300k kids to get $250 in Connecticut...following Michael Dell's lead

https://www.foxbusiness.com/politics/billionaire-ray-dalio-backs-trump-admin-investment-accounts-kids-joining-michael-dell

Would be awesome for Elon to donate $50 billion or so for children of low income families. See the libs heads explode.

In all seriousness, good on Dalio and Dell for making this happen. I hope this encourages other high net worth folks to do this.

Gaeilge said:

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These Trump accounts are absolutely genius. They'll get additional funds from donors and billionaires that will create an investment driver into their own companies and industries driving further growth while creating a generation with the most solid financial footing when turning 18 that the world has ever seen.

Fraud safeguards, which I'm sure are being addressed, is my biggest concern. These accounts absolutely cannot be touched until 18 and only then by the person the account's name is in. Only way to close it early is presenting a death certificate.

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Honestly, 18 is too young. Seniors in high school will cash them out for nonsense.

AggieT said:

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Gaeilge said:

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These Trump accounts are absolutely genius. They'll get additional funds from donors and billionaires that will create an investment driver into their own companies and industries driving further growth while creating a generation with the most solid financial footing when turning 18 that the world has ever seen.

Fraud safeguards, which I'm sure are being addressed, is my biggest concern. These accounts absolutely cannot be touched until 18 and only then by the person the account's name is in. Only way to close it early is presenting a death certificate.

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Honestly, 18 is too young. Seniors in high school will cash them out for nonsense.

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They're for college...at 18, they essentially become an IRA subject to those tax rules. Yes, I am sure some idiots will make bad decisions like borrowing a quarter of a million $$ for a Gender Studies degree. But for the masses, this is a great deal.

Can't entirely recall, but wasn't there something about being able to use it for opening a business too?

Gaeilge said:

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Can't entirely recall, but wasn't there something about being able to use it for opening a business too?

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Yes:

At age 18, the account holder can withdraw up to half of the funds, with full access to the balance allowed between ages 25 and 30 for approved purposes such as education, buying a first home, or starting a small business, without penalty. After age 30, funds can be withdrawn for any purpose, though taxes may apply on gains. Withdrawals before age 59 may be subject to a 10% early withdrawal penalty unless an exception applies, consistent with IRA rules.

What % of the kids/parents are actually going to make additional deposits into the accts? Am I amissing something? What is $250 plus meager interest going to do for you when you're 18? I hope many kids build on this, but have you seen how dumb the average person is? And how financialy pinched the average Americans are?

It's essentially $1k for someone assuming 18 years at age of withdrawal, no additional contributions, and an 8% return. So the Trump account is worth $4k.

El Gallo Blanco said:

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What % of the kids/parents are actually going to make additional deposits into the accts? Am I amissing something? What is $250 plus meager interest going to do for you when you're 18? I hope many kids build on this, but have you seen how dumb the average person is? And how financialy pinched the average Americans are?

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Regardless, its another avenue for parents to save for their kids, and that is a good thing. Also, there is the possibility of employers being able to contribute an additional $2500/year pre tax. Instead of grandparents and family members buying dumb toys for their kids, the parents should tell them to give to their kid's Trump accounts instead.

Just because a financially irresponsible parent wont contribute to their kid's accounts doesnt make these accounts a bad idea. As always, the economy/markets will reward those that are smart with their money, whether they are rich or not.

Not knowing how to set up an account, is a barrier for a lot of people. Others just wont take the time.

The simple fact that a funded account exists, which they can easily contribute to...this will undoubtedly result in more people actually saving something for their kids.

I don't know how many, but it will be greater than zero. And if they don't? Ok. The kids are still better off than kids are now, who get no fund.

AgGrad99 said:

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Not knowing how to set up an account, is a barrier for a lot of people. Others simply wont take the time.

The simple fact that a funded account exists, which they can simply contribute to...this will undoubtedly result in more people actually saving something for their kids.

I don't know how many, but it will be greater than zero. And if they don't? Ok. The kids are still better off than kids are now, who get no fund.

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If this were available when I was a kid and my parents contributed an additional $150/month, the below is the end result. Not a bad starting point for an 18 year old.

Calculator used.

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

it really is.

and even if they just threw $25-$50 a month into it, it's a nice chunk of change for someone starting out.

This really is one of the better ideas either party has come up with in decades.

The accompanying skill sets required to understand and leverage these assets should be a part of the K-12 education.

Silent For Too Long said:

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This really is one of the better ideas either party has come up with in decades.

The accompanying skill sets required to understand and leverage these assets should be a part of the K-12 education.

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Truth!! I know that if I understood compounding interest when I was younger I wouldn't have boxes of Beanie Babies in my parents storage.

El Gallo Blanco said:

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What % of the kids/parents are actually going to make additional deposits into the accts? Am I amissing something? What is $250 plus meager interest going to do for you when you're 18? I hope many kids build on this, but have you seen how dumb the average person is? And how financialy pinched the average Americans are?

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Duh, all of their Boomer relatives are going to be putting money into it. Problem solved.

I doubt most people will top these things off, but it's better than nothing. And it makes sense for billionaires to contribute. They get a tax write-off and their contribution will actually see a 3x or 4x compounding instead going into government coffers and being immediately wasted.

Texag5324 said:

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Would be awesome for Elon to donate $50 billion or so for children of low income families. See the libs heads explode.

In all seriousness, good on Dalio and Dell for making this happen. I hope this encourages other high net worth folks to do this.

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You're assuming any Dem will be educated about this, who started it, and who has donated.

Very, very, few media ops will report it, not to mention the whole story.

Candidly, it wouldn't surprise me if a Dem states they started the entire idea within the next five years.