OT: Do you find merit in this plan ?
Papi_Chulo
Miami, FL (or the nearest big-booty club)
"Bill Ackman on saving capitalism: Every child in the U.S. could be given enough money at birth to become millionaires by retirement"
"... Under Ackman’s plan, each child born in the U.S. would receive $6,750 in a government-funded basket of index funds that could only be tapped at retirement. Assuming 8% returns over 65 years from birth to retirement, that total would ultimately exceed $1 million, and it would cost the government about $26 billion a year, if the birthrate holds ..."
https://www.marketwatch.com/story/bill-a…
"... Under Ackman’s plan, each child born in the U.S. would receive $6,750 in a government-funded basket of index funds that could only be tapped at retirement. Assuming 8% returns over 65 years from birth to retirement, that total would ultimately exceed $1 million, and it would cost the government about $26 billion a year, if the birthrate holds ..."
https://www.marketwatch.com/story/bill-a…
Got something to say?
Start your own discussion
54 comments
As such, I'm not looking for new ways for the Feds to do things that they aren't allowed to do.
Here's a better idea.
Economics 101 - if you want to discourage an activity, you tax it. If you want to encourage an activity, you subsidize it. And if you want to determine if an activity stands on its own merit, leave it alone.
This country has a lot of problems. One problem that we DON'T have is a problem of too many people saving/investing too much and planning for the future.
Yet we discourage investment by taxing capital gains. (And those rates will go up if we make the wrong decision as a country in November)
You can't have capitalism without capital. So why penalize people for making money on investments?
Eliminate the capital gains tax entirely. People will have more money for their future, the capital base will expand, and the country will prosper.
$25 billion a year is nothing but noise in a market that size.
Maybe it was meant to be looked at in a more abstract fashion, such as how a middle class family or family friend could make a gift of equivalent value that would accrue value similarly.
The money contributed is taken from your paycheck before taxes are deducted - this maximizes the amount of money you have working for you.
Most companies will match some portion of your contribution as a way to encourage you to take advantage of the plan. This is free money.
Because the money deducted is pre-tax, the shrinkage in your paycheck is smaller than it would appear to be. i.e. if you take out 15% of your pay for your 401k, your paycheck may only shrink by 10%. Yet the entire 15% plus the company match goes into an account that you control.
Really, the only more attractive investment plan than the 401k is the Roth IRA. With a Roth IRA, your contributions are all taken out after taxes, but all of the appreciation is tax free.
Contributions to a Roth IRA and a 401K are not mutually exclusive. If your income is low enough to qualify, you can contribute to both plans. Unfortunately I am not eligible to contribute to a Roth IRA, but I would be all over it if I was eligible.
and ace, when you study the etymology of the word Dipshit your name is number one on both the google and duck duck search engines
lol good job up voting yourself, and down voting me and showing the board that I was correct you are a twat
bye now you are boring and no longer amuse me.
I can easily prove it by taking each action if you would like me to.
Youre a socially retarded computer geek
I would rather be a "socially retarded computer geek" than a mentally retarded wanna-be gang banger like you.
NO; the stock market is rigged.
And there is a point about the machinery of capitalism historically being oiled with the blood sweat and tears of the workers.
--Attributed to Jonathan Swift, on Icey and CJ
The cost quoted is $26 billion. That is based on multiplying births by 6,250.
What about the bureaucracy that will be created to put money into the system and manage it? When have you ever seen a Federal government program without significant friction related to bureaucracy?
Rounding the $26 billion down to $25 billion to make the example simple, after 40 years, the program would be managing $1 trillion. And I do mean managing. Don’t expect something run by the Feds to look like an individual stock market account where you could invest in any security you want. Expect it to be more akin to another Social Security slush fund.
I have more than my share of fun
----------------
SkiBirther, why do you think Trump's executive order calls for a payroll tax holiday? He (Trump) wants to make the payroll tax-cut permanent (although congress would have to approve). Don't you think you should get your head out of your ass? You are getting to that age where entitlements will be important.
Also, back to the original topic, how do you feel about giving free money to little black and brown babies? Is that a good idea? How can we be sure they were born here?
My two cents.... horrible plan
I quote 100 year history and you come back with what
STFU and let the adults talk