Retirement savings for beginners
To encourage saving for retirement, especially for lower-income workers who have little or nothing set aside, President Obama has ordered the creation of a new ”starter” plan called “myRA.”
The name mimics the widely used I.R.A. accounts, and the myRA accounts would operate much like a Roth I.R.A., with similar income limitations: $191,000 for joint filers, $129,000 for singles. But contribution limits are much lower: the minimum after-tax investment is $25 (through payroll deductions, it can be as little as $5); once the account reaches $15,000, or after 30 years, the balance would be moved to a Roth.
There are some pluses: the one investment option is a security fund similar to the federal employees’ Thrift Savings Plan Government Securities Investment Fund in which there are no fees and account holders cannot lose money. Contributions can be withdrawn at any time, but there are restrictions on earnings.
For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.
He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.
An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.
