Imagine giving your child a head start that could turn them into a millionaire by retirement—without relying on an inheritance or a lucky lottery ticket. Thanks to the new Trump Account, a federal savings initiative launched for children born between 2025 and 2028, this dream can become a reality for proactive parents.

What Is the Trump Account?

The Trump Account is a government-backed investment plan that automatically provides every eligible newborn a $1,000 seed deposit from the U.S. Treasury. Parents, relatives, and employers can then contribute up to $5,000 each year until the child turns 18. All contributions are invested in a low-cost, diversified U.S. stock index fund. 

How Does It Work?

Here’s how you can turn your baby into a future millionaire by maximizing the Trump Account’s benefits:

• Eligibility: Every U.S. child born between January 1, 2025, and December 31, 2028, who has a Social Security number automatically qualifies.
• Automatic Account Creation: The Treasury will open accounts for eligible newborns. Parents can also open accounts for their other children under the age of 18, though only those born within the eligibility window get the $1,000 seed deposit.
• Annual Contributions: Parents, family, and employers can contribute up to $5,000 per year (indexed to inflation). Even contributing only $1,000 per year can have transformational results.
• Investment Growth: All contributions grow tax-deferred in a simple, diversified stock index fund with ultra-low fees (0.1% max).
• At 18, the child can roll the money in the Trump account into his IRA.

The Million-Dollar Baby Projection

If parents invest just $1000 per year into this account beginning at birth and continuing until the child reaches 18 (and make no more contributions thereafter,) the investment could grow to $1.07mm by the time the child reaches 70, assuming an annual return of 7%. How is that for a gift for your newborn?

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