They're one aspect of the BBB I really like. They're 530A accounts to be seeded with $1,000 for every American child born after 1 January 2026. Everything I read indicates they'll basically be like Thrift Savings Account (TSP) accounts and if they're smart that's who will be running them. While they didn't make much about it, I do agree that this could be the perfect basis for eventually replacing the current Social Security system and make it sustainable and much better because it's a wealth building program and not a Ponzi scheme. Disclosure for those who haven't paid attention - I've long advocated a TSP for All Social Security system. The unfortunate name will need to be changed, but the concept is excellent.
@aloha-hoosier I agree that these accounts are good things from what I know about them. I actually read something last week and meant to post it here to hear more thoughts on them. I'm glad you ended up posting about them.
To replace SS, what rate of return do they need to generate?They're one aspect of the BBB I really like. They're 530A accounts to be seeded with $1,000 for every American child born after 1 January 2026. Everything I read indicates they'll basically be like Thrift Savings Account (TSP) accounts and if they're smart that's who will be running them. While they didn't make much about it, I do agree that this could be the perfect basis for eventually replacing the current Social Security system and make it sustainable and much better because it's a wealth building program and not a Ponzi scheme. Disclosure for those who haven't paid attention - I've long advocated a TSP for All Social Security system. The unfortunate name will need to be changed, but the concept is excellent.
Wouldn't take a high one to be better than the current system. The taxes and matching funds that go into the current system would go into each individual's account. Maybe a couple percentage points of it would go into one "safety net" account for those who don't work or participate. There have been some very good plans out there back when GWB was making some noise about doing this. Starting these accounts and birth is a new and outstanding addition. Allowing people to add additional funds to their accounts isn't new, but it's also important and can be done for years before they start working which is also an outstanding addition. The military wasn't allowed to participate in the federal TSP program until the last 10 to 15 years of my career. In just that short period of time I accumulated enough, which after I invested in a personal investment account after retirement, which can now pay me more than my monthly social security benefit for the rest of my predicted life if I chose to use it that way. I know federal workers, not the highest levels of the pay scale, which retired with a couple million in their accounts. They still have years of life left to spend it or to take monthly or lump sum payments out of those accounts. Meanwhile, their balances are still invested into the TSP index funds, of which they can choose and redistribute based on the years of life they believe they have left. Social Security was a poorly devised system, and politics is the only reason we're not allowed to fix it.To replace SS, what rate of return do they need to generate?They're one aspect of the BBB I really like. They're 530A accounts to be seeded with $1,000 for every American child born after 1 January 2026. Everything I read indicates they'll basically be like Thrift Savings Account (TSP) accounts and if they're smart that's who will be running them. While they didn't make much about it, I do agree that this could be the perfect basis for eventually replacing the current Social Security system and make it sustainable and much better because it's a wealth building program and not a Ponzi scheme. Disclosure for those who haven't paid attention - I've long advocated a TSP for All Social Security system. The unfortunate name will need to be changed, but the concept is excellent.