As we navigate tax season, consider IRS guidance concerning a new type of IRA: the “Trump Account.” These accounts may be established for eligible children under age 18 for whom a parent or guardian makes an election on their 2025 tax return. For children who are U.S. citizens born betweenJanuary 1, 2025, and December 31, 2028, the federal government will make a one-time $1,000 contribution once the account is established.
Other features worth noting:
This article provides broader context, describing how the concept of seeding capital at birth, often referred to as “baby bonds,” has attracted interest across the political spectrum over the past two decades. It also addresses how philanthropists are getting involved, including Michael Dell’s $6 billion pledge tof und Trump accounts. If you’d like more information, please reach out.
2. Trends in Philanthropy: GiveDirectly
Related to the Michael Dell gift above, two broader shifts are underway in philanthropy: accelerating the deployment of charitable capital and directing more of it straight to individuals.Today, more than $1 trillion sits in private foundations and donor-advised funds, with annual reports from the National Philanthropic Trust continuing to show growth in DAF assets and contributions. That raises an increasingly discussed question: how should philanthropic capital balance long-term endowment strategy with timely deployment?
In its2025 next billion update, GiveDirectly outlines plans to distribute billions in unconditional cash transfers, moving capital directly to recipients who decide how to use it. Major funders, including Canva, have expanded commitments to this approach, reflecting growing confidence in evidence supporting direct cash transfers. There is no single right structure for charitable giving. Many families value the governance and long-term planning benefits of foundations and DAFs. But the trends highlight a broader conversation about agency, efficiency, and the velocity of capital in addressing present needs.
On a related tax-planning note, taxpayers who take the standard deduction in 2026will once again be able to claim an above-the-line charitable deduction of up to $1,000 for single filers and $2,000 for married couples filing jointly fo rcash gifts made directly to qualified public charities. This option broadens the tax benefit for giving and may encourage more direct philanthropy.
3. The Obstacle Is the Way
I recently revisited Ryan Holiday’s The Obstacle Is the Way, a book I have found useful over the past few years when facing challenges in my own life. Drawing on Stoic philosophy, Holiday builds around a simple but challenging idea: that what stands in the way becomes the way. He organizes the book around three disciplines.
The book does not romanticize adversity. It does not suggest that obstacles are pleasant or easy. Instead, it suggests that difficulty is often the forge in which clarity, character, and resilience are formed. It is a reminder that setbacks can refine priorities, pressure can strengthen resolve, and constraints can sharpen thinking.
For anyone navigating complexity, uncertainty, or challenges, this book offers a steady and practical perspective.
If any of these spark a thought or raise a question, I welcome the conversation!
Disclosures:
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
Pearl Wealth is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Pearl Wealth and its representatives are properly licensed or exempt from licensure.
