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Equity Trust Company: Complaints About IRA Enrollment Abound


May 29, 2013 - NEW YORK, NY

According to the specialists at Equity Trust Company complaints and controversies plague the current debate about entitlement reform in the United States of America. Those with differing political ideologies have competing views about how best to approach entitlement reform, but there is one thing that all sides can agree on -- specifically, that Social Security, as it stands now, cannot provide adequate support for a comfortable retirement. Thus, workers who wish to enjoy secure retirements one day simply must augment Social Security with other retirement investments. To illustrate its point, Equity Trust Company highlights a recent report from NPR, which illustrates some particular ideas that the current Administration has brought forward to augment Social Security with automatic IRA enrollment.

Equity Trust Company is a firm uniquely suited to opine on this topic. The company is a leading name in the administration of self-directed IRAs and 401(k) accounts. At Equity Trust Company, complaints about traditional retirement options are resolved through flexible, self-directed retirement investing.

"Any activity that will increase usage of IRAs and self-directed IRAs will benefit Americans," the company says in its new press statement. "It is clear that social security alone will not provide a comfortable retirement, so it is critical that people plan for their financial future. A self-directed IRA provides many tax advantages to help boost savings, while allowing people to invest in a full range of possibilities beyond the volatility of the market."

Meanwhile, the idea for a program that will automatically enroll workers in an IRA, sponsored by their employers, is nothing new. NPR reports that a similar bill was passed in California last year, and that once a few final "kinks" are worked out, the bill will go into effect. Essentially, the bill will send a small percentage of an employee's paycheck to a conservatively managed IRA. This is only for employers that do not sponsor other retirement planning options. Employers will not be required to do anything except deduct and forward the money, just as they do with taxes.

Workers who do not wish to participate in the program can opt out, but automatic enrollment is said to be a key part of the legislation; studies indicate that the only way most workers can be disciplined enough to save for retirement is for the money to be automatically taken from their paychecks and invested for them. Or, as NPR puts it, "When participation in a retirement plan is automatic, more people save."

Many states have expressed an interest in imitating California's bill, which could also serve as the model for a national program -- but not until it is proven to be effective. California's bill will likely not go into effect until 2015.

At Equity Trust Company, complaints about retirement investments are resolved through access to self-directed IRAs and 401(k)s.

ABOUT:

Equity Trust Company is one of the country's leading providers of self-directed IRAs and 401(k)s, with more than 130,000 clients in all 50 states and over $12 billion of retirement plan assets under administration. The company believes in self-directed retirement accounts as ideal vehicles for generating long-term wealth, as they allow investors the freedom to invest funds as they determine. At Equity Trust Company complaints about restrictive conventional retirement programs are commonly heard, and the company responds to these complaints by providing information about the alternatives available through self-directed programs.

MarketWire

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