You have probably heard about the proposed myRA retirement accounts. They are being touted to help millions of low- and middle-income Americans who don’t have access to employer-sponsored retirement plans. That includes roughly half of all workers and 75% of part-time workers. On the surface, you might think that this is a great opportunity to invest. However, I have to caution you about these accounts. They severely limit where you can invest. These accounts solely invest in government savings bonds. They will also be backed by the U.S. government, meaning that savers can never lose their principal investment. You are basically buying the US government’s debt.

Foreign investments in US treasuries has been declining over the recent years. This means the US government has to look for alternate sources where they can borrow money (US bonds). Well guess what, they have found it in these myRA retirement accounts. Instead of investing these accounts, open your own IRA or ROTH IRA accounts. You’ll have a greater choice of investments. This will help the US government focus on trimming the budget instead of giving them more money to further expand  its voracious spending.

I love Scott Hanson’s, CNN commentator, comment about these accounts, “President Barack Obama’s newly created retirement account (myRA) will do very little to help the working poor and will quickly become another bloated bureaucratic system that wastes billions of taxpayer dollars.”


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