Exposed: Obama’s Scheme to Herd Americans into Government Retirement Accounts
First came Obamacare. Now comes ObamaIRAs.
In his State of the Union speech, the President outlined a plan to herd Americans into what he calls “MyRA” accounts. The term is perfectly Orwellian in that “My Retirement Account” connotes the opposite of what it actually denotes. These accounts will come rigidly prepackaged, one-size-fits-all, with no opportunity for individuals to personalize them!
“The MyRA features just one investment option—a Treasury bond that will offer the same variable interest-rate return as the benefit federal employees get when they enroll in the Thrift Savings Plan Government Securities Investment Fund,” reports Anne Tergesen of The Wall Street Journal.
Hence, the ObamaIRA is just a scheme to herd millions of people into buying the government’s own product, which lately has not been selling well in the international marketplace. As you may recall, Independent Living predicted years ago that Washington overlords would take steps just like this to steer Americans into government bonds as the government’s own financial condition deteriorates.
We thought they’d start rolling these schemes out aggressively following the next stock market crash. Perhaps they’re getting a head start on one that may be coming.
MyRA Selling Points Sell Investors Short
The claim that we the people will benefit from government-controlled retirement accounts is ludicrous. Individuals who wish to put their retirement savings in government bonds already have plenty of easy ways of doing so. They can buy bonds through their IRAs, through TreasuryDirect, through brokerage accounts, or through mutual funds and exchange-traded products. They don’t need an ObamaIRA or any government-directed plan that keeps them locked into one investment for the rest of their lives.
About the only advantage to MyRAs is that they aren’t tied to an employer, like 401(k)s are. Employees who switch jobs will be able to hold onto their MyRA accounts. The Obama Administration also touts that account holders will pay no fees, and their principal will be protected. In reality, a hidden “fee” will be extracted as these low-yielding bonds fail to keep pace with inflation, and the real value of these bonds can be expected to go lower even if the nominal value doesn’t.
The government will effectively bribe low-middle income households to contribute to MyRAs by offering them a tax credit. Individuals with an adjusted gross income of up to $30,000 (up to $60,000 for couples) can receive a savers’ credit of 10% to 50% of their contributions to qualified retirement accounts.
How to Free Up Your IRA and
Customize It to Make It Truly Yours
No matter how much incentive the government offers to get you to lock up your wealth in government bonds, don’t do it if you want to retain the freedom to invest in superior assets. To truly customize your IRA for yourself, consider a Self-Directed IRA or a so-called Open Opportunity IRA. Barack Obama hasn’t mentioned these options in any of his speeches! Few Americans even know about them. But they should.
A Self-Directed IRA allows you to invest your money outside of conventional financial assets pushed by banks, brokerage houses, and the Treasury Department. With a Self-Directed IRA, you can own tangible assets such as certain types of gold, silver, platinum, or palladium bullion coins. You can even own investment real estate or foreign assets through a Self-Directed IRA…at least until Congress decides to close these loopholes and force all IRAs to adhere to a restrictive list of conventional assets.