Why the Wealth Gap Is About to Explode — The Truth Behind the New Trump Accounts

0:00This is an iHeart Podcast. Guaranteed Human Earners, what's up? Look, building wealth isn't just about making money. It's about knowing where your money is working for you. That's why we partnered with Empower. Empower is all about helping you invest well so you can go out and live a little. Their free Empower personal dashboard gives you a complete view of your financial life in one place. Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more. You've worked hard for your money. Now make sure it's working hard for you. Download the Empower personal dashboard or visit Empower.com.

0:37Not an Empower client paid or sponsored. When traveling for events or festivals throughout the country, every dollar matters. We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check Lyft before booking a ride. Prices can change throughout the day depending on traffic, weather, and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check lift could leave you with more money to enjoy the experience. Save money. Check lift. Ernest, what's up?

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1:48Expense reports, receipt chasing, month-end close that takes weeks. You become what you spend on, and that's not what you're building toward. Brex is the intelligent finance platform that eliminates that work before it starts. AI agents that handle the manual stuff automatically. So your team can spend their time on what actually compounds. It's time to get Brex AF. Learn more at brex.com slash AF. Let's talk about this Trump situation. So first thing I want to talk about is the Trump accounts. So Trump accounts have launched. if you're not familiar so the trump accounts is one thousand dollars they will be invested into eligible newborns any if you sign up you have a child one thousand dollars gets invested into an account gets invested in the u.s index fund grows over the course of um i think until the child takes it out until you take it out yeah if they i'm just saying they could take it out um anytime before 18 but it's penalized obviously like i already yeah you could leave it in longer than 18.

2:48Absolutely. Yeah, you should. And it's actually retroactive as well. 2025 to 2028 is the qualifying years. It's investing in US index fund. And you can add money to it as well. $5 ,000 limit as far as how much money you can add. And access begins at age 18. So this made a lot of news and we had a conversation in Atlanta about I would be interested to know how many people have actually taken advantage of this. Because we talked to somebody who was actually a mother. She had vaguely heard of it. But she's like, I feel like there's a lot of people that are not familiar with this. Or are not totally enthusiastic because it's Trump's name behind it.

3:38So they're not even going to follow the process. or it's just a barrier of you got to actually go online and you got to sign up. And it's like, that's a hurdle within itself. So the people that need the, need it the most that can benefit from this the most, I have a strong suspicion. They might be signing up the least. Yeah. Do you think they have a brand and a messaging problem? I want to ask you guys this, like, do you think a lot of our community won't sign up just because he blasted his name on it like if it was called a financial freedom fund for children or something like that do you think it would have had more traffic that's kind of how the conversation was kind of came about it was the idea of number one who's going to sign up for it but i think the missing piece is the education i think most people don't even understand what it is or what it's for had it been named something else, I think there's a certain segment of the population that would have said, okay, we need to do this.

4:38Obviously, there's an emotional attachment to a certain demographic of the population when you hear the name. And so the question is, can you separate something that might be good from the person that is actually putting their name on it? That's tough for a lot of people. There's a barrier there. There's also the barrier of trying to figure out how do I get it? Now, the kids who are born January 1st of 2027 automatically are enrolled. The children that are born between this that that works but the children that are born between and again you said everybody can sign up for it the people that are born between 2025 to 2028 get the a thousand dollar government funding the process of signing up for it and shout out to pjk he called me he was like i'm signing my daughter up for it but yo this form is crazy so the form like if you if you're a cpa this is new barrier of entry this is new so this is new so the forms got released today so you can see how to sign up for it.

5:29It's called the 4547 form. Pro. Marketing again. He's 45 and he's 47. And this is his form and these are the accounts. But again, how many people are going to actually go to the website, sign up for it, and say, okay, now what do I do? So I think where I landed on it was the education piece is what's needed. Can we educate enough people for them to understand that this is an account that can be beneficial for your child? Yes. There are 60 million people eligible. I think they said 6.1 million people have signed up already. Out of the 6 million that have signed up, only 1.4 million were eligible for that 1 ,000.

6:12So that means that those kids were born between that 2025, Jan 1 to it goes into present day, which is interesting. But there are barriers, right? You have to make a certain amount or under a certain amount to even qualify for it. So I think most of the people out of that 1.5 that have signed up have made under$200 ,000. Now, we know a lot of people in our community make less than that. So it's about getting the information out. Now, is that our job? I think that's where we kind of were figuring out where our debate was going. Like, is it our job? Is it mandatory that we explain it to people? And I said, I mean, I landed on if education is what we do, then, yeah, part of it is to educate the people on what this is and how it could be beneficial.

6:53But also is the barrier to entry and the lack of education intentional. Kudos to Brad Gerstner because this was his idea and his baby from Altimeter Capital. But then with all the resources that you have, like you said, there's very little education on it. The barrier to entry is difficult. There's also a thought of why only a thousand or why kids of a certain age were not automatically included. My thing, if you're creating a platform for financial freedom for the kids, which is a brilliant idea. Are some of these roadblocks done intentionally and by design? I think anything with government is going to have a tremendous amount of roadblocks.

7:36Even the people that's automatically enrolled. What does that even mean? Because you could be automatically enrolled. Like John Hope Bryan has spoke about when he was on the show last year, how many people are eligible for the child tax credit. that never take advantage of it and there's billions of dollars in unclaimed money. I have a strong suspicion it's going to be the same thing with this. Yes, you might be automatically enrolled in it, but you still have to sign up. You still got to actually go and fill out. There's going to be a variety of people that do not do that. People don't trust the system already.

8:13People don't want to just automatically input their child's social security number, all the information, all of that. You're going to lose half the people just by doing a form. They're going to get like PJ said, Kev said, he's like, I'm halfway like, what the hell is this? It's too much. It's a good idea in theory for sure. Cause even a thousand dollars, like I just did the math. If it's a thousand dollars, if 12 % compounded, let's just say 20 years, let's make it a even number. A thousand dollars in 20 years is, is 9 ,650. $10 ,000 ain't never been,$10 ,000 has never been bad for anybody in life.

8:50And that's what - Especially 18, that's no contribution. That's no contribution. Yeah. So at 20, so, but at 20 years old, the vast, I didn't have$10 ,000 at 20 years old. The vast majority of people don't have$10 ,000 at 20 years old. Just waiting for - Zander, you hear that? It's the thing. That's reality. I know adults that don't have$10 ,000 saved right now in their 30s and their 40s. So imagine having that at 18. And like you said, again, that's with no contribution. That's just if the$1 ,000 just sits. You can contribute to it. Well, that's what I'm doing next. So$50 a month. If you add$50 a month, just$50 a month.

9:29It's like, okay, the government's going to give you$1 ,000. You as a parent, if you add$50 a month to that. We talk a lot about ownership. And one of the most important assets you can own is your digital real estate. Too many entrepreneurs rely on social media platforms they don't control. Your website should be the center of your business. Framer helps you build a professional website without all the friction. It's more than a website builder. It's a complete website platform. Your entire team can collaborate in real time, make changes instantly, and publish updates in minutes instead of days.

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13:16Visit Bahamar.com today and discover a vacation destination where memories are made for a lifetime. Bahamar, life spectacular. At 20, now that's$53 ,700. Now that's$50 a month, just as low as$50 a month, makes it$53 ,000 at age 20. and$100 a month makes it$109 ,000. So, no, it's real. I mean, that's - It's real. A small investment over a long period of time is life-changing. Like I put the post up three weeks ago, $250 per month is 350 grand. Like, I don't know where everyone is financially. 350 grand at any part in adulthood is a windfall that would change a lot of people's lives. But look, but this is just, just reading the comments.

14:10This is the distrust. Sounds like a setup to me, another Trump scam. So, and I even judge it whether they right or wrong, but I'm just saying that's the sentiment. That sentiment is why there's going to be people that's like, I'm not, I'm not doing this. I'm fully like with you on that. Like I don't disagree that people have a negative connotation when it comes to it. Like I can't say this guy's name in front of my mom. Like she doesn't even want to hear this man's name in her house. Right. So let alone that there's going to be an account associated. Now, obviously I'm not eligible, but kids are eligible.

14:42And so this is the other piece to it. And I always said, watch the room. And we were talking about this earlier, but look at who was in the room with them. Right. Kirshner was there. Michael Dell was there. Why is Michael Dell there? Well, he's saying, look, we're going to donate$7 billion. Well, where's the$7 billion going if the government's giving$1 ,000? Well, there's still people who are eligible that will be able to have money from private institutions that will put money in the account. So I think they're allocating$250 to accounts that qualify. Then you have Micron saying that they're going to donate$600 million.

15:15And so you're starting to see more institutions. I know Chipotle is adding to it. More institutions are finding a way. I'm sure there's an incentive for them to do it, maybe from a tax standpoint, to be a part of this and help fund the next generation. But the only thing that's going to do is make the wealth gap even wider if people that need it the most don't take advantage of it. Because if you're going to get upper middle class people that's going to now have$20 ,000 to give their kids when a poor person, they don't have anything. I think it's a cap though. So I think there might be like, you have to make under$200 ,000.

15:49$200 ,000, okay. That's upper middle class. if you live in Ohio. So if you make$200 ,000 and you live in most part of America, you know, you live in a pretty decent life. For sure. And now that community is educated enough to take advantage of the situation. And now they're giving their kids even, they already had a head start and they gave an even more of a head start with a person that's making$37 ,000 that's just struggling to really survive. either uneducated or fearful or doesn't have the wherewithal to figure it out doesn't take advantage of it so now the wealth gap is actually just increasing over the course of time because you're already giving the people that already had a head start even more of a head start so that becomes what what's the then what role do we play in it right do we educate because I think the education piece is important to give as much information that we know so we can tell people and hopefully they make their own decision where other people I know are just going to ignore it and miss the opportunity.

16:58This other part, real quick. Yeah, I mean to cut you off. We've done our part. The great part. Okay, right these four down. S-P-Y-M I-V-V I-T-O-T S-P-T-M. As soon as I saw the layout I said, damn, there's two tech to index. I've been telling you, VOO, VTI, VGT. Before Trump, fake news, had the fund for Make America Great Again, I already gave you the plan for your kids to get rich. Are you investing into it? Pick the amount. And people say, well, I can't afford it. You can afford 200, 100. Because all the other services and AU and child care cost way more than that, and they don't give you as good as a return.

17:45Pick the four that you're going to marry. But even if you don't want to do this Trump account directly, you can do SPYM, you can do QQQM. Bilal talked about QQQI. Pick an asset that you're going to marry and just put money into it every month. And just automate it and you never have to worry about it. But what I'll say this too, you have to have enough mental fortitude to follow the process. We can only do so much as far as... we obviously have a dedicated audience that listens. So hopefully by us explaining it, if people want to take advantage of it, they might have some more information if they want to tell it, their friends, coworkers or family members.

18:24But let's be honest, the vast majority of the people we still haven't gotten through to yet. And there's a, there's a, there's a certain level of wherewithal that you, you are in the bottom level of the economic spectrum of society let's be honest your top priority is not to listen to market mondays and that's stressed you stressed out you're trying to figure out how to pay rent you you know i mean like you you down on your luck or you it's just a variety of different things those people are not listening to market mondays so those are the people and i know people personally that are going to have children and i know for a fact they're not going to take advantage of it this is a complex complex or the information that we get that's the heartbreaking part where it's like i'm in need i'm like bro i've gave you the money to put into your kids account and they won't do it you know i i will say this about the accounts it's not an end-all be-all.

19:30It's a part of the investment story. Should you have a brokerage account? Absolutely. Should you have 529 plans? Should you be doing all those things, up my accounts? Yeah, you should be, right? And I'm talking to the audience that is obviously has some financial wherewithal. It's not the end-all be-all. It is a part of the story. And it's free, right? So should you take advantage of it? I would definitely educate myself if the opportunity is there, if I need it, and if it feels like something that could be a part of the investment journey, especially for my kids. I mean. But that's another thing too.

20:02People don't even think about their kids. Like, I'm just. No, I'm not. I'm laughing because I'm like, you know. We've got to be real. We have to be real. That's part of it. They're living for the weekend. Themselves. They're not. That's not a. Bro, you're talking about saving money,$1 ,000, and they're going, kids going to get it in 20 years. And that's the life insurance piece. Yeah. They're not even. That's not even on their register. You could give them money. you can give them hey we're gonna give you a thousand dollars for your kid what's the catch what up bro how did somebody six thousand dollars last year what do i get out of it how am i gonna benefit from it if i'm not gonna benefit from it i don't care what what it's the same thing with life insurance people saying like i gotta die for somebody else to get rich same as my friend text you and told you that was literally what he said he like yo that's the rule that's for my kid I was behind.

20:51I'm like, you weren't behind. You was just at camp fucking three weeks ago. Or you know what happens? The other piece of it is that we don't have discipline. And so we might open the account. In two years, it might be$1 ,500. We're like, yeah, I need that$1 ,500. And we take the$1 ,500 out. And then it gets taxed. And we're like, wait, hold on. You know what I mean? It's just, that's why I said the education. It's so many layers and it's so important. Well, here's some info. Well, hopefully you guys now know about it at the very least, the Market Monday faithful. You guys know about it. Each one, each one.

21:25So if you want to take advantage of it, can we get the website? Yeah, yeah. If you want to take advantage of it, take advantage of it. If you don't want to take advantage of it, personal decision, but at least you're educated on it. And now you can, you know, like I said, you can tell your friends. You can add money to it. You can add up to$5 ,000 a year to it. It's invested in the index funds, compounds over the course of time. Trumpaccounts.gov. Trumpaccounts.gov is the name of the website. We are not a paid affiliate. We're just in front of you. We're not. We're not. And there's information there as well.

22:03And the app is there as well. And Robinhood is the brokerage. So we saw Vlad on TV today talking about it. So congrats to Vlad on being the brokerage, I guess, quote, unquote, of the future. since that bottom told you the stock of the year it's gonna be it was in the list it was in the list yeah rashad you seem sad a little bit though even though you just left the tropical island like what's the solution to this problem and getting the information to reach more people when it's needed more than ever we talk a lot about ownership and one of the most important assets you can own is your digital real estate too many entrepreneurs rely on social media platforms they don't control.

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23:30Learn how you can get more out of your site from Framer specialists or get started building for free at Framer.com slash earn for 30 % off a Framer Pro annual plan. That's Framer.com slash earn for 30 % off. Framer.com slash earn. Rules and restrictions may apply. If your best finance people are doing expense reports, chasing receipts, or spending time on month-end close, it's time to get Brex AF, a gentic finance that eliminates that work before it starts. Learn more at brex.com slash AF. Discover a spectacular island destination with crystal blue seas, endless sunshine, and the cool Bahamian breeze.

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24:36Every sale comes down to a single second. The one between buy now and maybe later. PayPal is built to help your business win that moment. With a checkout experience that feels certain, reliable, and familiar. With a global two-sided network and hundreds of millions of buyers who already know us. all to keep you in control however buying happens next new markets new ai powered selling services a whole new agentic era where you decide how your business will show up and stand up paypal is built to help your business come out ahead we're built for payments built for growth built for agentic paypal open built for all business visit paypalopen.com to get started that's paypalopen.com um you can well you can only do what you can do you go crazy trying to change you know change the whole entire world like you can only do what you can do um it's like the marines a few good men or a few good women um you you can't you can't change you can't save everybody so you can't can't focus on that okay help who wants to help themselves and then eventually you know people when they want help they'll receive it but you know when you have a song that encourages people to scam and to steal clothes out of clothing stores and that's the number one song in the world.

26:16It says a lot about the times that we're in but it also says a lot about the appetite that people have because no matter how much they can talk about social programming and that's a real conversation that we can have if you're interested in as well. Yeah, there is some level of social programming but the social programming only goes to people that's interested in being socially programmed. So at a certain point in time you got to have some level of responsibility because it's like you know nobody's forcing you to listen to the music nobody's forcing you to drink liquor nobody's forcing you to do all these things it's there for you but there's a disproportionate amount of media being pushed to us though even when it happened at the B2 Awards my first thought was they cleared that to make that a moment you know what I found interesting in this whole and not to get too political but this whole Gaza thing is like they got these people got thrown everything possible they got thrown at them and they in the rubble and they praying and they getting married with nothing no electricity no running water nothing they didn't lose their faith no matter what they held on to their principles and they faith so regardless of circumstance regardless of circumstance regardless of circumstance we know we got it hard but we have a part to play and our downfall as well because we want it.

27:40No matter how much we say about the ignorance, we as a society, we want ignorance more than we want positive things. For sure. Until that changes, until that changes, the vast majority of people are still going to be in the same mental struggle that they're in. The ignorance becomes entertaining. It becomes, that is our form of entertainment. Yeah, sports, that is entertaining. And so people love it. They want to see tragedy, they want to see downfalls. The reason why that programming continues to feed that and continues to put that in front of you because they know you're going to watch it, they know you're going to react to it, they know you're going to get emotional about it, they know you're going to come back for more.

28:20You coming back for more. Well, spin that, spin that, spin that. Spin that. On stop. Even if you don't got nothing to spin. Even if you don't got nothing to spin. Find it to spin. find it to spend it think about the average person doesn't have $500 saved and the number one song is spend it spend what what exactly are you spending you don't even have money to spend for those who don't know it takes 200 to 400 grand to make a song go number one that's why I say it's a disproportionate and shout out to whoever wrote the song and the producer it's not the greatest song of all time so for it to go number one in this climate it it's number one it's number one in the street it's number one in the street

29:13the more attention you give to it obviously the more for sure you know what i'm saying so like i i don't i haven't pinned into that because i understand how it works right the more you talk about it the more places it gets the more growth it has then it potentially is the number one song in the country so all right well real quick for those who asked uh once again write in the chat spy m1 number two ivv number two s number three sptm and number four ito t are four that you can invest in if you want to emulate the trump account return for your kid without investing to the trump account and you cannot you cannot change the investment it's not something that you can actively manage.