'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.

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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.