Forced Savings = Stock Market Boom?
publication date: Mar 10, 2009
An Obama administration priority is to have all workers, especially low and moderate wage earners, put money away for their financial futures. This New York Times article highlights the key features of a such a plan, known for now as the "automatic IRA."
In surveying much of the news coverage of this plan, the media has missed what a boon this will be to the investment markets. In fact, it sounds a lot like the ideas for privatizing Social Security that have historically been opposed by Democrats and supported by some conservatives. This plan could introduce tens of millions of Americans to stock market investing and funnel their savings into the market on a regular basis.
Small business owners are balking at this potential new requirement (which may not affect the smallest of small employers) so stay tuned for the details on what final proposal may result.