BlackRock CEO Larry Fink said Trump accounts could be a successful early wealth-building tool for children in the U.S., when paired with pre-existing investment vehicles.
In his annual chairman’s letter to investors, published Monday, Fink said this type of policy can have a good return on investment. “On average, early wealth-building accounts make it more likely for someone to earn an advanced degree, start a business, and own a home,” he wrote, citing a 2023 research paper by the Aspen Institute.
“We’ll see how these accounts evolve, but if they are structured thoughtfully, and paired with existing investment vehicles for education and retirement (like 529 and 401(k) plans), this could be a very significant step toward more young Americans growing with their country,” Fink wrote.
A 529 college savings plan is another tax-advantaged investment option for families to save on a child’s behalf, generally geared toward future education expenses. Alternatively, a 401(k) plan is a retirement savings tool available through most employers.
While certain Trump account details remain unclear, some financial advisors say they are optimistic about combining the accounts with other investing options.
