In a bold move with far-reaching political and financial implications, President Donald Trump has unveiled a sweeping policy initiative known as “Trump accounts,” which proposes to grant every American child born between December 31, 2024, and January 1, 2029, a \$1,000 government-funded, tax-deferred investment account tied to the stock market. This program aims to foster generational wealth by blending public policy with market capitalism and offering families a pathway to long-term financial security.
The accounts, owned by the child and managed by their guardians until adulthood, are structured similarly to retirement accounts like 401(k)s and IRAs, allowing annual family contributions up to \$5,000. If fully utilized and invested with average market returns of 7%, these accounts could exceed \$500,000 by age 25.