Trump Accounts
My in-laws are jazzed for the Trump account our daughter will qualify for. They're acting like that $1000 deposit will mean generational wealth for her, securing her future for life. In reality, it's miniscule in the grand scheme and will make little difference for her unless we contribute to the account consistently. But they're all ready to start making deposits. I'm concerned right off that bat that it's a rouse. That the free deposit will never come through. But I'm conflicted in other ways too.
I hate the thought of putting Trump's name on anything to do with my child. I hate the idea of Trump getting credit for the investments that her family will be making in her name. When history looks back on this time in America, it will be with shame. How would Germans or Italians have regarded those with Hitler or Stalin accounts after WWII? And then I read into it and it seems legitimately silly to me. The account would turn into an IRA when she turns 18, meaning she won't be able to make withdrawals without penalty until she's nearly 60. I want her to be able to buy a house, to get an education without going into crippling debt, to move abroad if she wants, to choose her own adventure in life. I'm concerned about the expenses she'll accrue before she retires, but apparently my in-laws are only interested in funding her retirement.
I want to open a different savings account for her. I don't like the limitations of the 529 plans, so I'm thinking just an UTMA or something. My in-laws, however, will probably only be willing to contribute to a Trump account. If I tell them I'm not opening a Trump account they'll 1.) lose their shit. and 2.) probably decide not to provide the same kinds of contributions, if any.
I'm torn. Do I stick to my values and blow off the Trump account completely? Face the ire of my in-laws and potentially jeopardize their financial "generosity" for my little girl? Or do I just open two accounts—one that Hubs and I will contribute to, and the other that his family will contribute to? I'm leaning towards the latter. It just seems like the safer, smarter option. But part of me feels like I'm compromising more than I should. Maybe I'm just being stubborn. I dunno.