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President Trump just signed an executive order creating a new way for Americans to retire in the United States. It's not going to be with a 401k. It's going to be with a Trump IRA. Take a listen. Every American, you know, most high-income people have an employer that gives them a 401k with a match. But low-income people or Uber drivers or something, they don't have access to that. They don't have access to the match. What you've done here is you've given the match to low-income people with incomes below 35,000. According to the Trump administration, there are three major problems with the 401k.
Problem number one is that the average 401k in the United States is charging very high fees, which means your wealth is not going into your pockets. It's going into the hands of the money managers on Wall Street. Problem number two is access. A lot of Americans don't get a 401k at their jobs, which means they don't have the ability to contribute in a 401k and build wealth through a 401k. And problem number three is that it's not portable. If you quit your job or leave your job and go to another job, it's very difficult to transfer one 401k at one company to another. And this is where the Trump IRA comes in as a way to almost reset the way Americans think about retirement in
the United States. So, in this video, I want to talk about the Trump IRA. Not in a way to just change your retirement because that's what everybody's focused on, but also understanding how this new Trump IRA is going to change our economy, change our stock market, and change investment opportunities because this is going to create a whole new wave of investment opportunities that the financially savvy are trying to dissect. And that's what I'm going to break down in this video. Now, I want to start by going over the 401k and the Trump IRA. Before I do, I want to make sure we're all on the same page because a 401k is a tax deferred retirement account. And what that means is you go to work and
you make money. Now, you have the ability to contribute money into this investment machine called a 401k and you can keep investing your money into this machine over the next 10, 20, 30, 40 years until you retire. And your money gets to grow in this machine taxfree. and then you get to pull this money out for retirement. Now, there are different tax strategies with a 401k. You can have a traditional 401k, which means you get to pull your money in, invest your money tax-free, and then when you pull your money out, that's when you get taxed. That's called a traditional 401k. You can compare that to a Roth 401k, which is you're going to pay taxes as soon as you put the money into the 401k. Your
money then grows taxfree and then you get to pull the money out taxfree. But the idea is this 401k is an investment account that is supposed to fund your retirement. And while your money is invested in this account, you don't pay any taxes. But in order to qualify for this 401k, you have to work a job where your company is giving you this 401k. And this brings us to now the comparison between a 401k and a Trump IRA. Because in order to access this 401k, your company must actually offer that 401k. This Trump IRA is for everybody because according to the Trump administration, there's about 56 million workers in the United States that do not have access to a 401k. So if you work a job, you
qualify for this Trump IRA in the United States. The second thing that the Trump administration talked about is fees. Because if you have a 401k, the fees can just vary because you're going to get a bunch of different investment options. Some of them are going to have lower fees than others. You might see some that are very low fees like 0.1% and others that are 1 and a.5%. According to Kiplinger, in 2025, the average 401k fee in 2025 was 1.26% in the United States. And I'll talk more about fees in just a minute and what that means. But with the Trump IRA, it's very different. One of the key features of this Trump IRA is that the fees have to be capped. Meaning the top fees in the Trump RA are 0.15% meaning it is lower fees. Then the next
problem with the 401k is if you have a 401k at job A and then you quit and move to job B, it can be very difficult to transfer the 401k from one company to another, which kind of makes people feel stuck at a job that they don't want because they don't want to lose their 401k benefits. And so with a 401k, it's not very portable. But that's not the case with the Trump IRA because it's not through your employer. is from the United States government. So, as long as you're working in the United States, you get to keep access to this Trump IRA. Then you have to think about minimums. Generally, 401ks will have some sort of minimum that you have to invest at least $50 a month or at least $100 a month,
but some sort of minimum balance that you have to maintain in this 401k in order to have a 401k. The idea with the Trump IRA is even if you don't have $100 a month to invest, you can start with just $5. So it reduces and essentially eliminates that minimum requirement. And then one of the most important ones here is the contribution. Many companies, not all, will offer some sort of employer contribution to your 401k. So if you invest $1,000 into your 401k, your employer might give you 50% of that, meaning an extra $500. Some might give you a full $1,000 match. So in the 401k, you get this contribution by your employer. with the Trump IRA because it's not through your company. You're
not going to get an employer match. But the government says we're going to give you free money. Yes, they're going to give you free money if you qualify with the income requirements because if you make too much money, you're not going to qualify for the free money from the United States government. But the government will give you up to,000 to invest your money into the Trump IRA, which means yes, the government is going to be putting money here that more money goes into the United States stock market. And to be clear, this $1,000 contribution is not a one-time contribution. This is a potential $1,000 contribution every year by the United States government into your retirement into the United States stock market year
after year so long as you qualify. So, let me talk a little bit more about that. By the way, we've been keeping you posted about all of this in market briefs. Again, market briefs is my free newsletter for investors where every day my team is working to break down what's happening in things like the economy, housing, stocks, crypto, and global markets into a fun, read, and easy to read newsletter. It's read by hundreds of thousands of investors every morning. And when you sign up, you're also going to get access to my free investing master class where I will walk you through how you can get started as an investor and find hidden investment opportunities. I'll show you the exact framework that my firm and I use to
research investment opportunities before they hit the headlines. So, if you want to get this investing master class and market briefs all for free, all you have to do is sign up. And I have that link for you down in the description below. In order to qualify for the full $1,000 investment by the United States government, what you have to qualify for is that you have to be making under $20,500 a year as a single person or $41,000 a year as a married tax filer. But that's not all. the government is only going to give you up to a 50% contribution. Which means in order to qualify for this $1,000 a year contribution, not only do you have to make under this amount of money, but you also then have to contribute at least
$2,000 over the year because then the government is going to match you 50% up to giving you $1,000. So if you want to qualify for the $1,000, you have to make less than this and then you have to contribute at least $2,000. But if you make more than this, that doesn't mean you might not get any money. It means it's going to slowly get phased out. I'll show you. If you make between $20,500 a year and $35,500 a year, you will still qualify for some free money from the government. And if you're a married tax follower and you're making between $41,000 a year and $71,000 a year, you're still going to get some free money for the government, but not up to the full $1,000. If you make more
than this, then you're not going to qualify for any free money from the government. And I do want to say that the most expensive kind of money is free money, but I'm going to talk more about that in just a minute. So make sure you stick with me about that. The two things that I want you to understand is number one, what is the impact of fees? Because whether you use a 401k, IRA, Trump IRA, you have to understand how these fees work. And then I want to talk about how is the government actually going to pay for this. So let's start by talking about fees because I think that's an important lesson for everybody who's thinking about investing your money, even if you're not using a 401k. Because
the reality is, if you put your money into any fund, whether it's a 401k or an IRA or a Trump IRA, whether it's a mutual fund, an ETF, or an index fund, every single one of these funds have a fee. That fee is called an expense ratio. So, let me diagram what that means. If you invest $500 a month, and you do this for the next 30 years of your working career, and you can get an 8% return on your money, which by the way has been the average historical 401k return. Well, now when it comes time for it to retire, you're going to have right around $679,000, which might sound like a lot of money.
The first problem is it's not going to be enough money for most people to retire. The second problem is you haven't even talked about fees yet. If you are paying the average 401k fee, which at the time of recording this video is right around 1.26%, well then what that means is you're not going to retire with $679,000. Now you're good to retire with right around $540,000 because yes, the other $139,000 went into the hands of your money managers in the form of fees. That's why low fees can be very valuable assuming that you're getting similar or better returns. So now let's do the math. If you got the same type of returns, but now you're paying 0.15% in fees, now you're going to retire with about $660,000,
which means you're going to have a whole lot more money than here because now your fees are significantly less. And over the course of your working career, you're only going to pay about $19,000 in fees. Which is why if you have a 401k, if you have an IRA, if you're investing in a mutual fund, an index fund, an ETF, your homework after this video is to look at how much your expense ratio is and see is the fee worth it. I'm not saying fees are not worth it. Sometimes they are, but you have to make sure that if you're paying higher in fees, you're going to be getting better results as well. Because if you're going to pay the fee, you might as well get better returns for paying those high fees as well. Now that
you understand this, let's talk about where the government is going to get this money, the implications on the economy and how this creates opportunities for the financially savvy investors. Right now, here's a very rough overview of how the government's finances are running. The United States government has one source of revenue and that revenue is from tax dollars from taxpayers. And in 2026, it is estimated that the United States government is going to generate approximately $5 trillion in taxes. That includes all the different types of taxes that government taxes you. And then they're expected to spend something around and around this number, they're going to spend something around $7 trillion,
which means there is a gap. And that gap is approximately $2 trillion. And the way that the government is going to cover that gap is through debt. So the government right now without any additional costs is spending more money than they're bringing in. And the way that they're covering their costs is by going deeper into debt. This would kind of be like working a job, not having any money in your bank account, then going to the Gucci store and buying a nice purse, a nice wallet, and maybe a nice scarf, too, because your AMX just gave you a brand new credit card. So the government is surviving off of this debt. Now, if the government is going to start funding these Trump IAS, that
means their expenses are going to rise because they naturally have to pay more money if they're going to give out this free money. So, if the government is going to give out this free money, where are they going to get it? There are only two options. Option number one is they can raise taxes, but that doesn't seem very likely because remember, President Trump just signed one of the biggest and most historic tax cuts in the history of time through the One Big Beautiful Bill Act. So, it's probably not going to come from taxes. So, if it's not going to come from taxes, the only other place that it could come from is through more debt. Well, this is where things get even more interesting. If the government
is going to go deeper into debt to fund these Trump IAS, where are they going to borrow this money from? And the government can borrow money from three places. They can borrow money from people like you and me who lend money to the United States government. They can borrow this money from foreign countries like Japan and the United Kingdom and China. Or they can borrow this money from the Federal Reserve Bank which is the central bank here in the United States which has been a growing lender to the United States because the government keeps borrowing so much money that the government cannot get enough money from people like you and me and foreign countries. Now the interesting
thing about the Federal Reserve Bank is although they're called the Federal Reserve Bank, they're actually not a bank because you and I can't go there to deposit money. They're not a reserve because they're not sitting on any cash reserves and they're actually not federal. It says so on their website. And so if the Federal Reserve Bank doesn't have any cash reserves, how are they going to lend money to the United States government? Well, the Federal Reserve Bank has a special power and that special power is to print money. So the Federal Reserve Bank can print this money out of thin air and lend it to the United States government, which sounds great, but let's think about that for a second. If the Federal Reserve Bank can
just print money, why do you have to pay taxes in the first place? Because there is a cost to money printing. Anytime you hear of government spending, I want you to think of inflation. Because when you create money, you cannot create wealth. You can print the dollars, but you cannot print the wealth. So when dollars get created, the value of each individual dollar goes down, causing the prices of things to go up. So could these Trump accounts create more inflation? Well, based off of basic economics, yes. Now that you understand that, how can this create opportunity? Because the first thing that I want you to understand in the opportunity side is not on the inflation side, but the supply and demand side. Because how does
the stock market work? Specifically, how is the stock market priced? It's the same way every other asset is priced. It's the same way houses are priced. It's the same way gold is priced. It's the same way cryptocurrency is priced. It's priced based off a supply and demand. When you have more buyers than sellers, the price of this thing goes up. When you have more sellers than buyers, the price of that thing goes down. So if the stock market runs on supply and demand and there's more buyers coming into the stock market because the whole idea is this increasing access into the stock market, increasing the amount of dollars that
people are burning into the stock market but making it easier. Well, we know that could bring more buyers into the stock market which could boost the stock market. But don't forget this, the government also wants to throw more money into the stock market. How? by printing money and throwing that money directly into the stock market. It's not even being hidden here. The government is looking to print money and inject it directly into the stock market. Now, the whole idea behind this Trump IRA is still very new. So, take this number with a grain of salt, but it is estimated that this Trump IRA is going to lead to somewhere between 32 billion to 68 billion of new dollars entering the stock market. That's people
contributing money into the stock market and the government printing money and injecting that into the stock market which is a way to help boost the stock market. So now that you understand that how can this create opportunity? Well as an investor you want to own where the money is moving and this is a clear signal that once this actually happens because it's going to start in 2027. The idea is this is another way to boost money going into the stock market. The 401k and the IRA were first ways to inject more money into the stock market. Then we saw the growth of individual retirement accounts which in created more money going into the stock market. Then we saw the free brokerage accounts,
the Robin Hoods of the world which injected more money into the stock market. This is a new way to have regular people who don't qualify 401ks to put money into the stock market and for the government to use it as an opportunity to print money and to keep the stock market afloat. So that can create an opportunity for investors in the stock market. Does that mean that the stock market will only go up? No. Market crashes will continue to happen. In fact, anytime you inject free money into anything, the market volatility goes even higher. People see more swings up and down, which creates more opportunity for wealth because when
markets go down, it creates a bigger and better buying opportunity because you can buy good investments at a cheaper price. This doesn't change if there's good stocks and bad stocks. This doesn't change if there's going to be recessions and market crashes. What this means is there's going to be more money going in, more opportunity for the financially savvy. And there's a lot of ways to invest your money into the stock market. Some of these could be as simple as just investing your money into the total stock market. What do I mean? Well, there are funds out there like VTI.
VTI is going to give you exposure to the total stock market. Now, I got to give you that disclosure. I'm just a random guy on YouTube. Investing has risks. You're never guaranteed to make money when you invest. In fact, you will lose money at some point. So, make sure you always do your own due diligence and never blindly trust a random guy on YouTube. I'm just showing you how to start thinking like an investor. I'm not telling you what to invest in. VTI gives you exposure to the 2000 some stocks in the stock market. So, if the stock market goes up, this fund goes up. If the stock market goes down, this fund
goes down. You want to get more niche, SPY, SPY. This gives you exposure to the SNP500, the 500 largest companies in the stock market. And now you can start to see these are funds that will give you exposure to the American economy, more specifically the American stock market. One of the most difficult parts about running a business is thinking about taxes. And I worked with good tax advisors and I worked with bad tax advisors. And the bad tax advisors that I worked with were very cheap. So I thought I was getting a good deal. Turns out those cheap accountants ended up costing me a lot of money because now I ended up paying more money in taxes, more money in fees, more money in
interest, not to mention all the more time and headache that I had to spend trying to figure out how much money I actually had to pay in taxes. Now working with a good tax adviser who was also my sponsor Commonwealth, now I meet with my tax adviser very regularly and we talk about how much money I owe in taxes and what I can do strategically to pay less money in taxes. That's the key difference between a good tax advisor and a bad one is the tax strategy meetings. Are you meeting with your tax adviser to actually understand what your tax liability looks like and what you can do based off of today's tax law to potentially pay less money in taxes. So, if you're a business owner, you're
making over a quarter million a year and you want to see if you can qualify to work with Commonwealth, I'll put a link to their short form down in the description. Again, this is only for business owners that are making over a quarter million dollars a year. But if that's you and you want to see if you can qualify to work with Commonwealth, again, I have that link for you down in the description. When this starts in 2027, because it is scheduled not to start in 2026, but in the beginning of 2027, it is going to do two things. Number one, it is going to create more buyers in the stock market by increasing access to the stock market, which is good. We know that investing money is
good. The second part is it is going to create more inflation because the government is going to have to find the money to fund this contribution from somewhere. And the government doesn't have the money as it is and they're not going to raise taxes. In fact, they're cutting taxes which means they're going to have to get that money through more debt. And if they're getting that money through more debt, more money is going to have to be printed, which means the value of the dollar falls. And that means more dollars are going to be printed which creates an inflationary problem which means the average person's salary, the average person's savings get hurt while asset prices become more
valuable. Investors become richer. This money then also goes into the stock market to make investors richer which is why you have to understand how the economic system works. That way you can win in this economic system. That's what I teach in this investing master class. Again, if you haven't signed up for market briefs and my investing master class yet, I have that link for you down in the description. And now here are two very basic ways to invest money in the American stock market. You can invest in the total stock market or the S&P 500. So what we talked about is that the 401k has limitations. The limitations of the 401k is you can only access it is if your job gives it. It can have very high fees.
Now not every fund in 401ks have this high of fees. Some funds are very low. But this is the average 401k fees and it's not portable because you can't take it from one job to the other. Not to mention that many 401ks have some sort of minimum requirements. You have to invest to get access to it and the only contribution you can get is from your employer. This is where President Trump just signed an executive order to create something called the Trump IRA. And what this Trump IRA is scheduled to do starting 2027 is number one, it's supposed to increase access to anybody who is a worker in the United States. So even if you don't qualify for a 401k, you can qualify for the Trump IRA. Then it caps the fees to 0.15%.
Then it allows you to not have to worry about leaving your job because this is associated with the United States government, not with your employer. Then there are no minimums. You can start investing with $5 into the Trump IRA. And then you have the ability to get up to $1,000 in contribution as long as you qualify on the income side. And we talked about what you need to qualify on the income side to get this free money from the United States government. But like I said before, the most expensive kind of money is, say it with me now, free money. Because the United States government has one source of revenue, tax dollars from taxpayers, but the government is generating $5 trillion in
taxes. They're spending $7 trillion, which means we're already not making enough money as it is to pay for our expenses. There's this $2 trillion deficit. Where does the government make up this deficit from? Through borrowing money from debt. So, if the government's going to start giving out free money, that means we're going to need more debt. that more debt can come from people like you and me who lend money to the government, foreign countries or the Federal Reserve Bank. Well, the Federal Reserve Bank is not sitting on cash. They have to print that money. And the entity that is continuing to make up for this debt for the government has been the Federal Reserve
Bank. So, if the government now has higher expenses due to this Trump IRA, that could mean the Federal Reserve Bank has to print more money, lend it to the government. That way, the government can spend more money. And it is estimated that this Trump buy rate is going to bring a new 32 to 68 billion into the United States stock market. Why does that matter? Because the stock market, like every other asset runs on supply and demand. When there are more buyers and sellers, the price of an asset goes up. When there are more sellers and buyers, the price of an asset goes down. So if we are printing money, that creates inflation. Inflation makes investors richer and makes the average
person relying on their salary and their savings poorer. Not to mention that when there's more money going into the stock market, the stock market generally benefits. In fact, that's what we've seen happen with supply and demand throughout economic times. But here's the thing you have to remember. This doesn't mean that markets will only go up. It doesn't mean that market crashes will not happen. It does not mean that recessions will not happen. Those will continue to happen. In fact, they will be even more volatile because anytime you add in free money or more access, volatility goes up. That means bigger crashes, bigger recessions. But market crashes and recessions create more
millionaires than any other time because they allow the smart people to come in and buy good investments when they are on sale. So, how can this create opportunity for you? By owning where the money is going. You can own a piece of the total stock market with a fund like VTI. You can own something more niche like the S&P 500, which is a group of the 500 largest companies in the stock market like SPY. Again, I'm not telling you what to invest in. My goal is just to show you how you can start thinking like an investor. That way, you can win in this economic system instead of being unfortunately screwed over by the same financial system because many people just don't understand how money works.
If you got value out of this video, the best thank you was a referral. So, if you could please share this video with a friend, family member, colleague, or fellow investor. That way, we can continue to spread this type of financial education. Thank you. On May 15th, 2026, the Federal Reserve Bank is going to reset, and most people are not going to hear about it until they feel it in their wallet. What's happening on May 15th? The chairman at the Federal Reserve Bank is going to change, and he has a new plan on how to shrink the debt crisis here in the United States. The only problem is you cannot fix the debt problem without causing
