By Bo Erickson and Pritam Biswas
WASHINGTON, July 6 (Reuters) - President Donald Trump said on Monday the government had deposited the first $1,000 into more than 500,000 "Trump Accounts," a program designed to give newborn Americans a stake in the stock market and help build wealth from an early age.
Trump rang the opening bell from the White House Oval Office alongside executives of the New York Stock Exchange and Nasdaq. He said cooperation between the rival exchanges was something Democrats and Republicans
had been unable to replicate.
CEO Adena Friedman and President Nelson Griggs from Nasdaq, Intercontinental Exchange CEO Jeffrey Sprecher, and President of NYSE Group Lynn Martin were present at the ringing of the bell.
COST OF LIVING AN ELECTION ISSUE
The rising cost of living has become a major issue for voters heading into the November midterm elections.
Supporters say the Trump Accounts, designed for U.S. citizens born between 2025 and 2028, will encourage long-term investing and financial literacy, while critics argue families with limited disposable income may be unable to make additional contributions and benefit fully from the accounts.
The program adds a new savings vehicle to other tax-efficient college savings plans and retirement accounts.
Contributions are automatically invested in a low-cost index fund designed for long-term growth. Account holders take control when they turn 18, at which point they can withdraw the funds or continue investing. Gains will be taxed upon withdrawal.
The plan provides children born without wealth with substantial financial assets, the president said, and advised against early withdrawal from the accounts in a booming market environment.
COMPANIES PLEDGE SUPPORT
Several U.S. companies have pledged support for the program, with employer matches or additional seed funding.
Participating companies include payment giant Visa, technology company Dell, and media and telecom firm Comcast. Chipmaker Micron has pledged $250 million to support Trump Accounts.
"Trump Accounts are about making every child and every American a capitalist. Every one of our kids is now going to be an owner of the biggest producers in our country," said Republican Senator Ted Cruz of Texas, who took part in the launch.
(Reporting By Bo Erickson and Jarrett Renshaw in Washington and Pritam Biswas in Bengaluru Editing by Nick Zieminski and Howard Goller)
