Trump’s $1K Account Plan for Babies Is Great, According to Anthony Pompliano
Written by
Gabrielle Olya
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Molly Sullivan
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On June 9, President Donald Trump announced the creation of “Trump Accounts” — a provision in the “One Big Beautiful Bill” that would create tax-deferred investment accounts for all newborn American children. The accounts — which would track stock indexes — would include a one-time government contribution of $1,000 and allow for parents to contribute an additional $5,000 per year.
Beyond the fact that this would be “free money” from the government, there are numerous advantages to offering these accounts to everyone born in the U.S., according to Anthony Pompliano, an entrepreneur, investor and author of The Pomp Letter newsletter.
Here’s why he believes Trump Accounts will have wide-ranging benefits.
It Will Greatly Expand Stock Ownership in the US
In a recent Substack post, Pompliano explained that right now, many Americans are missing out on the benefits of owning stock. According to statistics cited in his post, only 62% of Americans own stocks and only 28% of those in households earning less than $50,000 own stocks.
“We know that stock ownership, and broadly asset ownership, is a major driver of wealth in this country,” Pompliano wrote. “But more than 30% of Americans don’t have any stocks in their portfolio, so we are seeing a big push from the private sector to improve the situation and ensure more Americans have exposure to the U.S. economy through the stock market.”
The Plan Allows for Americans To Benefit From Compound Interest
Compound interest is the interest you earn on money you invest, and it grows exponentially over time. If you’re not invested for the long term, you miss out on this benefit — but the Trump Accounts are designed to ensure that every American will benefit from compound interest.
“The concept calls for the child to hold that money until they are at least 18 years old, which would let compounding work in their favor and deliver economic value to a young adult thanks to the U.S. government setting them up in a good position at birth,” Pompliano wrote.
Trump Accounts Will Allow Every American To Benefit From Our Current Economic System
Pompliano believes that giving every American child access to the stock market as early as possible will be a great thing for their futures.
“I would love to see Invest America become the law of the land,” he wrote. “Give every newborn child $1,000 exposure to capitalism, and let’s ensure we have the system working for our people, rather than against them. The Federal Reserve and politicians are never going to stop printing money, so let’s not operate in some charade.
“Get the kids exposure to the 500 best American companies,” Pompliano continued. “They will be very thankful a few decades from now.”
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