CEOs are lining up behind the $1,000 Trump Accounts for babies |
CEOs are lining up behind the $1,000 Trump Accounts for babies
In today’s CEO Daily: Diane Brady examines why so many companies are eager to contribute to Trump Accounts.
The big leadership story: H&R Block’s new CEO on what distinguishes C-suite leaders from middle management.
The markets: Mostly up amid reports that the U.S. and Iran are considering a ceasefire.
Plus: All the news and watercooler chat from Fortune.
Good morning. The Treasury Department announced yesterday that BNY Mellon and Robinhood will build and run the app for Trump’s tax-deferred investing accounts for kids, which is due to launch in July and be seeded with $1,000 of federal money for babies born between 2025 and 2028. While critics say there are better places to deploy that cash, investing early is a time-tested way to build wealth. That may be why companies like Nvidia, JPMorgan Chase, BlackRock, Intel, Citigroup, Chipotle, Delta Air Lines, and Coinbase have pledged to match the Treasury grant for employees’ children. It’s why Dell Technologies CEO Michael Dell and his wife Susan stepped up to donate $6.25 billion to fund the accounts. Amid growing concerns about AI job loss and the wealth gap, should other leaders promote this product, too? A few things to consider:
A way to promote financial wellness: Saddled with debt, stagnant wages and rising home costs—and tools that enable impulse investing—younger investors gravitate towards risky bets. “We could afford a house at 27 or 28. These kids can’t, so they look to quick‑buck flips, and that’s just not how markets work,” says Bill Capuzzi, CEO of Apex Fintech Solutions, which runs the infrastructure for many investing apps, reaching 41 million consumers. While the typical age for........