Trump Accounts Go Live: A New Challenge for US Households

President Trump is hosting the heads of the New York Stock Exchange and Nasdaq in the Oval Office today to mark the official launch of the children's investment accounts, dubbed Trump Accounts. The accounts went live on July 4. Exchange officials will ring their respective opening bells directly from the White House — a symbolic moment meant to signal that the stock market is open for everyone's long-term wealth-building. Trump Accounts are custodial-style traditional IRAs for children under 18, owned by the child but administered by a parent or guardian. Investments are limited to low-cost index funds and ETFs tracking broad US equity indexes, such as the S&P 500. There are no withdrawals permitted before age 18. The Future of Trump Accounts and Their Economic Impact, the success of Trump accounts hinges on the participation of lower-income households. If not, the accounts could accumulate for the top earners and widen the wealth gap further in the decades to come. Wealth Disparities and Trump Accounts, the accounts have the potential to reduce the wealth disparities in the US. However, more efforts are needed to ensure equal access and participation from lower-income households.