The Freedom Account, A Solution To End Social Security And The Retirement Crisis.

Summary

• All New Citizens (newborn and immigrants) given $1000 into a "Freedom Account"
• $1000 is invested into American companies via the S&P-500.
• Citizens recieve a "Freedom Distribution" of 6% annually at age 67 (estimated $3,750 - $15,000 a month).
• At death 50% is kept by the government 50% distributed to heirs.

Here is my solution to end Social Security and the Retirement Crisis. Starting in 2025 in place of the Social Security Tax, all new American citizens (newborns & immigrants) are given a "Freedom Account" with $1,000 deposited into it. This $1,000 is invested into American Companies by the government on the citizen's behalf via the S&P-500. At age 67 (retirement) citizens are then able to withdraw 6% of the account's value annually. After 67 years of compounding interest, the $1,000 will have grown to $750,000 on the low end and $3,000,000 on the high end. 6% annually would come out to $3,750 a month on the low end (still more than 2x the current monthly social security payment) and $15,000/ month on the high end. This will be the government's money (to replace lost Social Security Tax income) given to the citizen as a monthly "Freedom Distribution". At death (regardless of age), 50% of the account's value will be kept by the government, and 50% distributed to heirs. This system is not intended to be anyone's full retirement plan but will aid those who do not prepare and be an added bonus to those that do!  What are your thougths?