Jefferson National Offers Annuities Tool
Jefferson National Life Insurance Co. is providing an online calculator that compares the accumulation rate of taxable accounts with that of tax-deferred variable annuities with flat insurance fees. The company sells such annuities, which it says may help baby boomers and others more quickly accumulate income for retirement.
A recent white paper, Increasing Retirement Income through the Power of Tax Deferral, by Dr. Ira Weiss of the University of Chicago and Matthew Grove of Jefferson National, concludes that tax deferral is crucial for accumulating more savings and generating more retirement income, and that tax deferral can outperform a taxable account, even when capital gains taxes are low. The key is using a low-cost, no-load tax-deferred investment platform, such as a flat-insurance-fee VA, after maxing out contributions to vehicles such as IRAs and 401(k)s. The paper further concludes that asset-based fees associated with traditional VAs often negate the benefit of tax deferral.
In the past, fees frequently offset the advantage of tax-deferred accounts. Jefferson National‚s Monument Advisor, a variable annuity with a flat insurance fee of $20 per month and 175 underlying tax-deferred funds, may help correct that disparity, the company says.
The flat fee "preserves the true power of tax deferral to outperform taxable accounts and outdo traditional high-cost VAs, helping consumers accumulate more, generate more retirement income and leave a larger legacy," says Laurence Greenberg, Jefferson National‚s president.
The online calculator can show the difference between taxable and tax-deferred returns using distribution assumptions, time horizon, tax rates and portfolio type. It can be found at https://advisor.jeffnat.com/comparison/taxdeferral.cfm?new=1.
Allianz Life Introduces Annuity Series
Allianz Life Insurance Co. of North America is launching a new MasterDex Plus fixed-index, deferred annuity series that builds on the existing MasterDex portfolio and offers, among other features, lifetime payments that can grow each year indexed to interest rates. The MasterDex Plus series also has more index options, new crediting methods of annual point-to-point or monthly averages, enhanced free withdrawal features and a death benefit paying full accumulation value.
PowerShares ETF Listed On NYSE
PowerShares Global Nuclear Energy portfolio (PKN) exchange-traded fund is now listed on the New York Stock Exchange. The portfolio is based on the WNA Nuclear Energy Index, which tracks globally traded companies in the nuclear energy industry.
The new listing comes on top of PowerShares 2007 advances, which include a four-fold increase in franchise assets to $40.6 billion, receipt of the 2007 Innovative ETF Award, and a global expansion to list on major European markets.
Behringer Harvard Real Estate Offered
Behringer Harvard Opportunity REIT II Inc. in Dallas has raised enough funds to exceed its escrow needs and is now able to offer investments to new shareholders. Original investors, who provided the escrow funds, are being admitted as the initial shareholders. The nontraded public real estate investment trust, offered through broker-dealers, will focus on commercial properties with potential for growth over the short term.
Schwab And Morningstar Join Forces
Charles Schwab & Co. Inc. is partnering with Morningstar Investment Services, a registered investment advisor and wholly owned subsidiary of Morningstar Inc., so that Morningstar portfolio management services are now available on Schwab Institutional‚s managed account services platform. Investment advisors doing business with Schwab Institutional may now access Morningstar Investment Services line of actively managed mutual funds, stocks and exchange traded funds tailored to meet a range of strategies.
State Street Launches Inflation-Protected Fund
State Street Global Advisors, the investment arm of State Street Corp. and one of the largest institutional fund managers, is offering the SPDR DB International Government Inflation-Protected Bond exchange-traded fund. The fund is designed to meet the demand for a better risk-return ratio through portfolios hedged against inflation and against exposure to the U.S. dollar, while increasing diversification. Additional information can be found at www.ssga.com.
May 1, 2008
Jefferson National Offers Annuities Tool