DIY Trump Account: Replicate It Yourself

Not every child qualifies for the $1,000 federal deposit. That deposit is only for children born between 2025 and 2028. If your child was born before 2025, is already 18, or does not have U.S. citizenship, they miss the deposit.

But the strategy behind a Trump Account is not new. You can replicate it yourself using a custodial brokerage account and the same index funds. Here is how.

Option 1: Open a Trump Account Without the Deposit

This is the first thing to check. Children born before 2025 but still under 18 can open a Trump Account. They will not receive the $1,000 government deposit, but they can still receive up to $5,000/year in family contributions and up to $2,500 from an employer.

The account works the same way: money goes into eligible S&P 500 index funds, grows tax-deferred, and converts to a traditional IRA at age 18. The only difference is the missing deposit.

Option 2: Open a Custodial Brokerage Account

If your child is over 18 or does not qualify for a Trump Account, a custodial brokerage account is the next best thing. These come in two types:

• UTMA (Uniform Transfers to Minors Act) — available in all 50 states, can hold any type of asset.
• UGMA (Uniform Gifts to Minors Act) — more limited in what it can hold, but available everywhere.

You can open a UTMA/UGMA at any major brokerage: Fidelity, Vanguard, Charles Schwab, or others. The process takes about 15 minutes online.

Step-by-Step: Replicate the Strategy

Here is how to mirror the Trump Account approach:

Step 1: Open a custodial account. Choose a brokerage with low fees. Fidelity and Schwab both offer custodial accounts with no account minimums and no maintenance fees.

Step 2: Buy the same index funds. Invest in S&P 500 index funds or ETFs. The same ones eligible for Trump Accounts work perfectly:

Step 3: Contribute regularly. Set up automatic monthly contributions. Aim for $200-$417/month to mirror the Trump Account contribution pace.

Step 4: Leave it alone. Do not sell during downturns. The whole point is long-term compounding. A Trump Account forces this by locking funds until 18. With a custodial account, you have to enforce this discipline yourself.

Key Differences You Need to Know

A custodial account is not a perfect clone of a Trump Account. Here are the important differences:

The Biggest Advantage: Flexibility

A custodial account has one major advantage over a Trump Account: flexibility. You can invest in anything, not just S&P 500 index funds. You can withdraw for the child's benefit at any time. And there is no annual contribution cap (though gift tax rules apply above $18,000/year per giver).

That flexibility is also the biggest risk. Without the forced lock-in, it is tempting to withdraw during emergencies or sell during market downturns. The Trump Account's restrictions protect the investment. A custodial account requires more discipline.

Our Recommendation

If your child qualifies for a Trump Account, open one first. The tax-deferred growth and potential government deposit make it the better vehicle for long-term wealth building.

If your child does not qualify — or if you want to save beyond the $5,000 annual cap — a custodial brokerage account is an excellent supplement. Buy the same low-cost S&P 500 index funds, contribute regularly, and resist the urge to touch it.

For a deeper comparison, see our Trump Account vs. UTMA/UGMA comparison. And check out our guide to the index fund requirements to make sure you are picking the right funds.