From 24/7 Wall St. · Chris Lange · · 1m 10s
Suze Orman on Trump Accounts
Suze Orman says most parents shouldn't fund Trump Accounts for kids.
In brief
Suze Orman says most parents shouldn't fund Trump Accounts for kids. Suze Orman advises parents to avoid adding their own money to Trump Accounts until their finances meet five specific criteria. Originally reported by 24/7 Wall St..
Trump Account Basics
Suze Orman says most American parents should not fund Trump Accounts for their children until their finances are secure.
“Until your financial life is in great shape, I don’t want you to contribute to a Trump Account for a child. Period.”
Musk's SpaceX Gift
Elon Musk pledged to give every American child a SpaceX share next year, suggesting Trump Accounts as the delivery method.
“Next year, I will give one of my SpaceX shares to every kid in America. This will be the first of many.”
Free Money Sources
Children born in 2025-2028 get $1,000 federal deposits, and employers can contribute up to $2,500 per employee annually.
“That’s free money no one should pass up.”
Five Red Flags
Orman lists emergency savings less than eight months, credit card debt, student loans, car loans, and retirement savings off track as reasons to avoid adding personal funds.
“Emergency savings that cover less than eight months of living expenses”
Who Should Fund
Households with full emergency funds, no consumer debt, and retirement savings on track can add up to $5,000 annually to Trump Accounts.
“U.S. Code section 530A caps annual contributions at $5,000”
Better Alternatives
For teens with jobs, Orman prefers Roth IRAs; for college, 529 plans offer tax-free distributions.
“Exploring a 529 plan is likely smarter, especially because they offer tax-free distributions.”
The headline
Suze Orman advises parents to avoid adding their own money to Trump Accounts until their finances meet five specific criteria.
