Friends with kids under 18!

Have you heard about the new 530A IRA (aka Trump account)?  Anyone under 18 can have an account.

Children born in Trump's 2nd term are eligible for $1000 seed money. Anyone can contribute to the child's account, for a max of $5000/year. This is different than an IRA because the child does not need to earn income to contribute.

The only investment option right now is SPYM, which is a low fee index ETF.  Future investments are said to include IVV, VTI, and ITOT.  All are low fee index ETFs that invest in American companies.  

How does one sign up?  First fill out IRS form 4547. Then, create an account for each kid. Check to see if he or she is eligible for contributions from your employer or state!  You can check here to see if your kid is eligible for the $250 pledged by Michael Dell.  

We weren't sure how useful this account would be until we watched this video from our self directed IRA custodian.  Check out this video that explains more about how powerful it can be. 

YES, I understand it doesn't have the same benefits as Coverdell, etc. But it's still another good tool for our kid's financial future!  

This is not financial advice.  This is just an illustration of what I have personally experienced.  Please discuss further with your financial advisor to see if this will be a good fit for you.