President Donald Trump’s administration is launching Trump Accounts, a new savings program that gives $1,000 to newborns. The program aims to boost financial independence for American kids by investing in the stock market.
How it Works
Parents can open investment accounts for any child born during Trump’s second term and automatically receive $1,000 from the government. The money is invested in U.S. equity index funds that track the stock market and charge the accounts no more than 0.10% in annual fees.
Children can’t access the money until they turn 18, and then only for specific purposes, like paying for a home or school. Private banks and brokerages will manage the money, and parents can contribute up to $2,500 annually in pretax income.
Donations and Support
Billionaires like Michael Dell and his wife, Susan, have pledged to give $6.25 billion to the accounts of some kids who don’t qualify for the government’s $1,000. Other companies, including Uber and Intel, plan to add Trump Account contributions to their benefits packages.
Supporters of the accounts say they want to introduce more people to the stock market and give even children born into poverty a chance to benefit from it. Critics argue that the accounts do little to help children in their early years and may widen the wealth gap.
Original reporting: Dallas TX News (HLL/CB) — read the source article.
