Nationwide’s acquisition of Jefferson Investment Management will boost its fee-based business initiatives. Because both companies will move away from the commission-based business model. With this acquisition, Jefferson will attract RIAs to its Monument Advisor platform and both companies will offer them. It will expand the number of investment products and services. The transaction is expected to close in early 2017.
Advisory authority survey
A nationwide insurance company recently surveyed financial advisors and investors. The survey was the seventh annual advisory authority study. The research was conducted online among 1,632 advisors and 817 investors. Advisors represented 790 RIAs, 642 registered representatives, 500 wirehouse firms, and 165 other financial advisors. Investors based on gender, age, marital status, and education.
In the results, two-thirds of successful financial advisors and 67% of all others expect more market volatility in 2020. In contrast, the COVID-19 pandemic and the presidential election are high on the list of factors that could affect investor behavior in 2020. Investors also expected volatility to increase.
According to the Advisor Authority survey, most investors with at least $100,000 of assets are concerned about increased market volatility and the U.S. economic recession. The Nationwide Retirement Institute flash poll found that more than half of respondents expect long-term or transitory inflation. One of the most significant effects of the recent financial crisis on investors is that some see market declines as a buying opportunity.
Variable annuities
The Department of Financial Institutions received notification of a recent variable annuity sale from California firm Jefferson National. The purchase was made to an 86-year-old San Francisco consumer for $690,000. A customer said she needed help understanding variable annuities. How much money does the company invest when it recommends buying one of them?
When investing in variable annuities, investors must understand they have some risk and some upside potential. Although these investments generate income and lead to growth, many fees and potential downsides exist. Therefore, understanding all risks is essential before making a final decision.
Another advantage of the Nationwide Advisory Retirement Income Annuity is that it offers no commission and has 130 investment choices. This is excellent news for investors seeking to protect their retirement income. The income rider costs 80 basis points a year for a single contract and 95 basis points for joint agreements. In addition, Nationwide has a no-commission deferred variable annuity with lifetime withdrawal features. The new products have the same features and benefits as Jefferson National Annuities. But across the country, Jefferson National is moving into territory where it needs to walk.
jefferson national customer service for variable annuities is the cornerstone of its offerings.
Tax implications
The General Discussion in the Statement of Additional Information gives you an overview of federal tax laws. It does not cover the complexities of state tax laws, inheritance taxes, and other matters that may affect your situation. A tax professional should be consulted regarding your specific situation. Jefferson National still needs to prepare this information as tax advice.
When he has confidence in his ability to manage financial risks. Then the outbreak of Kovid-19 can cause significant volatility in the market. Consumer behavior and the economy in general may change. The company actively prepares for such a situation by implementing contingency plans and risk management procedures. Despite this, many of its employees are still working remotely. Therefore, the company cannot yet estimate the full impact of this pandemic. Despite Jefferson National’s proactive measures, certain risks remain.
The tax implications associated with variable annuities offered by Jefferson National Life Insurance Company are governed by the specific terms outlined in their policies. Jefferson Investment Management is a subsidiary of Nationwide.
