Employer provided plans, like 401(k)s, push employees to contribute money from each paycheck. Unfortunately, only about half of all American workers are offered these plans.
Charlotte, NC (PRWEB) February 15, 2014
Hobart Financial Group, a leading wealth management firm, reviews President Obama’s “myRA” retirement savings plan and how it could impact American retirees.
According to a January 29th CBS News article titled “Obama pitches ‘myRA’ retirement savings plan,” President Obama recently proposed a new retirement savings plan, dubbed “myRA,” which will serve as a savings plan for workers that do not have an employer provided retirement plan. The article says workers can open a new “myRA” plan for only $25 and contribute only a few dollars each paycheck. They can even transfer the plan to new jobs without being affected. Because the “myRA” plans are backed by the federal government, the article says they will never lose value.
The new plan is an attempt to offset the dwindling number of employer offered pension plans and decreasing availability of Social Security benefits. In the article, President Obama says the proposed plan will “help shift the odds back in favor of working and middle-class Americans.” He says, “I want more people to have the chance to save for retirement through their hard work, and this is just one step we can take to help people do that.”
Chris Hobart, CEO of Hobart Financial Group, a leading wealth management firm in North Carolina, says the “myRA” plan could help some workers prepare for retirement, but it probably won’t solve most of the nation’s retirement problems.
“The plans, while backed by the federal government, still don’t encourage people to save for retirement,” he says. “Employer provided plans, like 401(k)s, push employees to contribute money from each paycheck. Unfortunately, only about half of all American workers are offered these plans. While the myRA plan seems like a great idea to keep people saving, it probably won’t be enough to sustain someone’s retirement. The myRA is fueled by low contribution amounts and low returns. It won’t accumulate enough to help support a full retirement.”
Hobart Financial Group is an independent financial advisory firm dedicated to personalizing service with uncompromising integrity. Its focus on comprehensive, tax-advantaged plans help to provide sound preservation of capital, growing income and increased returns with reduced risk. Chris Hobart, founder of Hobart Financial Group, understands that true wealth means being able to share your life with the people you love, free from financial anxiety. Hobart Financial helps Carolinas’ retirees preserve and protect their wealth with comprehensive financial retirement planning and wealth management.