In Reply to: Re: Trump accounts are not voluntary posted by russsmith on October 08, 2026 at 11:03:30
> Dell is putting up 250 per child, the government 1000.
I stand corrected on that point.
I also think it’s important to distinguish between 529s and Trump Accounts. They are designed for two different purposes. A 529 is primarily an education savings vehicle, while a Trump Account is essentially a long-term investment/retirement account for the child. You can, however, use the money for qualified education expenses under the applicable IRA rules.
The bigger idea behind the Trump Account is that most parents aren't financially sophisticated enough to know how to invest effectively for their children's long-term future. Giving every child a head start in a tax-advantaged investment account allows compound interest and market growth to do some of the work over decades.
I see this as a good experiment. Social Security's long-term finances are a serious problem, and the math suggests that the system will eventually have to change substantially for today's children. Giving young people a pool of invested assets that compounds for decades could potentially provide an additional layer of financial security when they reach retirement.