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How Should Baby Bonds Be Invested?

These tools hold enormous promise, but there are some implementation challenges.

The road to implementing a baby bonds program doesn’t come without obstacles. But the positive impact they’ll have is worth putting in the required work.

In a recent column, I summarized new Morningstar analysis on baby bonds. Our conclusion was that a program in which the government contributed to children’s accounts based on their families’ incomes could help dramatically reduce the racial wealth gap and help to level the playing field for children as they turn 18 and became independent.