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Posted on 07/06/2026 12:29:57 PM PDT by DIRTYSECRET
"Think of it," Mr. Trump said. "Children that are born without money, without any money, great parents, they can have everything can be great, but they have no money. They could become very wealthy children at 18."
(Excerpt) Read more at cbsnews.com ...
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My one issue: An 18 year old with an 18 year account given $5k/year by others. With that much money could it make our young adults lazy? Withdrawal restrictions need to be strict. Hopefully watching it grow will change their way of thinking as Trump advised against spending it. The real kicker is Trump's name on the accounts-gotta infuriate the left. Are the rats proud of Obamacare?
Now if they could just make them Roths.
The real kicker is Trump’s name on the accounts-gotta infuriate the left.
Amen the left will be gnawing on their chairs.
I saw the Boston Globe today had a front page story on these financial instruments — the headline referred to “Children’s IRAs” IIRC.
They cannot give Trump credit for anything.
I just mowed yards and bucked bails.
I think this is what Social Security should have been turned into back in the 70s. Maybe this is a step toward that path?
Had my SSA contributions gone into even a slow-growth fund back in the 1970s instead of a Fedzilla slush fund, I would be a lot better off today.
The 18-year old you reference will have choices. College, Trade School, or blow it all on drugs and a new motorcycle. Needs oversight.
I don’t think it will create a generation of trust fund babies, but you never know.
I support this plan.
My granddaughter's minor account (a UGMA account made before the OBBB and Trump accounts) has $7,349, up $2,349 from the original $5,000 I put into it 14 months ago shortly after she was born. Up 47% in 14 months. Withdrawals from it will face capital gains taxes.
But the Trump accounts will be taxed like IRAs after the kid turns 18. In other words, all withdrawals will be taxed like normal income. With UGMA accounts (minor accounts like we've had for years) the withdrawals will be taxed at capital gains rate, not normal income tax rate. If it's a large amount, the capital gains rate is better.
The exception would be if the young adult (after 18) isn't working and does withdrawals from the Trump account. Because normal income tax has a high standard deduction, withdrawals from a Trump account would allow for a huge portion to be not taxed until taxes kick in. But if the young adult is working anyway (and making more income to max out the standard deduction) and adds to that withdrawals from the Trump account, then it would be taxed less if it was in a standard UGMA (lower tax rates for long term capital gains). So whether a UGMA account or Trump account is better depends on if the "kid" will be working while taking withdrawals.
Another difference, Trump accounts last I read have limitations on what kind of mutual funds you can invest in. Things like index funds only. UGMA accounts can invest in any mutual fund type (my granddaughter's is split between a S&P 500 index fund and a small-cap value fund). So on investing options, UGMA's win.
One thing that's good about Trump accounts though is free money from the government to start it. As far as free money goes, Trump accounts are better.
And I’m going to listen to CBS News tell me “what to know”? About anything?!
According to trumpaccounts.gov an 18 year old investing $5k/year will have $271k by the time he/she turns 18. We have to assume there’s a 6% growth rate built in.
With that much money no one can plead poverty and go on the dole. If they don’t need welfare they won’t need democrats. Threats to that 6% growth will be confronted-government spending-people not towing the line employment-wise. Immigration-good immigration?
SSI-W tried but failed. Trump accounts will slowly replace that ponzi scheme.
Gonna be awesome.
True born mean
**Withdrawals from it will face capital gains taxes.**
Agree-needs to be fixed. I mentioned Roths. That would really fry the left but it’s only fair if money going into the account is after taxes.
**So whether a UGMA account or Trump account is better depends on if the “kid” will be working while taking withdrawals.**
You lost me only because it’s complicated. Confining the money to index funds is simpler because a young worker is in a better position to just go out and make more money. At age 40 or 50 one can follow those investment rules investors subscribe to.
**And I’m going to listen to CBS News tell me “what to know”? About anything?!**
Come on man!
I believe.
The fear in the back of my head is inflation.
Even with a 4% growth rate, it's not bad. Six percent is entirely reasonable. Higher should be expected.
We weathered the '02 Gore-market-crash when he sued to win. Lost about 30% then. The '08 crash, we lost almost 50% of our investment value in IRAs.
It all rebounded. Investing in America is a safe bet!
Over the long-term. Unless the commies take over. Then all that lifelong work, investment, and savings, can be confiscated in one vote if the House, Senate, and White House are taken over by the commmies.
Rely on SeeBS’s account of the program? Don’t think so.
We started with a fifty buck monthly contribution to UTMA for our kids back in the ‘90s. For their educational expenses (tuition, books, etc.).Eighteen years. Then it had to be an UGMA.
Clinton’s Congress changed the rules and it all became taxable at capital gains rates of 20% when you pull it out.
That’s what happens when Congress changes the laws on educational investment accounts.
If they can do that on a whim, there is no stopping them from confiscating our investment accounts. For the good of the people.
Good for you for doing $50/month investing for your kids in the 1990’s when $50 was real money. And if the long-term capital gains tax is 20%, that means your kids were in a really high capital gains tax bracket. Good job! (even if the Dims taxed it more than they originally said)
Vanguard’s VOO - an S&P Index fund is up 21.03% for the year.
The corrupt ‘press’ will do their best to use the lowest numbers possible in their calculations as a way to degrade the program. White liberal elites hate the working class and their children.
Starting with 21.03% is a really nice start...
Oh man. Just pay the taxes in the beginning and make them all Roths. Much simpler. The problem is if some young fella filled with piss/vinegar/testosterone thinks he can beat the market and invests in too many small company funds that are much riskier. Don’t give him that luxury. When he’s(not she) is 40-50 years of age he’ll know how to be careful.
The education accounts were supposed to be non-taxable. Like a Roth. Congress moved the goal line.
It only took a couple votes to grab 20% of our savings for Fedzilla.
Education savings that we all believed in went taxable on a whim. Twenty percent vigorish to the government.
And the minute the Dems take control again, these accounts will be confiscated or repurposed to support their agenda.
It’s probably covered in the fine print, but also, when you have a 16 yr old kid with $250,000 in his account how do you keep ma and pa’s hands off it, especially if they’re divorcing?
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