The Journal. Investment Accounts for Babies Are Coming. Wall Street Can’t Wait.
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Dec 10, 2025 
In this discussion, Alexander Saeedy, a Wall Street Journal reporter, dives into the new initiative allowing babies born from 2025 to 2028 to receive $1,000 investment accounts. He explains the mechanics behind these accounts, their tax advantages, and the excitement from banks and philanthropists like Michael Dell, who pledged $6.25 billion to support the initiative. Alexander also highlights how this program aims to teach financial literacy, encourage family formation, and create long-term wealth, while addressing potential impacts on Wall Street and the U.S. markets.
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How Trump Accounts Function
- Trump accounts give eligible babies a $1,000 government seed invested in low-cost U.S. stock index funds.
- Accounts convert to IRAs at 18 and grow tax-advantaged but restrict withdrawals until retirement age.
How The Idea Reached The White House
- Brad Gerstner pursued this idea since 2021 and gained traction after a poker-game introduction led to Senator Ted Cruz.
- Gerstner later joined a White House roundtable with President Trump and big finance names to push the plan.
Tightly Prescribed, Low-Cost Investments
- Investments must go into ETFs or mutual funds tracking the U.S. stock market with very low fees.
- The program forbids risky private investments and is designed like a long-term 401(k) you shouldn't touch.