'Trump accounts' for newborns passed the House. Here's why financial experts don't like them.

[Yo_Mama_Been_Loggin]

Pretty soon, every newborn American could be the proud owner of their very own “Trump account.”

The Republican party’s “one big beautiful bill,” which passed the House early Thursday, contains a pilot program that would automatically create a new, tax-advantaged investment account prefunded with $1,000 for each child born from the beginning of 2025 through the end of 2028.

Originally dubbed "MAGA accounts," the acronym stood for “money account for growth and advancement” — obviously meant as a tribute to President Trump’s most famous catchphrase. In an 11th hour amendment, House Republicans voted to put the president's name on the accounts.

-snip-

But financial advisers who spoke with Yahoo Finance warned that, aside from the free seed money, the benefits the accounts offer are relatively paltry compared to other tax-shielded savings options Americans already have available, including the 529 accounts parents use to put away money for college. The new Trump accounts also come tied up with a fairly complex and potentially confusing set of rules.

https://finance.yahoo.com/news/trump-accounts-for-newborns-passed-the-house-heres-why-financial-experts-dont-like-them-161725670.html

Guess they're doing this instead of the $5000 per child. Both fall short.

[sakabatou]

1. Another grift?

[dweller]

2. There is a reason

They are called ‘ trump accounts’ …

I suspect any child who does not survive the 18th birthday … well , it’s a ‘trump account ‘ after all
🫤



✌🏻

[sakabatou]

3. Reminds me of the life insurance commercials for kids

[LymphocyteLover]

6. seriously-- there's gotta be a major catch

[stillcool]

4. Crazy Eddie just came to mind

must be the gimmicky thing. Weird.

[newdeal2]

5. Sounds like that damn big government

I guess his supporters don’t care as long as they get a check.

[LymphocyteLover]

7. Two big problems

first, they just aren't particularly good as college savings accounts or any sort of investment vehicle

second, the name is gross and will turn off a lot of people

[LymphocyteLover]

8. Not clear why this is a pilot program. I guess it's temporary to see if it works

to increase investment by young kids?

I just have to think this money is mostly going to either be used right away by cash strapped families, or will be an embarrassing joke for most kids later in life.