Obama talked about MyRA during his State of the Union speech, but what is MyRA?
MyRA is a new type of investment aimed at the lower class, and is designed to help them save for their retirement. In other words, it is Social Security 2.0!
What is MyRA?
- A new kind of savings bond: Don’t expect to get rich off of this. It will be based off the same type of fund offered federal employee’s that averaged 1-2% return.
- Easy to fund: You won’t pay any fees. You can start your MyRA with as little as $25 with a monthly minimum of $5.
- Beware the caps: It will be available to anyone with an annual income of $191,000 or less. Once you have saved $15,000 in your MyRA, it will roll over to a private-sector Roth IRA.
- After-Tax funded: It will be structured like a Roth IRA account. Which means that the money you put in will already have been taxed.