Trump Accounts have a bigger problem than billionaire stock donations
The proposal to allow billionaires to donate stock directly into Trump Accounts has raised concerns about investment risks for children. Currently, only 6.6 million out of 73 million eligible children have these accounts due to complex enrollment requirements. The article suggests that automatic enrollment could significantly increase participation and benefit all eligible children.
- ▪The Trump Accounts program allows for employer matches and philanthropic contributions but lacks the infrastructure for stock donations.
- ▪Currently, only 6.6 million children are enrolled in Trump Accounts, while about 73 million are eligible.
- ▪The enrollment process requires parents to file a tax form or navigate a government website, which has led to low participation rates.
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Earlier this month, The New York Times reported that White House and Treasury officials have discussed allowing billionaires to donate shares of stock directly into Trump Accounts, the new $1,000 investment accounts created for (most) American children.Recommended Video The idea alarmed many readers. One child’s account might receive stock in the next Nvidia while another receives stock in a future Enron. Within hours, the proposal’s lead advocate, Brad Gerstner, called the report “misleading,” clarifying that all funds would remain in a diversified index fund — the only option the law currently allows to protect children from the volatility of individual stock picking. If that is correct, the immediate investment risk to children is smaller than it first appeared.
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