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What to know about $1,000 "Trump accounts" for newborns included in House bill

For example, the average Pell Grant award is ~$5k per year. Replacing the Pell Grant system with a $5k initial investment at birth that grows tax free and could be used for college, trade school, or a house down-payment, would replace that expenditure with something better, and ultimately less costly.
 
Grand Mal said:
"All animals are equal, but some are more equal than others." Babies born in the USA are Americans, but some are more American than others.
Sounds, uh, provocative.
But provocation seems to be becoming a theme in this administration.
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He mentioned that the accounts would be only for children born to American citizens. What's provocative about it?
 
Bucky said:
A modest initial investment at a 7% annual return could grow to over $15,000 in 18 years through compounding, assuming no additional contributions. This could provide a meaningful nest egg for young adults.
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Math isn’t your strong suit, is it
 

Or, do this, and have a separate account for retirement.

Average SS check at age 65 is $1505 which = $18,060 a year. Assuming a - very - conservative 3% withdrawal rate, that's roughly equivalent to an annuity worth $602,000.

And, conveniently, $5 K from birth to age 67 at a 7.5% inflation-adjusted CAGR grows to about $635,824.

We can replace or massive Social Security expenditures with a much smaller one time payout and insure the benefit (ie: it doesn't drop below a given number) at minimal cost. AND the principle can be inheritable, building intergenerational wealth for all Americans.
 
trixare4kids said:
He mentioned that the accounts would be only for children born to American citizens. What's provocative about it?
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Nope. Parents having social security numbers. They don't have to be citizens.
It's provocative because it selects some citizens and disqualifies others. Every baby born in the USA is an American citizen.
But you know this.
 
Grand Mal said:
Nope. Parents having social security numbers. They don't have to be citizens.
It's provocative because it selects some citizens and disqualifies others. Every baby born in the USA is an American citizen.
But you know this.
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I reviewed the bill. Parents just have to be the legal guardians of American born babies.
 
It's beneficial in the context of setting aside money, but I do agree with a program like this being more flexible in how qualified participants can access the money. Since this money would help lower income people, then accessing in times of need is better than penalties around removing it before the prescribed dates. The taxable aspect of this also needs to be resolved.
 
trixare4kids said:
He mentioned that the accounts would be only for children born to American citizens. What's provocative about it?
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As I read it, it's "both parents have social security numbers", which is not the same thing. And even then, "born to US citizens" will instantly create legal troubles, as - whether the administration likes it or not - birthright citizenship is the law of the land.
 
I don't see a downside to this.
 
 
Greenbeard said:
Hmm, massive cuts to SNAP, WIC, Medicaid, education, and biomedical research while adding trillions to the debt vs. a measly $1,000.

On net, massive disinvestment in our children.
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For all newborns.
 
It’s all inclusive. No divisions.
 
Grand Mal said:
For all babies born on American soil? Cool!
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Not all babies as at least one parent needs to be a US citizen.

Also, for those unable to contribute to the account during those 18 years, at an annual 7% interest/gain, the total would be $3570 after 18 years, according to an AP article I read in today's newspaper. And, according to trump, that $3570 will give them a "jump on life". In 18 years, at the rate of inflation the past 18 years, that amount will be, at the most, 1/2 the value of $3570 today. Big deal.

And, it goes to every baby, rich or poor, who has at least one US citizen parent. Big deal! /s
 
VySky said:
For all newborns.
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Michael Cole said:
Where are you getting 7% return? Your math is way off, but it also doesn't address real growth. $15,000 will lose more than 36% value at 2% annual inflation. And if the account is returning 7%, the inflation rate is not 2%.
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I got it from the AP article I read. But, you are correct. $1,000 18 years from today will be next to worthless, no matter what the return and/or rate of inflation. But, where did your$15,000 come from?
 
dockside said:
I got it from the AP article I read. But, you are correct. $1,000 18 years from today will be next to worthless, no matter what the return and/or rate of inflation. But, where did your$15,000 come from?
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Keep in mind parents can make yearly contributions I believe up to $5000.
 
dockside said:
I got it from the AP article I read. But, you are correct. $1,000 18 years from today will be next to worthless, no matter what the return and/or rate of inflation. But, where did your$15,000 come from?
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that was bucky's math. a little off.
 

Are all fees for stock trading going to be waived for these accounts?
 
I think that a Maga idiot is the only person that would fall for such a "bait and switch" tactic.
 
Bucky said:
A lot of parents are bad with their finances, so this amazing Trump account gives young children at birth the ability to participate in the market.
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"Amazing"......lmao
 
That money will only go to rich people.
 
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