3 Comments

  1. Kathy says:

    I have mixed emotions about myIRA. While I think it is good for everyone to invest in a retirement account of some kind, I keep thinking that somehow the government is looking to get it’s hands on this money. And while I do have a few government treasury bonds myself, I can’t help but think that this is the result of the Chinese starting to decrease the amount of government debt they are buying. Keeping this IRA money in government securities guarantees that this debt will continue to be bought, which the government needs to happen. Must be the cynic in me thinking right now.

    • Richard Dedor says:

      Kathy – I tend to agree with you in the sense that this is the government wanting to sell more of their product, but it is definitely more than that.

      As a financial guy, I have long been troubled by the lack of saving in this country and this, while I don’t believe it is a good policy, can held stem that tide of low savings. By taking down barriers, this is likely to encourage savings so long as it adds zero burden to businesses and is easy to work with. This fits into the goal of reducing inequality by making it easier for lower- to middle-class citizens to save for their future.

  2. I’m with Kathy on this one. I love the idea of a low start up amount and the like, but wouldn’t put my money in govt treasury bonds right now.

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