CCCs
Joined: 07 Jul 2003
Posts: 762
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Posted: Fri Feb 11, 2005 5:59 am Post subject: Invest in the children
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This sounds like an interesting idea. There seem to be a couple of versions of this program floating around.
Let's share the wealth
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Under one version of KidSave, the government would open tax-deferred savings accounts for each American child, making a $1,000 deposit at birth, and $500 deposits in each of the next five years. That money could be invested in a limited number of mutual funds, but it couldn't be withdrawn until retirement.
Over decades, it would grow and grow, thanks to the wonders of compound interest, so that by the time workers retired, they would each have a substantial nest egg, over $100,000, waiting for them. |
One statistic I found showed that for every 7 dollars invested in the elderly, only 1 dollar is invested in kids. This idea sounds very simple to me, and would allow everyone to enjoy the benefits of compound interest.
Food for thought.
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