New trust team and investment-only variable annuity establish company’s presence in trust, private wealth space
DENVER–(BUSINESS WIRE)– Jackson National Life Insurance Company® (Jackson®) today announced the formation of its Private Wealth & Trust group, a specialized team focused on complex planning, investment management and tax mitigation strategies for high-net-worth and ultra high-net-worth families. This dedicated group works with private banks and trust firms as well as families’ trusted tax and legal advisors on long-term, tax-efficient planning and wealth transfer opportunities.
“Since trust and private wealth firms operate on a fee-only business model, many of these entities haven’t traditionally utilized annuities in their practices,” said Justin Fitzpatrick, head of Private Wealth & Trust at Jackson National Life Distributors LLC (JNLD). “However, we’re hoping to change that. We believe fiduciaries should have access to the tax deferral and income control provided by variable annuities in a commission-free form that fits their business. We’re looking forward to building relationships with the firms in this space.”
In creating this product, Jackson sought input from trust and investment management firms and created Private Wealth Shield, an investment-only, tax-deferred variable annuity developed specifically for trusts and private banks. This new annuity is institutionally priced and available as a fee-based offering without commissions or surrender charges.
By leveraging the tax-deferred nature of variable annuities and the investment-only feature of Private Wealth Shield, portfolio managers and trust officers can help high-net-worth and ultra high-net-worth individuals and families access tax-sheltered investments, lessen tax burdens and enhance flexible portfolio construction for long-term growth over multiple generations in agency and trust accounts. For irrevocable trusts, Private Wealth Shield provides greater income and tax control and removes the need for tax-related distributions, keeping more assets in the trust for improved growth potential.
“Private trustees have long relied on tax-deferred annuities, but Private Wealth Shield’s investment-only platform offers trust and private wealth firms a more powerful solution for mitigating taxes on nonqualified assets, particularly within the high-net-worth market,” said John Poulsen, executive vice president of sales strategy at JNLD. “As financial institutions and professionals navigate complicated fiduciary rules that can lead to difficult investment and tax management decisions, Private Wealth Shield presents a viable strategy that can help alleviate these challenges to meet the needs of their clients.”
Jackson is committed to providing education, service support and digital tools to increase the ease of doing business through a new product offering. Financial institutions that would like to learn more about Private Wealth Shield can contact the Private Wealth & Trust group at email@example.com.
Jackson is a leading provider of tax-deferred annuities for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of income, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $249.8 billion in IFRS assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and training on planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com.
*Jackson has $249.8 billion in total IFRS assets and $236.4 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of June 30, 2017). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards for reporting financial information. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson’s parent company.
Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world’s leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for over 165 years and has $824.7 billion in assets under management (as of June 30, 2017). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
This press release may contain certain statements that constitute “forward-looking statements.” Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. However, as with any projection or forecast, forward-looking statements are inherently susceptible to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such forward-looking statements. There can be no assurance that management’s expectations, beliefs or projections will result or be achieved or accomplished. Any forward-looking statements reflect Jackson’s views and assumptions as of the date of this press release and Jackson disclaims any obligation to update forward-looking information.
Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.
Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a “non-natural person” such as a corporation or certain types of trusts.
Variable annuities are long-term, tax-deferred investments, involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59 ½.
Optional benefits are available for an extra charge in addition to the ongoing fees and expenses of the variable annuity.
Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company and do not apply to the principal amount or investment performance of a variable annuity’s separate account or its underlying investments.
Jackson and its affiliates do not provide legal, tax or estate planning advice. For questions about a specific situation, please consult a qualified advisor.
Private Wealth Shield Variable and Fixed Annuity (VA790, ICC17 VA790, VA790-T1) is issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan). Distributed by Jackson National Life Distributors LLC, member FINRA. This product has limitations and restrictions. This product is not available in New York. Jackson® issues other annuities with similar features, benefits, limitations and charges. Contact Jackson for more information.
Jackson is the marketing name for Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Jackson National Life Distributors LLC.
Jackson National Life Insurance Company
Melissa Hernandez, Director, Corporate Communications
Source: Jackson National Life Insurance Company