by Nick Giambruno, Senior Editor
International Man
Even before the Obama Administration introduced the new myRA program last year, there were whispers that the U.S. government would “assume some risk” for U.S. retirement accounts.
That makes for a nice sound bite, but it’s really code for forcing American savers to buy government bonds.
Here’s how it works. There’s no minimum balance to open a myRA account. And the accounts don’t incur fees.
However, your myRA can only invest in U.S. Treasuries, which probably won’t even come close to keeping up with the real rate of inflation. In other words, what myRAs really offer is “return-free risk.”