I love the idea, too! I appreciate Mr. Gerstner's philosophy of getting more people to have a stake in capitalism from birth. That said, he is looking through rose-colored glasses in an alternate universe. Put the funds in an account, let the Treasury Dept. administer it, and get government out of the way? Congress will never let that happen. First, they will require the Treasury to invest the funds in favored companies rather than something like a total market index. Those favored will change with every Congress and expose the funds to greater risk. Second, I fear this will become much like Social Security. Those funds aren't really yours; your "account" will be paid out at the various ages from current revenues. It won't be an actual investment and likely will be "funded" through another payroll tax, and within 30 years the program will be insolvent. Next, not everyone will get it. It will be means-tested. If your parents' tax return in your birth year has an AGI above a certain level, you are out of luck, kid. And, for those that do, will likely be subject to capital gains taxes. Finally, to only distribute the money at certain ages will fall by the wayside quickly. There will be exceptions upon exceptions upon exceptions. Congress will find a way for certain folks to get their hands on that money from the jump. Long before the age of the first scheduled distribution, that money will be gone from the account as a short-term, vote-buying scheme.
Great! Brad Gerstner is a great investor. Also the intro is great.
The baby equity acct is a great idea. I remember my youth and adding to a savings acct gave me hope for the future.
I love the idea, too! I appreciate Mr. Gerstner's philosophy of getting more people to have a stake in capitalism from birth. That said, he is looking through rose-colored glasses in an alternate universe. Put the funds in an account, let the Treasury Dept. administer it, and get government out of the way? Congress will never let that happen. First, they will require the Treasury to invest the funds in favored companies rather than something like a total market index. Those favored will change with every Congress and expose the funds to greater risk. Second, I fear this will become much like Social Security. Those funds aren't really yours; your "account" will be paid out at the various ages from current revenues. It won't be an actual investment and likely will be "funded" through another payroll tax, and within 30 years the program will be insolvent. Next, not everyone will get it. It will be means-tested. If your parents' tax return in your birth year has an AGI above a certain level, you are out of luck, kid. And, for those that do, will likely be subject to capital gains taxes. Finally, to only distribute the money at certain ages will fall by the wayside quickly. There will be exceptions upon exceptions upon exceptions. Congress will find a way for certain folks to get their hands on that money from the jump. Long before the age of the first scheduled distribution, that money will be gone from the account as a short-term, vote-buying scheme.
Brad if you look at the comments. Would you mind telling us what are the books behind you?
The Rust Belt might get its manufacturing infrastructure modernized?