WASHINGTON, DC, Dec 26 – “President Obama has once again proved that his pen is mightier than Congress. He signed a memorandum and, voila, the myRA was born,” according to Dan Weber, president of the Association of Mature American Citizens.
Perhaps, Weber speculated, Mr. Obama used his presidential powers rather than asking Congress to pass a law “because the new regulation might have come under too much scrutiny by those who are actually responsible for making laws.”
Weber said that the myRA is supposed to give workers a new option for supplementing their Social Security investments, but, “in fact, it is what Christine Benz, director of personal finance at the highly-regarded Morningstar investment research firm, calls ‘an IRA with training wheels’.”
The president’s myRA is “an exceptionally limited option” because it does not allow potential users a choice of investments. It only allows individuals to put retirement funds aside in Federal bonds paying at a current interest rate of 1.5% at a time when the present rate of inflation is 1.7%.”