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GTF: What’s the return on the initial $1,000 Trump Account investment?
How much could the initial $1,000 deposit the government is offering for newly created Trump Accounts actually turn into in 55 years? We get the facts, along with our partners at PolitiFact.
The White House has unveiled Trump Accounts, government-backed investment accounts designed to help children build long-term wealth from birth, launching officially in July with a $1,000 seed deposit for babies born between now and 2028. President Donald Trump and the White House have shared estimates on how much this initial deposit could grow over time.Florida Congressman Randy Fine has suggested that, even without additional deposits, a child born now could have $243,000 in their account by age 55. Several investment calculators confirm this estimate, but our partners at PolitiFact note the projection assumes a 10% annual gain, which experts say could vary based on market performance. If a more conservative annual return of 6.7% is used, the account would grow to $40,000 in 55 years.Factors such as management fees and taxes applied when withdrawing money could reduce the final amount. Regardless of the actual return, experts believe the concept behind the accounts, particularly the free $1,000 initial investment, will still benefit people.
The White House has unveiled Trump Accounts, government-backed investment accounts designed to help children build long-term wealth from birth, launching officially in July with a $1,000 seed deposit for babies born between now and 2028. President Donald Trump and the White House have shared estimates on how much this initial deposit could grow over time.
Florida Congressman Randy Fine has suggested that, even without additional deposits, a child born now could have $243,000 in their account by age 55. Several investment calculators confirm this estimate, but our partners at PolitiFact note the projection assumes a 10% annual gain, which experts say could vary based on market performance. If a more conservative annual return of 6.7% is used, the account would grow to $40,000 in 55 years.
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Factors such as management fees and taxes applied when withdrawing money could reduce the final amount. Regardless of the actual return, experts believe the concept behind the accounts, particularly the free $1,000 initial investment, will still benefit people.
