Episode 26: 530A Accounts

You've done the research.

What's the Cliff Notes version of what we need to know about these new Trump

accounts? Well, I think one of the important things that people need to know, I think a lot of people think that these Trump accounts are...

Accounts that are owned by the Trump administration that are run by the Trump administration and that the money is going into funds created by the Trump administration.

And it's really separate.

They are called Trump accounts officially under the task code.

They're called Section 538 accounts.

And right now, Right now, they're managed through Robinhood.

So when you open those accounts and everything, that's all managed through Robinhood right now.

And soon enough, the other brokerages will be able to offer Trump accounts as well.

And also, all the funds that you contribute each year, any contribution you make, it doesn't go into cash.

It only goes into one fund, which is an independent fund called the SPYM, which is the State Street S&P 500 ETF.

And so that's been around.

It has a 0.02% fee, which if you contribute $5,000, that's a $1 fee.

So all that money is kind of independent of the government.

And so I think that's one of the big things that people should realize about these.

SPYM, by the way, up 15.7% over the last 12 months.

So, hey, pretty solid if you would have gotten ahead of this and done it a year ago.

John, what do you think about these new Trump accounts? Have you done any deep dives or any research on your

end? Just a little, but I'd like to ask Raj.

Raj, so you say that it goes into the S&P broad ETF fund, right? Is that the only thing that you can put it in right now?

Yeah, currently, that's the only thing you can put it in.

Now, they have talked about in years to come, like there will be more investment options.

But right now, that is the only fund you can put it into.

And you don't have a choice.