I've been in wealth management long enough to know that most folks glaze over when you start talking about retirement accounts for a kid who's still in diapers.
I get it.
Eighteen years can feel like forever, and $12.50 a month feels like nothing. But that's exactly my point.
If you've got a child born in 2025 or later, they likely already got a $1,000 head start from the government in their Trump Account. Regardless of how you feel about the name, that's real money, sitting in an index fund, growing tax deferred, whether you touch it again or not.
But here's where it gets more exciting. Family members can add to it too – up to $5,000 a year, And that opens the door for something Aggies understand better than most – showing up for each other.
Instead of another toy that's forgotten by Christmas, imagine grandma and grandpa, aunts, uncles, or family friends chipping in $12.50 a month toward that account instead. Writing that check doesn’t feel like much. But run the math over 18 years of contributions, and then let it sit untouched until retirement age, and you're looking at real money, the kind that changes what that kid's 60s look like.
This isn't flashy. It won't get talked about at the family reunion the way a new truck would. But that's kind of the simplistic beauty of it. Slow, steady, boring money is still money, and it adds up whether anybody's paying attention or not.
So here's my ask: Next birthday or Christmas, instead of one more gift that ends up in a landfill in a year, throw a little into that account instead. Set it on autopilot if you can. Your future grandkid, or great grandkid, won't remember the toy. But they'll sure feel the difference when they start adulthood with a nest egg instead of nothing.
Gig 'em, and go build something that lasts.
This information is provided for educational purposes only and should not be considered tax or legal advice. Please consult your tax professional regarding your situation. Trump Accounts rules are subject to ongoing IRS guidance.