Should You Open A "Trump" Account For Your Child?

"Trump Accounts" go live this week.

My high-level take...

If you have a child born between 2025 and 2028, open one and take the free $1,000.

To me, that's the equivalent of an employer 401(k) match. If someone is offering free money, it's usually worth taking.

If your child wasn't born during that window, the answer becomes... it depends.

You could contribute the annual maximum ($5,000) and let it compound for 18+ years. At a reasonable rate of return, it could grow into a meaningful sum.

Another potential benefit is converting some or all of the account to a Roth IRA during early adulthood, when the child may be in a very low tax bracket.

That said, I'm generally not a fan of putting too much money into an account that a child legally controls at age 18 (or 21 for UTMAs in some states), regardless of how well you've taught them about money. For more substantial wealth transfers, a trust is often the better solution.

If my daughter hadn't been born in 2025, I'm not sure I'd open one.

Take the free $1,000.

Beyond that, I think there are perfectly reasonable arguments for sticking with a 529 and UTMA.

That's my personal take.