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How to claim money from ‘Trump accounts’ program

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9 months ago

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Brad Gerstner on Invest America Act: We're aligning kids with the future of capitalism

Tech CEO Michael Dell and his wife Susan pledged Tuesday to contribute $6.25 billion to so-called Trump accounts, a type of tax-advantaged savings account for children.

The commitment will expand access to seed money for children too old to qualify for the $1,000 grants that are set to come from the Department of the Treasury.

With the additional funds, some 25 million American children born before Jan. 1, 2025, who are 10 or under could each receive a $250 grant in a Trump account, according to Invest America, a nonprofit advocacy group partnered with the Dells.

“It’s designed to help families feel supported from the start and encourage them to keep saving as their children grow,” Michael Dell, founder and CEO of Dell Technologies, told CNBC.

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How Trump accounts work

Under President Donald Trump‘s “big beautiful bill,” which Congress passed in July, anyone can open a Trump account on behalf of a child age 18 or younger. Babies born in 2025 through 2028 will each receive a one-time $1,000 deposit in their account. There are no income requirements, and everyone is eligible for the government’s seed money, as long as the child is a U.S. citizen.

The grants stand to benefit millions of young Americans: For perspective, there were roughly 3.6 million U.S. births in 2024, up by about 1% from 2023, according to provisional data released in April by the Centers for Disease Control and Prevention’s National Center for Health Statistics.

Not unlike a 529 college savings plan, Trump accounts are meant to encourage early savings opportunities, with the potential for annual employer contributions as well as donations from state and local governments and nonprofit organizations.

Dell previously vowed to match the government’s seed money “dollar for dollar” for his employees’ kids during the “Invest America” roundtable event at the White House in June with Trump. Other CEOs at the event also committed to contribute to the savings account plans on behalf of their employees.

Trump account balances will be invested in a low-cost index fund, such as a mutual fund or exchange-traded fund. However, the asset management industry has expressed concerns about the legislation’s language that could limit ETFs and mutual fund options in these accounts. They have asked Treasury to broaden its interpretation. 

“We are creating a private prosperity account for every child,” Brad Gerstner, CEO of Altimeter Capital, who helped spearhead the effort, said on “Squawk Box” Tuesday morning.

How to claim the grant money

Trump accounts are not yet available. But starting on July 4, 2026, parents and others will be able to contribute up to $5,000 a year in after-tax dollars up until the year before the beneficiary turns 18.

Families must complete Form 4547 to open a Trump account for their child, according to Ben Henry-Moreland, a certified financial planner with advisor platform Kitces.com. “In that case, the government will open up and fund this account on their behalf,” he said.

Withdrawals are not permitted until the beneficiary turns 18. At that point, the assets will be rolled into an individual retirement account. The beneficiary can use the funds for education expenses, job training, the down payment on a first home, or as capital to start a small business. They can also opt to leave the funds invested for retirement.

From a tax perspective, Trump accounts would function like an IRA. Earnings grow tax-deferred, and since Trump accounts include a mix of after-tax contributions, initial seed money and investment income, distributions are partially taxable. 

However, experts say that details on the tax treatment of distributions need further clarification from the Treasury Department and Internal Revenue Service.

Many questions remain about Trump accounts, including which entities will manage the assets and details on how the accounts will convert to IRAs, among other issues.  

The impact on low-income families

Experts say the one-time $250 Trump account deposit won’t significantly impact lower-income families.

“You need to start seeing more of these types of contributions to create meaningful amounts,” Henry-Moreland said.

Plus, a lot will depend on public education, he said.

The federal government “really needs to sell these [accounts] to those who wouldn’t necessarily contribute to these on their own,” he said. “This is going to require some amount of organized, coordinated effort.”

Further, whether the Treasury will automatically establish the accounts for all eligible participants could go a long way toward determining how many children — particularly from lower-income families — enroll and benefit from the grant money, according to a July analysis by the Aspen Institute, a nonprofit forum.

“We strongly encourage Treasury to prioritize enabling automatic enrollment in the implementation of the Trump Accounts program, as its success for young people from low- to moderate-income households hinges greatly on this particular choice,” the researchers wrote.

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Personal Finance

$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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