Thank you Ray Dalio for adding $250 to the new Trump Account

What a novel idea it was for Trump to create a new type of child retirement account called the "Trump Account" and to encourage contributions to them. The Trump Account provides a $1,000 gift to the accounts of all babies born from 2025 to 2028 (regardless of income, provided they have a social security number). Additionally, you can contribute up to $5,000 per year to these accounts for any child.

Hedge fund billionaire Ray Dalio recently joined Michael Dell in announcing a pledge of $75 million to contribute $250 to Trump Accounts for about 300,000 Connecticut children under the age of 10 and, if funds remain available, older children may also benefit. Similarly, Michael Dell pledged $6.25 billion to the Trump Account program, contributing $250 for roughly 25 million children throughout the U.S.

The CT State Treasurer Erick Russell (D) sought to diminish the Trump Account by arguing that CT Baby Bond Accounts - which provide a $3,200 grant limited to the lowest income households and carry many other restrictions, are a better deal for reducing the racial wealth gap. See story here. Our perspective is that this isn't an "either-or" proposition. If you qualify for both, take both.

Employers are also permitted to contribute up to $2,500 per year to a Trump account and this amount is excluded from the employee's taxable income. Financial giants BNY and BlackRock have already announced such programs. The gap between the initial $3,200 from CT Baby Bonds and the total value of the Trump Account is rapidly closing.

Between the Lines: Make sure you open a Trump Account for each child if you can. Let's celebrate this innovative idea and the generosity of donors like Ray Dalio. Merry Christmas!

Story here