Trump Accounts Explained No Cap — Transcript

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1. 0:00And I wanted to just clear the air, tell
2. 0:01you what it is, what it isn't, and share
3. 0:04a a really cool loophole that could make
4. 0:06your kid a multi-millionaire. Now your
5. 0:08your ears are perked up here.
6. 0:10So, what is a Trump account? Well, it's
7. 0:12not really all that political, so do not
8. 0:14fear. Whether you're a Democrat,
9. 0:16Republican, liberal, whatever you are,
10. 0:18it's just a traditional IRA for your
11. 0:21kids.
12. 0:22Nothing more than that. So, any child
13. 0:24under the age of 18 can have a Trump
14. 0:26account. And children who are US-born
15. 0:29citizens between January 1st of 2025 and
16. 0:32December 31st of 2028 qualify for $1,000
17. 0:37of government-funded starter deposit.
18. 0:40So, I had a kid in 2025, and lo and
19. 0:43behold, I was as shocked as anyone that
20. 0:45thousand bucks actually showed up in a
21. 0:47Trump account. And here's the deal.
22. 0:50It is invested in a low-cost index fund
23. 0:54that is based on US stocks, which is
24. 0:56actually pretty awesome. So, you get to
25. 0:58choose between a couple of those, not a
26. 1:00ton of flexibility, but I'm not mad
27. 1:02about it. Here's the deal. This account
28. 1:04is locked up until the kid turns 18.
29. 1:07You can contribute up to $5,000 a year
30. 1:10to this, and here's what I do like about
31. 1:12it. You don't have to have earned
32. 1:13income. My 3-year-old doesn't have to go
33. 1:15get a job in order to contribute to this
34. 1:17like he would with a custodial Roth IRA.