Today, we're going to be debating a question for parents and future parents.

What is a Trump account and where does it fit into my financial independence plan?

We'll be breaking that down with Jeremy Schneider from Personal Finance Club.

Hello, hello, hello, and welcome to the Bigger Pockets Money podcast.

My name is Mindy Jensen and with me as always is my never afraid to Trump conventional phi wisdom co-host, Scott Trench. Thanks, Mindy. I've been bided in my time waiting to discuss Trump accounts with you here and couldn't be more excited to get going today. Look at that one, huh? That was great. We'll have to retire these political jokes here. They're going to trigger people.

But with so many questions around these new accounts, we wanted to bring on somebody who has taken a deep dive and actually opened a Trump account himself so that he can help us separate the facts from hype.

And so today, joining us is Jeremy Schneider from Personal Finance Club. Jeremy, welcome back to Bigger Pockets Money.

I'm so glad to be back. Hey,

Mindy and Scott. I love the show. Thanks for having me. Well, thank you for joining us.

For anyone who may be hearing about Trump accounts for the first time, can you just explain very

quickly what they are? It's basically a new tax code that lets children open up investment accounts

that are controlled by their parents until they're 18.

So think of it like an IRA for kids. So you can start investing for a child's retirement

at birth rather than waiting until they're 18 for them to be able to open an account.

Awesome. Yeah. And so I think that when we have another tax advantage to count,

that needs to then fit into the order of operations that you choose

for yourself as an optimal one or your best guess of what's optimal for you in the context of

saving with your discretionary income, right? So here's my hypothesis about how to use the Trump

account in the context of a tax-advantaged order of operations for those pursuing financial

independence. First, you take your free money, you have to take the Trump account contribution. I had actually thought this was a match until I talked to Jeremy, and it's not a match. It's not like to put a thousand bucks in to get a thousand for your baby. You open the account, and $1,000 goes in for your baby. So you take that free money. Then you take your 401k match from your employer.

Then you might consider something like an employer stock purchase plan dependent on what's offered there.

Then you're going to max the HSA, which for a married filing jointly household, presumably most

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