MyRA

[Hawkeye]

Apparently, we are getting a new "savings vehicle," as mentioned in the SOTU last night, the MyRA. (Which I assume is the government saying that "your IRA is now MY IRA.") What do make of this? Is it just a step toward nationalizing retirement accounts or requiring them to be made up of "government backed securities?" I thought about it a little, and I just don't see any advantages whatsoever to it. A few years back, I set up an IRA online in about 5 minutes, and I can put pretty much whatever I want in it and can contribute as little or as much as I want (within the limits). Setting it up couldn't have been easier, and I have a huge variety of options in which to place the money in it. How is the "MyRA" superior in any way to what we have now? Maybe you guys know something I don't, but this smells weird to me.

[reddirtcoins]

That is correct... They have been after the largest pot of money in the country for years... This is just a start. One day you'll wake up and poof!.. Your retirement account is now a treasury backed account and "we'll" decide how much you'll need! And oh, by the way, We see you have a retirement account. Until that is depleted, no SS for you....

In other words - if you like your retirement account you can keep your retirement account.

It's coming... better wake up!

[DoctorMetal]

I think they're only available to people who don't have retirement plans through their employer, and the unemployed or self-employed can't use them either. Aimed at more the part-time, low wage, service sector, I believe, but we'll find out in a couple weeks as the details come out.

[beauanderos]

read the handwriting on the wall. This is why I withdrew all my IRA's and 401k's last year

[reddirtcoins]

read the handwriting on the wall. This is why I withdrew all my IRA's and 401k's last year

you would be surprised how many (dozens and dozens) of people I have known over the last 15 years that have done just that.

[Slaphot]

http://money.cnn.com/2014/01/28/retirem ... ment-myra/

[Hawkeye]

I don't have a 401k or anything available at work, so I set up a roth IRA for myself a few years ago. I started it with $20 and have put $20 a month in it since. I've thought about taking it out, but there really isn't enough in it to mess with, so for the time being, I'm going to keep it in. But this is making me think that nationalization of retirement accounts is going to be sooner rather than later. It's an optional thing now, mandatory sign up in a few years, mandatory contributions after that...

I guess my question is how is this different in any way from a regular roth full of government bonds? To my understanding, you can put government backed securities in them already. So what is the new thing going to be about other than a way to get their foot in the door? I may have just answered my own question.

Just out of curiosity, what is the penalty for early withdrawl from a roth?

[currencydebasement]

If they had set up a self-funding retirement system instead of social security we'd all be better off today.

This may be the first step in "privatizing" social security <gasp>. The Australians dumped their national pension program for a sort of mandatory IRA system where employer's are forced to contribute as well. Whatever your fears are of the government confiscating your wealth, a system where your retirement is actually "your" money is better than what we got now. Maybe this is the unintentional first step in getting people used to the idea.

Unless you really have something better to do with your money I don't consider dumping your retirement accounts a reasonable thing to do. The process to "take" your personal retirement account will move by the path of least resistance. That means it will probably start with taxes and other limitations that people here have already mentioned. Unlike Social security, this is your property and I hardly consider some extreme measures to be a slam dunk for the government in the courts. Anyway, the point is that there should be plenty of time to cash out if and when the time comes.

[Hawkeye]

I would be all for any privatization of social security and it would be nice if we went that direction instead of nationalization of 401k/IRAs, but I have a hard time seeing it go that way. Of course, we may not go either direction.

[silverflake]

So I have an IRA made up mostly of monies rolled over from when I left jobs. Over the years, I have grown it pretty nicely and have struggled with the thought of cashing out of it mostly in fear of future government confiscation or at least government governing it. Thing is, If I cash out, I have to pay taxes (federal and state I think which I will round off here to 30%) and a 10% penalty as I am only 45 years old. Thus, they end up getting 40% of it anyway. Is it worth it? I just don't know. Some days I am ready to pull the trigger, others...I just can't stomach the 40% loss. Thoughts guys? Any thoughts?

Keep stacking anyway.

By the way, yes I have a 401-k with a match at current job. Also have Roths for my wife and I though I no longer contribute to mine - I put the money I would have put into my Roth toward my mortgage. Will have it paid in about 4 years.

[beauanderos]

So I have an IRA made up mostly of monies rolled over from when I left jobs. Over the years, I have grown it pretty nicely and have struggled with the thought of cashing out of it mostly in fear of future government confiscation or at least government governing it. Thing is, If I cash out, I have to pay taxes (federal and state I think which I will round off here to 30%) and a 10% penalty as I am only 45 years old. Thus, they end up getting 40% of it anyway. Is it worth it? I just don't know. Some days I am ready to pull the trigger, others...I just can't stomach the 40% loss. Thoughts guys? Any thoughts?

Keep stacking anyway.

By the way, yes I have a 401-k with a match at current job. Also have Roths for my wife and I though I no longer contribute to mine - I put the money I would have put into my Roth toward my mortgage. Will have it paid in about 4 years.

you're considering it in the wrong way. They aren't getting 40%, they're getting the penalty only. You'd be hit by the taxes either way, and with creeping inflation you'll likely be in a higher bracket in fifteen years then than you would be now. Also, consider... do you really feel that if you pulled the money now, and with discipline dollar cost avgd into precious metals over several months... that those metals would cost more now than if you had the same intent in fifteen more years??? Heck, we won't have the dollar for more than three more years at most, pay the penalty and convert your hard earned savings (what remains) into real money before inflation or Obama steals all its value

[wheeler_dealer]

G O T S

Get out of the system - Now
Better to lose some to taxes then all of it to government confiscati

[beauanderos]

G O T S

Get out of the system - Now
Better to lose some to taxes then all of it to government confiscati

we listen to/read the same guys

the threat of Cyrussification of bank accts in the reason I've started requesting cash or money orders

[68Camaro]

To what Ray is saying, 10% penalty; and silver going to 22 wipes that away.

[theo]

So I have an IRA made up mostly of monies rolled over from when I left jobs. Over the years, I have grown it pretty nicely and have struggled with the thought of cashing out of it mostly in fear of future government confiscation or at least government governing it. Thing is, If I cash out, I have to pay taxes (federal and state I think which I will round off here to 30%) and a 10% penalty as I am only 45 years old. Thus, they end up getting 40% of it anyway. Is it worth it? I just don't know. Some days I am ready to pull the trigger, others...I just can't stomach the 40% loss. Thoughts guys? Any thoughts?

Keep stacking anyway.

By the way, yes I have a 401-k with a match at current job. Also have Roths for my wife and I though I no longer contribute to mine - I put the money I would have put into my Roth toward my mortgage. Will have it paid in about 4 years.

This where our beliefs are truly tested.

Ask yourself if you really believe that the government is targeting pension funds, 401Ks and IRAs for mandatory conversion into these "MyRAs?" Its difficult to think of such a move happening under our current, relatively stable environment. However what if the U.S./World experiences another economic crisis causing a major bank to fail along with a few brokerage house collapses? Add in some spin from the MSM and all bets are off.

I'm 45 as well; with some IRA money. You and I have some thinking to do. The chances are we will have to take some form of action in the next 10 to 15 years.

On the other hand employer matching is a great way to build wealth. It would be tough to close the 401k down and watch the market go up for another 3 or 4 years. Things look dicy now but they also did in 2011 and the market has gone up another 40% since then. If you moved decisively now, could you stand to watch the market climb over 20,000 in a couple years?

Perhaps you might consider starting with the Roth that you no longer contribute to.

As always DYOD.

[thedrifter]

If they had set up a self-funding retirement system instead of social security we'd all be better off today.

This may be the first step in "privatizing" social security <gasp>. The Australians dumped their national pension program for a sort of mandatory IRA system where employer's are forced to contribute as well. Whatever your fears are of the government confiscating your wealth, a system where your retirement is actually "your" money is better than what we got now. Maybe this is the unintentional first step in getting people used to the idea.

You really trust this administration why more than many here.

this is your property and I hardly consider some extreme measures to be a slam dunk for the government in the courts

.

And I thought that buying a product or service (like health insurance) was a personal choice but the Supremes thought something different and called it a tax. I thought that according to the United States Constitution all tax legislation must start in the House of Reps and the so called Affordable Health Care Act started in the Senate. I guess the constitution is wrong.

[johnbrickner]

You can start taking $$ out of your IRA now, with a withdrawl each year and no penalty. From Forbes:
http://www.forbes.com/sites/janetnovack ... 0-penalty/.

You can avoid the withdrawal penalty at any age, and for any reason, by beginning “substantially equal periodic payments” from an IRA. The catch here is you must continue taking these payments for five years or until you are 59 1/2 (the age you can normally start taking from an IRA penalty free), whichever comes later–even if you no longer need the cash. Incredibly, there are three possible ways to calculate the periodic payout.

I'd work with a well versed Accountant on this issue.

This one lists 19 ways and has significantly more details on the early withdrawl w/o penalty:
http://www.forbes.com/sites/advisor/201 ... t-penalty/

We've talked about this before. Including investing yourIRA into PMs and taking possession of the metal. Today I came across an IRA I could set up in Canada with PMs found on goldsilver.com website (or so it appears) but cannot access at work due to filters. It's also possible to use your self-directed IRA to buy property as in rental type. A ton of ways to make confiscaton of your account difficult.

At 45, you can take out 10 to 15 years worth w/o penalty if Theo's timing is correct. If you can go 15 years you are now 59 1/2 and can start regular withdrawl w/o penalty. And if there is no confiscation the only thing you missed is 10 to 15 years of withdrawl you've paid taxes on that could have been growing deferred. Heck, buy PMs with the withdrawl money and build your stack.

Another thing to look at is moving your retirement and your self overseas. There are companies out there that are not banks that will manage your assets. I would think their are a spectrum of possibilities out there. Remember it's not "think outside the box" it's "there is no box". You can take physical possession of your IRA for up to 60 days without penalty before you have to put it back into a qualified IRA. I would think 60 days would be enough time to take your IRA somewhere else if you've done your homework.

Maybe put it into a Swiss Annuity held in a country that doesn't recognise u.s. confiscation laws. Talk about Iron Clad Asset Protection. I guess the point I'm trying to make is there has got to be a way to protect your nest egg if you don't think traditional investments.

[Morsecode]

And I thought that buying a product or service (like health insurance) was a personal choice but the Supremes thought something different and called it a tax. I thought that according to the United States Constitution all tax legislation must start in the House of Reps and the so called Affordable Health Care Act started in the Senate. I guess the constitution is wrong.

Thanks. Saved me the trouble of having to type all that

This government can no longer control it's own insatiable growth spiral. Confiscation can be sold under many guises.

[mongo]

Lets talk track record.
Social (IN)security- already paying out more than its taking in. Most baby boomers will never see a dime of the money they paid in.
Medicare- Pretty much a failure.
US Mint-loses over 300 million a year just making pennies and nickels
Obamacare- Doesnt look real good for the long run.
MyRA-What could possibly go wrong?

Government programs DONT WORK.
If you dont learn from the past youre bound to keep doing the same thing over and over again with the same results.
Which is the true definition of insanity.
Most American people who work hard for a living dont want government programs. Personally , I want you to fix the roads, keep drugs out of the schools, protect the borders and stay the heck out of my life. I dont want your help and I dont need your nose into how I live the life that God has given me. And I sure as heck dont need you handling my money. That would be insanity.

Regards,
Mongo