I Wish This Existed When My Kids Were Born (Part 1)
Updated: 7 hours ago
I'll be honest with you. When I heard about Trump Accounts, my first reaction was to think it could be a scam. With the bankruptcy record of other Trump-branded businesses (Trump Steaks, Trump University, Trump Airlines, Trump Vodka, Trump Casinos, etc), I thought that there was no way I would hand my money over! But once I learned that these accounts are overseen by the U.S. Department of the Treasury with The Bank of New York Mellon (BNY) acting as the financial agent, I felt more at ease. I also learned that it was the fintech firm, Robinhood, who built the user-friendly app and serves as the brokerage provider and initial trustee.
My own kids are grown, so this opportunity has passed for my family. But as a parent AND a financial ‘advicer’, had Trump Accounts existed when my children were newborns, I would have opened one up as soon as possible.
Here's why.
Compounding Magic
When my kids were small, I understood intellectually that time was the most powerful force in investing. The earlier money goes to work, the more it multiplies. A dollar invested at birth doesn't just grow — it compounds on its compounding, year after year, for potentially 60+ years.
That's exactly what a Trump Account — officially called a 530A account — is designed to capture.
What is It?
Created under the One Big Beautiful Bill Act of 2025, a Trump Account is a tax-deferred investment account for children under 18. It's invested in low-cost U.S. stock market index fund and grows untouched until your child turns 18, when it converts to a traditional IRA in their name.
No stock-picking. No complexity. Just time and the market doing their thing.
Free Money For Newborns
If your baby was born between January 1, 2025, and December 31, 2028, the federal government will deposit $1,000 directly into their account — just for opening one.
And if you live in a ZIP code where the median household income is $117,300 or less, the Dell Foundation will add another $250.
That's up to $1,250 in free money before you contribute a single dollar of your own!
How to Open One
I had trouble registering my parent account on my computer (because of glare when trying to capture a picture of my government ID), so I encourage you to use the app.
Go to your app store and search “Trump Accounts: Official App”. The developer is U.S. Department of the Treasury.
Complete the steps to claim and activate the account
Make sure you select the $1,000 pilot contribution — it is NOT automatic.
My Honest Advice
Even if you don't plan to contribute a single dollar beyond the government's $1,000 seed, open the account anyway. The free money alone — invested from birth — could grow to over $50,000 by retirement age based on historical market returns. Below are the results of $1000 compounding monthly at 8% (a historical average for broad stock market returns).
And if your family can add to it over time, the ceiling is much, much higher.
I can't do this for my own kids anymore. But you can do it for yours.
Go direct to the source for the latest information: https://www.irs.gov/trumpaccounts
