Welcome!

AJAX & REA Authors: Elizabeth White, Trevor Parsons, ChandraShekar Dattatreya, Liz McMillan, David H Deans

News Feed Item

RIAs and Fee-Based Advisors Say Tax-Deferred Investing Essential to Navigating Fiscal Cliff

Jefferson National's New Survey Shows Majority of Advisors Plan to Leverage Tax Deferral to Mitigate Impact of Expected Tax Increases

LOUISVILLE, Ky., Dec. 13, 2012 /PRNewswire/ -- According to a new survey of Registered Investment Advisors (RIAs) and fee-based advisors conducted by Jefferson National, 75% say their clients are anxious about the impact of the looming fiscal cliff—and  their biggest concern is rising taxes. These same advisors say their clients are demanding tax deferral as a solution to this challenge, topping other potential financial approaches. And advisors agree with their clients, as 85% say that a low-cost tax-deferred investing solution would indeed benefit clients in a time of rising taxes.

"Poised on the brink of the fiscal cliff, the political stalemate that is gripping Washington and driving volatility in the market is clearly a top concern of advisors and their clients, and this is driving an urgent demand for tax-advantaged investing solutions," said Mitchell H. Caplan, Chief Executive Officer of Jefferson National, a recognized innovator singularly focused on serving RIAs, fee-based advisors and their clients.

Financial advisors are forced to grapple with the threat of rising taxes, as the nation's tax bill will escalate by $500 billion, or an average of nearly $3,500 per household, if no solution to the fiscal cliff is reached by year-end, according to the nonpartisan Tax Policy Center. Tax-deferred investing vehicles remain an important solution for mitigating this impact and accumulating retirement savings, which is at the core of ensuring adequate income during retirement years.

At the same time, the threat of ongoing volatility is cited as a primary concern by more than 67% of advisors who are anxious about the fiscal cliff. Coming on the heels of the 2008 downturn, this unprecedented volatility has made advisors' jobs more difficult. In response RIAs and fee-based advisors are also increasingly turning to alternative investment strategies to navigate the current market. Often, these strategies are tax-inefficient, which has led 85% of advisors surveyed to indicate that a low-cost tax-deferred investing solution with a broad choice of alternative strategies would benefit clients in a time of rising volatility.

Jefferson National's research also indicates that tax-efficiency will continue to become increasingly vital to advisors as they continue to allocate more to alternatives in an effort to manage risk and optimize overall portfolio performance. More than 68% of advisors have increased their use of alternative investments, and more than 61% believe that alternatives will become even more important than traditional investments in the future.(1)  Likewise Cerulli research indicates that in five years the use of alternative strategy funds could increase more than a 245%.(2)

"As whipsaw markets create chaos for portfolios, and the threat of rising taxes continues to magnify their clients' anxiety, a clear majority of RIAs and fee-based advisors believe that more alternative strategies and more tax-deferral are needed to meet these challenges head-on," continued Mr. Caplan.

To meet the unique needs of RIAs and fee-based advisors, Jefferson National's Monument Advisor, the industry's first flat fee(3) variable annuity, now tops a total of 390 funds—9 times more funds than the typical VA(4)—with the industry's largest selection of more than 70 alternative investment options, and the most subaccounts with the 5- and 4-star Morningstar Rating for four consecutive years.(5)

More than 250 responses from RIAs and fee-based advisors were recorded in the survey, which was completed December 12, 2012.

For more information, please contact Chris Moon at 973-850-7304 or [email protected] or Deborah Newman at 502-587-3858 or [email protected].

About Jefferson National Financial Corp.  
Jefferson National  is a recognized innovator of tax-deferred investing solutions for RIAs, fee-based advisors and the clients they serve. Creating the industry's largest selection of more than 390 funds, including more than 70 alternative investment options, and utilizing a highly flexible technology platform, an innovative distribution strategy, and cost-effective servicing capabilities, the firm is a winner of more than 30 industry awards including the DMA 2010 Financial Services Company of the Year(6). Serving a network of 2,000 RIAs and fee-based advisors nationwide, the Company is based in Louisville, Ky., with authority in 49 states and the District of Columbia. To reach our advisor support desk, please call 1-866-WHY-FLAT (1-866-949-3528). To learn more, please visit www.jeffnat.com.

Important Disclosure:
An investor should carefully consider the investment objectives, risks, charges and expenses of the investment before investing or sending money.  The contract prospectus and underlying fund prospectuses contain this information. For a prospectus containing this and additional information, please contact your financial professional.  Read it carefully before investing. The summary of product features is not intended to be all-inclusive.  Restrictions may apply. The contracts have exclusions and limitations, and may not be available in all states or at all times.

Variable annuities are investments subject to market fluctuation and risk, including possible loss of principal. Your units, when you make a withdrawal or surrender, may be worth more or less than your original investment.

Variable annuities are long-term investments to help you meet retirement and other long-range goals. Withdrawal of tax-deferred accumulations are subject to ordinary income tax. Withdrawals made prior to age 59 ½ may incur a 10% IRS tax penalty. Jefferson National does not offer tax advice. Annuities are not deposits or obligations of, or guaranteed by any bank, nor are they FDIC insured.

Monument Advisor is issued by Jefferson National Life Insurance Company (Dallas, TX) and distributed by Jefferson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2.

(1)RIAs and Fee-Based Advisors Alternative Investments and Tactical Management Survey, published by Jefferson National, September 2011.

(2)Quantitative Update: ETFs and Retail Alternative Products and Strategies 2012, Cerulli Associates, 2012.

(3)Jefferson National's Monument Advisor has a $20 monthly flat insurance fee. Additional fees ranging from $19.99-$49.99 will be assessed for investors wishing to purchase shares of ultra low-cost funds. See the prospectus for details.

(4)Morningstar data as of 12/31/11.

(5)Morningstar data as of 08/15/12

(6)Jefferson National was reviewed by the Direct Marketing Association, including a panel of independent judges and industry peers, and won for re-engineering the traditional commission-based distribution model and replacing it with an unprecedented web-based direct marketing approach.

CONTACT: Chris Moon
JCPR
973-850-7304
[email protected]   

Deborah Newman
Jefferson National
502-587-3858  
[email protected]

SOURCE Jefferson National

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.