Obama To Create New Kind Of Retirement Savings Account Called A 'myRA'

Here’s something new for the investing world.

This is from The White House’s State Of The Union fact sheet:

Creating “myRA” — A Safe, Easy-to-Use Starter Savings Account to Help Millions of Middle

Class Americans Save for Retirement. Starting to save is just the first step towards a secure

retirement. Workers must have a place to invest their hard-earned savings that provides an appropriate

balance of risk and return, and many private sector providers do not offer retirement savings options

tailored to smaller balance savers. Our retirement system should help these potential savers and

encourage them to begin building their retirement security. The President is using his executive

authority to create “myRA” (my Retirement Account) — a new simple, safe and affordable “starter”

retirement savings account that will be available through employers and help millions of Americans

save for retirement. This savings account would be offered through a familiar Roth IRA Account and,

like savings bonds, would be backed by the U.S. government.

And here’s what the text of the speech says:

Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks. That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans. Offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can. And since the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again, and keeps the dream of homeownership alive for future generations of Americans.

We’re looking forward to learning more.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.