07/17/2026
So I had a few people ask me about the Trump Accounts.
My Take on Trump Accounts: Take the Free Money and Move On
If I had a child who qualified for a Trump Account and the $1,000 government contribution, I would open the account.
Not because I think it's an amazing long-term planning tool. Not because I think families should build their entire savings strategy around it. And certainly not because I think it's the best place to put additional money.
I would open it for one reason: it's free money.
If your child was born during the eligibility window and qualifies for the government-funded contribution, you are essentially being handed a $1,000 investment on their behalf. Once it's in the account, it can grow over time without you having to do much of anything. Even with reasonable long-term market returns, that initial contribution could be worth several thousand dollars by the time your child reaches adulthood.
That's not enough to change their financial future by itself, but it's also hard to argue with a free head start.
Where I differ from some of the excitement surrounding these accounts is what happens next.
Personally, I wouldn't make additional contributions to a Trump Account. There are simply too many other savings and investment vehicles that offer more flexibility, have a longer track record, and are easier to integrate into an overall financial plan. Depending on your goals, options such as 529 plans, Roth IRAs (when eligible), custodial accounts, or even a regular taxable investment account may be better choices.
A lot of the discussion around Trump Accounts focuses on creative strategies that could potentially work years down the road. On paper, some of those ideas look attractive. But financial planning isn't done on paper alone. Rules change. Tax laws change. Family situations change. And an 18-year timeline is a long time to make assumptions about what will happen.
That's why I think the simplest approach is probably the best one.
Open the account if your child qualifies for the free contribution. Claim the government-funded money. Invest it as the account allows. Then leave it alone and let time do the heavy lifting.
In other words, take the free money and let it ride.
For families who don't qualify for the government contribution or another available grant, I'm much less enthusiastic. Without the free funding, the benefits become less compelling, and I would generally rather direct new savings toward other accounts that provide more flexibility and fit more naturally into a comprehensive financial plan.
At the end of the day, every financial account should serve a purpose. The purpose of a Trump Account, in my view, is straightforward: capture the free contribution if you're eligible.
Beyond that, I don't think most families need to complicate things. Open it, take the free money, and focus your additional savings efforts elsewhere.
