I had the impression (which could be wrong) that the MyRA was only for very small amounts of money (just enuf to drive employers batty) and that when the total assets in the plan got big, the MyRA would end or be converted to something else.

If the amounts are put into government bonds, how convenient for the government to get more money to waste. I hope there is some plan to pay off those bonds. But having seen how the government steals from the Social Security Trust Fund (with no plans to pay it back), I wonder.

ONTIME

I always encourage saving no matter how little and when the opportunity is right, save even more… As I have stated SS has now outlived it’s ability because the government refuses to keep their hands off it, now comes this My Ra it too has a fallacy, it has to be available thru a employer, this makes the government involvement a matter of course and your savings subject to their control and then they will dictate how much you can invest and have the right to tax your excess and remove your fund. The government has proven they are ultimately interested in their share not your hard work to save, why can I not accomplish this My RA on my own and avoid a employer if I prefer and what is the guarantee this intrusion by the government will not take place as it has in SS? Right now I… Read more »

DrZ

I feel strongly that people should be encouraged to save. People should also understand that of all the savings components that need to be considered for a healthy retirement sum, the time component is the most important.

Starting with a few dollars a month in your 20s and then increasing the monthly amount as soon as employment, housing, etc. permit is the way to go.

Why a young, 20 or 30-something with a long investment horizon would want anything more than a trivial amount of bonds in an account is heresy. Young people should be invested in diversified stock ETFs or index funds, or of they have some investment acumen, perhaps some company stocks too.

Forcing people to heavily invest in fixed income, government or otherwise at a young age, is a travesty.

George

MyRA is just another PONZI. You “invest” your money in government bonds so the leftists can spend it on junk and when you retire it will be YOUR tax money (and your kids) that pays YOUR MyRA funds back to you. Such a deal !! The deficits just get bigger and BIGGER – You lose!

Mandy

Why would any citizen need to have the government involved in their savings? If a person is too ill-equipped in life to take care of his retirement above his social security fund, then yes he could enroll but this should not be a mandatory enrollment. There are so many private savings option this shouldn’t even be promoted, the US needs no further programs tied to government control of our monies.

Leon DiJusticia

The Ponzi scheme called ‘Social Security’ is likely in far worse shape than the Feds are claiming. If the truth be told, PPACA (more appropriately defined as the… PERSONAL PROPERTY APPROPRIATIONS COMMANDEERING ACT, since it has nothing to do with patients and certainly is not designed to make healthcare more affordable) was enacted as a mechanism to create the ‘new pool of investors’ every Ponzi scheme requires. If the Feds can successfully dupe the people into investing in their MyRA plan, I am certain it will prove to be great for politicians who can’t stop spending to assure themselves of the welfare vote (at least for awhile); but absolutely catastrophic to anyone putting their trust (not to mention their hard earned cash) into. I, for one, find it very difficult to reconcile any decision whereby I could justify ‘trusting’ the Feds (who certainly have shown they DO NOT have a… Read more »