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Trump’s $1,000 Baby Boost
Breaking down the math.
Words I like: Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it - Albert Einstein
Pablo’s Perspective:
President Trump’s proposed “Trump Accounts” would give every baby born between 2025–2028 a $1,000 tax-deferred investment account in a stock index. Families could add up to $5K/year, with partial access at 18 and full access at 30. Gains would be taxed as long-term capital gains.
If you only invested the $1,000 once (at 10% average annual return):
At 18 years: ~$5,560
At 30 years: ~$17,450
At 60 years: ~$304,480
If you added $100/month from birth (same 10% return):
At 18 years: ~$45,700
At 30 years: ~$226,000
At 60 years: ~$3,170,000
Bottom line: Whether this bill passes or not, the real win is starting early and letting compound interest do its thing. Don’t wait for politicians to build your family’s generational wealth.
You don’t have to wait for this to pass—open a low-cost index fund account today for your kids (or yourself).
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Did You Know?
The White House was valued at $413M in 2023, according to Zillow’s Zestimate.
Jesus…
-Pablo,