What are your thoughts on Obama’s new initiative MyRA? As I see it, there are two arguments.
1. It is a tax on poor people because it the investment is unlikely to have returns that exceed inflation. Therefore, it is a silly long-term investment strategy.
2. It is a way to get people to start saving. Yes, the returns aren’t great, but that idea is to get people used to the idea of putting some money from every paycheck aside for the future and eventually, when you hit the $15,000 cap, it starts rolling into a traditional IRA account which has better returns.
I am more inclined to believe the second argument, but do think there might be more effective ways of helping people save.
What are your thoughts?