Trump Account thoughts

[X13]

My kid got the free $1000, not planning on adding any extra. Just going to let it ride

 

[Gulf of America]

My 3-week-old will get the $1000 and I’m pretty sure my 2 1/2-year-old will qualify for the $250, but I don’t anticipate putting in any more than that. Even being comfortably upper-middle-class and lucking into buying a house before the COVID surge, it still gets pretty complicated to put extra into our retirement, pay $25k a year for daycare, contribute to two 529 college accounts, AND get our kids’ retirement started at birth.

If the kids don’t go the college route, they can roll the 529 into a Roth IRA, and I just have to count on instilling enough financial sense in them to build their own retirements. As long as I do my part on my retirement, they should get a windfall when I go, because family history makes it likely I’ll run out of time before I run out of money.

 

[Bonasababy]

My 3-week-old will get the $1000 and I’m pretty sure my 2 1-2-year-old will qualify for the $250, but I don’t anticipate putting in any more than that. Even being comfortably upper-middle-class and lucking into buying a house before the COVID surge, it still gets pretty complicated to put extra into our retirement, pay $25k a year for daycare, contribute to two 529 college accounts, AND get our kids’ retirement started at birth.

If the kids don’t go the college route, they can roll the 529 into a Roth IRA, and I just have to count on instilling enough financial sense in them to build their own retirements. As long as I do my part on my retirement, they should get a windfall when I go, because family history makes it likely I’ll run out of time before I run out of money.

Be aware the money had to have been in the 529 for 15 years and there's a limit of 35K that can be rolled over. Also earned income requirements and annual limits I think apply. Remember they broadened what 529's can be used for though. Not just for college, trade school/equipment etc. much more is covered. Most kids will be able to spend some unless they go into something that costs them nothing for a career.

 

[BuzzH]

SS is such a scam. I think something like this could be a way to wean us off SS. It is kind of like the young bucks at work complaining about no pension. I tell them the matching 401 and hours bonus they get is a better deal

Better deal if they have discipline...statistically they don't.

 

[sigpros]

Better deal if they have discipline...statistically they don't.

You are correct about that

 

[Flatrock]

Wonder how many parents or parents to be wont sign up for the free money that their kid will receive, because its titled a "trump account" ?

I hope none! Everyone eligible for free money should sign up.

The idea of Trump Accounts was started by a hedge fund manager and philanthropist named Brad Gerstner. He is a great investor and seems like a great person. It has been a project of his for quite a few years and he originally called it Invest America. Ted Cruz introduced it as legislation and the name was eventually changed to Trump Accounts.

It is an amazing idea IMO but it's too bad the name got changed. I don't think it's been politicized too badly but I think it would have been received better from the entire public if the name had remained Invest America.