00:00So this month also saw the introduction of the Trump accounts for babies. Does that change the saving hierarchy for
00:05parents?
00:06I mean, which do you prioritize if you can't put money into both?
00:09So that's a really great question. I think a Trump account should be looked at as a wealth building account,
00:15an early retirement plan.
00:16It should not really be looked at for an education savings plan.
00:20So for those who are going to get that seed money, you absolutely want to get that free money, that
00:25thousand dollars.
00:26Today, there's about 1.7 million people who have already gotten that. Right.
00:31And so there's a lot more that are eligible. So you want to get that seed money for sure.
00:36But for people that have to make a choice between do I put money in a Trump account for education
00:41or do I go 529?
00:42In my opinion, you go 529 because of the tax benefits for sure.
00:47And then there's down the road. Let's look at Tricia Scarlata writing in January here.
00:51It's a money must read for you this afternoon.
00:54One in six, they owe federal student loans with an average of $39,400.
00:59It's $445 every month. Could go for other financial priorities.
01:06That's the reality. And some of those numbers are much higher for people.
01:09People are just putting off a lot because they have this debt.
01:11So you're graduating college. You're earning an income. You can't move out.
01:15You can't move forward in life because you have this.
01:17And then you have parents who take on debt, take on more debt typically than the child,
01:22and they're delaying their retirement.
01:24So another question here about 529, because I think there's a lot of misconceptions and misperceptions about it, too.
01:30It's a lot more flexible than people realize. I mean, Tom can use it for his grandchildren, too.
01:35You absolutely can. And another difference between a Trump account and a 529,
01:38a Trump account has to be opened by a parent or a guardian.
01:41529 account, anyone can open the account.
01:43I can open one tomorrow if I wanted to go back to school.
01:45Yes, and you can open one for my kids if you'd like.
01:47So, I mean, look, I think a lot of flexibility.
01:50And again, I think the misconception is that it's only for two- and four-year institutions.
01:54It's much wider now.
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