I like the idea. I know its self-serving for Ackerman and $1M in 65 years won't be $1M today (if I did the calculation correctly, assuming 3% the NPV is $146,400).
https://www.marketwatch.com/story/bi...?mod=home-page
Quote:
Bill Ackman has an idea for saving the system that made him a billionaire.
The Pershing Square Capital Management chairman told investors in a recent note that, in order to preserve capitalism, steps need to be taken to close the increasing inequality gap.
One possible measure: investment accounts for every child.
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.
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If it actually does encourage more financial literacy, it's worth it. Not sure where the annual $26B will come from but I vote the increasing some tax on the financial industry because they will benefit the most.
Quote:
He added that a government-led push for equities-investing accounts could “encourage greater financial literacy” and spread the stock-market’s gains across a wider swath of the U.S. population.
“Americans that have no ownership in the success of capitalism, and who are suffering economically, are more motivated to turn toward socialism or other alternatives,” he said in the note.
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