Wait or Invest Now in a Trump Account?

"Should I wait until the portal launches?" "Should I see how the market does first?" "Maybe I'll set it up next year."

We hear these questions constantly. The answer is the same every time: start now. Here is why waiting costs your child money.

Time in the Market Beats Timing the Market

This is one of the most proven principles in investing. Over the past 100 years, the S&P 500 has averaged roughly 10% annual returns (about 7% after inflation). But those returns are not evenly distributed. The best days often follow the worst days.

A famous study by J.P. Morgan found that if you missed just the 10 best trading days over a 20-year period, your returns would be cut in half. Nobody can predict which days those will be. The safest strategy is to stay invested.

With a Trump Account, you have an 18-year investment horizon. That is one of the longest guaranteed holding periods in any investment account. Over every 18-year period in S&P 500 history, the market has delivered positive returns. Every single one.

What One Year of Waiting Actually Costs

Let's look at real numbers. Assume an 8% average annual return (a conservative estimate for long-term S&P 500 performance).

If you max out contributions, one year of waiting costs nearly $8,000 in lost growth. That is money your child will never get back.

The $1,000 Deposit Starts Growing Immediately

For children born between 2025 and 2028, the federal government deposits $1,000 into the account. But this only happens after you file IRS Form 4547. The money does not appear by itself.

Once the deposit is in the account, it starts compounding in your chosen index fund. At 8% returns, that $1,000 alone grows to roughly $4,000 by age 18. At 10%, it reaches about $5,560. But only if you start early.

You Can File Right Now

You do not need to wait for the trumpaccounts.gov portal. There are three ways to file IRS Form 4547 today:

1. With your 2025 tax return — due April 15, 2026. Attach the form when you file. This works with both paper and electronic filing.
2. Through trumpaccounts.gov — the online portal launches mid-2026. This is convenient but means waiting several more months.
3. By mail — print and mail the form to the IRS at any time.

Option one is the fastest path. If you are already preparing your 2025 taxes, add Form 4547 now.

What About Market Volatility?

Yes, the market goes up and down. That is normal. But here is what matters: your child's Trump Account has an 18-year growth phase. There is no option to withdraw before then (except for rollovers, excess contributions, or death of the beneficiary).

This forced long-term holding is actually a feature, not a bug. It prevents panic selling during downturns. And over 18 years, short-term volatility smooths out. The S&P 500's worst 18-year return since 1950 was still positive.

Trying to time the market means you need to be right twice: once when you get out, and once when you get back in. Most professional fund managers cannot do this consistently. You are better off investing steadily over time.

The Bottom Line

Every month you wait is a month of compounding you cannot get back. The process takes about 30 minutes. The potential payoff lasts a lifetime.

File IRS Form 4547 with your 2025 tax return. Choose a low-cost S&P 500 index fund. Set up monthly contributions. Then let time and compound growth do the work.

Use our growth calculator to see exactly how much your child could have at age 18. And read our step-by-step guide on how to open a Trump Account if you need help with the process.