ASPIRE Act/KIDS Accounts: Policy Papers

The ASPIRE Act of 2009

Asset Building — Wed, 01 Jul 2009 14:01:00 -0400

What does the bill do?
Why is a bill to promote asset building for children necessary?
Who is eligible? Will illegal immigrants or children who become citizens get accounts?
Will children born before the bill takes effect get accounts?
Why do wealthy people get these accounts?
Why do poor people who don't pay taxes get accounts?
Is it unrealistic to expect those with low incomes to save when they already struggle to get by?
How
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The ASPIRE Act of 2009 Bill Summary

Asset Building — Wed, 06 May 2009 01:00:00 -0400

Title of the Bill

The America Saving for Personal Investment, Retirement, and Education Act of 2009 ("The ASPIRE Act of 2009")

Purpose of the Bill

To encourage savings, promote financial literacy, and expand opportunities for young adults by establishing a Lifetime Savings Account for every newborn child.

Lifetime Savings Accounts

Promoting the Vision

Asset Building — Fri, 16 Jan 2009 10:26:00 -0500

Introduction/Background

In recent years, the role that savings and assets play in shaping people's lives has increasingly captured the attention of researchers, policy analysts and elected officials. Their interest in savings and building wealth has grown along with an increased awareness of specific policy tools and interventions, such as matched savings accounts available for lower-income workers. The launch of the SEED Initiative in October 2003 was an important marker in this process because it introduced the

A Citizen's Guide to the ASPIRE Act

Asset Building — Mon, 01 Oct 2007 11:09:00 -0400

Introduction in the 111th Congress is Currently Pending

Section Titles

ASPIRE Act Frequently Asked Questions

Asset Building — Mon, 01 Oct 2007 02:00:00 -0400

The attached document answers the following questions about the America Saving for Personal Investment, Retirement, and Education (ASPIRE) Act:

What does the bill do?
Why is a bill to promote asset building for children necessary?
Who is eligible? Will illegal immigrants or children who become citizens get accounts?
Will children born before the bill takes effect get accounts?
Why do wealthy people get these accounts?
Why do poor people who don’t pay taxes get accounts?
Is it unrealistic to expect those with low incomes to save when they already struggle to get by?
How much money will the government put into an account?
How much of the benefits will go to lower-income families?
Will assets in the accounts penalize people applying for public assistance?
Who can contribute to the accounts?
Why is there a limit on private contributions to the account?
Who will control the accounts?
How much will this cost?
Can America really afford this? How is this paid for?
Are there restrictions on account withdrawals? How can money in the account be used?
How will the account be taxed?
Why is there a minimum account balance, even after age 18?
Has this been done before?
How do KIDS Accounts differ from the UK’s Child Trust Fund Accounts?
Will this raise college tuition?
What if my child needs money to pay for college before they are 18?
Who will manage this program?
Why can’t the private sector offer accounts?
Why not let the private sector handle accounts of those under 18?
How much can a child save in a KIDS Account? What will they have when they are 18?
Where will money in KIDS Accounts be invested?
How will this bill help promote financial literacy?
Who supports this bill?
What is the legislative strategy for moving this bill through Congress?
How is this year’s bill difference from previous versions?

Net Worth at Birth

Asset Building — Tue, 16 Mar 2004 08:00:00 -0500

Many Americans have no assets to their name; they are disadvantaged from the start of their lives. One promising idea to expand opportunity and broaden asset ownership is to endow every newborn child with an American Stakeholder Account (ASA). This paper intends to serve as a vehicle to review and consider the policy design choices that would give this proposal its ultimate shape and direction. It builds on previous analytical work and offers new insights in examining the challenges, benefits, and justification for creating a national system of children’s accounts. After a review of the proposal’s policy context and political rationale, a prototype proposal is then examined in detail, and alternative design features are considered. The final section examines the broader issues of an account-based approach to asset building.

For the complete document, please see the attached PDF version.

American Stakeholder Accounts

Asset Building — Sun, 01 Jun 2003 03:00:00 -0400

To greatly expand opportunity, to broaden asset ownership, and to fortify the American economy for the long-haul, an American Stakeholder Account (ASA) should be established for every child born in America and made available to all other persons age 18 and under. Over time, this “Homestead Act of the 21st Century” will evolve into a universal system through which all Americans can meet their asset needs throughout life— securing post-secondary education and life-long learning, purchasing a first home, making investments, starting a small business, and building up a nest-egg for retirement. For low-income Americans, ASAs will provide a means to develop savings and assets—an opportunity not offered, and in fact denied, by existing public policy. In the long run, building wealth through ASAs and other means will eventually break the vicious cycle in which inequality of outcomes in one generation becomes inequality of opportunity in the next.

For the complete document, please see the attached PDF version.