Last week the Obama administration officially rolled out its MyRA program.
MyRA is a special form of IRA that ‘helps’ Americans save for retirement by making it easy for you to loan your money to the federal government.
Like a retirement account, the idea is to save a little bit every month or every year to be set-aside in a tax-advantageous way for retirement.
The big catch here is that for MyRA accounts, there’s only one investment: US government bonds.
At present, US government bonds fail to pay interest rates that meet the government’s officially published rate of inflation.
So with these MyRA accounts, when adjusted for inflation, you’re guaranteed to lose money.
The Obama administration, of course, entirely dismisses this criticism, saying that these MyRA accounts are for “people who aren’t saving and who have a fear of losing their principal.”
It’s pretty appalling when you think about it.