The Ackman-Khan Generational Wealth Act: Securing Financial Independence for Future Generations
Overview
Inspired by Bill Ackman’s proposal, the Ackman-Khan Generational Wealth Act aims to establish a “Future Fund” program, allocating $7,000 to every newborn American, invested in a tax-free index fund, to promote long-term financial security and reduce future reliance on Social Security.
Key Components
- Initial Investment
- Allocation: At birth, each child receives a $7,000 investment into a government-managed, tax-exempt index fund.
- Growth Over Time
- Estimated Returns: Assuming an average annual return of 7%, the investment would grow to approximately $568,910 by age 65.
- Program Funding
- Annual Cost: With approximately 3.6 million births annually in the U.S., the program would require an estimated $25.2 billion each year.
Benefits
- Financial Independence: Provides substantial retirement savings, reducing dependence on Social Security.
- Economic Equality: Offers all citizens a foundation for financial security, narrowing wealth disparities.
- Economic Growth: Increases national savings and investment, stimulating economic development.
Conclusion
The Ackman-Khan Generational Wealth Act represents a strategic investment in America’s future, fostering financial independence and strengthening the economy for generations to come.