OT/Finance: What ETFs are going to be affected by these new baby accounts
- Thread starter 615dawg
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I think JAR is a safe bet moving forward.
Is this to increase birth rates? I know 'paying for babies' was one of the 100 different things the Administration was talking about maybe doing last spring, but surely the amount would need to be higher. I cant imagine anyone being like 'well I wasnt going to have a kid, but now that my kid will get $1250 in stock, its worth it!'.
I also read that the Administration wants to increase financial literacy and help jump start wealth for the future generation, and a small seeded investment is how they plan to make that happen.
There are a handful of obvious reasons why the success of such a plan is questionable.
If this is to give the future generation wealth at an earlier age, it would be interesting to see actual genuine effort projections to show what that could look like in 20 years, vs using the same spending in a few different ways. Maybe projections show it would likely work.
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Overall a really good long term idea for parents/kids that want to put in the effort opening accounts, understanding it, and planning how to use it 18 years from now. That said, I doubt it moves the needle much in terms of birth rate as it doesn't provide any instant cash flow (not suggesting that it should either) and the people that need the help the most typically don't really have any financial literacy to begin with and probably won't open accounts. But I think it's worth the shot and there are far worse ways to use public funds.
If we want to move the birthdate needle, childcare costs/early education is where the public dollars can make the most improvement in the short term. In the long term, we need to talk about how we pay people in this country and figure out how to make single income households have buying power again. But nobody wants to talk about that so the gubment teat it is...
If we want to move the birthdate needle, childcare costs/early education is where the public dollars can make the most improvement in the short term. In the long term, we need to talk about how we pay people in this country and figure out how to make single income households have buying power again. But nobody wants to talk about that so the gubment teat it is...
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Gonna agree with your take on this.
Another effort to give traders more money to play with and the financial industry a leg up on folks. They will make money.
The average baby, not so much. Give families healthy tax incentives if you want them to pop out more American citizens.
And the right kind of incentives. Refundable tax credits = bad/wasteful. Subsidized daycare/preschool = much better and less likely to be abused for the wrong reasons. We have clever crooks in the country so I suppose you can abuse that too but certainly more difficult than handing out cash for babies.
My first kid was born in 2004, and on a flier I bought her $200 of Apple (10 shares) in a custodial account on Schwab on the day she was born (I liked the ipod) - . When she turned 21 the account became hers, and because of the splits it had grown to over 560 shares. Tim Apple started the dividend up in 2012, so that thing really took off. It was a nice nestegg to be sitting on as she was preparing to graduate from college.