At Nationwide, we pride ourselves on being at the forefront of providing solutions that meet the retirement needs and objectives of our members. We do not take our status as the industry leader in Advisory annuity solutions for granted and constantly look for opportunities to innovate in order to provide products and an experience that help financial professionals serve the needs of their clients 1. Our partnership with J.P. Morgan, in the creation of the J.P. Morgan Multi-Asset ChoiceSM Variable Annuity, is just another example of that holistic focus coming to fruition.
The product, tailored to focus on tax-deferred accumulation, blends the Nationwide expertise in the Advisory annuity space with the investment management and capital market expertise of J.P. Morgan, to create the industry’s first professionally managed annuity solution. The tax-deferral status of the product allows J.P. Morgan clients to “buy or sell the underlying investment options without triggering any taxable events. All principal and growth remain tax-deferred until the time of withdrawal.”2
“The J.P. Morgan Multi-Asset ChoiceSM Variable Annuity allows clients working with a dedicated J.P. Morgan advisor to build a diversified portfolio tailored to their objectives and risk tolerance, with ongoing, dynamic direction to manage today’s complex market conditions.”2 Clients have personalized access to a wide selection of “underlying tax-deferred investment options associated with a choice of seven asset allocation models — U.S. conservative, balance or growth; global conservative, balance or growth; and global aggressive growth — without the limitation of contribution caps.”3
As the political climate creates potential uncertainty around the future of capital gains rates and tax brackets, the ability to shield assets in a tax-deferred vehicle without an annual contribution limit, or income phaseouts, can be a powerful retirement planning tool that we expect advisors to utilize on a more frequent basis going forward. According to our own 2021 Tax-Efficient Retirement Income survey, 60% of Americans expect their taxes to increase in the next four years. Our annual Advisor Authority Study also found that taxes are consistently a top financial concern for affluent investors.
Another important factor that is constantly on the minds of fee-based advisors and their clients: costs and transparency. As an industry leader in developing and offering low-cost annuity solutions1, Nationwide created this product within a cost-conscious framework and eliminated the use of any investment options that are not Institutional share-classes or incorporate 12b-1 fees. In our experience with our other Advisory annuity solutions, this structure is what financial professionals and clients have come to expect when looking at viable options to implement in their financial plan.
We believe that the success of this partnership with J.P. Morgan will be due, in part, to our ability to seamlessly integrate into their advisory platform. By drawing on our decades of experience focused on the Advisory market, Nationwide is able to create an experience for the advisor and client that match what they already know and have come to expect within their current J.P. Morgan relationship. This creates an environment where the advisor can focus on what is most important – the client. We believe, when that happens, everyone is a winner.