00:00What is a Trump account?
00:02The idea is that every child should have money invested and that that will, over their lifetimes, make them wealthier.
00:16It'll help them build wealth, narrow the wealth gap.
00:20You start with $1,000 and then the $1,000 is coming from the federal government.
00:26But the other thing that they're hoping people do is that they're hoping employers pitch in on behalf of their
00:35employees' kids.
00:38They're also hoping that philanthropists step up and Michael Dell did step up with a $6 billion donation.
00:47And they're hoping that parents contribute to their kids' accounts over time.
00:52How would these accounts differ from other wealth-building programs for families that already exist, that perhaps wealthier families already
00:59take advantage of, like retirement accounts, 529 college savings accounts, or other tax-advantaged plans?
01:06So the tax advantages are just much less than a regular retirement account or a 529 account.
01:14The money that comes out of a Trump account at the end of the process is treated and taxed as
01:23ordinary income.
01:24The big advantage of the Trump account for a family is this $1,000.
01:27Like, even people who are skeptics of Trump accounts say, there's no doubt that if your baby is eligible for
01:35this, you should sign up and you should access this money.
01:38There's just no doubt.
01:39Like, that's free money for you.
01:41Now, should you save your own money in a Trump account?
01:43Maybe not.
01:45Like, actually, probably not, according to the financial advisors we've talked to.
01:48Financial advisors say, you know, like, a 529 plan is probably a better investment for your kid's college if it's
01:58you putting the money.
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