By Manya Saini
July 4 (Reuters) - After months of fanfare, President Donald Trump's administration will launch its flagship cradle-to-adulthood investment program, Trump Accounts, on Saturday, as the U.S. begins celebrations marking the 250th anniversary of its independence.
Trump Accounts, which will provide U.S. citizens born between 2025 and 2028 a government-funded investment account of $1,000 that families can build on, is aimed at promoting investing and financial literacy from an early age.
The program adds a new savings vehicle to other tax-efficient college savings plans and retirement accounts. Some critics have said the accounts will not do much for lower-income families who lack substantial disposable income to contribute.
"The $1,000 federal contribution at birth helps remove the barrier of having nothing to start with, which has historically been one of the biggest obstacles to saving," said Andy Blocker, head of policy, regulatory and government relations at financial services firm Edward Jones.
July 4 (Reuters) - After months of fanfare, President Donald Trump's administration will launch its flagship cradle-to-adulthood investment program, Trump Accounts, on Saturday, as the U.S. begins celebrations marking the 250th anniversary of its independence.
Trump Accounts, which will provide U.S. citizens born between 2025 and 2028 a government-funded investment account of $1,000 that families can build on, is aimed at promoting investing and financial literacy from an early age.
The program adds a new savings vehicle to other tax-efficient college savings plans and retirement accounts. Some critics have said the accounts will not do much for lower-income families who lack substantial disposable income to contribute.
"The $1,000 federal contribution at birth helps remove the barrier of having nothing to start with, which has historically been one of the biggest obstacles to saving," said Andy Blocker, head of policy, regulatory and government relations at financial services firm Edward Jones.
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