People often talk about getting on the property ladder, but property is only one asset used to create wealth.

Stocks are the main asset used by the rich.

Imagine a person born into poverty who receives a certificate on her/his 21st birthday that represents more money in real inflation-adjusted terms than they could earn in a year at minimum wage.

This is a viable option if the person receives a stock birth certificate and is unable to cash it in for at least 21 years.

Let's crunch some numbers for the grantee/recipient. Assume a $1,000 investment at birth, an annual real rate of return (after fees, taxes and inflation) of 3%, and Compound for 20 years. According to this handy compound interest calculator, a 21-year-old grantee would have $18,0611. Now assuming that this person's only job prospect is the U.S. minimum wage, which is $7.25 per hour, and they work 8 hours a day for 20 consecutive days for 12 months (no holidays), they could earn $13,920 per year. 18,0611 could change their life.

The $1,000 seed money invested at birth came from a donor – more on that later.

At age 21, grantees can choose to cash in any percentage they want. Some will invest it into retirement. Some will put it all into sex, drugs and rock 'n' roll. At age 21, that's their call. Until age 21, it must remain invested.

These stock birth certificates have three values.

– Cash value. 18,0611 is a significant amount of money.

– Learn the value. Understanding the Compound value of stocks in such a simple and instinctive way can also change their lives.

– The value of popular commitment to the free market system. This is where the interests of donors and grantees intersect. Donors want/need a society committed to a free market system so that people will resist the sirens of dictators left and right; because they see that free market innovation can put money in their pockets.

Now let's crunch some numbers for the donors.

  • The minimum commitment is $100,000 = $1,000 for each of 100 babies.
  • Suppose some people donate $1 million for a family with $100 million in assets = 1,000 babies = 1%, while the super-rich donate 1% of their $1 billion wealth = $10 million = 10,000 babies.
  • Donors cannot choose which shares to use or choose recipients, and all donations are anonymous

The concept of a stock birth certificate requires government support because it is critical that the recipient can rise tax-free and allow the donor to receive a tax deduction. The first country to do so will prosper from massive wealth creation.

There is no market timing, but rather a free education in the value of being greedy when others are afraid and vice versa. Stocks have generated positive returns during most 20-year periods, so even babies born late in a bull market usually can.

However, babies born when conventional wisdom hates stocks will do best. More than 400,000 newborns are born every day, so when this magazine trumpets the "demise of stocks" (photo credit), those lucky enough to be born do well – free education on the value of greed when others are afraid, and vice versa when stocks When stocks are hyped up by the media, they compare the value of certificates to those who invest.


The equity assets on the birth certificate must be free and global. This will require a number of global index providers to become partners.

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Part 1

Part 2

Part 3

Part 4

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