MyRA: The Better Alternative?

The new MyRA opens doors to those with little to save, but the President could have picked a better alternative. Find out about it here.

Feb 8, 2014 at 11:42AM

President Obama introduced the nation to his new MyRA program at his State of the Union address last month, opening the door for Americans with only modest amounts to save to start putting money away for retirement. But did the president pass up what could have been an even better choice for retirement savings?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks back at history at an alternative proposal from a decade ago that might have addressed the needs to retirement savers better. Dan discusses how the combination of Lifetime Savings Accounts and Retirement Savings Accounts proposed in 2004 would have addressed a key problem with the MyRA: the lack of investment choices. Dan notes that those proposals included more flexible investment options that include stocks, and that the MyRA would be a better program if it mimicked other options in the Thrift Savings Plan other than just government bonds. Given the prevalence of stock market ETFs such as iShares S&P 500 (NYSEMKT:IVV) and Vanguard Total Stock (NYSEMKT:VTI), getting stock exposure shouldn't have been hard -- and the lack of it could lead many to become disillusioned with how little their money grows in their MyRAs.

Your MyRA is not enough
If you want your savings to grow, you simply have to go beyond "safe" investments to invest in growth assets like stocks. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

Dan Caplinger owns shares of iShares S&P 500. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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