Annuity Issuers Add Tools Aimed at RIA Market
July 13, 2018 by Allison Bell
Nationwide Advisory Solutions and Great-American Life have both used Monte Carlo simulation technology to develop new online tools aimed at registered investment advisors, and at RIAs’ retirement-planning clients.
Here’s a look at the company’s new tools.
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Nationwide Advisory Solutions
Nationwide Advisory Solutions — the Louisville, Kentucky-based arm of Nationwide Mutual Insurance Company that used to be known as Jefferson National — has introduced a new online portfolio performance calculator and proposal generator.
The company put the tool on a hub it already offers for RIAs and fee-based advisors.
The tool can pull in data from clients’ taxable accounts as well as their tax-deferred accounts, to help advisors, and clients, see the big picture.
Designers have also tried to help advisors, and clients, see what might happen to a client’s portfolio in a wide range of conditions, by building in 250 randomized Monte Carlo simulations created using historical market data, so that users can compare what happens to investments in a taxable account and investments in a tax-deferred investment-only variable annuity.
Users can customize the inflation rates and portfolios used in the projections.
The simulation system already includes the effects of the new Tax Cuts and Jobs Act on clients’ projected tax rates.
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.
Great American Life
Great American Life, a Cincinnati-based company has added a portfolio simulator website aimed at RIAs who are looking at indexed annuities.
The simulator uses the Great American Life’s Index Protector 7 indexed annuity as an asset class.
The simulator compares a portfolio with the annuity to a portfolio without the product.
The simulator uses Monte Carlo simulations to illustrate a range of possible outcomes, in both bull and bear markets.
