◼ President Obama's new and low-budget proposal to help Americans build a tiny nest egg appears to violate federal laws barring retirement plan sponsors from steering investments to self-serving accounts, in this case the Treasury's own bonds, according to a new analysis. - Paul Bedard/Washington Examiner
The “myRA” plan Obama unveiled in his State of the Union address would also be outlawed in the private finance world because it offers no investment diversification and amounts to a conflict of interest, violations that call for fines up to $100,000 and up to a year in prison.
“If private sector plan sponsors offered this plan to their participants, they would be called crazy. They could also go to jail,” according to an analysis by the investment firm Marotta Wealth Management.
Obama's retirement plan has been heralded in some circles as a good way to get low- and middle-income Americans to put money away for their retirement tax free.
But Marotta mocked the $15,000 cap and single investment offered. “Can Obama truly believe that saving $15,000 over 30 years will contribute significantly to the retirement challenges that real families face?”...
