Dells Commit $6.25 Billion to Launch ‘Trump Accounts‘ for Young Americans
AUSTIN, TX – Teh Dell family is pledging $6.25 billion to establish up to 25 million “Trump Accounts” designed to provide a financial head start for children, the family announced today. These accounts will offer a savings vehicle with the potential for significant growth through investment in low-cost index funds.
The initiative aims to empower the next generation with financial resources, offering each eligible child $250 to begin investing. Accounts will be eligible for additional annual contributions of up to $5,000 until the beneficiary reaches age 18, with withdrawals prohibited until that age.
According to the white House council of Economic Advisers, funds within the Trump Accounts can be invested only in low-cost index funds or ETFs mirroring the S&P 500 or “another American stock index.”
“These investment accounts are simple, secure, and structured to grow in value through market returns over time,” the dell family stated.
Financial experts highlight the potential for considerable long-term gains. Charles Schwab tax planning director Hayden Adams recently wrote that, assuming a 6% annual growth rate and maximum contributions, “by age 18, the child’s account would hold around $191,000 in assets.” Upon reaching 18,the accounts can be converted to a traditional individual retirement account,allowing for continued tax-free accumulation of potential gains.
The Dells, one of America’s wealthiest families with a fortune of nearly $150 billion according to Bloomberg Billionaires, built their wealth primarily through Dell Technologies, founded by michael Dell in 1984. Recent growth in Dell’s share value has been driven by its role as a supplier of servers and technology within the burgeoning artificial intelligence sector.
This is a developing story. Please check back for updates.
