Hartmann Studios via flickr
President Donald Trump had previously announced the Invest America initiative, which would automatically create a $1,000 investment account for every child born in the U.S. between 2025 and 2028. The program is set to begin on July 4, 2026.
The money in these accounts will be invested in index funds, and the child will have access to the funds once they reach the age of 18. The funds can be used for education, a down payment on a home, or to start a business.
According to data from officialdata.org, if someone had invested $1,000 in the S&P 500 index 18 years ago, they would now have approximately $6,500. The average annual return of the index during this time, including reinvested dividends, was 11.22%.
Dell's donation will allow the program to include children under the age of 10.
It is estimated that 25 million children will receive $250 each in their own investment accounts. Priority will be given to families with annual incomes below $150,000. Over time, it is anticipated that 80% of American children in this age group will have their own investment accounts.
source: bloomberg.com
The money in these accounts will be invested in index funds, and the child will have access to the funds once they reach the age of 18. The funds can be used for education, a down payment on a home, or to start a business.
According to data from officialdata.org, if someone had invested $1,000 in the S&P 500 index 18 years ago, they would now have approximately $6,500. The average annual return of the index during this time, including reinvested dividends, was 11.22%.
Dell's donation will allow the program to include children under the age of 10.
It is estimated that 25 million children will receive $250 each in their own investment accounts. Priority will be given to families with annual incomes below $150,000. Over time, it is anticipated that 80% of American children in this age group will have their own investment accounts.
source: bloomberg.com