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Treasury Announces Steps to Wind Down myRA Program

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Doubtful that this is relevant to too many FWF participants, but --
From press release at: https://www.treasury.gov/press-center/press-releases/Pages/sm013...

 The U.S. Department of the Treasury today announced that it will begin to wind down the myRA program after a thorough review by Treasury that found it not to be cost effective. This review was undertaken as part of the Administration’s effort to assess existing programs and promote a more effective government.

Demand for and investment in the myRA program has been extremely low. American taxpayers have paid nearly $70 million to manage the program since 2014.

“The myRA program was created to help low to middle income earners start saving for retirement. Unfortunately, there has been very little demand for the program, and the cost to taxpayers cannot be justified by the assets in the program. Fortunately, ample private sector solutions exist, which resulted in less appeal for myRA. We will be phasing out the myRA program over the coming months. We will be communicating frequently with participants to help facilitate a smooth transition to other investment opportunities,” said Jovita Carranza, U.S. Treasurer.

Retirement savers have options in the private sector that offer no account maintenance fees, no minimum balance, and safe investment opportunities.

Participants in the myRA program are being notified of the upcoming changes, including information on moving their myRA savings to another Roth IRA. Participants are encouraged to visit www.myRA.gov for additional information or to call myRA customer support with any questions.

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Most Recent Posts
hmm. Is there a principal loss downside at all?

I have a tsp acct. but no longer a government employee.  Is it possible to... (more)

needhelpplease (Jul. 30, 2017 @ 5:11p) |

It looks like you can:

https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/RolloversTransfers/eligibility.... (more)

burgerwars (Jul. 30, 2017 @ 5:40p) |

Except there was literally no business case to be made for the program.

stanolshefski (Jul. 31, 2017 @ 11:11p) |

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rated:
https://www.google.com/amp/s/amp.cnn.com/money/2016/12/16/retirement/obama-myra-retirement-saving/index.html

Only 20,000 people had signed up

Yeah that was a flop and waste of funds

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jerosen said:   https://www.google.com/amp/s/amp.cnn.com/money/2016/12/16/retire...

Only 20,000 people had signed up

Yeah that was a flop and waste of funds

  
So, cost about $3,500 per enrollee. Your government at work...

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trumpthegreat said:   just the tip of the iceburg of the sham programs in this country,,ss and welfare being the absolute worst..
  Ah yesSS and "welfare," truly the greatest government failures of all time

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trumpthegreat said:   just the tip of the iceburg of the sham programs in this country,,ss and welfare being the absolute worst..
  
Spellcheck doesn't require an education to use effectively.

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This has nothing to do with the cost of the program, but another anti-Obama-admin political stunt.

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SummerSoFar said:   This has nothing to do with the cost of the program, but another anti-Obama-admin political stunt.
  
Well, let's see. A mere $3500 in administrative costs to manage a $500 account. So, yeah, obviously not related to the costs.

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SummerSoFar said:   This has nothing to do with the cost of the program, but another anti-Obama-admin political stunt.
  While it may be true that they are doing this to snub the Obama administration, I do agree with the programs closure.

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http://www.cnbc.com/2017/07/28/trump-administration-ends-myra-re...

"The myRA program has cost $70 million since 2014, according to Treasury, and would cost $10 million annually going forward."

"30,000 participants had contributed a total of $34 million."

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publicpersona said:   
SummerSoFar said:   This has nothing to do with the cost of the program, but another anti-Obama-admin political stunt.
  
Well, let's see. A mere $3500 in administrative costs to manage a $500 account. So, yeah, obviously not related to the costs.

  
I dare you to try to intelligently make that same argument for the military budget.

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The main purpose of myRA was to enable people to buy into the G Fund, which is normally restricted to government employees only as part of the Thrift Savings Plan. The G Fund paid 1.82% last year, about the same as a 5 year Ally CD, but without the early withdrawal penalties if one pulled their money out earlier. The G Fund is often called a "free lunch" because it provides market Treasury rates without the downside risk when interest rates rise of the principal failing, as it would in a standard Treasury mutual fund.

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SummerSoFar said:   
publicpersona said:   
SummerSoFar said:   This has nothing to do with the cost of the program, but another anti-Obama-admin political stunt.
  
Well, let's see. A mere $3500 in administrative costs to manage a $500 account. So, yeah, obviously not related to the costs.

  
I dare you to try to intelligently make that same argument for the military budget.

  

A mere $1800 per capita costs and we have the most powerful military in the history of the world, project / protect our interests around the globe, protect the US from foreign threat and protect our allies.

I think the US military spending is sure a 100 times better ROI than spending $70M to let people save $34M when they coulda done it for free with any local bank, Vanguard or dozens of other perfectly good private IRA options.

And I'm far from hawkish.

 

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jerosen said:   
SummerSoFar said:   
publicpersona said:   
SummerSoFar said:   This has nothing to do with the cost of the program, but another anti-Obama-admin political stunt.
  
Well, let's see. A mere $3500 in administrative costs to manage a $500 account. So, yeah, obviously not related to the costs.

  
I dare you to try to intelligently make that same argument for the military budget.

  

A mere $1800 per capita costs and we have the most powerful military in the history of the world, project / protect our interests around the globe, protect the US from foreign threat and protect our allies.

I think the US military spending is sure a 100 times better ROI than spending $70M to let people save $34M when they coulda done it for free with any local bank, Vanguard or dozens of other perfectly good private IRA options.

And I'm far from hawkish.

 

  
Green for the thoughtful counterpoint. Although that ROI is entirely subjective.

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If you don't value the US military spending, then you should be able to come up with a dozen social programs that could have used $70M and gotten more value out of the money.

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If creative destruction is good for the private sector it's good for government also.

They should be trying things to see what works.  So, the program flopped.  Learn and move on.

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Must be the same group that wants to run healthcare that was running this.. Efficient.. Some company made $70million to fail... Follow the money to see what individuals profited..

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I guess this poll was wrong :

https://www.thestreet.com/story/12987965/1/78-of-millennials-ant...
78% of Millennials Anticipate Investing in President Obama's myRA

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jerosen said:   I guess this poll was wrong :

https://www.thestreet.com/story/12987965/1/78-of-millennials-anticipate-investing-in-president-obamas-myra.html
78% of Millennials Anticipate Investing in President Obama's myRA

  Poll wasn't necessarily wrong. Many know/acknowledge the need to save for retirement and plan to do it if a new program is offered. Very few follow through. In any case, 78% millennials vs. 20k total participants is a huge disparity. 

This isn't much different than exercising. How many anticipate incorporating regular physical exercise during the new year (as a resolution) and how many actually do it regularly in say September.

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This post is NOT against FatWallet TOS.

The money stolen from the US population is by the ____________ of Americans. Scapegoating is a barrier to critical thinking.
Who you identify & sympathize with are they like you? No. They wouldn't have dinner with you or invite you into their homes.

This post is NOT political or about the Government therefore not against FW tos. This is about the American populace.
Politics - the academic study of government and the state.

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publicpersona said:   
SummerSoFar said:   This has nothing to do with the cost of the program, but another anti-Obama-admin political stunt.
  
Well, let's see. A mere $3500 in administrative costs to manage a $500 account. So, yeah, obviously not related to the costs.

  

We could have given away the money, hehe.

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Yeah I don't get it. Why not just cut each participant a $3000 check and say "please go open a Vanguard account and buy VUSXX on us?". Who thought this was a good idea and what do they have to say about it?

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therivler1 said:   If creative destruction is good for the private sector it's good for government also.

They should be trying things to see what works.  So, the program flopped.  Learn and move on.

  
I guess I might get red for this. But oh well!!

"Creative destruction", "Fail often fail fast" etc. etc. etc. principles require the invisible hand of the market to be the sole arbiter of both "creation" and "destruction".

Government is outside this normal market mechanism. Both the creation as well as the destruction of the "myRA" program was for petty, stupid, ideological reasons!!

Government should have no business experimenting and messing with normal markets - like this myRA was an attempt to. 

Limiting the government's role in the market  is a good thing. If the US policy-making was driven by rational factors, then the government would have no role today in a lot of places . e.g. the mortgage market, the student loan market etc. We will all be a lot better off if that ever happens..
 

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The myRA program sounds very similar  to a plan that California and a few other states have recently decided to establish and run:

As explained on Calpensions  website http://calpensions.com/2017/03/06/state-payroll-retirement-savings-plan-can-take-hit/   "...California and a half dozen other states are creating state-run “automatic IRAs” for employees with jobs that do not offer a retirement plan. If employees do not opt out, a payroll deduction will go into their new tax-deferred savings account...Oregon plans to launch the first state retirement savings plan in July, a small pilot. Secure Choice does not plan to begin payroll deductions until at least late in 2019, after preparation and enrollment for businesses with 100 or more employees begins in mid-2018. Smaller businesses, with five or more employees, will be added in the following two years....An automatic payroll deduction for a tax-deferred Individual Retirement Account is said to be a proven way to increase savings. But it’s opposed by parts of the financial sector as competition and by conservatives as government expansion that could lead to more public debt....Secure Choice advocates say the program is being created with donations and repayable state loans, will become self-sustaining under legislation that allows no debt liability for employers or the state, and the investments will be managed by private-sector firms." 



 

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calwatch said:   The main purpose of myRA was to enable people to buy into the G Fund, which is normally restricted to government employees only as part of the Thrift Savings Plan. The G Fund paid 1.82% last year, about the same as a 5 year Ally CD, but without the early withdrawal penalties if one pulled their money out earlier. The G Fund is often called a "free lunch" because it provides market Treasury rates without the downside risk when interest rates rise of the principal failing, as it would in a standard Treasury mutual fund.
  
hmm. Is there a principal loss downside at all?

I have a tsp acct. but no longer a government employee.  Is it possible to rollover into my  tsp acct? 

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needhelpplease said:   calwatch said:   The main purpose of myRA was to enable people to buy into the G Fund, which is normally restricted to government employees only as part of the Thrift Savings Plan. The G Fund paid 1.82% last year, about the same as a 5 year Ally CD, but without the early withdrawal penalties if one pulled their money out earlier. The G Fund is often called a "free lunch" because it provides market Treasury rates without the downside risk when interest rates rise of the principal failing, as it would in a standard Treasury mutual fund.
  
hmm. Is there a principal loss downside at all?

I have a tsp acct. but no longer a government employee.  Is it possible to rollover into my  tsp acct? 


It looks like you can:

https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/RolloversTransfers/eligibility.html

One exception is one can't transfer a Roth IRA into a Roth TSP.

rated:
therivler1 said:   If creative destruction is good for the private sector it's good for government also.

They should be trying things to see what works.  So, the program flopped.  Learn and move on.

  Except there was literally no business case to be made for the program.

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