Altimeter Capital CEO: Key Solution for Closing the Wealth Gap

Altimeter Capital CEO

Brad Gerstner, CEO of Altimeter Capital, asserts that the wealth gap in the U.S. is widening, leading to growing frustration and disenchantment. To address this issue, Gerstner emphasizes the power of compounding, often referred to as the 8th wonder of the world. He believes that leveraging compounding can significantly contribute to closing the wealth gap.

Gerstner is actively working with lawmakers to promote a legislative initiative called Invest America. Under this program, a government-funded investing account with an initial deposit of $1,000 would be created for each of the 3.7 million children born in the U.S. annually. The goal is to make everyone an owner, fostering a sense of universal ownership and participation in the financial system.

Comparing it to a 401(k) from birth, Gerstner envisions private corporations like Uber or United matching contributions to these accounts. Parents who may have been hesitant or unsure about opening an investment account could start saving regularly for their children’s future.

According to Gerstner’s projection, a 30-year-old today, with consistent contributions over three decades, could accumulate over $270,000 in their Invest America account. While some might argue that existing tools like custodial brokerage accounts and 529 accounts already allow parents to invest for their children, Gerstner believes that more needs to be done to bridge the wealth gap.

He envisions a collaborative effort between private businesses and the government to create a system where Americans feel a sense of ownership, countering the perception that the system is rigged against them. In his view, the federal government is the institution best positioned to foster universal ownership in America.

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