Category Archives: Saving

myRA – Starting Small

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ffpcovermarch2016lulufinalAs a broker and financial advisor I used to dream that someday (the wishful someday we all know about) there would be a way for lower and middle class income people to start preparing for retirement with a small investment account.

I had seen how getting people started with a small investment of $25 a month increases their confidence and understanding of the value of the concept of accumulating funds.  Over time it has been less financially attractive for the investment community to offer services to small individual investors  who aren’t part of a larger level of overall contributions from a workplace retirement plan like a 401k and 403b.  This means that people who want to contribute to a Roth IRA often had few choices except to accumulate money just to get started.  That of course, usually didn’t happen and nothing changed.

A new program called myRA is an option to fill that gap between getting started and entering the investment community.  Is it all I dreamed of?  Yes, pretty close.  Is it worth learning more about if you aren’t accumulating money for retirement?  Yes!  Is it perfect?  No, but then neither are we and our best intentions to invest when we accumulate some funds are overcome with this option.

The information below is from the myRA.gov website.  As always, tell your friends and family.  It doesn’t take an investment professional to get you to this solution.

About myRA

The United States Department of the Treasury developed myRA® to help more people start saving for retirement.

Why was myRA developed?

myRA was developed to remove common barriers to saving and help people take the first step toward a more secure retirement.

Who is myRA for?

myRA is designed for people who don’t have access to a employer-sponsored retirement savings plans or lack other options to start saving for retirement.

How does myRA work?

People can contribute to their myRA account with as little as a few dollars a month generally up to $5,500 per year (or $6,500 per year for those age 50 and over).

Millions of Americans aren’t saving—or aren’t saving enough—for their retirement. myRA offers a simple, safe, and affordable way for people, especially those who don’t have access to a retirement savings plan at work, to get started.

myRA is a Roth IRA retirement savings account with no start-up cost and no fees. myRA has no minimum contribution requirement, so people can contribute the amount that best fits their budget.*

Contributions to myRA accounts are invested in a new United States Treasury security, which safely earns interest at the same variable rate as investments in the government securities fund for federal employees. This investment is backed by the United States Treasury and the account carries no risk of losing money.

People can fund their myRA account directly from their paycheck, or from a personal account, such as a checking or savings account, or by directing some or all of their federal tax refund to their account when they file their taxes.

myRA can be a first step

myRA can help people without access to a retirement savings plan get started saving, but it is not intended to be the only way they save for retirement. myRA is not a replacement for 401(k)s or other types of employer-sponsored retirement savings plans. People can have a maximum account balance of $15,000, or a lower balance for up to 30 years. When either of those limits is reached, savings will be transferred or rolled over into a private-sector Roth IRA where people can continue to grow their savings

From: myRA.gov. You can learn more there and enroll!

 

myRA

 

baby-steps

Looking at my television and seeing an official from the Department of the Treasury talking about the new myRA Plans!!!

When I first heard of these plans, which are targeted to those who can make smaller contributions to a retirement account and who do not have the opportunity to easily invest through a retirement plan offered at work, I was excited.  Sometimes we have to take baby steps to get into the routine of saving, investing, and having enough money to be attractive to the overall investment community.

The website explains this option has no cost or fees, no complicated investment options, and no risk of losing money.

Please take the time to learn more.  Just click here

 

ffpcovermarch2016lulufinal

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Great Way to Teach Children about Income and Expenses

Moms are the best and I love it when they teach life skills in a fun way.  Check out how one mom is teaching children about money while making it a fun project.

Just click here to learn more.

 

Debra Hadsall

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To order my book, please click here.

www.ffptalk.com

www.financialfreedomparty.com

 

myRA Accounts-Much Needed Baby Steps

baby-steps

Not certain what baby steps have to do with the newly announced myRA plans?  In my opinion, lots!  We all have to start somewhere and grow from there!  So many people get so intimidated with the top, they don’t take the first small step.

As someone who was a financial advisor and registered representative working with both experienced and  first-time investors, I am excited about this interim step.   Very encouraging!  More next time about how I came to this conclusion.

Until then, I encourage you to click here to learn more!

Debra Hadsall

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www.ffptalk.com

To purchase my workbook, Financial Freedom Party for Women®, A Little Book about Money for Women, please click here.

Reposting of FFP Mini-Newsletter, Shopping

shopping2It seems like a good time to share my FFP Mini-Newsletter which was one of the early posts about a very common subject, shopping.

Please click here and enjoy.  Share with your women friends, your daughters, granddaughters, nieces, sisters, and anyone else who likes to shop!

Debra J. Hadsall

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Financial Freedom Party for Women, A Little Book about Money for Women, Workbook Edition is now available on Amazon.com. Just click here.