A new study from Guardian Life Insurance Company of America quantifies a shift in how small business owners define financial success. According to the research, 52% of small business owners now view their company's success as a means to fund generational wealth, moving beyond personal retirement security to a legacy that spans children and grandchildren.
The findings arrive as financial advisors grapple with the rollout of Trump Accounts, the newly introduced savings vehicles that blend features of Roth IRAs and 529 plans. The survey suggests these accounts are not just for the ultra-wealthy; they are becoming a mainstream consideration for Main Street entrepreneurs and the families they employ.
The cost of waiting
Guardian's modeling underscores the financial advantage of early enrollment. A child whose family contributes $5,000 annually to a Trump Account from birth, then switches to $7,500 per year in a traditional IRA from age 18 to 65, could amass roughly $4.1 million by retirement, assuming a 7% net return. If the family waits until the child turns 18 to start any contributions, the projected balance drops to $2.5 million—a $1.6 million gap, even though the early-start family contributed $262,500 less in total.
"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." She stressed that advisors are essential to align tax considerations, investment choices, family goals, and business priorities, especially given the complexity of the new accounts.
Trump Accounts as an employee benefit
The report, co-authored by Jim Magner, an advanced planning specialist at Guardian and former IRS attorney-advisor, outlines a framework for businesses to offer Trump Accounts as an employee benefit. Companies can establish a formal contribution program, contributing up to $2,500 per employee annually. However, Magner notes that employers must coordinate with benefits professionals, securities advisors, tax experts, payroll providers, and employment counsel to ensure compliance, particularly as Treasury and IRS guidance on nondiscrimination testing remains pending.
Guardian identifies three reasons Trump Accounts could appeal as an employer benefit: their familiar IRA structure simplifies understanding; they bridge immediate family support with long-term wealth building; and they signal a company culture that values employee commitment. This comes as a separate survey found only 7% of U.S. parents fully grasp Trump Account rules, highlighting an educational gap advisors can fill.
Advisor strategy and next-generation engagement
Guardian recommends positioning Trump Accounts not as standalone products but as part of a broader estate and tax planning strategy. Complementary tools like 529 plans, trusts, and custodial accounts each offer distinct tax treatment and flexibility; the right mix depends on a client's family structure, tax situation, and long-term goals. Advisors should also consider how younger wealthy clients prioritize experiences, which may influence how they frame legacy planning.
The report also highlights behavioral benefits: early account ownership fosters financial literacy, introducing children to compounding returns and long-term investing before adulthood. For advisors, this creates an opportunity to engage the next generation of clients well before the inheritance conversation. As the Treasury opens a comment period on the Saver's Match program, advisors should monitor regulatory developments that could affect Trump Account implementation.
For small business owners, the decision to adopt Trump Accounts may also intersect with broader tax strategies. The report suggests that business owners should evaluate how these accounts fit with existing retirement plans and whether they can enhance employee retention. With the IRS still crafting guidance, early adopters may gain a competitive edge in both talent and wealth transfer.
