Jackson National Life Insurance Company® (Jackson®) is working with Morningstar, Inc. to launch its new Tax Deferral Illustrator, a tool enabling financial professionals to visually demonstrate the impact taxes can have on clients’ retirement income over time. Through a collaboration with Morningstar, Jackson has launched the Tax Deferral Illustrator to show the outcomes of tax deferral1 throughout the full investment cycle of accumulation and distribution.
“Through simulated data, advisors will have the ability to educate clients about the effects tax deferral can have on their individual investment strategies,” said Justin Fitzpatrick, vice president of Advanced Strategies at Jackson National Life Distributors LLC (JNLD), the sales and marketing arm of Jackson. “Taxes on investments can be much more complicated than just the long-term capital gains rate. The launch of the Tax Illustrator reinforces our commitment to providing advisors with the tools they need to create customizable outputs that can be representative of their clients’ unique portfolios.”
The illustrator is powered by Morningstar’s Wealth Forecasting Engine. This sophisticated simulation software allows advisors to demonstrate scenarios based on a client’s specific financial situation.
- Input personalized information including current age, retirement age, state-specific tax policies and investment data to create individualized representations of clients’ investments and their potential returns.
- Demonstrate to clients the differences between taxable and tax-deferred accounts over a specified period of time.
- Use returns specific to each asset class to illustrate tax drag.
- Recognize long-term capital gains tax treatment in a taxable portfolio through accumulation, distribution and legacy planning on a pre- and post-tax basis.
“We are excited to be working with Jackson on this innovative project. Advisors can’t control the direction of the market, but they can add significant value with good financial planning,” said Tricia Rothschild, head of global advisor solutions for Morningstar. “This new tool will help advisors educate clients on the benefits of managing taxes.”
This tool is available for wholesalers and advisors, and supported by Jackson’s Advanced Strategies team, an elite group of senior portfolio strategists and retirement and wealth strategy consultants who are responsible for providing insight and direction surrounding the ever-evolving investment and tax landscape. Advisors who wish to learn more about Jackson, or the support offered by the company’s wholesaling and marketing teams, can contact Jackson by calling 800-711-JNLD (5653) or visiting www.jackson.com.
Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $218.9 billion in assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com.
Jackson is the marketing name for Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Jackson National Life Distributors LLC.
*Jackson has $218.9 billion in total IFRS assets and $205.5 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of 6/30/15). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards for reporting financial information. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent company.
Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It has been in existence for over 165 years and has $794.1 billion in assets under management (as of 6/30/15). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
The results of the Tax Deferral Illustrator will vary with each use and over time.
IMPORTANT: The projections or other information generated by the Tax Deferral Illustrator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.
Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.
Retirement and Wealth Strategies Group communications are intended only to alert you to strategies that may be appropriate for the circumstances described. You should consult with a lawyer and/or tax specialist before adopting or rejecting any strategy the Retirement and Wealth Strategies Group suggests. Only a lawyer and/or tax specialist, after thorough consultation, can recommend a strategy suited to anyone’s unique needs.
1 Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may not be available if the annuity is owned by a “non-natural person” such as a corporation or certain types of trusts. Jackson and its affiliates do not provide legal, tax, or estate-planning advice. For questions about a specific situation, please consult a qualified advisor.
Melissa Hernandez, 303-224-7572
External Communications Manager