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‘Trump accounts’ can come with free money. Your questions answered

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8 months ago

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Jacob Wackerhausen | Istock | Getty Images

Earlier this week, the White House — in conjunction with Michael Dell, founder and CEO of Dell Technologies, and his wife, Susan — announced one of the largest donations ever to benefit American children.

The Dells’ $6.25 billion pledge goes hand in hand with a new federal government program focused on early wealth building. The money will go into a new child savings account for children under 18.

Those who qualify can receive a $250 grant from the Dells’ commitment or a one-time $1,000 initial deposit from the government to seed the so-called Trump accounts. 

Here’s what families need to know about how the program works:

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What are Trump accounts?

Trump accounts, a type of tax-advantaged savings and investment account, were created under President Donald Trump‘s “big beautiful bill,” which Congress passed in July.

The accounts function like an individual retirement account, with some exceptions. These accounts can receive contributions from multiple sources, such as family or employers, and the funds grow tax-deferred.

How do you open a Trump account?

Trump accounts are not yet available; however, families who want to open a Trump account can start that process now.

Any authorized individual — a legal guardian, parent, adult sibling or grandparent — can open a Trump account on behalf of a child age 18 or younger, as long as the child is a U.S. citizen.

To open the account, an election must be made on IRS Form 4547, named after Trump’s presidential terms. The form can be filed separately or with your 2025 tax return. Starting in mid-2026, you can also make the election online at trumpaccounts.gov.

After filing the form, the Treasury Department will confirm that the account has been opened with an “authentication process,” according to a White House document. That fact sheet does not specify what the process will entail.

Initially, Trump accounts will be held with the Treasury’s “designated financial agent,” with the opportunity to transfer the full balance to your preferred brokerage firm at a later date, the Treasury said this week.

lisegagne | E+ | Getty Images

How do you claim the Trump account free money?

Once an account is established, eligible children may receive either the one-time $1,000 contribution from the Department of the Treasury, or the $250 Dell family grant, deposited to their Trump account.

Parents of babies born in 2025 through 2028 can elect to receive the $1,000, known as the “pilot program contribution,” on Form 4547. There are no income requirements, and everyone is eligible for the government’s seed money.

Although Form 4547 can be filed at any time, no pilot program contribution will be deposited in the Trump account of a child earlier than July 4, 2026, according to the IRS.

Children 10 or under and born before Jan. 1, 2025 — who wouldn’t qualify for the $1,000 initial deposit from the Treasury — could get a $250 contribution if they live in a ZIP code where the median income is $150,000 or less.

That money is aimed toward lower-income families based on their ZIP code, and there is no additional form required for the Dell contribution.

Children older than 10 may benefit, too, if funds remain available after initial sign-ups, according to a fact sheet from the Dell Foundation.

CNBC analyzed U.S. Census Bureau data for median incomes and population ages for each U.S. ZIP code. Only about 3% of ZIP codes have median incomes above $150,000.

How can you fund a Trump account?

As of July 4, 2026, parents, guardians, grandparents 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. The annual contribution limit indexes for inflation after 2027.

Employers can also contribute up to $2,500 per worker, per year, which is part of the $5,000 limit and won’t count as taxable income, according to the IRS. This figure also adjusts for inflation after 2027.

Additionally, qualifying charitable organizations and state and local governments may make contributions that do not count toward the $5,000 limit.

What are the investment options for Trump accounts?

Trump account investments are restricted to “broad U.S. equity index funds,” according to the Treasury, such as mutual or exchange-traded funds. These assets:

  • must track a “qualified index”
  • can’t use leverage, which typically uses debt or borrowing to boost returns
  • can’t exceed annual fees or expenses above 0.1%

While the definition of “qualified index” remains unclear, these criteria could include about 186 mutual funds and ETFs, according to data from Morningstar Direct.

How much could your Trump account grow?

Experts say the one-time $250 or $1,000 grant won’t grow substantially over the first 18 years without additional contributions.

For example, $1,000 funded at birth could be worth around $4,700 by age 18, assuming a 9% annual return, and without considering inflation, according to chartered financial analyst Jason Norris. 

“If the same family is able to contribute $50 per month, the account value at age 18 could potentially grow to greater than $29,000,” said Norris, who is director of equity research and portfolio management of Ferguson Wellman Capital Management in Portland, Oregon, which ranked No. 12 on CNBC’s Financial Advisor 100 list for 2025.

“That is a meaningful difference over that period of time,” he said.

The goal is to “create a broad-based stakeholder economy,” said Jason Ewas, associate director at the Aspen Institute Financial Security Program, a nonprofit forum. “Half of the population doesn’t own stocks,” he said.

When it comes to wealth-building opportunities, particularly by investing in the stock market, “this is a way to make a statement about getting a foot in the door,” Ewas said.

Many families continually miss out on stock market gains while wealth rises fastest for those at the very top, data from the Federal Reserve also shows, as the value of their investment holdings continues to grow. The top 10% of Americans hold over 87% of corporate equities and mutual fund shares.

When can you withdraw funds from a Trump account?

Generally, it’s not possible to withdraw Trump account funds before age 18. But there are limited exceptions, including certain rollovers, distribution upon death and for excess contributions, according to the IRS.

You may roll over the entire account to another brokerage, known as a trustee-to-trustee transfer. Certain rollovers to Achieving a Better Life Experience, or ABLE, accounts, for individuals with disabilities, may also be permitted during the year the child turns 17.

Once the child reaches age 18, the standard rules for traditional IRAs apply. Withdrawals before age 59½ are generally subject to income taxes and a 10% penalty. There are certain penalty exceptions, such as for distributions for higher education expenses or first home purchases.

What parents need to know about 'Trump Accounts'

What are the alternatives to a Trump account?

Trump accounts are like other savings account options that already exist, including 529 college savings plans, which have higher contribution limits.

In fact, there are at least 11 alternative tax-advantaged savings vehicles, each with different rules, limitations and regulations, according to the Tax Foundation. Some, like a Roth IRA, are geared towards retirement, while others, like a 529 plan, are aimed at education expenses.

Some financial advisors say that the Trump accounts may not offer the best tax incentives. But with every case, the bulk of Americans who can take advantage of these accounts are high-income households, experts also say, because they can afford to make the maximum annual contributions.  

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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

Published

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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