X13
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My kid got the free $1000, not planning on adding any extra. Just going to let it ride
Trump Account thoughts
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Gulf of America
Well-known member
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.
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.
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Bonasababy
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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
Well-known member
Better deal if they have discipline...statistically they don't.
You are correct about that
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.
That is crazy. The TDS really clouds peoples judgement. I just hope this whole thing at least gets people looking into finical literacy. I wish I would of known about it 27 years ago when I started my job. I was a young guy and listened to the old men about my pension and SS saying I would be GTG, and basically 30 years ago they were right to an extent. Man if I would of been putting even 10% away I would really be set. I just got into it about 7 years ago from a coworker who told me about it. I work with a bunch of Liberals and one guy just had a kid and won't do it because it has trumps name on it. Sad thing is he actually does invest and knows how it works. I ran the numbers the $1250 seed money at 7% return in 55 years is $101,591.08 at 10% return its $612,963.41! just for a couple mouse clicks. If this had Kamala's name on it and I could sign them up I would.
SAJ-99
Well-known member
The sad part is most of the people that get it, and those it is intended to help, will liquidate it as soon as they can.
Here is a test. only 15% of Americans get all the answers correct.
Wildabeest
Well-known member
If you answered “don’t know” to all of them, is that considered a correct or incorrect answer?
SAJ-99
Well-known member
I will post the answer key once it jumps to the next page. If those were your answers, you can assume you didn't do well.If you answered “don’t know” to all of them, is that considered a correct or incorrect answer?
BuzzH
Well-known member
First of all, the presidency isn't supposed to be about branding everything with your name on it. This isn't some reality TV show.
IMO, the answer isn't as simple as philanthropists and the .gov giving people money to save for their kids, it should be about EDUCATING them on the power of investment over time, compounding interest, etc. It should also be presented how taking that investment money and buying something you "need" today, like a new boat, a new car, a fancy vacation today...will cost you more than the sticker price.
I also think balance should be taught as well, as I have friends that are so hung up on investing, they forgot to have some fun along the way. I think there needs to be recognition that you really can do both, invest for the future and have plenty of fun, if you have a plan and stick to it.
What needs to happen is for kids to learn about this stuff starting in grade school and continuing through high school. Like you, I got extremely lucky and took some advice from a very close and good friend of mine. I just got more lucky as I took his advice over 30 years ago. He got lucky and learned about investing from his Dad and Uncle who recognized the importance of investing when it wasn't really a popular idea. I also think that retirement/investment apps should be standard on every cell phone sold.
To go with all that, we need jobs that pay enough to allow investment to happen as well. It's tough to tell people they "need to invest", teach them how to do it, then pay them chickenshit wages that barely cover living expenses...let alone having enough to invest.
IMO, this isn't a horrible idea, but it's too much giving someone a fish and not enough teaching them HOW to fish.
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Trump is a worthless example of even a basic life form, and I'll celebrate the day he is no longer one of those things but I 100% opened the account for my 1-year-old
Why wouldn't you, it's your tax dollars. I'm pretty sure if your born in Israel you get 100,000$ from our government as well!I just checked my daughters account via the app and it's down $2.36 lol. Here are the companies they put some of the funds in, basically all tech companies
NVIDIA 7.38%
Apple 7.06%
Microsoft 4.47%
Amazon 3.73%
Alphabet Class A 3.33%
etc,etc,etc.
I don't trust it enough to add my own money to it though.
NVIDIA 7.38%
Apple 7.06%
Microsoft 4.47%
Amazon 3.73%
Alphabet Class A 3.33%
etc,etc,etc.
I don't trust it enough to add my own money to it though.
Everyone keeps saying its "free" money. NO it is just a little chunk of your money going back to you.Trump is a worthless example of even a basic life form, and I'll celebrate the day he is no longer one of those things but I 100% opened the account for my 1-year-old
Buzz I agree this needs to be taught at a young age and most of the people do not understand it and can't comprehend compound interest.
To quote Albert Einstein:
"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."
I agree but I would be foolish to not have signed my daughter up for it. Process was pretty easy, just filed for it during tax season, and downloading the app. Im not going to add to the fund though.
None of the money is coming back to me. My son is slightly too old to get the govt contribution. I’ll keep investing for him on my own with my other money
My kids are too old so I only get to invest in other’s kid’s Trump accounts.
My philosophy, right or wrong, is to concentrate on investing heavily into mine and my wife’s own retirement savings. My kids can scrape by when they start out, like I did and still do. They can borrow for school if they choose to go, eat ramen, and learn to spend wisely. If the market performs moderately well and our family stays healthy, they should inherit enough to retire comfortably, when they are old enough to appreciate it.
As soon as they start working, I’m going to encourage them to open up a ROTH and start putting money away. Maybe we’ll be in a position to match some of that. I’ll also pay for a YNAB subscription for both of them. Teaching them to budget and invest will do much more for them in the long run than $1,000.00.
My philosophy, right or wrong, is to concentrate on investing heavily into mine and my wife’s own retirement savings. My kids can scrape by when they start out, like I did and still do. They can borrow for school if they choose to go, eat ramen, and learn to spend wisely. If the market performs moderately well and our family stays healthy, they should inherit enough to retire comfortably, when they are old enough to appreciate it.
As soon as they start working, I’m going to encourage them to open up a ROTH and start putting money away. Maybe we’ll be in a position to match some of that. I’ll also pay for a YNAB subscription for both of them. Teaching them to budget and invest will do much more for them in the long run than $1,000.00.
Everyone has their own opinion and that's the great thing about America. I read one time though about helping your kid buy their first house, and it kind of opened my eyes. The author said they were giving their kid 50K to buy their first home because helping them in their late 20's or early 30's is a greater benefit then leaving them a chunk of money when they are in their 50's when they probably wouldn't need it. He also said just because you struggled doesn't mean they have too, that's how we break the cycle.
Neither of my kids qualify for the seed money but I can add $5K this year for my daughter and just let it ride. So I don't buy another thermal and can this fall but help set my daughter up later in life. Seems worth it to me.
Gulf of America
Well-known member
Based on my personal experience, I agree with the opinion that helping a child obtain education/job training without crippling debt and helping open the door to homeownership are two of the biggest things to give your kids a chance to build their own healthy retirement. Probably the biggest factor in my financial stability now is my mom putting away some money for my college when my dad died, and then inheriting $50k when my grandparents passed which I immediately put down on my first house. It's really hard to say what the landscape will be in 20 years on both fronts though - home prices have doubled in 10 years here and if the trajectory keeps going, $50k isn't going to do much.
SAJ-99
Well-known member
NO, it’s borrowed money. It’s failing the Marshmallow test as a country.
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