The Secret Weapon That Will Supercharge The ‘Trump Accounts’ For Newborns

There’s a secret weapon tucked inside “Trump Accounts” that gives the each member of the coming generation the chance to have a six-figure investment account by the time they’re 18. Not only will every American child born between January 1, 2025, and December 31, 2028 receive an account loaded with $1,000, courtesy of President Donald Trump, congressional Republicans, and the One Big Beautiful Bill Act. But parents and their employers will be able to make contributions that would super-charge its growth. This month, the Treasury Department pulled back the curtain on how Trump Accounts are designed to work. With the rules now clear, The Daily Wire crunched the numbers to find out what an 18-year-old would have today if they’d received a Trump Account when they were born in 2007. If left untouched, the accounts would be worth nearly six times as much, the financial analysis found, leaving each child to enter adulthood with $5,907. With supplemental investments, however, they’d be set with accounts well into the six figures. To encourage participation, the Trump administration made employer contributions tax-exempt. If a parent’s employer added $2,500 to the account each year, half the allowed contribution, that account would be worth $183,933. And most dramatically, a child whose Trump Account received the maximum $5,000 per year would be sitting on $361,959 today. The analysis showcases how the administration empowers the next generation to unlock compound investing, a financial concept that Albert Einstein once called the eighth wonder of the world. Compound investing is like a snowball rolling down a hill. The $1,000 deposit is the snowball, and as it grows, the returns start adding their own “snow,” making the ball bigger and bigger over time. The money isn’t just sitting there, it’s actively making more money, and that money makes even more money. There is rising concern about the financial prospects for young Americans as costs rise in the country. During the Biden administration, costs of goods increased by roughly 20% over four years. The Trump administration has vowed to tackle affordability issues, and these accounts are part of that strategy, with a top Trump official saying the accounts give each kid “a piece of the American economy.” “It is a trust fund, a piece of the American economy for every child that they will be able to take out when they are 18, or they could convert it to a more IRA-type program,”explained Trump’s Treasury Secretary Scott Bessent. The Trump administration says the accounts will be professionally invested in a low-cost index fund that tracks the overall United States stock market. Once the child turns 18, they will have the option to transition the account into a traditional IRA, setting themselves up with financial stability before they even enter the workforce. The Daily Wire simulated the portfolio assuming the investments were made in the S&P 500, which is an index of the 500 largest companies in America. Historically, investments in the S&P 500 have earned dividends, regular cash payments from companies’...

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