The Fearless Girl statue facing off against the Charging Bull sculpture in the Financial District of New York, U.S., on Wednesday, March 8, 2017.
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Government-funded financial investment accounts for children might be on the horizon, and if tech investor Brad Gerstner has his way, corporate America will match the funds. The effort, which is still in the early stages, could prove highly beneficial for companies and their employees.
Gerstner has been working with legislators to promote a legal program referred to as Invest America that would create an investing account seeded with $1,000 for every child that’s born in the U.S., but it’s still early in the process to publicly name advocates. He’s aiming, however, to have legislation passed before the next presidential election. At the same time, he’s working with corporate America to encourage companies to provide matching funds to help employees further their savings.
“The vision is simple– that corporations would include an Invest America match of $1,000 into the Invest America account of children of their employees,” Gerstner, founder and CEO of Altimeter Capital, said in an email. “We have talked to companies ranging from Zillow to Dell to Uber and, based on feedback, the response has been very positive,” he said.
Historically, companies typically have not done much to ensure the financial well-being of employees’ children. That may be changing, amid increased efforts by companies to attract and retain talent with benefits that support workers across multiple aspects of their lives.
About 96% of companies that offered a 401(k) plan in 2022 made planned matching contributions to employees’ retirement savings, according to a survey by the Plan Sponsor Council of America, a trade group. “We expect that company matching to Invest America accounts would be very extensive,” Gerstner said.
Rich Barton, co-founder and CEO of Zillow, said it’s a “no-brainer” for his company to fully support and match the kind of program Gerstner is proposing. “A 401(k)-style investment account from birth seems like a great way to address the growing divide around financial literacy and wealth,” he said in an email. “It is a small investment to help parents achieve more peace of mind.”
Representatives for Microsoft CEO Satya Nadella, Michael Dell and Uber CEO Dara Khosrowshahi, other companies Gerstner mentioned in a recent CNBC interview as being responsive to his pitch, did not respond to email requests for comment.
Getting any federal legislation passed in Washington, D.C., is difficult, including the effort to find larger legislative vehicles with momentum to attach individual ideas to, but here’s a guide on what a matching program might look like and how companies could benefit if Invest America proves to have legs on Capitol Hill.
Why companies would fund another company match
Especially among fast-growing companies, there’s a growing need to offer competitive benefits that address areas that haven’t traditionally been addressed,