On July 4^th, 2025, the One Big Beautiful Bill Act was signed into law by President Trump. One of the many provisions it introduced is a new financial tool for minors called the Trump Account. These special accounts are designed to give children a head start on building wealth by offering tax perks, government contributions, and opportunities for growth. But are they as good as they sound, or do existing options still have the edge?

 

Trump Accounts: The Basics

The Trump Account is essentially a tax advantaged investment account for children, where parents or guardians can contribute money on their behalf. Here’s how it works:

• Government Money: A huge benefit is that children born between January 1, 2025, and December 31, 2028, are eligible for a $1,000 government contribution to kickstart the account. The idea is to give kids a little extra push when they start saving.

 

• Annual Contributions: Parents can contribute up to $5,000 a year into the account. On top of that, the parent’s employer can contribute up to $2,500 annually, and these employer contributions won’t be taxed as income. These contributions from employers are made with pre-tax dollars, so there is a tax deduction. The growth period for the account is from January 1 of the year the child is born, or from the year the account is created, until December 31 of the year before the child turns 18.

 

• Growth Potential: Funds are invested in diversified index-based portfolios tracking major U.S. equities (such as the S&P 500).

 

• Tax Benefits: Money in a Trump Account grows tax-deferred, meaning you won’t pay taxes on earnings until they are withdrawn. Until the child turns 18, the account is held in a custodial structure, and withdrawals are generally not allowed (with limited exceptions for disabilities). At age 18, the account is rolled into a Traditional IRA, where standard IRA tax rules apply. After-tax contributions from parents are withdrawn tax-free (principal), while pre-tax contributions (govt/employer) and all earnings are taxed as ordinary income, with a 10% penalty for non-qualified withdrawals before age 59½, similar to IRAs, though exceptions (education, first home) exist for penalty-free early access after age 18, when the account converts to traditional IRA rules.
  

 

• Withdrawal Exceptions: No distributions are allowed to be made before 18, but after 18 there are some exceptions to taking money out without penalties:
  • Paying for higher education.
  • Disability, domestic abuse, or natural disasters.
  • $10,000 for a first-time home purchase.
  • Up to $5,000 for the birth or adoption of a first child.

 

All distributions after 59½ are taxed as ordinary income and are penalty-free.

 

Who Can Use Trump Accounts?

Anyone can open a Trump Account for their child, but the $1,000 government bonus is only available for U.S. citizens born between January 1, 2025, and December 31, 2028, who have a Social Security number. This essentially makes the bonus a limited time offer for children born in that window.

The accounts are expected to be available starting July 4th, 2026 (this will include children born within the January 1st, 2025, deadline.) To open a Trump Account, you use the new IRS Form 4547, “Trump Account Election,” to authorize the account and request the initial $1,000 government contribution. Online options to enroll should begin July 4^th 2026 at trumpaccount.gov.

 

Michael and Susan Dell’s Donation

On December 2^nd, 2025, Michael and Susan Dell made an incredible donation of $6.25 billion. Thanks to their generosity, approximately 25 million children, ages 10 and younger, who did not qualify for the one-time $1,000 deposit from the Treasury Department, will receive a $250 donation. This one-time $250 donation will only be available for children in zip codes where the median household income is below $150,000.

The accounts will have to be opened by the parents once Trump Accounts are available on July 4^th, 2026. However, children older than 10 may also benefit if funds remain after initial sign-ups, according to the Dell Foundation.

This donation to Trump Accounts might only be the start. Hopefully, this inspires other organizations, cities, or even states to make further donations.

 

Comparing to Other Accounts

While the Trump Account offers some benefits, there are other types of accounts that might work better for different goals. For example:

• 529 College Savings Plans: If you’re primarily saving for your child’s education, a 529 plan offers more flexibility and tax advantages when it comes to education-related withdrawals.

 

• Custodial Accounts (UTMA/UGMA): These accounts have higher contribution limits. They’re also more flexible when it comes to who can contribute.

 

• Traditional Brokerage Accounts: If you don’t need the tax perks and just want to invest for your child’s future, a regular brokerage account might offer the most flexibility.

 

How Can We Help?

The Trump Account may be a good option, especially if your child qualifies for the $1,000 government boost. If you’re looking for a long-term, tax-deferred investment vehicle for your child’s future, it could be worth considering. At BCA Private Wealth, we would love to help you plan for both your children’s future and your own. Give us a call or schedule a review meeting to discuss how we can help you on your path to financial freedom.

 

 

 

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Golf Tip of the Week

Senior Tip of the Week: Play Smart, Keep Playing — Adjust with Age

If you’re in your 50s, 60s, or beyond but want to keep enjoying golf — and maybe still post decent scores — take a page from Bernhard Langer’s book:

 

Prioritize health & flexibility.

Before swinging heavy clubs, spend time on light stretching and mobility work for hips, back, and shoulders. A flexible body helps maintain a smooth, pain-free swing and reduces risk of injury.

 

Refine — don’t overhaul.

Rather than chasing power or trendy swing “fixes,” focus on playability: reliable contact, consistent ball striking, good club-face control, and smart choices. Small tweaks matter more than big changes.

 

Emphasize accuracy over distance.

Accept that you might not hit the ball like you did in your 30s — and that’s okay. Use irons and smart course management; aim for hitting greens/ fairways and minimizing errors.

 

Stay mentally engaged.

Let enjoyment, competitive fire, smart strategy, and self-awareness guide you. As long as you love the game and remain healthy, you can play effectively for many years.

 

Why This Tip Works

As we age, flexibility and raw power tend to fade — but that doesn’t mean the end of competitive or enjoyable golf. By shifting focus to maintenance, consistency, intelligent course play, and strategic adjustments, older golfers can often play as good if not better than when they were younger. Like Langer does, it’s about adaptability, experience, and respect for your body.

 

 

Golf Tip adapted from Golf Digest. Read the full article here: How exactly is Bernhard Langer still so damn good?

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Recipe of the Week

Classic “Old-Fashioned” Gingerbread Cake

This warmly spiced, molasses-rich cake is perfect for holiday dinners, potlucks, or cozy weekend treats. Moist, tender, and easy to make — and it serves a crowd.

 

Ingredients (9×13-inch pan)

• ½ cup unsalted butter, at room temperature
• ½ cup granulated sugar
• 2 eggs, room temperature
• 1 teaspoon vanilla extract
• 1 cup unsulphured molasses
• 2 cups of all-purpose flour (plus a little for the pan)
• ½ teaspoon salt (or 1 scant tsp kosher salt)
• ½ teaspoon ground cloves
• 1½ teaspoons ground cinnamon
• ½ teaspoon ground nutmeg
• 1¼ teaspoons ground ginger
• 1 cup boiling water
• 2 teaspoons of baking soda

 

Directions:

1. Preheat oven to 350 °F (175 °C). Grease and flour a 9×13-inch baking pan.
2. In a large bowl, cream together butter and sugar until light and fluffy.
3. Beat in eggs one at a time, then stir in vanilla extract and molasses until smooth.
4. In a separate bowl, whisk together the flour, salt, and spices (cloves, cinnamon, nutmeg, ginger).
5. Pour the dry-ingredient mixture into the wet mixture; stir just until combined.
6. In a small bowl or cup, stir the baking soda into the boiling water (it will foam). Add this to the batter and gently mix it up. The batter will be thin, and that’s expected.
7. Pour batter into the prepared pan, smoothing the top. Bake for 35–45 minutes, or until the edges pull slightly away from the pan and a toothpick inserted in the center comes out clean (or with a few moist crumbs).
8. Let the cake cool slightly before slicing. Serve warm or at room temperature — go plain, dust with powdered sugar, top with whipped cream, or add a cream-cheese frosting for a richer finish.

 

 

Recipe Tip adapted from Simply Happy Foodie. Read the full article here: : Old-Fashioned Gingerbread Cake

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Travel Tip of the Week

Winter Travel Tip of the Week: Pick Budget-Friendly Destinations & Travel Off-Peak

A recent Travel + Leisure piece on affordable winter getaways highlights how January and February — just after the holidays — can be a great time to travel. Prices tend to drop, crowds thin out, and destinations that are usually busy become much more relaxed.

 

What to Take Away

• Travel just after the holidays — In many places, January and February have lower rates for hotels and flights compared with December holiday peak. This can save you money and offer a calmer travel experience.
• Explore cities and cultural destinations — Big cities that tend to be crowded in peak seasons (tourist hotspots, historic cities, cultural centers) are more manageable in winter. Fewer tourists mean easier access to museums, attractions, and restaurants.
• Embrace the winter “off-season charm” — Cold weather doesn’t mean no fun. Snowy streets, peaceful scenery, cozy indoor spots (cafes, galleries, museums) and winter special events can make the trip more atmospheric and memorable.
• Less crowd = more space, more flexibility — Fewer tourists often means easier bookings (flights, hotels, restaurants), shorter waits at sights, and better deals overall.

 

How to Use This Tip Right Now

• If you’re planning a winter trip, try aiming for January or February — not December, if you can avoid the holiday crush.
• Check for package deals or bundled flight + hotel offers — the winter “shoulder season” often has lower rates.
• Consider city escapes, cultural trips, or quiet getaways instead of traditional ski or beach trips — winter mood can make these unexpectedly charming.
• Pack layers and winter-ready gear, but plan to enjoy a more relaxed pace: museums, indoor attractions, local food/coffee, scenic walks — travel doesn’t have to be about sun and beach to be special.

 

This flexibility lets you enjoy independence with peace of mind, while keeping your adventures social and safe.

 

 

Travel Tip adapted from Travel and Leisure. Read the full article here: 10 Cheapest Places to Travel in the U.S. This Winter, According to Kayak.

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