NEW YORK (MainStreet) Saying, "Let's make this a year of action," in a spirited State of the Union address, President Barack Obama proposed a new savings account for working Americans who don't have access to employer-sponsored retirement plans.
"What I offer tonight is a set of concrete, practical proposals to speed up growth, strengthen the middle class and build new ladders of opportunity into the middle class," Obama said. "Some require Congressional action, and I'm eager to work with all of you. But America does not stand still and neither will I. So wherever and whenever I can take steps without legislation to expand opportunity for more American families, that's what I'm going to do."
Introducing a new savings initiative Obama said, "While the stock market has doubled over the last five years, that doesn't help folks who don't have 401(k)s." Obama is proposing a retirement account called "MyRA."
"It's a new savings bond that encourages folks to build a nest egg," he explained. "MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans."
Obama also advocated another retirement savings goal.
"[Let's] offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can," he said. "And since the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again, and keeps the dream of homeownership alive for future generations of Americans."
--Written by Hal M. Bundrick for MainStreet