Trump Accounts recently launched, allowing American parents to open a free investment account for children born between 2025 and 2028 with a starting balance from the U.S. Government. The accounts even won over a Democratic governor and a staunch critic of President Donald Trump.
Wes Moore Puts Rivalry Aside
Maryland Governor Wes Moore isn’t a fan of many of Trump’s actions, and the two often disagree on major policy issues and how the governor runs his state.
When it comes to Trump Accounts, Moore briefly set the rivalry aside to praise the initiative, a brainchild of Trump and several large investors, including Altimeter Capital founder Brad Gerstner.
"I will give this administration credit for this," Moore said, as reported by Mediaite. "We’ve had Democratic presidents, Republican presidents, who have not been able to get this done."
Moore made the remarks during an interview on "The Clay Cane Show."
"This is actually a smart policy."
While he praised the initiative, Moore had one complaint.
"I hate the fact that he called it a Trump Account. Like, why put his name on this thing, is so unbelievably frustrating and he put his name on everything."
Moore, who said he is focused on ending child poverty and the racial wealth gap, said this is a tool that could help with both.
"On a policy perspective, this is a good thing!"
White House Press Secretary Karoline Leavitt shared a story on Moore’s comments on her social media account, which attracted the attention of Gerstner.
"Thank u Governor – it turns (out) the parents of America agree! Trump Accounts are the #1 app in America for a reason – it’s great policy for America’s kids & families. Thx for your support – every child a direct shareholder in the American Dream!" Gerstner tweeted.
Trump Accounts Launch
Robinhood Markets (NASDAQ:HOOD) is one of the companies that helped create the app and infrastructure of Trump Accounts and could now benefit from the initiative.
Parents and children could be the biggest winners based on historical returns of the S&P 500. The accounts allow investments in low-cost S&P 500 ETFs like the iShares S&P 500 ETF (NYSE:IVV) or a total U.S. stock market ETF like the Vanguard Total Stock Market ETF (NYSE:VTI).
Based on historical returns, a Trump Account from opening to a child turning 18 could grow from $1,000 to $6,000. With annual additional investments of $250 or $5,000, the account could grow to $19,000 or $271,000, respectively.
Parents can add up to $5,000 per year to the accounts, with children able to access them when they turn 18.
The Trump Accounts website also suggests the account could be used later in life, with a balance of $243,000 at age 55 without additional contributions, or $878,000 with $250 per year contributed.
Some employers are also matching the initial $1,000 or smaller amounts for Trump Accounts, adding to the potential value for parents and their children.
Yes, And…?
Criticisms are mounting against Trump Accounts for their highly rigid rules. The Cato Institute, for example, warns that your own money will face worse-than-normal “double-taxation.”
Investment advisors at John G. Ullman & Associates emphasize that the rigid lack of flexibility and constrained index-fund options limit a parent’s goal-based control, and Morningstar sums it up by advising parents to take the “free” $1,000 but steer personal cash toward better alternatives like a 529 or standard IRA.
Read Also: Robinhood CEO Told President They Can Make Trump Accounts 'Robust,' Now Company Could Win Deal
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