Trump promotes a universal investment plan, giving every newborn $1,000 to invest in stocks.

Birth gifts of stocks, parents can make additional investments!

Written by: Jin Shi Data

On Monday, Trump hosted a roundtable at the White House to promote a key provision in the Republican comprehensive domestic policy bill – the provision of a $1,000 investment account for every newborn in America.

According to a pilot program passed by the House of Representatives, the government will establish these accounts for all children born to American citizens between January 2025 and January 2029, referring to them as “Trump Accounts.”

The $1,000 funded by the government will be deposited into an index fund linked to the entire stock market, managed by the child’s legal guardian.

Each child’s account starts with an amount of 1000 USD, and guardians or other private entities can contribute an additional up to 5000 USD each year throughout the child’s lifetime. These funds will be invested in index funds that track the overall performance of the US stock market.

Account beneficiaries can withdraw 50% of their balance from the age of 18. Starting at age 25, the beneficiary can withdraw the entire balance for eligible purposes, including small business loans and higher education, and by age 30, the beneficiary has full control over the entire balance for any purpose. This type of Trump savings account requires contributions to be made after tax and taxed on long-term capital gains or ordinary federal income at the time of withdrawal, unlike tax-free qualified withdrawals in the 529 Higher Education Savings Account and the Roth Individual Retirement Account.

White House Press Secretary Karoline Leavitt said: “The passage of the Beautiful Act will fundamentally change the lives of working-class and middle-class families across America, as it provides the largest tax cut in history, increases the child tax credit, and creates an incredible new ‘Trump Account’ program that will put young Americans on the right financial path.”

During Monday’s event, House Speaker Mike Johnson emphasized the economic benefits of the “Trump Account,” including increased take-home pay for average families and reduced red tape for small businesses.

The event on Monday was held at the White House State Dining Room, attended by senior executives from Dell, Uber, Altimeter Capital, ARM Corp, Salesforce, ServiceNow, Robinhood, and Goldman Sachs.

CEOs are expected to commit billions of dollars to invest in the “Trump Accounts” for their employees’ children.

Michael Dell, the CEO of Dell Technologies, attended a roundtable meeting on Monday, stating, “Establishing investment accounts for every child will provide substantial financial support for their education, home ownership, and starting a family. Dell Technologies will proudly offer a dollar-for-dollar government seed investment to these accounts for all children of Dell team members.”

He also stated: “The bold move towards a fully public ownership society included in the Reconciliation Bill will bring profound benefits to the nation.”

At the time of this roundtable meeting, the Trump administration is intensifying efforts to ensure that the Senate passes the President’s domestic policy package before July 4.

NBC News was the first to report on this event.

According to the latest data from the National Center for Health Statistics, the number of births in 2023 is 3.6 million, and with the current government funding of $1,000 in initial capital, the “Trump Account” will cost taxpayers $3.6 billion.

But Trump claimed on Monday that the government’s funding has “absolutely no cost” to taxpayers, as it will be funded through the initiatives of the “Beautiful America Act,” including a 3.5% remittance tax on funds sent abroad.

Ann Reilley, CEO of Alpha Financial Advisors, told Yahoo Finance that the “Trump Account” is “not very appealing” to parents or other guardians, adding that “it seems the Trump administration has unnecessarily complicated things.”

Financial experts are skeptical about whether the plan is the best place for parents to set aside funds beyond the $1,000 free gift for their children, as the tax benefits of the plan are relatively limited.