Financial Advisor: Annuities' Future
Jefferson National is featured in one of the lead articles in the November print and online edition of Financial Advisor Magazine entitled “Annuities’ Future.”
Writer Ben Mattlin interviews a number of advisors and industry experts to discuss the impact of the DOL Fiduciary Ruling on the VA industry. Mattlin spoke with Jefferson National’s president, Larry Greenberg, discuss innovations in the VA industry. The article leads with this important insight:
“There will be pressure to transform what annuities are, but annuities aren’t going to disappear,” says Larry Greenberg… “There is intense regulatory scrutiny, a lot of public distrust of financial services companies in general, and a strong focus on educating consumers to think about the price of financial products, their value and costs,” Greenberg explains. These distinct but overlapping factors are generating a move toward products that “will be lower cost, represent stronger value and be more transparent.”
Mattlin and his experts evaluate the various pros and cons of VAs, from the negative impact of commissions, complexity, and lack of transparency, to the potential benefits of tax-deferred investing, risk management and guaranteed income. Greenberg also points out the powerful impact of advisors’ transition to the fee based model. “Even the big wirehouses have moved their businesses to a fee-based model where they’re managing money for clients in fee-based accounts,” he says. “Insurance products are the last bastion of commissions, and now that’s starting to change.”
Read the full article, here.