We’re pleased to introduce Autumn Davidson, Wealth Advisor at Generosity Wealth Management. In this month’s video, Autumn introduces herself and provides an overview of Trump Accounts—a new type of tax-advantaged investment account created for children under 18.
She explains who may be eligible, how these accounts work, and some of the key features families may want to understand, including the one-time federal seed contribution available to eligible children. As with any financial planning topic, the information shared is intended for educational purposes and should be considered in the context of your own financial goals and circumstances.
Transcript
Hi everyone, Autumn Davidson here from Generosity Wealth Management. I am a wealth advisor alongside Michael Brady. The purpose of this month’s video is to introduce myself as well as talk about Trump accounts, which are a new type of retirement account for minors. For those of you who have not been introduced to me yet, I first joined Generosity as an intern during my senior year at CU Boulder, where I earned a degree in business administration with an emphasis in finance and real estate.
After graduating, I got my investment advisor licenses and spent the first few years of my career running my own advisory practice. Throughout those years, Michael and I had a standing meeting every two weeks for continued guidance and mentorship. He shaped many of my business philosophies and dreams for my own future. So when he reached out at the beginning of this year and invited me to come back, I was obviously very excited. I have now been with the firm for a little over three months, and not only has it been super fun, but also very rewarding to come back to a place that helped shape my career, but this time as an advisor.
At Generosity, we work with individuals, families, and business owners. And a big part of what we do is help people think about how today’s decisions can support long-term goals for themselves and for the next generation. One topic that’s getting a lot of attention right now in terms of accumulating that generational wealth is Trump accounts. These are a new type of tax-advantaged account designed for children under 18, and they’re meant to give kids an early start on long-term investing even if they don’t have earned income yet. These function very similar to a traditional IRA. However, previously, your child would need to have taxable earned income to contribute to a retirement account, and now a parent or guardian can open a Trump account for any child under 18.
The account will be opened in the child’s name and monitored by the parent or guardian until that child is an adult. And during that time, contributions can come from parents, guardians, employers of the adult monitoring the account, or in some cases, be eligible for a government contribution. The federal seed contribution of $1,000 is available for children born between January 1st, 2025 and December 31st, 2028.
And annual contributions can be made up to the current limit of $5,000, which will be indexed for inflation after 2027. The money must be invested in broad, low-cost stock index ETFs, which may sound limiting, but is meant to keep the account simple, diversified, and focused on long-term growth. The reason these accounts are so interesting is that time is such a powerful tool in investing and creating financial success. Starting earlier gives compounding more time to work.
Which can make a significant difference over 20, 40, or now even 60 years prior to accessing those funds. For families who are already thinking about multi-generational planning, Trump accounts may become another useful piece of that overall strategy. At the same time, they are not a one-size-fits-all solution, and like any planning tool, they need to fit within the broader picture of education funding, retirement goals, tax planning, and family priorities.
This video is for general educational purposes only and is not intended as tax, legal, or individualized financial advice. For decisions about your own situation, please do reach out to us and we are happy to give that more tailored advice to you. I am really looking forward to meeting more of you as my time here continues, and thank you so much for joining me here today.