Trump Accounts are new investment accounts designed to help parents save for their children’s futures. These accounts, ideal for tracking the S&P 500, can lead to significant long-term gains through the effects of compounding. The One Big Beautiful Bill Act created Trump Accounts, offering a $1,000 pilot program contribution for eligible children born between 2025 and 2028. Investing in mutual funds or ETFs like SPDR S&P 500 ETF Trust can be beneficial for kids, as the S&P 500 has historically averaged a 10% annual return. With a $1,000 investment growing at 10% annually, the balance could reach over $490,000 in 65 years. Keep in mind that market returns fluctuate, and inflation may erode purchasing power over time. However, even small investments can grow substantially over the long run, especially when using low-cost funds like SPDR S&P 500 ETF Trust with a low expense ratio of 0.09%. The Motley Fool Stock Advisor team recommends considering other stocks for potential higher returns compared to SPDR S&P 500 ETF Trust. Their recommendations have historically outperformed the market significantly. It’s essential to start investing early and consistently to build a strong financial future, leveraging low-risk index funds to grow savings steadily and safely over time.

Read more at Yahoo Finance: Here’s How Much $1,000 in a Trump Account Could Grow to After 18 Years