Monday, July 6, 2009

Oil Payments for Alaska Citizens

I just got back from fishing trip in Alaska. I had an interesting conversation with a couple who are residents of Alaska. They get a check every year from the government. Think of the check as a royalty payment for the oil that comes from Alaska. Every resident of Alaska gets one - even their 18 month old daughter got one last year. According to them the checks have ranged from about $800 to $2,000. That's a sweet deal. It got me to thinking though. I live in Arizona so how come I don't get a check based on the copper that gets mined here in my great state? I think I am going to write my local legislators. You see, if my kids each got a $1,000 check each year from birth to age 18 and I put their check into an account making a measly 6%, they would have $30,905 for college and I wouldn't have to have contributed a dime. If I could get 10%, which is less than the long term average of the stock market, that little college fund would be worth $45,599. That pays for four years at any state college in Arizona - sweet!

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