This doesn't make sense, 57.6k now is not worth the same amount as getting it over the course of 18 yrs. Off the top of my head considering the hidden high inflation in our economy it's probably worth about half, or 28.8k
Investing in a broad index fund will mostly have a return that stays above the average inflation rate over a long period of time -- if businesses are able to operate. The downside is that at any one year the return can be way below the average inflation rate.
The reason is that profitable companies can manage inflation and they will do it at a profit that's above the inflation rate. Also the compounding effect will in time beat inflation.
So yes, it totally makes sense to get a big 56.7k lump sum -if you can keep the owners from spending it on frivolous things.
One issue is coming up with the money. Where will the lump sum come from? It's much easier to come up with the $300 per month.
Another issue is that a group of children will never need to access the 57.6k until it has turned into a very large amount. While others will need to access as much as they can, as soon as possible, just to get their basic needs filled. Therefore expanding the wealth gap between the poor and the rich as adults. 57.6k at 9% could easily turn into 250k in 18 yrs. Or 15 million over 65 yrs.
