Pay It Forward Program.

This is a fairly simple idea, we currently have 4 million kids born in the us every year:

https://www.statista.com/statistics/195908/number-of-births-in-the-united-states-since-1990/

Let’s say the government opened and account ( or issued shares in the kids name). Let’s say the value of that account ( or shares) are 2 thousand dollars. That would be 2000 x 4 million. Check the math on that and I will correct but I think the cost is 8 billion a year? Seems like peanuts.

Let’s say those kids get access @ 21, at that point they can access the funds for education/trade school. I might make the case for also buying into the family business at that point, we should encourage that kind of thing. Let’s say at 30, you can also use the funds to buy a house, at 40 ( if you have some left) debt would then be included. Then at 50 anything you would like.

The investment vehicle might be US debt, maybe a preferred debt with auto reinvestment. If I try to do some back of the napkin type calculations to see what this might look like:

https://www.buyupside.com/calculators/dividendreinvestmentdec07.htm

Feel free to check this or play with the numbers.

Initial Number of Shares: 100

Initial Stock Price per Share: 200

Annual Dividend Paid: 6.9 ( I got this number from DIA dividend as an example).

Dividend Annual Growth Rate: 5.00

Stock Price Annual Growth Rate:7.00 ( this is a conservative growth rate avg from over 20years).

If you plug the numbers in number a child born this year, would have $135,667.26 at age 20, at 30 it would be $329,668.01. You can tweak the numbers from there.

What would this do to poverty in this country when you cross the mark where 20-year old’s have access to 6 figures, for college, technical training, small business? I think it would be the seed to multi-generational wealth. Everyone focuses on the middle class, and the current generation. What would it cost for us to pay it forward? My napkin comes up at about 8 billion, chump change for what the government spends.

If you stop and think about how our economy and nation works, debt is spent today and paid back at higher rate. What if we flipped that system and the payback doesn’t go to the money changers, but to the future generation? What ever we subsidize we get more of, why not flip the tables and create one thing that would benefit everyone?