From the Heritage Foundation, I'm Michelle Cordero, and this is Heritage Explains.

The White House is expected to announce details on tax cuts for Trump's second term.

One of the ideas on the table is to create tax-free investment accounts for individuals

and families.

Heritage has suggested a plan to President Trump that would allow families to put up to $10,000

a year into a tax-free savings fund.

Yes, just in case you didn't know, while the money you keep in your savings account isn't

taxable, the interest you earn on your savings is, unless it's in an individual retirement

account or other tax-deferred retirement account. Heritage experts, Stephen Moore and

Adam Michelle recently wrote in the Wall Street Journal that the money in these universal savings accounts would ideally be invested in the stock market.

And the goal would be to increase household savings for Americans,

helping to make them more financially stable and reduce dependence on government entitlements.

But will Americans actually use these accounts?

Moore and Michelle got me with this last line in their op-ed.

They wrote that these accounts would allow tens of millions of Americans

to tap the power of compound interest.

Compound interest.

He who understands it earns it, he who doesn't pays it, said Albert Einstein.

While it does sound complicated, it's actually simple, and billionaires like Warren Buffett

claim it's the secret to their wealth.

Here's one of America's most trusted voices on money, Dave Ramsey. Compound interest is what we're talking about. It's a

mathematical explosion. Einstein said that compound interest is the eighth wonder of the world.

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