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HOUSTON (FOX 26) - As described on its website, myRA or My Retirement Account is an government-backed option for people who don't have a standard 401k at work or another investment retirement plan. My RA is simple and safe. There aren't any fees or investment choices to make: your money goes right into U. S. backed treasuries.
Houston Financial Manager Lance Roberts explains.
"The My IRA is a good option is that you don't have to make any investment decisions. You don't have to worry about: do I buy stocks or bonds or whatever it is inside of the account structure."
That means you won't go through the ups and downs of the stock market. But Robert’s warns you won't get a big Fortune 500 return on your investment either.
"When people are saving in my RA, they are getting a negative return, on an inflation adjusted basis."
The important thing is to save....and THAT is also the biggest roadblock to myRA and perhaps why it hasn't taken off. Roberts points out the very people myRA is set up for, live paycheck to paycheck and don't have any extra at the end of the month to put into savings.
"80% of Americans have less than $50,000 of income a year. And it takes $53,000 to support a family of 4. So where is the savings coming from? It’s not," he said.