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

Now factor in inflation at annual rate of 3% which drops your 7% return to 4%.
 
Lursa said:
You try games now? It's clear in both those posts. Dont bother me with it again, if you choose to pretend you didnt understand his position it's obvious you are exposing limited reading ability to avoid addressing what he did provide, in detail.
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Cope said:
Another non answer recorded.

If you can't or don't wish to answer, simply don't respond. But attempting to tell me not to talk to you is .... childish at best.
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All day long.
 
Cope said:
What was it?
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Lursa said:
You try games now? It's clear in both those posts. If you choose to pretend you didnt understand his position it's obvious you are exposing limited reading ability to avoid addressing what he did provide, in detail.
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Rumblefish said:
Now factor in inflation at annual rate of 3% which drops your 7% return to 4%.
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Just to point out: the Inflation-Adjusted Compound Annual Growth Rate over the previous 50 years was 7.35%.

It was 8.63% over the previous 40.
It was 7.89% over the previous 30.
And 7.59% over the previous 20.

A 7.5% inflation-adjusted rate going forward is not a terrible assumption, though I think it will face challenges from our nations' awful fiscal picture and our political descent into populism.

However, 7.5 (as others have already noted) doesn't turn $1K into anything resembling $15K in 18 years.


Replacing other government programs with this seems to make sense. You could more than replace OASI payments with a one-time investment of $15,000 per kid, for example (less than an single year average payout), converting a Trillion Dollar program into a $54 Billion dollar program.
 
What to know about Trump accounts?

It's a gimmick.

Suppose Trump's program was instituted in 1950. In 1950 74.69 dollars equaled in purchasing power 1,000 dollars today. If the 74.69 were invested for a newborn, and that person retired in 2017, at 67, they would have 58,830 dollars (in 2017 dollars).

That is trivial.

In 2017, 1,000,000 dollars was considered adequate for retirement. If so, that would have required 17 times the initial investment.

In other words, a serious investment program would require 17,000 dollars in an initial deposit. Even a semi-serious program would require 8500 dollars in an initial deposit.

How much would this cost the government in today's dollars? 68 billion a year (or half that for a semi-serious program).
 
What in the world?

Is the assumption now that government needs to fund everyone's retirement? That is what is fuxxed about SSN, it isn't.

YOU, each and every one of you, is responsible to fund your own.
 
maxparrish said:
How much would this cost the government in today's dollars? 68 billion a year (or half that for a semi-serious program).
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Yeah - but it replaces a Trillion in spending, which is definitely a serious program.
 
Cope said:
Another non answer recorded.

If you can't or don't wish to answer, simply don't respond. But attempting to tell me not to talk to you is .... childish at best.
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Lursa said:
You try games now? It's clear in both those posts. If you choose to pretend you didnt understand his position it's obvious you are exposing limited reading ability to avoid addressing what he did provide, in detail.
Click to expand...
 
Rumblefish said:
Now factor in inflation at annual rate of 3% which drops your 7% return to 4%.
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Oh... tell us you don't know about market returns without telling us you don't know about market returns...
 
Metric Mouse said:
Oh... tell us you don't know about market returns without telling us you don't know about market returns...
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Ok, tell us you don’t know what purchasing power is or how to calculate interest.

And, just to clear, $1000 invested today at 7% annual for 18 years (with no additional contributions) is $3380 (rounded) not $15,000 as asserted by OP.

A thing that you postpone buying now that currently costs $1000 today at 3% annual inflation will cost you $1702 (rounded) to buy in 18 years.

$3380 - $1702 =$1,678.00, net in your pocket. Meaning you “earned” only about 3% net of inflation on your $1000.

And that’s not figuring in any taxes (income or capital gains) when you cash in all or part of your investment. At whatever the tax rate is 18 years hence.

Inflation “compounds” (i.e. is cumulative) too.
 

Republicans certainly love their handouts.
 
I’ll say what I said in the other thread about this issue: The government should not be giving people money just for being born.
As I’ve said before, Trump is a Leftist using Rightwing rhetoric.

Mark
 
markdc said:
I’ll say what I said in the other thread about this issue: The government should not be giving people money just for being born.
As I’ve said before, Trump is a Leftist using Rightwing rhetoric.

Mark
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Other than the initial $1000 contribution from the federal goverment, it’s not that much different than the current 529 college savings plan.

But what % of the population contributes to 529 savings plans?

Remarkably, the GOP used to berate “welfare queens” who “made money” staying home popping out babies like a fully loaded PEZ dispenser.

Now???

It’s all about stay home, have babies, and make money.
 

And who can access that $$ when the kid is 18 yrs old? Is it only that individual or can the parents still access it?
 
Lursa said:
And who can access that $$ when the kid is 18 yrs old? Is it only that individual or can the parents still access it?
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Good question.

When I did trusts and wills, many parents and grandparents wanted to “reach out from the grave” to prevent the child/grandchild from gaining access to an inheritance even at age 21 and some balked at doing it as late as 30 years old!!
 
Rumblefish said:
Ok, tell us you don’t know what purchasing power is or how to calculate interest.
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I do...

That's why I know what the average inflation adjuted return is...

it's not 4%, is it?

Like... look it up... and then link us what you find, to admit that you had no idea.
 
Metric Mouse said:
I do...

That's why I know what the average inflation adjuted return is...

it's not 4%, is it?

Like... look it up... and then link us what you find, to admit that you had no idea.
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You can’t read, can you?

Show me where I claimed inflation was 4%?

Also, you’ll acknowledge that the OP was wrong that $1000 at 7% for 18 years - with no other contributions ( as stated in OPs post). - isn’t $15,000, right?
 
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