re: New Trump accounts $1M by age 55 with $1K at birth match and $50 / month

Return on The S&P Index. Historically, between 12 % and 14 % annually.
There’s a 2 % dividend that pushes it closer to 14 %
If it’s 12 % the money doubles every 6 years. It’s 14 % the money doubles every 5 years. In either case, $1 thousand dollars becomes more than A $ million dollars in 65 years. The power of compound interest is a very important force. It’s what creates wealth.
BTW;
Libs hate people taking control of their own lives,

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How does 600 dollars a year (12 times 50) work out to one million in that amount of time

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Because it's not put in a sock in your mother's underwear drawer where your life savings is

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Equity Investments can out-pace inflation. In fact, some inflation can help equity prices. I can’t believe that anyone would not like this program.

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I never said anything about not liking the program. I said $1M sounds like a big number but 65 years from now it’ll be $100k because we keep fricking printing money to cover our wars and corruption.

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600 dollars a year times 20 years is 12,000. Not bad but not a huge amount either. Buys a ratty used car.

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Like all the personal finance threads, it conflates multiples variables and operates in a vacuum to reflect a desired result.

The advertised numbers are great. But, if you step back and think about it for a just a moment. Anyone who has parents willing to contribute $600/yr…for 55yrs will be financially fine regardless of the addition of a Trump account.

Or, the argument anyone can find $600/yr to puts aside for their child. That’s likely true, but it’s not much help if it isn’t in addition to maxing out the 529 first, just to get them through college without a six figure debt.

At the end of the day, this will have the same outcome as a 401k. It will greatly benefit anyone that uses it…wont contribute their own funds, and will raid it for any contributions made by others as soon as allowed.

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How does 600 dollars a year (12 times 50) work out to one million in that amount of time?

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Due to what Einstein said was the greatest single force in the universe. You should learn about it. It is called "compounding interest".

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It's socialism regardless of who proposes it.

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With this logic, giving tax breaks for children is socialism. You wouldn't ever engage in such policies, right?

Taking a double deduction for your unemployed wife would also be socialism.

Why should single people without kids have to pay more? That's just a handout to married families, aka socialism.

When you use retarded logic, everything you don't like becomes socialism. And what you don't claim as socialism, you can just write off as populism. Isn't that fun?

Or you can just look at what is good for the country as a whole instead of demanding everything follow your own ideology that failed to prevent the problems to begin with. It's amazing how conservatives constantly bitch about problems, but then also bitch when any solution is offered, especially when that solution is something that has never been tried.

People are complaining about $1000, most of which was personal donations, that turns into a million with personal investments while also whining about SS being a disaster.

Conservatives really think there is only one way to fix a problem and when the corrupt congress refuses to implement that fix, they just sit on their asses whining and conserving the status quo.

We will never get out of the failed system we have, because conservatives will fight tooth and nail to preserve the system they always complain about.

We will never escape taxes and social security because doing so would require a temporary period of mild discomfort and doesn't fully align with the chosen political ideology. And conservatives just can't handle that.

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Which will have the buying power of $100k now thanks to the government printing money like a drunken whore.

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This.

Plus the fact that the money goes in after tax but is taxed again as income when taken out.

Not a good deal. Didn't do the math, but it's probably far better to just invest $10/week in a ETF in a regular brokerage account.

Eurocat

Geez dude, yikes!!

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At the end of the day, this will have the same outcome as a 401k. It will greatly benefit anyone that uses it…wont contribute their own funds, and will raid it for any contributions made by others as soon as allowed.

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I think the key here though is starting out with a “free” $1,000. If on average your portfolio doubles say every 6 years without contributing more, you can be sitting on a decent chunk by the time you hit 18. Most of us at 18 are starting at zero.

One million sounds like a big number.

You might be right. However, I wouldn’t depend strictly on Social Security for my retirement. We should never ignore the power of compound interest.