3 Things 10-20-25

 Thing One

$1,000 at Birth, $5 Million by Age 65

Much has been made of the division in our country. In fact, hardly a day goes by when some media personality or politician isn't on camera or on social media highlighting the disparity between the haves and the have nots. The only solution ever offered up by the critics though seems to be some type of Robinhood scheme where the rich are taxed and the money is given to the poor. Unironically for those of us who have been paying attention to the politicians and other elites trying to effectuate variations of this strategy for decades, the poor don't ever seem to benefit in the way that their advocates advertise. Lucky for them, and the rest of us interested in the wellbeing of our fellow man, there was a potential game changer included in the One Big Beautiful Bill Act (OBBA) which was passed on July 4, 2025.

The Invest America Account, created under the (OBBBA), is a tax-advantaged way to give kids an ownership stake from the start. Any U.S. citizen under 18 can have an account established beginning in 2026, and children born between January 1, 2025, and December 31, 2028 receive an automatic $1,000 government contribution at birth. The intent is to make investing as routine as immunizations—automatic, early, and built to compound.

Families (plus employers) can contribute up to $5,000 per year combined from all taxable sources into a child’s account. That means, for example, a mom and dad, a family friend, and grandparent together can put in $5,000 total in any one year. Also, certain nonprofits or government programs can add funds outside that cap. Contributions are cash only and going over the annual limit triggers penalties on the excess.

Money inside an Invest America Account is invested in approved diversified funds and grows tax-free. Withdrawals are locked until age 18, ensuring time in the market. Using the simple assumption of a 7% annual return, starting with the $1,000 seed and adding $5,000 every year through age 18, the account would grow to about $185,511. Ownership would then transfers to the beneficiary (the now adult child) in an IRA-style account.

From 18 to 21, imagine the young adult adds nothing while they're in college. Instead, they just let it ride. Even without the annual contributions for those 4 years, that balance would grow to ~$243,168. Starting at age 22, let's assume they get a job and contribute a modest $2,000 per year for ther rest of their working years. Using the same return assumptions, the account would grow to about $4,990,000 by age 65—with only about $86,000 of personal contributions made after age 22. That’s the power of starting early and letting compounding do the heavy lifting. And it's a much more effective way of addressing the wealth gap than protesting the haves.

For clarifaction's sake, each Invest America Account is a trust for the exclusive benefit of the child. Assets aren’t co-mingled, and the value is non-forfeitable. Oversight comes from Treasury/IRS, with approved financial institutions serving as custodians. The program applies to tax years after December 31, 2025, so families can begin opening accounts in early 2026 for all minors, not just newborns.

Thing Two  

Why Paying for a Medigap Plan Can Save You More Than a “Free” Medicare Advantage Plan

When it comes to Medicare, “free” can be deceiving. Many Medicare Advantage plans advertise a $0 monthly premium, which understandably catches attention. But those plans often come with trade-offs—limited networks, unpredictable out-of-pocket costs, and variable coverage rules. By contrast, Medigap (Medicare Supplement) plans charge a monthly premium but offer simplicity, consistency, and freedom of choice that many retirees value more than a low sticker price.

A Medigap plan works alongside Original Medicare (Parts A and B) to cover what Medicare doesn’t—like deductibles, copays, and coinsurance. The result? Predictable costs and fewer billing surprises. Plus, Medigap lets you see any doctor or specialist nationwide who accepts Medicare, with no network restrictions or referrals. Medicare Advantage plans, while often cheaper upfront, typically require you to stay within certain provider networks, which can complicate access to care if you travel, move, or prefer certain specialists.

The real appeal of Medigap is cost predictability. You know your monthly premium and, aside from the standard Part B deductible, that’s often it. Medicare Advantage plans may start at zero premium but can hit you with copays, coinsurance, and yearly out-of-pocket maximums up to several thousand dollars—especially if you need frequent or specialized care. In other words, Medigap shifts you from “pay as you go” to “pay for peace of mind.”

When serious or unexpected health issues arise, Medigap coverage holds steady. Hospital stays, surgeries, or long-term treatments are covered consistently without worrying about prior authorizations or changing provider networks. Medicare Advantage plans can—and often do—adjust benefits, provider lists, or copay levels each year. Medigap, on the other hand, is standardized and guaranteed renewable, meaning your coverage can’t be canceled as long as you keep paying your premium.

For retirees who value simplicity, control, and nationwide access, Medigap delivers long-term stability. There’s no need to shop for a new plan every year or worry about network restrictions. You pay a bit more each month, but you eliminate the uncertainty of unpredictable bills. Think of it as paying for peace of mind rather than surprises—a trade-off many find worthwhile as they age and rely more on consistent healthcare.

Ultimately, choosing between Medigap and Medicare Advantage comes down to priorities. If you’re healthy, rarely visit doctors, and want the lowest monthly cost, a $0 Advantage plan might be enough. But if you prefer freedom of choice, predictable spending, and protection from big medical bills, a Medigap plan often wins in the long run. The monthly premium buys what insurance is truly meant to provide: financial security and lasting confidence in your healthcare.

Thing Three

Just A Thought  

"A businessman cannot force you to buy his product; if he makes a mistake, he suffers the consequences; if he fails, he takes the loss. If bureaucrat makes a mistake, you suffer the consequences; if he fails, he passes the loss on to you." - Ayn Rand