Didn’t Obama Try to Do This? Why Invest America Could Actually Work—and Change the Country

Back in 2014, President Obama proposed a program called MyRA. It was meant to help working Americans—especially those without access to a 401(k)—save for retirement. It was safe, backed by the Treasury, and structured like a Roth IRA. But it never really took off. Only about 30,000 people signed up before the program was shut down in 2017.

Fast forward to 2025, and a new idea is gaining steam: the Invest America Act, introduced by Senator Ted Cruz. At first glance, it sounds familiar. A government-created investment account. Retirement savings. Building a nest egg. But the differences are critical—and if done right, this could change everything about how Americans build wealth.

The Big Shift: Start at Birth

Unlike MyRA, which targeted adult workers, Invest America accounts would be created at birth for every U.S. child. The federal government would seed each account with $1,000, and from there, anyone—parents, grandparents, friends, even employers—could contribute up to $5,000 per year. The funds would be invested in a broad S&P 500 index, meaning they’d benefit from long-term stock market growth.

Let’s be clear: this isn’t a government-run investment fund. These are private accounts, held by individuals, growing with the economy. That alone is a massive leap from the MyRA model, which limited savers to a low-yield Treasury bond. At the time, that felt “safe,” but it also barely beat inflation. In contrast, the stock market has returned an average of about 7% annually over the long run, adjusted for inflation.

Let’s Talk Numbers: What Could It Be Worth?

To grasp the power of starting early—and compounding—here’s how an Invest America account could look by age 65:

• No contributions beyond the $1,000 seed: $1,000 grows to about $43,000 at a 7% annual return.
• $1,000 added per year for 18 years: Grows to about $475,000 by age 65.
• $2,500/year for 18 years: That could yield just over $1.1 million by retirement.
• Maxing out at $5,000/year for 18 years: You’re looking at roughly $2.2 million by age 65.

And that’s assuming zero contributions after age 18. Imagine what happens if the account owner continues adding to it throughout their adult life.

This isn’t fantasy math—it’s compound interest. The longer the money sits, the more it grows. And unlike Social Security, which is funded by payroll taxes and only pays out after retirement, these accounts belong to the individual. They can be used for college, a first home, or kept growing for retirement. Either way, it’s their asset.

Why the MyRA Failed—and Invest America Might Not

MyRA never scaled because it required people to sign up on their own. It didn’t offer a strong return, and it was capped at around $15,000. It was also tied to employment, so those outside the traditional workforce—like stay-at-home parents or gig workers—were left out.

Invest America fixes all of that. It’s automatic. Every child gets one. It isn’t tied to employment, income, or education. And perhaps most importantly—it invests in the actual economy, not just government bonds.

The result? More Americans would grow up not just as citizens, but as investors. That’s a cultural shift with serious economic power.

Gift Giving, Reimagined

Here’s where it gets fun. Think about your next kid’s birthday invite, graduation, baptism, or bar mitzvah. Instead of asking for toys, what if the invitation included a QR code to the child’s Invest America account?

This is already happening in small ways. “Fiver Parties” are a growing trend where guests are asked to bring $5 for a savings fund instead of a physical gift. Kids might not love it at first—but parents do. And when kids see their account growing, they learn the value of investing early.

With Invest America accounts, this could become the new normal. Every $5 or $20 gift adds fuel to a lifelong asset. And because the account is already created by the government, there’s no friction—no setup hassle, no paperwork, just a quick scan and deposit.

Why Democrats Should Support This

Let’s not pretend this is a hard-right idea. In fact, the original seed of this came from the left. MyRA was Obama’s brainchild. And Democratic senators like Cory Booker have pushed for “baby bonds” that look very similar in structure.

Invest America just takes that progressive ideal—giving every child a fair start—and attaches it to the engine of the American economy. It’s scalable. It’s inclusive. And it’s privately owned.

If you want to reduce the racial wealth gap, this helps. If you want to reduce poverty long-term, this helps. If you want to create a generation of financially literate Americans, this definitely helps.

And unlike a government program that pays out when someone retires or hits a hardship, this one builds wealth proactively. The earlier it starts, the more it compounds, and the more power it gives to future generations.

Didn’t Obama Try to Do This? Why Invest America Could Actually Work—and Change the Country

Back in 2014, President Obama proposed a program called MyRA. It was meant to help working Americans—especially those without access to a 401(k)—save for retirement. It was safe, backed by the Treasury, and structured like a Roth IRA. But it never really took off. Only about 30,000 people signed up before the program was shut down in 2017.

Fast forward to 2025, and a new idea is gaining steam: the Invest America Act, introduced by Senator Ted Cruz. At first glance, it sounds familiar. A government-created investment account. Retirement savings. Building a nest egg. But the differences are critical—and if done right, this could change everything about how Americans build wealth.

The Big Shift: Start at Birth

Unlike MyRA, which targeted adult workers, Invest America accounts would be created at birth for every U.S. child. The federal government would seed each account with $1,000, and from there, anyone—parents, grandparents, friends, even employers—could contribute up to $5,000 per year. The funds would be invested in a broad S&P 500 index, meaning they’d benefit from long-term stock market growth.

Let’s be clear: this isn’t a government-run investment fund. These are private accounts, held by individuals, growing with the economy. That alone is a massive leap from the MyRA model, which limited savers to a low-yield Treasury bond. At the time, that felt “safe,” but it also barely beat inflation. In contrast, the stock market has returned an average of about 7% annually over the long run, adjusted for inflation.

Let’s Talk Numbers: What Could It Be Worth?

To grasp the power of starting early—and compounding—here’s how an Invest America account could look by age 65:

• No contributions beyond the $1,000 seed: $1,000 grows to about $43,000 at a 7% annual return.
• $1,000 added per year for 18 years: Grows to about $475,000 by age 65.
• $2,500/year for 18 years: That could yield just over $1.1 million by retirement.
• Maxing out at $5,000/year for 18 years: You’re looking at roughly $2.2 million by age 65.

And that’s assuming zero contributions after age 18. Imagine what happens if the account owner continues adding to it throughout their adult life.

This isn’t fantasy math—it’s compound interest. The longer the money sits, the more it grows. And unlike Social Security, which is funded by payroll taxes and only pays out after retirement, these accounts belong to the individual. They can be used for college, a first home, or kept growing for retirement. Either way, it’s their asset.

Why the MyRA Failed—and Invest America Might Not

MyRA never scaled because it required people to sign up on their own. It didn’t offer a strong return, and it was capped at around $15,000. It was also tied to employment, so those outside the traditional workforce—like stay-at-home parents or gig workers—were left out.

Invest America fixes all of that. It’s automatic. Every child gets one. It isn’t tied to employment, income, or education. And perhaps most importantly—it invests in the actual economy, not just government bonds.

The result? More Americans would grow up not just as citizens, but as investors. That’s a cultural shift with serious economic power.

Gift Giving, Reimagined

Here’s where it gets fun. Think about your next kid’s birthday invite, graduation, baptism, or bar mitzvah. Instead of asking for toys, what if the invitation included a QR code to the child’s Invest America account?

This is already happening in small ways. “Fiver Parties” are a growing trend where guests are asked to bring $5 for a savings fund instead of a physical gift. Kids might not love it at first—but parents do. And when kids see their account growing, they learn the value of investing early.

With Invest America accounts, this could become the new normal. Every $5 or $20 gift adds fuel to a lifelong asset. And because the account is already created by the government, there’s no friction—no setup hassle, no paperwork, just a quick scan and deposit.

Why Democrats Should Support This

Let’s not pretend this is a hard-right idea. In fact, the original seed of this came from the left. MyRA was Obama’s brainchild. And Democratic senators like Cory Booker have pushed for “baby bonds” that look very similar in structure.

Invest America just takes that progressive ideal—giving every child a fair start—and attaches it to the engine of the American economy. It’s scalable. It’s inclusive. And it’s privately owned.

If you want to reduce the racial wealth gap, this helps. If you want to reduce poverty long-term, this helps. If you want to create a generation of financially literate Americans, this definitely helps.

And unlike a government program that pays out when someone retires or hits a hardship, this one builds wealth proactively. The earlier it starts, the more it compounds, and the more power it gives to future generations.

It’s time we stop giving kids junk they’ll forget in a week—and start giving them a future they’ll never outgrow.

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