Planting Trees for Future Generations

"A society grows great when women plant trees in whose shade they shall never sit."
— Adapted from an ancient Greek proverb

As women, we're often thinking one generation ahead. We nurture, we teach, we sacrifice, and we plan—not just for ourselves, but for our children and grandchildren. Financial planning is no different. Some of the most meaningful decisions we make today won't benefit us. They'll benefit the people we love long after we're gone.

One of the things I enjoy most about financial planning is finding opportunities that help families build wealth across generations—not through complicated strategies, but by making thoughtful decisions early and allowing time to do what it does best.

That's why I've been paying close attention to a new investment account for children created by Congress, commonly referred to as a Trump Account (officially known as a Section 530A account).

While most of the headlines have focused on the government's $1,000 contribution, I believe the real opportunity lies elsewhere. It's the opportunity to begin investing for children early and potentially position them for decades of tax-advantaged growth.

Look Beyond the $1,000

Yes, the federal government will make a one-time $1,000 contribution for eligible children born between January 1, 2025, and December 31, 2028.

It's a wonderful incentive.

But it's not what excites me most.

The real opportunity is that eligible children under age 18 can have one of these accounts opened on their behalf, even if they don't qualify for the government's contribution. Parents, grandparents, relatives, and others may contribute up to the annual limit established by law.

Unlike a Custodial IRA, the child doesn't need earned income before contributions can begin.

Think about that for a moment.

For the first time, families have the opportunity to begin investing for a child years before that child earns a paycheck.

And in investing, time is one of the greatest gifts we can give.

The Roth Strategy Most People Are Missing

Here's the part that I think deserves more attention.

During childhood, the Trump account is invested in simple, low-cost U.S. stock index funds. Beginning in the year the child turns 18, the account is generally treated under the rules that apply to a traditional IRA.

That creates an important planning opportunity.

Rather than simply leaving the account as an IRA, families can evaluate whether converting some or all of it to a Roth IRA makes sense.

Why is that so exciting?

Because many 18-year-olds are in one of the lowest tax brackets of their lives. They're often in college, working part-time, serving in the military, beginning apprenticeships, or just launching their careers.

A Roth conversion would generally require paying income tax on the taxable portion of the amount converted. But if those taxes are paid while the young adult is in a relatively low tax bracket, the reward could be decades of potential tax-free growth inside a Roth IRA.

To me, that's the real story.

The government's $1,000 may grab the headlines.

But helping a child enter adulthood with investments that have already been growing for years—and the opportunity to position those assets for decades of potential tax-free growth—could change the trajectory of their financial future.

That isn't just good investing. It's intentional legacy planning.

A Final Thought

Money is a tool, but legacy is the goal.

Who planted the financial trees you're enjoying today?

Maybe it was a parent who taught you to save.

Maybe it was a grandparent who helped pay for college.

Maybe it was someone who simply believed in you before you believed in yourself.

Every one of us is standing in the shade of trees someone else planted.

Now it's our turn.

What tree are you planting today?

The new Trump Accounts won't be the right solution for every family. They also won't replace 529 plans, retirement savings, or other important planning strategies.

But for many families, they may become another meaningful way to help the next generation build financial confidence, independence, and opportunity.

If you're wondering whether a Trump Account—or another strategy—could help you build a lasting legacy for your children or grandchildren, I'd love to help you explore the possibilities. Every family is different, and the best plan is the one designed around your goals, your values, and the future you hope to create.

Sources: Based on IRS and U.S. Treasury guidance regarding Section 530A accounts and reporting by Financial Planning magazine featuring comments from tax attorney Adam Bergman, founder of IRA Financial.