Trump’s $ 1,000 Baby Bonus Idea Follows Buffett’s Wealth-Building Playbook – ryan

President Donald Trump Wants the Next Generation of Americans to Stock Investors from Birth – An Idea that Could Easily Have Come from Warren Buffett.

The US Leader’s So-Called Trump Accounts Are Part of His Proposed “One Big Beautiful Bill,” A Huge Package of Tax and Spending Legislation that been Approved by the House of Representatives and Is Nower Senate Scrutiny.

If Passed, The Government Wold Open A Tax-Deferred Investment Account for Every NewBorn Citizen Born Jan, 2025 and December 31, 2028, and SEED it with $ 1,000.

Each Child’s Guardian Wold Be in Charge of their Account, ABle to Deposit up to $ 5,000 a year into it, and allowed to invest in broad USE DON’T USE Level and Minimize Fees and Expensses. Withdrawals Wauldn’t be Allowed UNIL the age of 18, and the Account Wold Automatically Terminate Wohen The Holder is 31.

“This Will Aford A Generation of Children the Chance to Experience the Miracle of Compounded Growth and Set to say on a county for prosperity from the Very Beginning,” The White House on It Its Website, Highlighting Endorsetsters from the Ceos of Dell, Goldman Sachs, Uber, and Altime, and Altime.

Executives from ARM, Salesforce, Servicenow and Robinhood Also Voicmed Support for the program During a White House Roundable on Monday. A Robinhood Representative Told Business Insider in an email that the Company Will Provide Technology and Capital Resources for the Initiative.

‘Start Young’

Buffett, the CEO of Berkshire Hathaway, has long recommended Investing from aeng in a Low-Fee, Broad-Market Index End and Holding for the Long Run as Reliable Way to BUILD Over A Lifetime.

“Start Young,” Buffett Told a Shareholder Who Asked How to Become a multibillionaire during Berkshire’s 1999 Meeting. He explained that “The Nature of Compound Interest is It Behaves Like A Snowball of Sticky Snow. And the trick is to have a Very long hill, which means eather starting Very Young or Living to Be Very Old. “

Buffett, Whose Net Worth Now Exceeds $ 150 Billion, Said at the 2001 Meeting That Saveing ​​$ 10,000 by the Time He Tuned 21 Gave A “Huge, Huge Headstart” in Life. IT Meant He Could Aford to Get Married and Have Kids while Having Spare Money to Invest.

“While he has Hasn’t commaten directly on government-ended stock Accounts for NewBorns, The Investing Logic Behind Sach A Proposal Aligns with His Core Principles,” Lawrence Cunningham, the Author of “The Essays of Warren Buffett” and the Director of the Universe Center, Told Business Insider.

“Buffett Wold Likely Agree That Giving More Americans A Long-Term Stake In the Market-Especilantly Through Low-Cost Vehicles Like the S & P 500-Is Both finanly and social beneficial,” Cunningham Said.

The Berkshire Chief, Who Bowht his First Stock at Age 11, Turst 95 in August, Meaning and Been Compounding His Wealth for More than Eight Decades. Buffett has repeatedly said more than 99% of his wealth is in Berkshire Stock, which he’s Owned Since the 1960s.

‘Egerth Wonder’

David Kass, A Finance Professor Who’s Been Following Buffett Closely for Nearly 40 Years, Told Bi Trump’s Program Coulp Help to Reduce Wealth Inequality by “Encourage Additional Saves, providing More of Safety Net, Promoting Financial Literacy, and Exposing to A Stose in corplate america while experiencing the ‘eighth wonder of the world’ – Compounding. “

Berkshire declined to comment.

IT’S WORTH NOTING THAT THAT IF The LAUNCHES AS PLANNED AND EVERY AMERICAN CHILD OWNS A PIECE OF THE STOCK FROM BIRTH, LOWER-INCOM MIGHT STRUGGLE TO INVEST The Maximum $ 5,000 A Year into the Account, Allowing Kids with More Affliently Parents to Quitly Pare ahead.

Children from Wealthier Families Might Also Have Additional Savings Accounts and Asssets, Other Advantages Such As Access to Better HealthCare and Education, and Significant inheritances in Their Future, Limitting the Potential for A Single Government Payout and Account to Narrow.

Yet Buffett Might Still See the Plan as a Step in the Right Direction. He has long heralded compounding over the decades as the secret to wealth Creation, as it can turn a small amount into a fortune. For Example, A $ 1,000 Investment That Compounds at 8% Annually for 65 Years Waled Be Worth Nearly $ 160,000.