December 6th is the feast of St. Nicholas, the patron saint of children. For centuries, kids placed their shoes outside hoping he’d fill them with small treasures—coins, oranges, bits of chocolate. One legend says that Nicholas threw a bag of gold into the home of a poverty-stricken family so the three daughters would have dowries for a brighter future.
It seems we have our own modern St Nicholas.
This week, Michaël and Susan Dell announced a $6.25 billion donation to seed saving accounts for the first 25 million American children under the age of 10 and who live in ZIP codes with median incomes below $150,000. It’s an extraordinary act of generosity—and an investment in a brighter future for our children.
How will it work?
Funds will be deposited to the new “Trump Accounts.” Like the name or not, these accounts are a great idea! They work like non-deductible IRAs for kids under the age of 18.
Here are a few highlights:
It seems we have our own modern St Nicholas.
This week, Michaël and Susan Dell announced a $6.25 billion donation to seed saving accounts for the first 25 million American children under the age of 10 and who live in ZIP codes with median incomes below $150,000. It’s an extraordinary act of generosity—and an investment in a brighter future for our children.
How will it work?
Funds will be deposited to the new “Trump Accounts.” Like the name or not, these accounts are a great idea! They work like non-deductible IRAs for kids under the age of 18.
Here are a few highlights:
- Any child under 18 can have an account, managed by a parent or guardian.
- Children born 2025–2028 automatically receive $1,000.
- Annual contributions of $5,000 are allowed, with charities and governments able to add more (including gifts like the Dell contribution).
- Investments are only allowed in broad U.S. equity index funds with fees ≤0.10%.
- Withdrawals aren’t allowed before 18 except in narrow circumstances.
- After 18, the account behaves like a traditional IRA—with penalty-free withdrawals for college or up to $10,000 for a first home.
- Accounts go live July 4, 2026.
And because I can’t resist running the numbers:
A single $1,000 deposit at birth, plus $5,000 each year for 18 years, growing at a modest 7%, could become $173,375 by age 18. Left untouched, it could compound into more than $4.17 million by age 65.
What is unclear, is if a Trump account can be converted to a ROTH. That would be amazing!
Giving cash during the holidays is not a bad idea. You don’t have to deal with crowded malls, no long lines at post office, and nothing needs to be exchanged or returned. It’s not glamourous, but I’ve never had a complaint.
Wishing you a happy kick-off to your holiday season, however you celebrate!
Barbara
Dec. 7, 2025
Sources:
https://www.britannica.com/topic/Saint-Nicholas-Day
https://www.nytimes.com/2025/12/02/business/dell-children-trump-accounts.html
https://www.whitehouse.gov/articles/2025/12/landmark-dell-gift-supercharges-trump-accounts-for-americas-kids/
A single $1,000 deposit at birth, plus $5,000 each year for 18 years, growing at a modest 7%, could become $173,375 by age 18. Left untouched, it could compound into more than $4.17 million by age 65.
What is unclear, is if a Trump account can be converted to a ROTH. That would be amazing!
Giving cash during the holidays is not a bad idea. You don’t have to deal with crowded malls, no long lines at post office, and nothing needs to be exchanged or returned. It’s not glamourous, but I’ve never had a complaint.
Wishing you a happy kick-off to your holiday season, however you celebrate!
Barbara
Dec. 7, 2025
Sources:
https://www.britannica.com/topic/Saint-Nicholas-Day
https://www.nytimes.com/2025/12/02/business/dell-children-trump-accounts.html
https://www.whitehouse.gov/articles/2025/12/landmark-dell-gift-supercharges-trump-accounts-for-americas-kids/
Past performance is no guarantee of future results. Investing involves risk, including possible loss of principal. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and, if available, the summary prospectus contain this and other important information about the investment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing.