As NAIFA’s President, I would like to wish NAIFA members and all of our professional colleagues a happy 4th of July. We celebrate America’s 250th birthday knowing that we can take pride in the fact that for the past 136 years NAIFA has helped make our nation better by supporting financial professionals who build financial freedom and security for American families and businesses.
But while we celebrate our past, we also look to our future. I think we can all agree that children are the future of our country, and anything we can do to provide them with a strong financial base benefits us all. It’s also the right thing to do, because we care.
As financial professionals, we are fortunate to have a ready-made opportunity to take concrete action. The NAIFA CARES initiative leverages our strong community ties and makes use of the new 530A accounts that launch on July 4, also known as Trump accounts, to give children a leg up. These are tax-deferred investment accounts for citizens under the age of 18. The accounts, if used properly and in conjunction with professional financial guidance, provide a vehicle for families to place their children on a solid financial footing from the very beginning.
Under NAIFA CARES, beginning this summer NAIFA members will activate their communities by partnering with local organizations, employers offering family-focused benefits, community groups and churches, and schools and parent associations to create entry points for families who may have little or no experience with investing. For many parents, this will be their first exposure to building long-term wealth, and NAIFA members will be there to guide them every step of the way.
I was inspired to launch the NAIFA CARES initiative because I know what it’s like to grow up without a strong financial foundation and with no knowledge of how money works. I was fortunate to have a career in professional basketball before I became an advisor, but until I educated myself I had no understanding of risk, financial protection, or long-term decision-making.
My situation was much more common than it should be. Using 530A accounts as a tool, NAIFA CARES aims to get young families focused on their children’s financial health. It will spark conversations and foster relationships with financial professionals. The program is as much about encouraging education as it is about growing account balances.
As we get together with family and friends this holiday, America has much to celebrate on our 250th birthday. We also have great hopes and aspirations for the future. I am very excited to think that many of today’s children when they celebrate America’s tricentennial 50 years from now may enjoy the benefits of financial security and prosperity thanks to the efforts of NAIFA members today.