First ObamaCare and now Obama Fund
Treasury rolls out a new savings plan without a Congressional vote
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.
Seniors got screwed by the housing bubble Crash. then by the phony Fed Reserve 0% fund and now the Treasury rolls out a new savings plan called ‘Obama Fund’…
Collapsing home prices, tight credit, dwindling investment income a lethal brew.
Collapsing real estate values and an imploding Wall Street are making life uncertain for everyone, but seniors are being hit especially hard. The economic upheaval has shattered many seniors’ retirement plans and, even worse, has cut into the income of many of those who have already retired and has sharply reduced the value of most seniors’ primary asset — their home. Lenders are cutting seniors no slack, as a growing list of complaints to ConsumerAffairs.com illustrates.
U.S. households lost billions in interest income during the Fed’s near-zero interest rate experiment. Because they are often reliant on income from savings, seniors were hit the hardest. Households headed by seniors 65-74 years old lost on average $1,900 in annual income over the past six years, according to a November 2013 McKinsey Global Institute report. For households headed by seniors 75 and older, the loss was $2,700 annually.
With a median income for senior households in the U.S. of roughly $25,000, these are significant losses. In total, according to my company’s calculations, approximately $58 billion in annual income has been lost by America’s seniors since 2008.
Retirees depend on income from their savings for basic living expenses. Without that income, many seniors have taken on greater risk to increase the yield on their savings, or simply spent down their nest eggs. After decades of playing by the rules, putting off spending and socking away money, seniors have taken it on the chin. This strikes a blow at the core American principles of self-reliance, individual responsibility and fairness.
Lost everything when my business failed and now, at 63, working two part time jobs and getting $563 a month in early retirement pay,” said Elwood of Sinking Spring, Pa., who also supports two family members.
Elwood’s situation became desperate when he was unable to complete a “short sale” of his home. In a short sale, the buyer pays less than the remaining amount on the seller’s mortgage. In some cases, lenders will forgive some or all of the difference but lately, banks have been squeezing consumers for every last cent.
Elwood said he found a buyer for his home but Chase Mortgage rejected the deal and began foreclosure proceedings.
With the Fed’s near-zero policy, households headed by someone 75 or older have lost $2,700 annually in interest income.
What happen’s to the investment when the Government defaults on the debt, With the most to loose I guess Seniors would loose all ???
First ObamaCare and now Obama Fund
Remember what we have already learned over a century ago. Modern liberalism is the worst disease of all… it doesn’t merely get people killed, it takes down countries!
REMEMBER, the DEMOCRATS took over COMPLETE CONTROL OF FEDERAL SPENDING, at the end of 2006, and had control of BOTH HOUSES through October 2010. The ECONOMIC CRASH, that OBAMA cites, happened in late 2008, under a Democratic Congress’s watch. (Obama says DEMOCRAT POLICIES have only been effect for 4 years. Actually, that’s EIGHT YEARS.)