When you think about investing, you probably aren’t thinking about just yourself.

It’s about your family too. That’s certainly been true for me.

As you may know already, I grew up poor. At one point, my family was living out of our car when our money ran out.

So early on, I decided that I was going to lift myself out of poverty by learning everything I could about building wealth.

That’s what led me to pursue a career on Wall Street in the first place.

Throughout my career, I was motivated to reach a point where my mom would never have to worry about money ever again.

Years later, I was able to achieve that goal. Now, one of the reasons I continue investing is to provide a good future for my children.

And of course, I also want to help you along on your investment journey so you can do the same.

Over the past several years, a wave of new financial products that you can use to invest for your children has emerged.

The latest is "Trump Accounts," a new type of child-focused retirement account that could fundamentally change how families think about long-term savings.

These accounts, which are set to launch on July 4, allow parents to open IRA-style investment accounts for their children starting at birth.

In some cases, the government will even contribute an initial seed amount if eligibility criteria are met.

So today, I want to show you how the new Trump Accounts — and some of the similar tools at your disposal — look in practice.

And for that, I’m going to hand it over to a member of our research team who has personally been putting them to work.

The New Building Blocks for Generational Wealth

By James Welch

This is a topic that hits close to home for me, because I didn’t grow up with this kind of financial playbook.

In fact, if I’m being honest, I spent a lot of my younger years doing exactly what you’re not supposed to do financially.

I wasn’t thinking about compounding or long-term wealth. I was thinking about… well, having fun.

Sound familiar?

The good news is that we don’t need to be perfect ourselves to set our kids up for success.

In fact, with the tools available today, you can practically force good financial outcomes over time — as long as you start early and stay consistent.

Here’s a quick rundown of three different accounts that I’m using for my family.

Trump Accounts: The New Name in Town

I’m very interested in these new Trump Accounts. But before I go any further, allow me to quickly explain how the government contribution works.

Based on the current framework, children born within a specific eligibility window (expected to include births between 2025 and 2028) may receive an initial government-funded contribution.

The goal is to give every child a financial head start and let compound growth do the rest over decades.

If your child or even grandchild qualifies, they could have an invested nest egg already working for them right from the start.

Now, there’s another important layer to understand here, especially from a tax standpoint.

Contributions to a Trump Account (Section 530A account) are not tax-deductible for individuals. They’re made with after-tax dollars, similar to a Roth-style contribution.

However, the funds inside the account grow tax-deferred over time, which is where the real long-term benefit comes into play.

But here’s where it gets interesting.

Employers can make deductible contributions of up to $2,500 per year per employee for their dependents.

And for those of you who are self-employed, this creates a very compelling opportunity; you can effectively contribute and capture the tax deduction through your business at the same time.

That’s a powerful combination of flexibility and tax efficiency that didn’t really exist in this form before.

The idea that you can open a retirement-style account for your child at birth — and potentially get a contribution from the government — creates decades of tax-advantaged compounding from day one.

Now, my kids are already a bit older (4 and 6), so they won’t qualify for that initial government contribution window.

That’s fine. I still plan to open accounts for both of them and seed each one with $1,500 to get things going.

From there, I’ll treat it just like any long-term investment vehicle. Consistent contributions, long time horizon, and let compounding do its thing.

Because the structure of the account itself — especially the tax-deferred growth and potential business deduction — is what makes it so compelling, whether the government contributes or not.

But these new accounts are just one piece of the puzzle when it comes to new ways for investing for future generations. 

Acorns: The “Set It and Forget It” Machine

While the Trump Accounts are still rolling out, I've already been using another tool I absolutely love: Acorns.

Specifically, I like their custodial and family-focused features. Here’s how I use it.

For each of my kids, I set up an account and automated a $50 weekly contribution. Nothing that breaks the bank. Just consistent, disciplined investing.

I also started each account with a small lump sum (around $500) to get things moving. And then I basically… forgot about it.

That’s the beauty of a platform like this.

The portfolios are built around diversified ETFs, think broad market exposure like the S&P 500 and international equities bundled together based on your risk tolerance.

There are also several other platforms offering similar functionality, including Greenlight, UNest, and Fidelity Youth Account.

Each has its own twist, but the core idea is the same: automate saving and investing for your kids in a simple, user-friendly way.

But here’s a killer feature on Acorns that really makes a difference…

Acorns offers a “round up” feature. Every time I make a purchase, say, a $5.15 coffee, the system rounds it up to $6 and invests the extra $0.85 in my kids' accounts.

It sounds small, almost insignificant.

But over time, it adds up faster than you think. You can even choose to 2X or 3X the round-ups for maximum impact. I set mine at 3X.

And because it’s automated, it removes the friction. I’m not deciding every day to invest. It’s just happening in the background.

Even though I didn’t start these accounts when my kids were born, each one has roughly $15,000 saved already.

Let me say that again.

About $15,000… from relatively small, consistent contributions and automation.

And here’s the kicker: even if I never added another dollar, that money is now working for them.

Compounding… Growing… Building a financial base they didn't have to think about. That’s powerful.

Acorns also has a feature called “Early” that I plan to use when my kids are a bit older.

It introduces them to basic financial concepts using a debit card and simple investing tools. In my view, that’s just as important as the money itself, teaching them how to manage it.

Because let’s face it, giving someone money without teaching them what to do with it doesn’t usually end well.

529 Plans: The Classic Choice That Still Matters

Now, the third pillar of my approach is the old-school 529 college savings plan. And despite all the new tools, I still think this one is incredibly important.

I’ve been contributing to 529 plans for both of my kids since they were born, and I’ve encouraged family members, grandparents especially, to do the same.

At this point, I feel very good about where those accounts stand. Their education is on solid footing.

But what I’ve learned over time is that many of the concerns people have about 529 plans are outdated.

There’s this idea that the money is “locked up” and can only be used for college, or else you get penalized.

That’s not really the case anymore. Rules have evolved.

You can now transfer unused funds into an IRA under certain conditions. You can reassign the account to another family member. You can use it for a variety of education-related expenses beyond just tuition.

In other words, there’s more flexibility than most people realize.

Another important point: you don’t have to use your home state’s plan.

Yes, some states, like New York, where I live, offer tax advantages for contributions. And that’s great.

But you can absolutely shop around for the best-performing plans if that matters more to you.

Just make sure you understand the rules before committing.

DO NOT Wait to Get Started

When I step back and look at the full picture — the 529 plans, Acorns, and the new Trump Accounts — I feel proud that I’m building a strong financial foundation for my kids.

Not just for college, but for life. And that’s really the goal here.

Because the reality is, not everyone starts from the same place.

I was fortunate. My parents did ok financially and were able to help. Not everyone has that advantage.

What’s really exciting is that these tools level the playing field in a way we haven’t seen before.

You don’t need to be wealthy to get started. You just need to start.

Even small amounts, $10 a week, $25 a week, can turn into something meaningful over time if you stay consistent.

That’s the part people underestimate.

Compounding doesn’t care how much you start with. It cares how long you stay invested.

So, if there’s one message I want to leave you with, it’s this…

Don’t wait!

Don’t overthink it. Don’t try to time the market. Don’t worry about doing it perfectly.

Just open the accounts, set up automatic contributions, and let time do the heavy lifting.

Because years from now, when you look back, you won’t remember the exact dollar amounts you put in.

You’ll just be glad you started. And more importantly, your kids will be too.