Good Afternoon,

One topic that has been generating quite a few questions lately is the new Trump Accounts, especially as they begin rolling out this summer.

At a high level, these accounts provide a $1,000 government-funded investment contribution for children born between 2025 and 2028. Anytime someone is willing to give your child or grandchild $1,000 to invest, it’s probably worth paying attention.

The way we’re thinking about how these fit into a financial plan is fairly simple. This is not a replacement for a 529 plan, retirement savings, or any of the other foundational planning strategies we typically recommend. In fact, one of the biggest mistakes we see is when new account types get positioned as the next great thing, and people lose sight of the bigger picture.

Instead, we view these accounts as another tool in the toolbox. If you’re already building emergency reserves, taking advantage of employer retirement plan matches, funding a 529 plan, and saving toward your long-term goals, this could be an additional bucket worth considering for children.

If your child or grandchild is someone who qualifies for the initial $1,000 contribution, we believe it may be worth considering as part of your overall financial plan. The planning opportunity here isn’t really the $1,000 itself. It’s the amount of time that money has the potential to grow. A child born in 2025 could have nearly 20 years before reaching adulthood. Add in a few contributions from parents or grandparents over the years, and suddenly that initial $1,000 becomes much more meaningful. That’s the power of compounding at work.

We also think grandparents may find these accounts particularly interesting. Many of our clients are already helping fund 529 plans or making gifts to children and grandchildren. Depending on the family’s goals, this could be another way to help jumpstart long-term savings for the next generation.

Our current thinking is straightforward:

• If your child or grandchild qualifies for the $1,000 contribution, consider taking advantage of it.
• Continue prioritizing the savings and investment strategies that best align with your overall plan.
• Think of this as a complement to what you’re already doing, not a replacement.

As with most planning decisions, the account itself isn’t the strategy. The strategy is determining how it fits into your family’s overall financial picture.

For families with children born between 2025 and 2028, this might be an opportunity worth exploring, and we’re happy to help evaluate whether it makes sense for your situation.

Myles Zueger