The chart above reflects the total dollar assets of IRA accounts by the end of 2018. Let’s assume a 20% increase in 2019 and a 20% decline in 2020, bringing the total value back to $7.4 trillion.
The purpose of IRA (and other similar) accounts is to save for “later” — most typically assumed to be retirement. But, today could also be viewed as a “later” time — a time when we need to be able to access all of our resources without penalty to address the economic crisis that is facing the country.
Each and every one of us should be allowed to make withdrawals from our IRA accounts without penalty of any kind and to reinvest those same amounts back into our IRA’s when we can down the road. Additionally, no matter how we are able to accumulate dollars for such redeposits, those redeposited dollars should be deductions from income.
It is simply insanity to be in the middle of a pandemic that is already taking thousands of American lives, a pandemic that is largely attributable to the incompetence of the current administration, and then penalize people for withdrawal of their own money when government is failing to address the financial needs of so many. Incomes for many Americans are disappearing with every passing day. Is the US Government going to replace those lost dollars? Undoubtedly, some dollars will eventually be received by individuals but not enough and certainly not quickly. Americans need to eat, pay rent, pay utility bills, to pay life’s expenses TODAY — not tomorrow.
I certainly believe that the Federal Government needs to act and act quickly. But, so far, our government has not been moving at the speed of light. (I will write about that at a later date and so will thousands of others.) So, if you think that I’ve put forth a useful idea, then please, share this post with a friend. Maybe, just maybe, we can together use our common voice to put a constructive, non-partisan idea in front of the powers that be. It’s worth a try.