THE myRA PROGRAM: WILL AMERICANS SAVE?

Volume: 3 Number: 4 November 8, 2015
  • Sara Bennett
  • Joseph Prinzinger
Journal of Business Economics and Finance Cover
Journal of Business Economics and Finance
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THE myRA PROGRAM: WILL AMERICANS SAVE?

Abstract

 In his 2014 State of the Union Address, President Obama announced his plans to create a new retirement account to be known as the myRA (My Retirement Account) program to address the underinvestment problem for lower income families in America. MyRAs are specialized Roth IRAs that can only be invested in the Government Securities Investment Fund (G Fund) of the Thrift Savings Plan for federal employees. Our analysis compares possible myRA investment outcomes with possible Roth IRA investment outcomes to determine which investment vehicle offers the best outcome to potential investors. We examine outcomes for investments in the G Fund (myRA) and five mutual funds (Roth IRA). We find that equity mutual funds substantially outperform the G Fund. Despite this, myRAs might offer something in the way of helping individuals become disciplined investors by providing low barriers to entry. Additionally, myRAs might provide an interesting, and higher-yielding, option for short-term investment needs for individuals who already take advantage of employer-sponsored retirement accounts.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Sara Bennett This is me

Joseph Prinzinger This is me

Publication Date

November 8, 2015

Submission Date

November 8, 2015

Acceptance Date

-

Published in Issue

Year 2014 Volume: 3 Number: 4

IZ

https://izlik.org/JA94RZ96BN

Cite

RIS / Bibtex
APA
Bennett, S., & Prinzinger, J. (2015). THE myRA PROGRAM: WILL AMERICANS SAVE? Journal of Business Economics and Finance, 3(4). https://izlik.org/JA94RZ96BN
AMA
1.Bennett S, Prinzinger J. THE myRA PROGRAM: WILL AMERICANS SAVE? JBEF. 2015;3(4). https://izlik.org/JA94RZ96BN
Chicago
Bennett, Sara, and Joseph Prinzinger. 2015. “THE MyRA PROGRAM: WILL AMERICANS SAVE?”. Journal of Business Economics and Finance 3 (4). https://izlik.org/JA94RZ96BN.
EndNote
Bennett S, Prinzinger J (November 1, 2015) THE myRA PROGRAM: WILL AMERICANS SAVE? Journal of Business Economics and Finance 3 4
IEEE
[1]S. Bennett and J. Prinzinger, “THE myRA PROGRAM: WILL AMERICANS SAVE?”, JBEF, vol. 3, no. 4, Nov. 2015, [Online]. Available: https://izlik.org/JA94RZ96BN
ISNAD
Bennett, Sara - Prinzinger, Joseph. “THE MyRA PROGRAM: WILL AMERICANS SAVE?”. Journal of Business Economics and Finance 3/4 (November 1, 2015). https://izlik.org/JA94RZ96BN.
JAMA
1.Bennett S, Prinzinger J. THE myRA PROGRAM: WILL AMERICANS SAVE? JBEF. 2015;3. Available at https://izlik.org/JA94RZ96BN.
MLA
Bennett, Sara, and Joseph Prinzinger. “THE MyRA PROGRAM: WILL AMERICANS SAVE?”. Journal of Business Economics and Finance, vol. 3, no. 4, Nov. 2015, https://izlik.org/JA94RZ96BN.
Vancouver
1.Sara Bennett, Joseph Prinzinger. THE myRA PROGRAM: WILL AMERICANS SAVE? JBEF [Internet]. 2015 Nov. 1;3(4). Available from: https://izlik.org/JA94RZ96BN

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