Nationwide Advisory Solutions' New Online Calculator and Proposal Generator Demonstrates True Power of Tax-Deferral for More Holistic Planning

Louisville, KY — Continuing to enhance its digital advisor experience and planning resources for Registered Investment Advisors (RIAs), fee-based advisors and the clients they serve, Nationwide Advisory Solutions, formerly known as Jefferson National, has launched a new online calculator and proposal generator to help demonstrate the true power of tax deferral. This new calculator is the latest addition to Nationwide Advisory Solutions’ online platform built for RIAs and fee-based advisors, with integration capabilities and direct data feeds to manage taxable accounts alongside tax-deferred vehicles, for a more holistic approach to planning.

“As 10,000 Boomers a day enter retirement over the next two decades, advisors understand that adding more tax-deferral is vital for helping clients confront two of their most urgent needs—saving enough for retirement and making it last a lifetime,” said Craig Hawley, Head of Nationwide Advisory Solutions. “To help RIAs and fee-based advisors maximize the power of tax deferral, our flat-fee investment-Only VA can outperform taxable accounts and traditional high-cost VAs. And to help them prove the true power of low-cost tax deferral to their clients, we created a more customizable and robust online calculator.”

With more robust results, now backed by 250 randomized Monte Carlo simulations using historical market data[i], RIAs and fee-based advisors can use this new calculator to compare investments in a taxable account and in a tax-deferred Investment-Only Variable Annuity (IOVA). These findings reveal scenarios where tax deferral’s power may help clients outperform a taxable account, to increase returns by an average 100 bps without increasing risk[ii], to potentially accumulate more retirement savings, generate more retirement income and leave a larger legacy.

Re-designed in response to advisor feedback, the highly customizable interface can be tailored to each individual client’s unique needs and used to generate personalized client-approved proposals. Important features to meet advisor demands and client needs include:

Updated and Adjustable Tax Rates: Updated to incorporate recently passed tax reforms. Federal income tax, long term capital gains and state tax can be adjusted to reflect clients’ current tax rates during the accumulation phase, as well as to reflect future tax rates during the distribution phase.

Customizable Inflation Rate: Set to a default of 2.6% (25-year average U.S. inflation rate), this feature can be customized for more specific inflation-adjusted returns.

Customizable Portfolios: Advisors and their clients can choose among five pre-set model portfolios—from conservative to aggressive—or create unique portfolio allocations using 5 categories of Equities, 8 categories of Fixed Income and 7 categories of Real Assets and Liquid Alternatives.

Nationwide Advisory Solutions’ online platform fits the way RIAs and fee-based advisors work. It can integrate directly into advisors’ workstations through direct data feeds with custodians, portfolio management systems, account aggregation platforms and data services used by more than 95% of RIAs and fee-based advisors. In addition to the new Tax Deferral Calculator, the online platform includes a Non-Qualified Stretch Calculator, an Annuity Comparison Calculator, an Advisor Dashboard to create new proposals, emails and alerts, as well as a highly rated account management and trading platform.

[i] Calculation Explanation and Limitations

The calculator shows the results of 250 simulated paths based on historical returns and tax costs of asset classes. Past performance does not guarantee future results. Your actual performance, asset allocation or trading patterns may differ from any of the simulated values assumed by the calculator, resulting in a different outcome from the multiple outcomes shown.

IMPORTANT: The projections or other information generated by this calculator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.

[ii] Taxes and Investment Performance, Morningstar, 2013.