Founder of Dell Technologies, Inc. (NYSE:DELL) billionaire Michael Dell and his wife, Susan, have pledged $6.25 billion to help fund the new government-backed Trump-branded investment accounts for children.
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The Dells' donation, totaling $250 per child, is slated for up to 25 million children aged 10 and under who were born before Jan. 1, 2025, and live in areas where the median income is under $150,000, according to the BBC.
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President Donald Trump celebrated news of the Dells' donation on social media on Tuesday morning.
"Two great people. I love Dell!!" Trump wrote in all capital letters.
The Dells believe the gift will expand savings opportunities and provide a crucial financial advantage. The money is expected to reach about 80% of eligible children in the U.S. and will be one of the largest private donations directly benefiting Americans.
The Trump Accounts: Saving for the Future
Authorized by Congress this year, the new accounts aim to encourage families to save for their children's retirement.
Beyond the Dell's gift, the plan will make babies born between 2025 and 2028 eligible to receive $1,000 from the government. The accounts, designed to launch in July, must be invested in a low-cost index fund that mirrors the broader stock market.
Parents and guardians can establish an account for any child under 18, utilizing a form published by the Treasury Department.
Contributions are capped at $5,000 annually (adjusted for inflation) and can come from parents, employers or charitable groups.
The White House Council of Economic Advisers estimates that an initial $1,000 could grow to over $5,800 in 18 years, and $250 could become about $1,600, assuming a 10.3% annual return.
The initiative has faced skepticism from critics. Some argue the accounts will mostly help wealthier families who already possess disposable income, while offering less flexibility than existing savings options.
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