Obama's "myRA" Proposal - Your Thoughts?

[s0me0nesmind1]

This is stupid. Why do we need these private retirement accounts? We have Social Security and SSI. Seems like a way to expose poor people's money to Wall Street scams.

^^^

Another example of why we need finance classes.

 

[theeedude]

^^^

Another example of why we need finance classes.

Seems like Wall Street hasn't fleeced these people enough by suppressing their wages with their profit obsession, they want a second shot at whatever is left.

 

[zinfamous]

To me it sounds like an idea somewhere between GWB's attempt to privatize social security, and Gore's "LOCKBOX!"

I think it's the same idea that policy wonks have been tossing around for many years now, just waiting for the proper marketing and catch words to get the majority in favor.

 

[piasabird]

Since the government already stole all the SS money, what makes you think they will not do the same to MyRA? People in the Government like stealing people's Money. Just look at how some pension plans are taking the people's money but not funding the governments portion for matching funds. Does this really give you confidence in any government solution?

 

[piasabird]

Russia just had a run on their largest bank. I don't know if I even trust putting money in a bank?

China's largest bank also just had an issue with some securities their largest bank was selling not being able to make the payouts required for the investment. Their solution is you shouldn't trust the market!

Then there was that island country during the summer that closed all the banks and took a certain % out of every one's account to make them solvent again.

Banks are becoming less and less safe.

 

[Texashiker]

^^^

Another example of why we need finance classes.

You somehow think taking classes is going to give the common person an edge over a wall street broker with a doctors degree in math?

Some of us have jobs that do not allow us to watch the stock market 18 hours a day. Some of us do not get insider tips.

The playing field is heavily tilted towards wall street and the banks.

 

[fskimospy]

Seems like as good a time as any to repost this picture:

Everything the average joe needs to know about money can fit on a 3x5 index card:

 

[Wreckem]

Seems like Wall Street hasn't fleeced these people enough by suppressing their wages with their profit obsession, they want a second shot at whatever is left.

In this case its the government fleecing prospective investors with low return rats(but its as safe as an investment can ever be). They are modeling the fund after the TSP. The TSP yields sub 3.0% return. This is basically a savings account that only/barely keeps pace with inflation. On the plus side there are no fees. On the downside, its aimed at the financially illiterate and it is not likely to help them all that much if any.

 

[Wreckem]

You somehow think taking classes is going to give the common person an edge over a wall street broker with a doctors degree in math?

Some of us have jobs that do not allow us to watch the stock market 18 hours a day. Some of us do not get insider tips.

The playing field is heavily tilted towards wall street and the banks.

Low fee index funds.

 

[zinfamous]

You somehow think taking classes is going to give the common person an edge over a wall street broker with a doctors degree in math?

Some of us have jobs that do not allow us to watch the stock market 18 hours a day. Some of us do not get insider tips.

The playing field is heavily tilted towards wall street and the banks.

Not sure what you're on about, but a simple finance class instilling the basics of saving money and how to scrutinize index funds and invest wisely has nothing to do with trading stocks daily and trying to compete with high-profile Wall Street douchebags.

 

[hal2kilo]

Seems like Wall Street hasn't fleeced these people enough by suppressing their wages with their profit obsession, they want a second shot at whatever is left.

That's my angle on it. I'm sure the 401k and IRA legislation turned out to be a massive windfall of casino money to create more opaque financial instruments for Wall Street to squander away from us fools.

This wiil be round 2 to get the last sweepings off the floor.

 

[Mursilis]

Seems like as good a time as any to repost this picture:

Everything the average joe needs to know about money can fit on a 3x5 index card:

That's all pretty good advice except for the financial advisor line. It should just read "Financial advisers - don't bother".

 

[Mursilis]

In this case its the government fleecing prospective investors with low return rats(but its as safe as an investment can ever be). They are modeling the fund after the TSP. The TSP yields sub 3.0% return. This is basically a savings account that only/barely keeps pace with inflation. On the plus side there are no fees. On the downside, its aimed at the financially illiterate and it is not likely to help them all that much if any.

The TSP C-Fund is 7.12%, the S-Fund is 10.79%, and the I-Fund is at 8.39% for 10-year averages. Hardly "sub-3%".

 

[Mursilis]

That's my angle on it. I'm sure the 401k and IRA legislation turned out to be a massive windfall of casino money to create more opaque financial instruments for Wall Street to squander away from us fools.

This wiil be round 2 to get the last sweepings off the floor.

Yeah, better the masses keep investing in tats, rims, and "beats by Dr. Dre" headphones - that stuff'll definitely pay off come retirement!

 

[boomerang]

It's not like this information isn't out there. Do we really need a whole course to teach people it's a good idea to save for a rainy day? That used to be common sense!

Sex is common sense. We've got 7+ billion people on the planet as proof. The majority of which figured it out without government help. But we need to teach it to grade school children now. Surely we could spare a semester for the common sense of saving and investing.

 

[Texashiker]

Not sure what you're on about,

I have lost money with just about every 401k I have had. Even when I was I was picking what was supposed to be safe options, somehow I still lost money.

The only 401k I have not lost money in is with my current company.

I see nothing wrong with a personal finance class.

 

[Mursilis]

Sex is common sense. We've got 7+ billion people on the planet as proof. The majority of which figured it out without government help. But we need to teach it to grade school children now. Surely we could spare a semester for the common sense of saving and investing.

Some schools already teach that, actually. My daughter's high school does. But again, it doesn't matter. Like I said, you can teach people how to make smart financial choices, but you can't make them want to.

 

[Wreckem]

The TSP C-Fund is 7.12%, the S-Fund is 10.79%, and the I-Fund is at 8.39% for 10-year averages. Hardly "sub-3%".

Sorry I should have specified which TSP fund. I am talking about the TSP G-fund based on government treasuries/bonds. That is what the MyRA investment vehicle will be modeled after, not the other ones. That is the one that is typically(lately) sub 3.0%(less than 2% last year) but does have a ~3.6% 10 year average(currently at 1.47% 1 year, 2.24% 3 year, 2.61% 5 year). With interest rates going up over the long term, it shouldn't be seeing sub 3% yearly to much longer. Still doesn't make it the best long term investment. Lowest risk, lowest return.

 

[boomerang]

Some schools already teach that, actually. My daughter's high school does. But again, it doesn't matter. Like I said, you can teach people how to make smart financial choices, but you can't make them want to.

So did you pull her out of that class? You don't know, she may learn how but she just might not want to.

 

[JTsyo]

Quoted for truth.

This YOLO shit is going to cause the next catastrophic bubble. I just hope it doesn't occur when I'm about to retire 😳

Shouldn't matter since your retirement funds should be somewhere safe by that time.

 

[Wreckem]

Sex is common sense. We've got 7+ billion people on the planet as proof. The majority of which figured it out without government help. But we need to teach it to grade school children now. Surely we could spare a semester for the common sense of saving and investing.

Would it matter?

What percentage of kids fail the marshmallow test?

The US is a consumer driven, consumerist economy that heavily relies on impulse to keep going. Even with financial literacy classes the majority of people will still do dumb shit.

It also doesn't help 50% of households make less than $54,000. Although even those with higher incomes are subject to the same stupidity. It is just that the less you make the harder it is to save.

 

[Wreckem]

Shouldn't matter since your retirement funds should be somewhere safe by that time.

Its the baby boomers. 60% of them have saved less than $100k for retirement. Some baby boomers are already past retirement age. Half have less than 10 years. The tail end has 17 years. Most baby boomers aren't going to have anywhere near the funds to "retire".

There is still time for the tail end of the baby boomers. GenX needs to start saving asap even though most of them have 20+ years until retirement. The millennials have even more time.

 

[s0me0nesmind1]

Shouldn't matter since your retirement funds should be somewhere safe by that time.

There is nowhere safe. There is only "less risk".

 

[Texashiker]

There is still time for the tail end of the baby boomers. GenX needs to start saving asap even though most of them have 20+ years until retirement. The millennials have even more time.

I am 46 years old and have just now reached a point in my life where my wife I can set aside extra money for retirement.

With kids, child support (that is 20% of my income right there), house note, car note,,,, how are people supposed to save money?

 

[hal2kilo]

Shouldn't matter since your retirement funds should be somewhere safe by that time.

Pray tell, what's a safe investment these days. Mattresses are starting to look inviting.

I know traditinally I should be moving to bonds at this stage of my life, but they keep saying bonds aren't safe.

I'm damn glad I never paid any attention to the gold bugs.