Solano Real Estate Scene: Jim Porter
Article By: Jim Porter – June 19, 2026
I have encouraged people over the years to use tax-advantaged opportunities that exist for kids.
UGMA, the Uniform Gifts to Minors Act, was what I did for my four kids through John Hancock from 1988 until they were all 18. It was not much, but I set it up to be automatically deducted out of my checking account monthly based on each kid’s age, so they would each have around $15,000 or so when they turned 18.
The interest and dividends were paid to the kid’s Social Security number as income and because they had no other income, the gains were all tax free. When each kid turned 18, I turned the custodial accounts over to them, and if I remember correctly, they cashed in the mutual funds and spent the money when they realized that it was 100% their dough.
I am not sure any of them cared about investing in Apple or Microsoft when renting an apartment and a nice used car was on the agenda. My youngest turned 18 in August 2006 and if she had invested $10,000 in Apple stock on her 18th birthday, it would be worth $1.3 million today. If she had invested in Microsoft, it would be worth $220,000 and if somehow, she invested $10,000 in Nvidia, she would have $4.5 million in her brokerage account and I would be borrowing money from her today.
In 1996, the 529 plans came to be, and that program is even better than UGMA for kids if the primary goal is education. Aunt June cannot buy an individual stock in her nephew’s 529 plan, but she can buy ETFs, mutual funds and index funds, and 100% of the growth and the dividend income is tax deferred. When the kid uses the money for school or technical education, the profits and gain is tax free, which is like a Roth IRA.
Aunt June can open an UGMA custodial account for her 3-year-old nephew and buy five shares of Space-Ex today because you can buy individual stocks in an UGMA custodial account. When little Joey turns 18, Aunt June will either turn over five shares of Space-Ex worth less than a small pile of moon rocks or, if lucky, after a few stock splits, 100 shares of Space-Ex worth $5,000 per share, according to InvestAmerica.org.
Every child in America under 18 with a valid Social Security number today is eligible to sign up for a Trump Account and it is free.
I have been following Brad Gerstner and his mission to get all Americans involved in the market for the past five or six years. For those of you that have TDS, this is not a political movement. Gerstner calls himself a Democrat, Ray Dalio is registered as an Independent, and Cory Booker, a prominent liberal, all support Trump Accounts because it is the biggest no-brainer solution to helping the “have nots” become “haves” and owners of the American Dream in history.
I believe this new program will change our country through teaching financial literacy. If your baby was born after Jan. 1, 2025, they qualify for $1,000 deposited into a Trump Account. This this account can be added to by family at birthdays, graduations and holidays and the big thing that will be happening is employers around the country will be making contributions for the children of their employees.
Fifty-two percent of all Americans over 55 have no pension plan and no money in IRAs or 401ks, and at least 60% of these Americans do not own a free-and-clear home. A Trump Account can be used for education, to start a business or used as a down payment on a house penalty free. Many people will just let the money grow till they turn 60 and then take withdrawals penalty free like an IRA.
If Jose and Maria sign up their little new baby, Jose Jr., and Junior never touches the $1,000 and never adds a dime to the account over the next 60 years and the ROI in the S&P 500 performs as it has the last 60 years, he will have $367,000. But if he somehow adds $1,000 per year for the next 59 years, Jose Junior will have $3.5 million. Milk will cost $70 per gallon, and a dozen eggs, who the heck knows, but one thing for sure is Junior will be better off than he would have been without this Invest America Trump Account.
Jim Porter, NMLS No. 276412, is the branch manager and senior loan adviser of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.
Jim Porter, NMLS No. 276412, is the branch manager of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.
