How much low risk is too much low risk?
That's a question CNBC's Power Lunch is exploring today as we look at the myRA, a new government-backed individual retirement account. There's no debate that the myRa is an extremely low-risk investment. The questions come up when people ask whether a super low risk investment makes sense financially against other options.
EdSlott and Company IRA Technical Consultant Jeffrey Levine says the myRA isn't perfect but is still a great option for lots of Americans. Levine specifically pointed out that the myRA makes a lot of sense for low income savers who can put money away without having to first meet minimum balance and promises to make regular contributions.
But Scott Hanson, senior partner at Hanson McClain Advisers, believes the myRA will end up being a bureaucratic mess. He believes the money people invest in the accounts will be used to pay for Washington's deficit spending. And worst of all, he doesn't think it will attract many investors anyway.
So what's your take on the myRA? Please let us know in the comments section below!