HOUSTON, Sept. 10, 2025 — Serae Wealth, a wealth management firm providing bespoke financial guidance, estimates that the new $1,000 “Trump Accounts” for newborns could grow from nearly half a million dollars to $22 million by the time the child retires. If that $1,000 is left untouched until age 65 and invested in a broad U.S. stock index such as the S&P 500, the account could grow to roughly $490,000 based on historical growth averages, even without any additional contributions. If a family were to contribute the full allowable $5,000 each year from birth through age 18, and the money grew at the historical average return of the S&P 500, that account could grow to $22.1 million by age 65. Because past performance is not always indicative of future results, these figures are solely hypothetical and for illustrative purposes only.
“For families who receive a Trump Account, the potential for long-term benefit is significant,” said Scott Hefty, senior wealth manager and founding partner at Serae Wealth. “The scale of that benefit will vary, but the baseline is an improvement compared to having no such account at all. If Congress extends the program beyond 2028, the long-term potential impact would grow even further.”
According to the recently passed federal legislation, known as the “One Big, Beautiful Bill,” every child born between 2025 and 2028 will automatically receive a $1,000 federal contribution into a Trump Account. Currently, the Trump Account functions similarly to a traditional retirement account. It offers tax-advantaged growth and penalty-free withdrawals after age 59 and a half. However, several exceptions allow for earlier use, including education expenses, buying a first home or starting a business. In addition to the $1,000 federal seed, families can contribute up to $5,000 per year per child. Up to $2,500 of that total can come from a parent’s employer, which could be a powerful new form of employer benefit.
“While some individuals may prefer more flexibility, the rules are in place because the government is offering a benefit in exchange for encouraging certain outcomes. Most tax-advantaged accounts come with rules for that reason,” said Joe Anderson, senior wealth manager and founding partner at Serae Wealth. “The structure may not please everyone, but it is consistent with how long-term financial tools are typically designed.”
A Trump Account combines features of several account types and is designed to support retirement while allowing for some early use. The account is federally seeded but also allows for private contributions.
“Ultimately, this account reflects a broader shift in how Americans build wealth across generations. We are moving toward a model where families, employers and the federal government each play a part. That shift will not solve every issue, but it is a conversation worth having,” said Hefty. “A Trump Account may not be a perfect fit for every family or every goal, but it represents an important new financial tool.”
About Serae Wealth Serae Wealth is an independent wealth management firm offering bespoke financial guidance for driven individuals and families building with purpose across generations. Guided by a philosophy to Think in Decades and Act with Intention, Serae Wealth views wealth not as status but as stewardship — a responsibility to protect, empower and elevate across future generations. Through the Serae Journey, a proprietary planning process, the firm helps clients navigate financial decisions with structure, care and long-term alignment. The Serae Design, its signature framework, is built on five foundations of enduring wealth: Income Clarity, Investment Planning, Tax Strategy, Health Care Planning and Legacy Design. To learn more, visit seraewealth.com.