{"id":40784,"date":"2026-02-03T14:03:36","date_gmt":"2026-02-03T14:03:36","guid":{"rendered":"https:\/\/financialrush.com\/?p=40784"},"modified":"2026-02-03T14:03:36","modified_gmt":"2026-02-03T14:03:36","slug":"how-much-trump-accounts-could-grow-according-to-financial-experts","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=40784","title":{"rendered":"How much Trump accounts could grow, according to financial experts"},"content":{"rendered":"

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U.S. President Donald Trump points a finger onstage at the U.S. Treasury Department’s Trump Accounts Summit, in Washington, D.C., U.S. Jan. 28, 2026. <\/p>\n

Kevin Lamarque | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The Trump administration has framed its new investment account<\/a>, Trump accounts<\/a>, as an early wealth-building tool<\/a> for children \u2014 one that officials have said could make your kid a millionaire by their late 20s. <\/p>\n

But financial advisors and policy experts say the numbers depend on annual contributions<\/a> and investment performance, among other factors. <\/p>\n

“As parents, if we make maximum contributions to our child’s Trump account, the projected value will be nearly $1.1 million by the time they are 28 years old,” White House Press Secretary Karoline Leavitt said Jan. 28 at the Trump Accounts Summit in Washington, D.C.<\/p>\n

Later that day, President Donald Trump<\/a> told summit attendees that “with every modest contribution, Trump accounts should reach at least $50,000 in value” by age 18 and could be “very substantially more than that.”<\/p>\n<\/div>\n

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More from Financial Advisor Playbook:<\/h2>\n
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Here’s a look at other stories affecting the financial advisor business.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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“With slightly greater contributions, the typical account will grow to $100,000, $200,000 and can even grow up to past $300,000 per child,” he said. <\/p>\n

Other politicians and speakers tossed out additional projections throughout the event. <\/p>\n<\/div>\n

Projections ‘greatly overstate’ likely payoff<\/h2>\n
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TrumpAccounts.gov projects that accounts could grow to $6,000 by age 18, $15,000 by age 27 or $243,000 by age 55, assuming the initial $1,000 Treasury deposit and no further contributions. This estimate is based on the\u00a0S&P 500<\/a>\u00a0historical annual average return of over 10%.<\/p>\n

However, these are “unduly optimistic assumptions” about future stock market returns without adjusting for inflation or taxes, Alan Viard, senior fellow emeritus at the American Enterprise Institute, a conservative think tank, wrote in a Jan. 23 report<\/a>. <\/p>\n

“The administration’s projections greatly overstate the accounts’ likely payoff,” he wrote.<\/p>\n

White House spokesman Kush Desai told CNBC in an email that many economists inaccurately predicted “economic catastrophe” under Trump.<\/p>\n

“Economists who couldn’t see one year into the future need to have the humility to admit that they probably can’t predict 28-plus years of compound growth that a generation of American children will enjoy thanks to Trump Accounts,” Desai said.<\/p>\n<\/div>\n

How much a Trump account could grow<\/h2>\n
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Math underpins account balance projections: Advisors and other experts use compound-growth calculations, but uncertainty remains in\u00a0assumptions about future returns and contributions.<\/p>\n

“Investors should understand that projections like these reflect best-case outcomes, not expectations,” said certified financial planner Cathy Curtis<\/a> of Curtis Financial Planning in Oakland, California. <\/p>\n

Administration estimates of Trump account growth may not be realistic for many families, she and other advisors say. <\/p>\n

“Projections like these are mathematically possible, but they rely on a very specific set of assumptions that deserve scrutiny,” said CFP Douglas Boneparth<\/a>, president of Bone Fide Wealth in New York.<\/p>\n

To reach seven figures by a child’s late 20s, parents would need to max out Trump accounts for many years while earning “fairly strong, uninterrupted market returns,” said Boneparth.<\/p>\n

“Unfortunately, that is not how most families actually save,” he said. <\/p>\n<\/div>\n

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For example, if a family started from $0 and contributed $2,500 annually, they could have about $282,000 after 28 years, assuming they earned 9% returns annually, based on “long-term average growth rates of the stock market,” according to Gloria Garcia Cisneros<\/a>, a CFP and wealth manager at LourdMurray\u00a0in Los Angeles. <\/p>\n

However, “year-to-year, the stock market is up and down quite a bit,” she said.<\/p>\n

Some market analysts say U.S. stock market returns<\/a> could be lower over the next decade, with estimates from six major firms ranging from 3.1% to 6.7% annually, according to a January report from Morningstar. <\/p>\n

Plus, investors may need to consider any custodian fees or fund expense ratios that could reduce returns, said Zach Teutsch<\/a>, founder and managing partner at\u00a0Values Added Financial\u00a0in Washington, D.C. <\/p>\n

Trump accounts will invest in “broad U.S. equity index funds,” according to the Treasury, such as mutual or\u00a0exchange-traded funds<\/a>, with no more than 0.1% annual fees. The exact investment options are still unclear.<\/p>\n

Garcia Cisneros said families should explore various account options, including 529 college savings plans<\/a>, when funding education goals for their children. <\/p>\n

Boneparth, Curtis, Garcia Cisneros and Teutsch are all members of CNBC’s Financial Advisor Council<\/a>.\u00a0<\/p>\n<\/div>\n<\/div>\n\n
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