Comments on: Baby Bonds or Lazy Man’s Trust Fund

By: JoeTaxpayer

JoeTaxpayer — Sun, 13 Sep 2009 03:36:12 +0000

If you assume the $10,000 trust will grow at 6% about inflation, rule of 72 say it will double every 12 years. Retire the kid at 60 to keep the math easy, and you have 5 doubles or $320,000 in 2009 dollars. Not enough to retire, but not chump change. Put away $3000 every year though, and at 21, tell the kid he has to continue the tradition, now he has $100K/yr starting at 60.

By: Personal Finance Review - Installing a Patio Edition » Money Smart Life

Personal Finance Review - Installing a Patio Edition » Money Smart Life — Mon, 08 Oct 2007 06:59:58 +0000

[...] -Baby Bonds or Lazy Man’s Trust Fund @ Lazy Man & Money [...]

By: » Weekly Roundup - Foundation Wall Edition @ fivecentnickel.com

Mon, 08 Oct 2007 01:55:23 +0000

[...] Lazy Man shared his opinion on so-called baby bonds. [...]

By: vh

vh — Sun, 07 Oct 2007 14:00:54 +0000

The baby bond scheme is one of the dumbest ideas that’s come out of Washington in…oh, several weeks. This country’s misadventures over the past few years haven’t racked up a big enough debt? The tax burden we will have to shoulder to build an adequate medical care system is not huge enough?

The basic idea of establishing a $5,000 savings plan for a newborn baby is great–but let Mom and Dad fund it, not the taxpayer. Maybe Mom and Dad could get a modest tax deduction as an enticement. . .but the rest of us shouldn’t have to fork over five grand for every baby born in this country.

By: Kevin

Kevin — Sun, 07 Oct 2007 02:31:40 +0000

Wow! Can you imagine the inflation that will be on college campus when ever single 18 year old has the money to pay for college. University tuition rates would be through the roof.

By: » Roundup: Upcoming Chicago-Tribute / Baltimore-Sun Article on Blueprint for Financial Prosperity

Sat, 06 Oct 2007 17:18:50 +0000

[...] Man likes the idea of a Baby Bond, to which I say, who’s going to pay for [...]

By: Patrick

Patrick — Fri, 05 Oct 2007 11:01:19 +0000

I think parents setting up something like this for their own children is a great idea – be it for college or retirement. I don’t think the govt. doing this is a good idea at all.

By: MossySF

MossySF — Fri, 05 Oct 2007 07:02:16 +0000

It could come from reduced expenses in the future. Perhaps in exchange for giving all future generations baby “bonds”, benefits are reduced across the board for college financial aid, federally-backed mortgages and social security. The “bond” will be invested in 50% stock, 50% bond so the growth will be a % or two larger the future government obligations.

By: Mrs. Micah

Mrs. Micah — Fri, 05 Oct 2007 00:45:46 +0000

Setting up money for the kid makes sense. But the baby bonds—I think you’ve pointed out some of the biggest objections to them. Where does the money come from and what will they be worth?

By: Chris Kakaras

Chris Kakaras — Thu, 04 Oct 2007 17:33:54 +0000

That kid’s trust fund idea is genius. Kinda makes me wish my parents would have set me up. Keep up the good work lazy man.

By: Financial Reaper

Financial Reaper — Thu, 04 Oct 2007 16:46:53 +0000

I was about to blast this article for falling into the trap of a government smoke screen, aka, bread and circuses. But, your last paragraph summed up my thoughts. Where exactly is this money coming from? The national debt is fast becoming a national burden along with huge liabilities with social security, Medicare, Medicaid. I doubt this bond will ever see the light of day. More importantly, what population of voters is this proposal trying to buy. How about some type of free government literature on how to save properly and fund your child’s education.