​Every newborn gets a $4000.00 one-time deposit at birth into a ROTH IRA that invests in the S&P 500. This would work to replace social security.

Every newborn gets a $4000.00 one-time deposit at birth into a ROTH IRA that invests in the S&P 500.

If a person dies before age 60, their total funds initial deposits for new children. Once a person dies, the remainder of their balance funds are deposited into new children’s accounts. The remainder is never inherited or cashed out.

That’s it.

The average return for the S&P 500 over the last 50 years is 11.48%. At that rate, compounded daily, the total would be $3,917,509 by the time a person reaches 60. Using the 4% rule, that would be $156,700 per year or $13,058 per month. In subsequent years, you adjust that amount for inflation. For example, if the payout in the first year is $156,700, and inflation is 3% the following year, the payout would be $155401 in year two.