A new opportunity for young investors

One of the newest financial planning opportunities for families is the introduction of Trump Accounts—a government-sponsored investment program designed to give eligible children a head start on building long-term wealth.

For children who qualify, the federal government will contribute $1,000 into an investment account that is invested in a diversified U.S. stock index fund. Combined with additional contributions from family members, employers, and private donors, these accounts have the potential to grow significantly over time.

Who Is Eligible for a Trump Account?

The initial $1,000 government contribution is available for:

· U.S. citizen children born between January 1, 2025, and December 31, 2028

· Children with a valid Social Security number

· Children whose parent or guardian completes the required enrollment process

If you recently welcomed a new addition to your family, this is a benefit you’ll want to be aware of.

Do Older Children Qualify for Trump Accounts?

While children born before January 1, 2025, are not eligible for the government’s $1,000 contribution, there may still be opportunities available through private charitable organizations.

Several philanthropic groups have already committed billions of dollars to help children begin investing for their future.

As the program grows, additional employers, corporations, and charitable organizations are expected to announce their own contribution programs.

How Do Trump Accounts Work?

The government’s contribution is invested in a low-cost, diversified U.S. stock index fund with the goal of long-term growth. Family members, friends, employers, and qualified charitable organizations may also be able to contribute, subject to annual contribution limits.

Like any investment account, the greatest advantage comes from giving the money time to grow. Starting early allows compound growth to work in your child’s favor over many years.

When Can the Funds Be Used?

In general, beneficiaries can begin accessing the account at age 18, subject to the program’s rules and tax treatment. Funds may be available for qualifying purposes such as:

· College or vocational education

· Purchasing a first home

· Starting a business

· Other eligible long-term financial goals

Final Thoughts

If your child, or a grandchild, was born between January 1, 2025, and December 31, 2028, it’s worth taking a few minutes to determine whether they’re eligible for a Trump Account. Even if your child doesn’t qualify for the federal contribution, there may be charitable or employer-sponsored opportunities available.

If you have questions about how a Trump Account fits into your family’s overall financial plan, we’re always happy to help you explore your options and discuss how this program may complement your long-term savings goals.

Written by Katie Junk

What you need to know about Trump Accounts