MW Here's what finfluencers like Dave Ramsey and Vivian Tu really think of 'Trump accounts'
By Venessa Wong
The accounts offer parents a new way to invest in their children's futures. Personal-finance experts weigh in on how to decide if they're right for you.
After opening a "Trump account" to receive donations, personal-finance experts such as Anthony O'Neal, Vivian Tu and Dave Ramsey say parents may be better off directing their own dollars toward other account types for kids.
Millions of parents have already signed up for "Trump accounts," the new custodial-style IRAs that allows the government, employers, donors and individuals to contribute to investment accounts for children.
For some parents, the addition of a new account option for their kids - on top of custodial brokerage accounts, 529 college savings accounts and Roth IRAs - has only added confusion over which offers the best benefits, and whether funding one type of account should take priority over others.
For many, the answer will depend on whether they qualify for contributions from the government, employers or other donors into their Trump accounts, formally known as 530A accounts.
For example, children who are U.S. citizens born from 2025 through 2028 are eligible for a $1,000 contribution from the U.S. Treasury. Also, companies including Intel $(INTC)$, Uber Technologies (UBER), Charter Communications $(CHTR)$, Charles Schwab $(SCHW)$ and News Corp $(NWSA)$ (NWS) have said they will contribute to Trump accounts for children of employees. (NewsCorp is the parent company of Dow Jones & Co., the publisher of MarketWatch.)
Billionaire donors such as Michael and Susan Dell and Ray Dalio have also pledged substantial Trump account donations for certain families, while Visa (V) plans to let customers deposit cash-back rewards into Trump accounts.
Read more: How do I open a 'Trump account'? The IRS has one simple solution for you.
Aside from eligible families opening a Trump account to receive these donations, personal-finance experts say parents may be better off directing their own dollars toward other account types for kids that are more flexible or have better tax treatment.
They cited noteworthy limitations on Trump accounts. For instance, the funds cannot be accessed until the child turns 18, at which point they follow IRA rules and are intended for retirement. Withdrawals made before age 591/2 are subject to a 10% penalty unless the money is used for education, a first-time home purchase or starting a business, and earnings are taxable (doing a Roth conversion at age 18 would at least enable future tax-free growth).
The new 530A accounts come as families continue to struggle with the cost of living, which has made saving for retirement difficult, if not impossible, for many Americans. In response to these financial challenges, President Donald Trump also recently announced new retirement-savings plans for workers who don't have access to one through their employer, and offered up to $1,000 a year in matching funds.
More on kids' wealth building: Teens turn to investing to build a new path to the American dream. 'My goal is to live comfortably.'
For parents weighing their options, here's what some popular personal-finance influencers have to say about how Trump accounts stack up against other investment vehicles for kids. Whatever parents choose, financial experts say the best strategy across the board is to start investing for their children as soon as possible - ideally, as newborns - to give the money the most time to compound.
See also: How do I open a 'Trump account'? The IRS has one simple solution for you.
Dave Ramsey
Dave Ramsey.
Personal-finance radio host Dave Ramsey called Trump accounts "a political stunt" on a recent episode of "The Ramsey Show."
"You've got other ways to save," Ramsey said. "It's not as revolutionary as the original Roth was. It's not as revolutionary as the 529 is." Receiving the $1,000 contribution and other donations is fine, but in terms of parents investing their own money, "I don't think it's worth the trouble," Ramsey said. "If you could do a lot with it, it'd be one thing - but no." A post on Ramsey's website criticized Trump accounts' lack of flexibility in terms of when and how the money can be used.
His co-host, Jade Warshaw, said: "The best thing it will do is get people thinking about investing in general."
Anthony O'Neal
Anthony O'Neal.
For children who are eligible for "free money on the table" with a Trump account, "you want to open the account and take the free money," Anthony O'Neal, host of the YouTube show "The Table With AO," told MarketWatch. Outside of the free cash, O'Neal suggested parents' funding priorities should be: a Roth IRA (if the child has earned income); a 529 plan for education; and then taxable investment accounts, which includes custodial brokerage accounts and the Trump account.
Erin Moriarity
Erin Moriarity.
"Everyone" should open a Trump account for children who qualify for the free money from the Treasury Department, employers or donors, Erin Moriarity, host of the "Erin Talks Money" YouTube channel, told MarketWatch.
"Capture the $1,000 seed money, the $1,000 match. I would say outside of that, there are other accounts that get better tax treatment, depending on what the savings goal is," she said - such as 529s for education or Roth IRAs for the child's eventual retirement. While Trump accounts are "useful because they help people save for the future ... I don't put them at the top of my list" in terms of where to invest for kids, she added.
For her own child, Moriarity makes monthly deposits into a brokerage account - funds that can be used at any age for anything for the child. While she also opened a 529, she expects her husband's military benefits to cover most of their child's college expenses, so "we're not really funding it that aggressively."
Suze Orman
Knowing which account to fund first depends on you and your child's priorities, Suze Orman said on her "Women & Money" podcast last year. "If you are focused specifically on education, then exploring a 529 plan is likely smarter, especially because they offer tax-free distributions. And for qualified expenses, they may also offer state tax benefits," she said.
Meanwhile, "a Trump account might be better if your kid doesn't want to go to school" and isn't working yet, she noted. But "let's say your kid starts working as a teen or in college - then a custodial Roth might be the way to go." The bottom line, according to Orman, is that if you have ample funds, "you could do all of them."
Humphrey Yang
"Regardless of your feelings on the current administration, I think there is literally no downside to opening this account and just getting the $1,000 and letting that grow on its own," said personal-finance content creator Humphrey Yang in a video on his eponymous YouTube channel last month.
Money Guy
A post on the Money Guy website advises parents not to "turn down free money even if the account structure isn't ideal," but notes: "The tax treatment of [Trump] accounts makes them inferior to just about every other type of investment account you would consider opening for your child (custodial Roth, custodial brokerage and 529). Contributions are taxed, and investment earnings are taxed at ordinary income rates upon withdrawal. A custodial brokerage account works similarly, but contributions are taxed at more favorable capital-gains rates and there are no restrictions on contributions, investment options or withdrawals."
Vivian Tu
From a tax perspective, a Trump account "definitely isn't the hottest girl at the party, and the tax treatment on 529s and custodial Roth IRAs is much better, since they both grow tax free," personal-finance content creator and author Vivian Tu said in a video on her Instagram account, Your Rich BFF. She added that while "both rich and poor families get the same $1,000" contribution from the government, "rich families are more likely to continue contributing, meaning they'll likely see the outsized benefits of these accounts."
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-Venessa Wong
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March 07, 2026 09:00 ET (14:00 GMT)
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