President Barack Obama has hit the road to encourage working Americans to invest in a government sponsored retirement plan, according to Reuters, Jan. 29, 2014. The President signed an Executive Order authorizing Treasury Secretary Jack Lew to create a government sponsored payroll deduction generated retirement plan, or "myRA," for average Americans for amounts as small as $5.00 per deduction. Using the need to save for old age as a rationale for his Executive Order, the President stated:
"If you worked hard all your life, you deserve a secure retirement."
The myRa plan, which is being promoted by the Obama Administration to help Americans who have not been able to save for their retirement in conventional 401(k) or Roth IRA accounts, is backed by the federal government. The myRA plan functions like a savings bond and is only available to people whose income does not exceed $191,000 per year.
Increasing the minimum wage:
While on the road, the President also is promoting raising the minimum wage to $10.10 per hour. While visiting a Costco in Lanham, Md., he urged Congress to approve the raise while explaining the difficulties faced by average Americans as they struggle to make ends meet. He stated:
"If you work hard, you should be able to pay your rent, buy your groceries, look after your kids. If you put in a hard day's work you deserve decent pay for it."
Working with Congress:
The White House has expressed a willingness to work with Congress and come to a resolution of this matter. However, Republicans are against sweeping efforts to change the stauts quo. Despite this, Vice-President Biden is confident that an agreement will be worked out, stating:
"We're ready to work with Congress."