The benefits for newborns in the U.S. have increased again! They are giving away ETFs. Does this count as a positive for the financial market?!
Recently, in the “Great American Act” passed in the U.S., there is a provision called the “Trump Account”: a free investment account of $1,000 will be established for all newborns in the U.S. This money will be fixedly invested in a U.S. large-cap index ETF. Parents or guardians can also deposit up to $5,000 into this account each year! When the child turns 18, they can withdraw half of the account's funds! At 25, they can withdraw all funds.
Based on the historical annual return rate of the S&P 500 in the U.S. of 10-12%, it is estimated that the initial $1,000 will grow to approximately $5,560 - $7,700 by age 18; and approximately $10,900 - $17,000 by age 25.