530A Trump Accounts: Should You Open One?

David Stein, host of the Money for the Rest of US podcast, spent a decade as chief portfolio and investment strategist at FEG Advisors. In this conversation, David makes the case that a 60/40 portfolio is too risky when the goal is preserving generational capital, explains how the S&P 500 has drifted toward a concentrated, AI-heavy benchmark trading near record valuations, and walks through is own “asset garden”: a portfolio of roughly 20% stocks alongside gold, crypto, private capital, preferred stocks, closed-end funds, and catastrophe bonds.

Watch / Listen here.

Earlier this month, the US Treasury launched a new investment account for children called a 530A IRA, or “Trump Account.” 

We polled Long Angle members on whether they’re opening one. The results lean “yes,” but it’s close.

In the discussion thread, members agreed the $1,000 seed money is a no-brainer if your child qualifies. For everyone else, the debate comes down to one question: does this structure beat what you’d otherwise do with those dollars?

Those in favor treat it as a retirement head-start that removes savings pressure from their child’s early career. Those opposed don’t want capital locked in an IRA until retirement, and would rather give children the money they can use at 25 or 30 for a home, business, or family.

The conversation is still happening inside Long Angle. Learn how to join.

High earners are usually better at building their retirement number than believing in it. The “Psychology of Enough” is giving yourself permission to stop, spend, and trust the plan. 

Three challenges tend to get in the way:

The “one more vest” problem. Momentum makes it easier to keep working than stop. Each extension might feel reasonable, but are you continuing because you want to or because anxiety keeps moving the finish line? 

Difficulty spending after decades of accumulating. A practical rule of thumb: a purchase costing 0.1% of your net worth is small enough not to agonize over. On a several-million-dollar portfolio, that reframes the guilt around spending.

Bringing your partner along. If the retirement math checks out but your spouse is nervous about giving up a salary, talk through what life looks like without the job. The decision also isn't binary. A sabbatical, trial period, or lower-income alternative can all be course-corrected.

Read the full breakdown in our blog: FAANG FIRE: How Tech Workers Turn Equity Comp Into Financial Independence.

Private market investments aren’t inherently taxed at higher rates than public markets. The tax treatment just depends on the type of income.

Private equity and venture capital: exits are often taxed as long term capital gains when underlying assets have been held for over a year, just like a public stock. These gains are taxed at lower rates than ordinary income.

Real estate: income from private funds typically produces a mix of ordinary income from rents and capital gains from property sales. RE funds often use depreciation deduction strategies that shelter income and reduce your effective tax rate in the short term.

Private credit: typically considered interest income, and taxed as ordinary income at your marginal rate. This is the same treatment as bond interest or a savings account.

Complexity caveat: A mix of strategies in the same year can produce capital gains, ordinary income, state K-1s, and deductions that make tax planning complicated. See the tax complexity breakdowns below from Long Angle’s Private Markets Tax Guide.

Long Angle has facilitated $500M+ in committed capital across more than 65 institutional-quality investments. 

The scale of our membership provides entry points to premier private market managers that are typically out of reach for individuals.  

Visit our website to learn more about Long Angle Investments, our partners, and how to get in touch about investing.

Chris Bendtsen

Insights Lead, Long Angle

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