General Discussion

Arcadiasix

(255 posts) Tue Dec 30, 2014, 06:36 AM Dec 2014

Investing in the ObamaFund

Hey, kids. Uncle Sam has a new investment offer for you. Even if you have several decades of productive work ahead—and thus a long investing time horizon—the White House wants you to consider a retirement plan that will invest in nothing but U.S. government debt.

Any financial professional who advised a young investor to avoid stocks and corporate bonds—and everything else except Treasury bonds—would be sued for malpractice. But asset allocation is merely one of the problems with the new “myRA” fund rolling out from the Treasury this month.
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A form of Roth Individual Retirement Account that allows people to save after-tax dollars and watch them grow tax-free until retirement, the new myRA offers a single investment option. It’s a private version of the G Fund that is available to federal workers and has lately been delivering annual returns of about 2% on its portfolio of Treasury securities.

http://www.wsj.com/articles/investing-in-the-obamafund-1419898857

6 replies

= new reply since forum marked as read

Highlight:

Investing in the ObamaFund (Original Post) Arcadiasix Dec 2014 OP

Wall Street Journal, need I say more! B Calm Dec 2014 #1

I read both the right and the left Arcadiasix Dec 2014 #2

Benghazi! B Calm Dec 2014 #3

So tell me, Arcadiasix, Control-Z Dec 2014 #5

Ok. I checked and you're not banned yet. Control-Z Dec 2014 #6

This is old news -- rogerashton Dec 2014 #4

B Calm

(28,762 posts)

1. Wall Street Journal, need I say more!

Reply to Arcadiasix (Original post)

Tue Dec 30, 2014, 07:23 AM

Dec 2014

With only 30 posts, you need to be more careful.

Arcadiasix

(255 posts)

2. I read both the right and the left

Reply to B Calm (Reply #1)

Tue Dec 30, 2014, 07:35 AM

Dec 2014

I like to hear all sides of a discussion and then use the facts to make up my own mind.

B Calm

(28,762 posts)

3. Benghazi!

Reply to Arcadiasix (Reply #2)

Tue Dec 30, 2014, 07:41 AM

Dec 2014

Control-Z

(15,682 posts)

5. So tell me, Arcadiasix,

Reply to Arcadiasix (Reply #2)

Tue Dec 30, 2014, 03:39 PM

Dec 2014

how are things here in America coming along under President Obama? Be honest.

Control-Z

(15,682 posts)

6. Ok. I checked and you're not banned yet.

Reply to Arcadiasix (Reply #2)

Tue Dec 30, 2014, 05:40 PM

Dec 2014

I'm waiting for an answer to my last post to you. Post number 5. The one above this one.

rogerashton

(3,920 posts)

4. This is old news --

Reply to Arcadiasix (Original post)

Tue Dec 30, 2014, 08:53 AM

Dec 2014

dating from last January, and had the wingnuts all snarly then. But I don't recall that anybody else noticed. It is part of a "wasn't it a terrible year" editorial feature at the Wingnut Silly Journal.

Essentially, myRA increments Social Security, which is also invested only in federal debt. Now let us suppose that these federal programs were instead invested in a diversified portfolio of corporate stocks. No doubt they could obtain better returns on the average, with some risk; and the retirement benefits could be protected from losses by a federal bridging program that would be profitable in the long run. Great idea, huh? But it would be socialism! Don't take my word for it -- ask Ayn Rand's buddy Al Greenspan.

Doesn't bother me, though. I'm in favor of socialism.

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