"In his State of the Union address, President Obama stated his intention to create a plan that will help the average American save more money for retirement.
In a later newspaper report Jacob Lew, secretary of the treasury, put some meat on the bone. As usual with the Obama administration, this is where things start to come apart at the seams.
According to Lew, my RA will allow a worker to contribute as little as $5 per week to a plan that will be administered by Washington and be invested in Treasury securities. Further, a participant may withdraw the funds. - tax free, at any time.
What is wrong with this? Let me count the ways.
First, an investment solely in Treasury securities by anybody except the elderly is too conservative to meet any meaningful retirement goals. Second, if the funds can be withdrawn at any time, you can bet they will be, leaving nothing for retirement.
This plan gives even more cash to the federal government to spend today on things unrelated to my RA, leaving Al Gore's "lock box" empty, just like the Social Security lock box.
This administration can mess up everything it touches - from Obamacare to my RA.
Why can't they leave us alone to take care of ourselves in the free marketplace - has everyone forgotten about savings accounts?"