So Money with Farnoosh Torabi · Friday, July 10, 2026
Farnoosh Torabi highlighted the investment potential of the new "Trump accounts" for children, emphasizing that the default investment is a low-fee broad US stock market index fund. She explained that while market volatility exists, a longer investment horizon (10-40 years) historically leads to positive returns, with US stocks averaging 7-10% annually after inflation. Torabi suggested the accounts' primary lesson for children is the importance of time in investing.
“The second thing I like is that these accounts create another way for families to save.”
“Third, I like that investing is the default.”
“If you need it in 10 years, 20 years, 30 years, history tells us a very different story.”
“It's not about investing, it's about time. That's what I see kind of these accounts teaching these young investors.”