Can Trump Accounts build wealth?

[00:01] after making a few key callouts during an event celebrating the launch of Trump today. Bitcoin turning positive after the president called himself, quote, "a big crypto guy" when responding to a question about whether Bitcoin might be

[00:14] added to Trump accounts. This comes as Michael Saylor's strategy sells $216 million in Bitcoin to fund its shareholder dividends. And Dell shares Trump endorsed the company's product saying, quote, "Go out and buy a Dell

[00:28] computer." That company's founder, Michael Dell, has pledged $6 billion to the Trump accounts program. We have our finance reporter Jennifer Secretary Scott Bessent to discuss the historic launch of these Trump accounts.

[00:47] as part of that, the Trump administration is marking that with the launch of the Trump accounts, setting up the next generation of Americans for financial success. >> Well, what 30 38% of American families

[01:01] have no exposure to our great equity market. They don't share in the upside, our innovation, our capital markets. And one of the goals of the Trump accounts is to get everybody in. Everybody deserves a piece of the action. And part

[01:15] of part of our national pride and also the chance to build long-term wealth. So, uh children who were born during President Trump's term will get a $1,000 seed investment. And then, uh others uh will

[01:30] get with Susan and Michael Dell contributed $6.25 billion. That's about $250 per child. So, we've got about 6 million sign-ups so far, about 1.4 billion eligible for the $1,000 seed. But I'd encourage everyone to sign up

[01:45] these accounts. >> And Mr. Secretary, before you became Treasury Secretary, you were a global investment fund manager for 40 years. You managed the Soros funds. So, nobody gets investing better than you. And the

[01:59] Treasury has had a deep focus on ensuring that the funds that these Trump accounts are invested into are the lowest cost possible for the American investors? >> Well, it it it means you're going to get

[02:12] to keep what you make. So, and also one one of the goals here is to show if someone gets the $1,000 when they're born, the power of long-term compounding up until age 18, then uh children can you know they're

[02:26] adults they can take it out if they want to start a business, use it for school, for a down payment on a house, or they can roll it into an IRA. And you know I I think it's the importance here of financial literacy. I think this is

[02:41] going to be a very teachable moment for families. And at Treasury, uh trumpaccounts.gov is where you can register, but we've also at Treasury we register, but we've also at Treasury we have 15 learning modules on the on the

[02:55] stock market. And what we have done as you mentioned Jennifer, this is the single lowest cost index fund. So, people will be able to keep their gains. >> And by default on the start of trading

[03:08] today, the funds that are being contributed to these Trump accounts are going to be invested in a State Street S&P 500 Index ETF. Two basis points is don't think I've heard of anything so cheap.

[03:22] said, "Well, you know, financial advisors aren't sure about these." I advisors aren't sure about them because >> making money on them, right? >> But and I know you in the coming months you're going to be rolling out some more

[03:34] options for parents. I wonder though beyond that, will there be will will you roll out more options, more funds, and can people pick and choose their own >> for right now we're going to keep it pretty vanilla with this. Uh maybe over

[03:49] time we'll do that. The other thing that we did last week was we announced that philanthropists can, you know, at a certain level contribute single large single stock blocks. Uh we had an announcement today that one of the

[04:01] founders of SpaceX had contributed 2 million of her shares. >> And do you expect that you will be getting more uh publicly traded companies donating their shares? And how is that going to work? Are you Are you

[04:13] >> Well well, that's that's the way we'll do that. And I think it won't come as much from the companies as it will from the shareholders, you know, the founding shareholders, people like that. And I

[04:27] that we're going to see some very very big announcements over the coming week let you go, Mr. Secretary, but I think it's very important for our audience to know that Trump accounts are not just available to babies born between 2025

[04:42] and 2028. Older children can also take advantage of this, right? >> Sure. Oh older children can do it. And again, like I said, that we've got these great philanthropists who are putting money in. Uh many

[04:54] uh workplaces will either contribute or match parents' contribution. Parents can put it in. Relatives can put money in. Uh many states are going to do it. I think we're going to have 23 states who are going to make contributions. And uh

[05:07] philanthropists and uh uh endowments who do it, too. So, uh uh endowments who do it, too. So, uh everybody should have one. And I think uh like they launched today. And I think we're going to have a pretty quick

[05:21] always, for your insight. Congratulations on this. >> Good. It was good to see you in the Oval this morning.