Trust Company of America Announces Strategic Alliance with Jefferson NationalPartnership Will Provide RIAs and Fee-Based Advisors with Full Integration of Leading Low-Cost Tax-Advantaged Investing Solution and Robust Portfolio Management Platform
Denver, CO and Louisville, KY.— (BUSINESS WIRE – October 27, 2015) – Trust Company of America (TCA) announced today a strategic alliance with Jefferson National to provide fully-integrated access on its platform to the industry’s leading low-cost no-load, tax-advantaged investing solution for Registered Investment Advisor (RIAs) and fee-based advisors.
The alliance integrates Jefferson National’s Monument Advisor, the industry’s first and only flat-fee Investment-Only Variable Annuity (IOVA)1 with more than 350 underlying funds, with TCA’s robust and flexible model-based portfolio management and trading platform. The potent combination of TCA with Jefferson National’s flat-fee IOVA enables RIAs and fee-based advisors to build and manage multiple investing strategies within a single tax-advantaged account and trade them in a highly efficient, cost-effective manner.
“We’re excited by the partnership with Jefferson National and the opportunity to bring a fully integrated tax-advantaged investing solution to the Trust Company of America platform,” said Joshua Pace, President and CEO of TCA. “This alliance enables RIAs and their clients to improve after-tax performance using the power of tax deferral and asset location on TCA’s best-in-class custody platform.”
While today’s RIAs are typically skeptical of traditional variable annuities due to their high cost, complex insurance guarantees, steep commissions and limited number of underlying investment choices, Jefferson National’s Monument Advisor eliminates cost, complexity and commissions, to optimize the full power of tax deferral. Simple and transparent, with low cost and more choice, the Monument Advisor IOVA replaces the typical asset-based insurance fees with one simple flat fee of $20 a month – just $240 a year – no matter how much clients invest.2
“Fully integrating Jefferson National’s tax-advantaged investing solution on the TCA platform will help RIAs and fee-based advisors provide a more sophisticated approach to portfolio management—and a more holistic approach to financial planning,” said Mitchell H. Caplan, CEO of Jefferson National. “Jefferson National and Trust Company of America are committed to serving independent RIAs and fee-based advisors with innovation and excellence so they can grow their practice and help their clients grow more wealth.”
Through the full integration of Monument Advisor on the TCA platform, RIAs and fee-based advisors can help their clients maximize wealth to better achieve their investing goals. Managing multiple customized models within a single tax-advantaged IOVA, with more efficient trading and rebalancing, advisors can provide greater investment diversification and sophisticated risk management. In addition, managing tax-deferred vehicles alongside taxable accounts within a single workstation, with real-time data and seamless transaction capabilities, advisors can optimize clients’ portfolios, using asset location to help increase returns without increasing risk.
“Monument Advisor enables our advisors to gain tax deferral on client assets for the lowest cost and largest array of asset classes,” said Jerry C. Wagner, J.D., President and Founder of Flexible Plan Investments, Ltd. “And the TCA platform simplifies how we manage assets by letting us develop and run as many investment models as we need in a single account.”
Using the TCA platform to manage investments within the Monument Advisor IOVA also enables advisors flexibility in choosing the account from which they take their fee. For example, an advisor can take the Monument Advisor fee from one of the client’s non-qualified taxable accounts on the TCA platform, leaving the tax-deferred IOVA intact to compound and maximize accumulation over the long term. The integration will be finalized in December 2015.
About Trust Company of America
Since 1972, Trust Company of America (TCA) has been a champion of Registered Investment Advisors, dedicated to helping them realize their full potential. TCA is the only independent RIA custodian offering fully integrated real-time technology, consultative services and back office support built exclusively for RIAs. TCA partners with advisors to provide them the technology and support they need to manage their practices and clients’ financial futures. Learn more at trustamerica.com.
1Mogel, Gary S. (2005, June 6), Flat-fee variable annuity makes its debut. Investment News. Retrieved from http://www.investmentnews.com/article/20050606/SUB/506060708
2Jefferson National’s Monument Advisor has a $20 monthly flat insurance fee. Additional low-cost fund platform fees ranging from .10% - .35% will be assessed for investors wishing to purchase shares of low-cost funds. See the prospectus for details. Certain low-cost funds may only be available to you if you retain certain investment advisors.