How Trump Accounts can help build lifelong investing habits
The earlier investing begins, the more time savings have to grow. Trump Accounts can help jumpstart your child’s investment journey with a simple, long-term approach designed to encourage lifelong investing habits. Learn how these new accounts work and why starting early matters—and explore SPYM’s role as the default investment option in Trump Accounts.
Most investors share a common regret: they wish they had started earlier.
Trump Accounts help make that earlier start possible for today’s youngest investors.
Designed to encourage long-term investing, Trump Accounts allow families to invest for their children years before they enter the workforce. In fact, under a temporary pilot program, the US government will deposit $1,000 into a Trump Account for eligible children born between 2025 and 2028.
Trump Account investment options are intentionally limited to low-cost, broadly diversified funds that track broad US stock market indexes, helping keep the focus on long-term participation rather than short-term speculation.
Why getting an early start to investing matters
Investors often spend considerable time trying to identify the right investment. But time itself is often the most important advantage.
A child who’s invested early benefits from something no market forecast can provide—time. Decades of it. Even modest contributions may grow meaningfully through the power of compounding.
This approach reflects one of the most enduring principles in investing: time in the market has historically been more valuable than trying to time the market. While markets experience periods of volatility, investors who remain invested have historically been better positioned to benefit from long-term market growth than those who repeatedly move in and out of investments to chase performance.
Want to jumpstart investing for your children?
Trump Accounts introduce a new way to invest for children, encouraging earlier participation in markets and a long-term approach to building financial independence.
Designed for set-it-and-forget-it investing
At its core, set-it-and-forget-it investing is about creating a plan and giving it time to work. Trump Accounts were designed with that philosophy in mind.
The account is owned by the child and managed by a parent or guardian until the child reaches age 18. Contributions grow tax deferred, and parents, grandparents, employers, and others may contribute to help build long-term savings. The account then transitions to a traditional IRA when the beneficiary reaches adulthood, extending the opportunity for tax-deferred growth.
The structure helps reinforce many of the habits associated with successful long-term investing, including diversification, discipline, and consistent participation—habits that can become increasingly valuable over time.
SPYM: The default investment option for Trump Accounts
The selection of the State Street® SPDR® Portfolio S&P 500® ETF (SPYM) as the default investment option for Trump Accounts reflects the underlying philosophy of the program: keep investing simple, diversified, and cost efficient.
SPYM provides exposure to the S&P 500®, giving investors access to many of America's largest publicly traded companies through a single investment. It also carries a 0.02% expense ratio, making it the lowest-cost US-listed S&P 500 ETF on the market.1
For long-term investors, costs matter. Lower fees mean more assets remain invested and available to compound over time.
Financial education can build lifelong investing habits
Trump Accounts may do more than encourage investing at a younger age. Their launch may also encourage families to begin conversations about investing sooner.
We are proud that SPYM was chosen as the default investment for Trump Accounts. But helping the next generation build long-term wealth requires more than providing an investment vehicle. It also requires helping investors understand the principles that drive long-term investing: diversification, disciplined saving, compounding, and the importance of staying invested through changing market environments.
As more families begin their investing journey through Trump Accounts, financial education will become increasingly important. At State Street Investment Management, we see an opportunity to help educate and empower this new generation of investors through resources that explain investing fundamentals, the benefits of long-term saving, and the power of compounding.
Because our goal isn't simply to help children start investing earlier.
It's to help them develop the knowledge, confidence, and habits that can support a lifetime of investing.