Latest / Triple Da Money / TRUMP’S BABY INVESTMENT ACCOUNT: SMART POLICY OR HYPE?

Transcript

TRUMP’S BABY INVESTMENT ACCOUNT: SMART POLICY OR HYPE? · Triple Da Money

• 0:00
  SPEAKER_01: What if I told you there's an account that the government opened for you as a baby?
• 0:03
  SPEAKER_01: They put$1,000 in and invest it for you.
• 0:06
  SPEAKER_01: Wait, that's real?
• 0:08
  SPEAKER_02: It's real.
• 0:09
  SPEAKER_02: Some people think it's genius, but other people think it's overrated.
• 0:14
  SPEAKER_00: So we're settling it in court.
• 0:18
  SPEAKER_00: Order, order in the court.
• 0:20
  SPEAKER_00: This is my baby dollar, and I want him to have a lot of sense.
• 0:24
  SPEAKER_02: Here's the simple version.
• 0:25
  SPEAKER_02: A Trump account is like an investment account, but for kids.
• 0:29
  SPEAKER_02: If your kid is a US citizen born between 2025 and 2028, the government drops in a$1,000 one-time lump sum.
• 0:40
  SPEAKER_02: Family can add up to$5,000 a year, and employers can chip in too.
• 0:46
  SPEAKER_02: It gets invested in US index funds like the SP 500, and nobody can touch it until a kid turns 18.
• 0:54
  SPEAKER_00: It's locked until 18?
• 0:56
  SPEAKER_00: Locked.
• 0:57
  SPEAKER_00: Hi, locked.
• 0:58
  SPEAKER_00: I'm dad.
• 0:59
  SPEAKER_00: Prosecution, make your case.
• 1:01
  SPEAKER_01: Exhibit A.
• 1:03
  SPEAKER_01: Thousand bucks sounds big.
• 1:05
  SPEAKER_01: Thanks to inflation, in 18 years, it will buy way less.
• 1:09
  SPEAKER_01: It's not life-changing.
• 1:11
  SPEAKER_02: Objection! It's free! Name one other time.
• 1:15
  SPEAKER_02: The government handed a baby$1,000.
• 1:19
  SPEAKER_00: Sustained.
• 1:20
  SPEAKER_00: Free is my favorite number.
• 1:22
  SPEAKER_01: Fine.
• 1:23
  SPEAKER_01: Exhibit B.
• 1:24
  SPEAKER_01: It's locked.
• 1:25
  SPEAKER_01: Family hits an emergency, that money, it just sits there.
• 1:29
  SPEAKER_02: That's the point.
• 1:30
  SPEAKER_02: Most people don't lose money picking bad stocks.
• 1:33
  SPEAKER_02: They lose it when they panic and pull out.
• 1:36
  SPEAKER_02: This makes you do nothing for 18 years.
• 1:40
  SPEAKER_02: And in investing, doing nothing is a cheat code.
• 1:43
  SPEAKER_00: You hear that?
• 1:44
  SPEAKER_00: Doing nothing.
• 1:45
  SPEAKER_00: You're already a natural.
• 1:47
  SPEAKER_01: Exhibit C.
• 1:48
  SPEAKER_01: It's only American companies.
• 1:50
  SPEAKER_01: If the US market has a bad decade, the whole account has a bad decade.
• 1:55
  SPEAKER_01: A normal fun can add extra international bonds and stocks.
• 2:00
  SPEAKER_02: Fair, but the fees are tiny.
• 2:03
  SPEAKER_02: Lots of adults get stuck in expensive funds that eat their returns.
• 2:07
  SPEAKER_02: This one legally can't do that to you.
• 2:10
  SPEAKER_00: Low fees just like my parenting.
• 2:12
  SPEAKER_00: Low effort.
• 2:13
  SPEAKER_00: Exhibit D, the big one.
• 2:16
  SPEAKER_01: It's not equal.
• 2:17
  SPEAKER_01: Rich parents can dump in$5,000 a year.
• 2:21
  SPEAKER_01: Kids whose families that can't add anything just get that$1,000.
• 2:25
  SPEAKER_01: By 18, the rich kid is way ahead.
• 2:28
  SPEAKER_02: That's actually a real criticism.
• 2:31
  SPEAKER_01: Wait, I won that one?
• 2:33
  SPEAKER_02: I mean, you won, but the kid with just$1,000 is still$1,000 richer.
• 2:39
  SPEAKER_01: Final exhibit.
• 2:40
  SPEAKER_01: Why won't you just open your own index fund for your own kid?
• 2:43
  SPEAKER_01: Same stocks, no government rules.
• 2:46
  SPEAKER_02: Because then you don't get the free thousand dollars.
• 2:50
  SPEAKER_02: And I mean you can do both.
• 2:52
  SPEAKER_02: It's not either or.
• 2:54
  SPEAKER_01: The defense, it rests.
• 2:56
  SPEAKER_02: You're the prosecution.
• 2:58
  SPEAKER_00: The prosecution, it rests.
• 3:01
  SPEAKER_00: Enough arguing.
• 3:02
  SPEAKER_00: Show me numbers.
• 3:04
  SPEAKER_00: I'm a dad, so I only understand numbers and nap time.
• 3:12
  SPEAKER_02: Three babies, same account, different parents.
• 3:16
  SPEAKER_01: Baby one, he just got the three thousand dollars.
• 3:19
  SPEAKER_01: Once he's 18, that'll be about$3,400.
• 3:23
  SPEAKER_00: That's like a used scooter.
• 3:24
  SPEAKER_02: Baby two got the$1,000 plus an extra$100 every month.
• 3:32
  SPEAKER_02: At$18, that's about$46,000.
• 3:36
  SPEAKER_00: That's a car.
• 3:37
  SPEAKER_01: A nice car.
• 3:38
  SPEAKER_01: Baby three, the$1,000 plus the max$5,000 a year.
• 3:43
  SPEAKER_01: At$18, it's around$173,000.
• 3:46
  SPEAKER_00: That's a house down payment.
• 3:48
  SPEAKER_00: Baby dollar, you're grounded until you share.
• 3:51
  SPEAKER_02: And even baby one, if they leave that$1,000 alone until they're 65, that'll be worth about$80,000 from one deposit they never made.
• 4:14
  SPEAKER_02: So we missed that cutoff by 16 years.
• 4:21
  SPEAKER_02: So if you're our age, try to look into a Roth IRA instead.
• 4:25
  SPEAKER_01: Trump account for kids born through 2025 to 2028.
• 4:29
  SPEAKER_01: Locked until you're 18.
• 4:30
  SPEAKER_01: After that, you pay taxes on the growth when you take it out.
• 4:34
  SPEAKER_02: Roth IRA for anyone with a job, even a teenager.
• 4:38
  SPEAKER_02: You put money in you already paid taxes on, and it all grows tax-free.
• 4:45
  SPEAKER_02: And you can even pull it out if you need to.
• 4:47
  SPEAKER_00: So little siblings get the Trump account and we get the Roth.
• 4:51
  SPEAKER_01: If you have a job, even part-time.
• 4:53
  SPEAKER_00: Pretend you're 18 and your account just unlocked and you got$3,400.
• 5:00
  SPEAKER_00: What would you do with it?
• 5:01
  SPEAKER_01: I'm taking that out.
• 5:02
  SPEAKER_01: I'm gonna get a car.
• 5:03
  SPEAKER_02: Dude, you'd have to pay tax on that, and your car is gonna lose all of its value eventually.
• 5:09
  SPEAKER_02: Personally, I'd leave it invested.
• 5:12
  SPEAKER_02: If it's for college or a first home, there are rules that can make taking it out easier.
• 5:18
  SPEAKER_02: Otherwise, it keeps compounding.
• 5:20
  SPEAKER_00: I'd leave it in, get a job, and then open a Roth right next to it.
• 5:24
  SPEAKER_00: Court has reached a verdict.
• 5:26
  SPEAKER_00: Trump accounts are not a scam.
• 5:29
  SPEAKER_00: Free money, low fees, and 18 years of compounding is a good deal.
• 5:33
  SPEAKER_00: But they are not a magic button.
• 5:36
  SPEAKER_00: 1,000 alone is a nice start, but the real money comes by adding it and leaving it alone.
• 5:42
  SPEAKER_00: And the prosecution is right.
• 5:43
  SPEAKER_00: Families that can add more will get way further ahead.
• 5:47
  SPEAKER_00: Court adjourned.
• 5:48
  SPEAKER_02: A Trump account is a kid's investment account.
• 5:52
  SPEAKER_02: Born in 2025 to 2028, you get$1,000 locked until you turn 18.
• 5:58
  SPEAKER_01: Got a little sibling or a cousin?
• 6:00
  SPEAKER_01: Make sure they claim it.
• 6:01
  SPEAKER_01: If you're our age, look into a Roth IRA.
• 6:04
  SPEAKER_00: And whatever account you have, put money in, don't touch it, and let time cook.
• 6:09
  SPEAKER_02: We are triple to money, we are teenagers, and this is not financial advice.
• 6:14
  SPEAKER_00: It's just smart.
• 6:15
  SPEAKER_02: Free money is still free money.
• 6:18
  SPEAKER_00: Subscribe.