A new report is putting hard numbers behind what many wealth management professionals have long suspected: generational wealth is no longer just a concern for the ultra-affluent.
The new research from Guardian Life Insurance Company of America examines how the introduction of Trump Accounts is changing the planning calculus for advisors who serve both individual households and small business clients.
The survey found that 52% of small business owners want to use their business's success to create generational wealth, highlighting a significant evolution in how business owners are defining financial success not just as personal retirement security, but as a legacy that extends to children and grandchildren.
"Effective wealth management starts with a strong foundation," said Nancy DeRusso, Head of Client Solutions at Guardian. "From that base, individuals can pursue opportunities to grow, transfer, and preserve wealth with greater confidence."
DeRusso emphasized that working with a financial advisor is essential to ensuring "tax considerations, investment choices, family goals, and business priorities are aligned" a point that takes on new urgency given the complexity of the new accounts.
The Guardian study comes as a separate recent report found widespread confusion about Trump accounts among parents.
Guardian's modeling illustrates why advisors should be bringing this conversation to clients with young children sooner rather than later.
According to the report, a child whose family contributes $5,000 annually to a Trump Account from birth, then transitions to contributing $7,500 annually to a traditional IRA from age 18 to 65 (assuming a 7% net rate of return) could accumulate approximately $4.1 million by retirement.
A family that waits until the child turns 18 before beginning contributions could see that figure drop to $2.5 million, a difference of more than $1.6 million even though the family that started at birth actually contributed $262,500 less overall.
The numbers make a compelling case that financial advisors who help clients initiate wealth-building conversations early, rather than waiting until clients are affluent enough to think about estate planning, are delivering outsized long-term value.
The report, authored in part by Jim Magner, an advanced planning specialist at Guardian Wealth Advanced Markets and formerly an attorney-advisor in the IRS Office of Chief Counsel in Washington, DC, outlines a detailed framework for business owners who want to offer Trump Accounts as an employee benefit.
Businesses can establish a formal Trump Account Contribution Program, contributing up to $2,500 per employee annually. Magner notes that employers will need to coordinate with benefits professionals, securities advisors, tax advisors, payroll providers, and employment counsel to set up compliant programs, particularly as Treasury and IRS guidance on nondiscrimination testing and plan procedures is still forthcoming.
Still, the appeal is clear. Guardian identifies three reasons Trump Accounts could resonate as an employer benefit: their familiar IRA structure makes them easy to understand; they bridge immediate family support with long-term wealth-building outcomes; and they send a signal about company culture and employee commitment that other benefits often cannot.
Guardian recommends that advisors position Trump Accounts not as standalone products but as one component of a broader estate and tax planning strategy. Complementary tools including 529 education savings plans trusts, and custodial accounts each offer distinct tax treatment and flexibility, and the right combination will depend on a client's family structure, tax situation, and long-term goals.
The report also highlights behavioral benefits that go beyond the numbers: early account ownership creates a foundation for financial literacy, introducing children to concepts like compounding returns and long-term investing before they reach adulthood. For advisors, that creates an opportunity to engage the next generation of clients well ahead of the inheritance conversation.
Full details on Trump Account contribution rules and employer program requirements can be found on the IRS website as guidance continues to be released. Guardian's complete Next-Gen Wealth report is available at guardianlife.com.
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