A new retirement account called the MyRA will be available to Americans soon, promising to be an easy-access way for people to save for retirement. But many wonder if the MyRA will be right for them and their retirement-savings needs.
In the following video from The Motley Fool's series on retirement investing, sponsored by TD Ameritrade, Fool consumer finance expert Dayana Yochim talks to Dan Caplinger, the Fool's director of investment planning, about the MyRA and its features. Dan notes that MyRAs allow you to start saving for retirement with as little as $25, and you can add as little as $5 once you get started. Although all the details haven't yet been worked out, MyRAs will operate automatically through payroll deduction from participating employers. Yet Dan notes that the MyRA by itself won't replace other methods of saving, because it only offers a single bond-like investment option and because total account balances are limited to $15,000. Nevertheless, as a way to get started, the MyRA should be a good low-cost choice for those who want to save for retirement.