Why Trump Accounts Could Completely Upset the Retirement Game—And What It Means for Your IRA Savings.
A smart retirement tool or just another bureaucratic monster?
The main advantage of these accounts lies in their long-term nature. Placed from birth in low-cost index funds, investments can grow significantly thanks to the power of compound interest.
According to CNBC projections, an initial account of $1,000 with regular contributions of $200 a month could grow to over $250,000 in 30 years, with an average annual return of 7%.
But this promise is nuanced. On the one hand, Trump Accounts enable families to build capital for education, home purchase or even their children’s retirement.
Post Comment