It's not exactly groundbreaking news that Americans have a major retirement and savings problem. But this month, a group of Wall Street executives will meet with leaders in Washington, D.C., to discuss a game plan to address those problems, such as saving for education and retirement.
After two years of research, Wall Street execs from Bank of America, Goldman Sachs and ING U.S. Financial Services, along with other industry leaders and public policy experts, will meet in the U.S. capital on May 3 to propose a series of policy recommendations for increasing financial security for Americans.
The proposals include the creation of four investment vehicles: home accounts used for down payments on homes, a standardized IRA with a government match for Americans without access to employer-based retirement plans, a basic life annuity to complement Social Security and child trust-fund accounts.
Child trust fund accounts were launched in Great Britain in 2003. Parents of newborns receive vouchers from the government equal to $450 that must be used to open a savings account on the child's behalf. No withdrawals can be made until the child turns 18, at which point the money can be rolled over or withdrawn for any purpose.
The proposals are part of the The Initiative on Financial Security at the Aspen Institute, an international nonprofit organization.
