Michael Dell and his wife Susan have committed $6.25 billion to fund investment accounts for millions of American children. The huge investment will seed tax-advantaged “Trump Accounts” (Section 530A accounts) for kids who are too old to qualify for grants that are set to come from the U.S. Treasury. The “Trump Accounts” are part of President Donald Trump’s “One Big Beautiful Bill Act” and are set to launch in 2026. “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 in an interview. “We know that when children have accounts like this, they’re much more likely to graduate from high school, from college, buy a home, start a business and less likely to be incarcerated.” Under the new law, “Trump Accounts” are available to any American child under 18 with a Social Security number and their families can fund the accounts, which must be invested in an index fund that tracks the overall stock market. When the children turn 18, they can withdraw the funds to put toward their education, to buy a home or to start a business. “These investment accounts are simple, secure, and structured to grow in value through market returns over time,” the Dell family said in a statement.
The One Big Beautiful Bill Act permits “Trump Accounts” to be established for American children who have not reached age 18. • An American child born after December 31, 2024 and before January 1, 2029 for whom a Trump Account is established will receive an initial $1,000 deposit from the U.S. government, with the potential for parents to contribute up to an additional $5,000 per year initially. — Employers may make an annual contribution of up to $2,500 to a Trump Account and that contribution will not impact the employee’s taxable income. • CEA estimates that, under a scenario of average returns on the U.S. stock market, Trump Account balance for a baby born in 2026 will be: — $303,800 by age 18 and $1,091,900 by age 28 if maximum contributions are made. — $5,800 by age 18 and $18,100 by age 28 if no contributions are made. NBC News:
Social Security is a government-run retirement program funded by mandatory payroll taxes taken from Americans’ earnings. These mandated contributions are invested very inefficiently compared to what individuals could achieve on their own in private markets. If workers could instead invest that same money in a diversified stock-and-bond portfolio over a typical 40-year career, historical data suggest they would end up with substantially more wealth in retirement than the benefits Social Security currently provides for most people. The U.S. stock market (S&P 500) has delivered roughly 7% real annual returns over the very long term (1926–present), and a balanced 60/40 stock/bond portfolio has averaged about 5–6%. Studies that calculate the implied “rate of return” retirees get from Social Security (comparing lifetime contributions vs. lifetime benefits) show: • For single men retiring today: ~1–2% real return Take a median-earning worker born in 1980, paying the full 12.4% payroll tax over 45 years: Total contributions (worker + employer share) ≈ $800,000–$1 million via Social Security in today’s dollars by retirement. If the same $800,000–$1 million had instead been invested privately at a conservative 5% real return (60/40 portfolio), it would grow to ~$4–6 million by age 67, enough to buy a much higher inflation-protected annuity than Social Security provides. Again, we laud Michael and Susan Dell for this investment in America’s future and hope other philanthropists follow the Dell’s lead and invest in boosting Section 530A accounts for American children! Find out more about “Trump Accounts” here. Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Michael and Susan Dell to donate $6.25 billion to fund ‘Trump Accounts’ for millions of American children appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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Tuesday, December 2, 2025
Michael and Susan Dell to donate $6.25 billion to fund ‘Trump Accounts’ for millions of American children
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