Nikki Powell, Director, Advisory Integration at Jackson National, joined Keith Black, Managing Director of RIA Channel, to discuss how RIAs can use annuities in financial planning and client portfolios.
Powell notes that RIAs understand that annuities can play a part in building strong financial plans for their clients. Annuities are used to generate income and to reduce the tax impact of investments. Financial planning tools can recommend where annuities can be beneficial for an advisor’s specific clients.
Jackson National partners with advisors and their firms to provide planning tools and transparency regarding annuity products. The firm has a concierge team that can explain the features of specific products and complete the paperwork for those clients for whom an investment is appropriate. The role Jackson National plays allows advisors to offer annuities to their clients without an insurance license.
The most popular product today is the registered index-linked annuity (RILA), which accounts for close to half of the market demand. RILAs allow investors to participate in market growth while protecting against some or all downside risk. RILAs are attractive to investors who want to move away from full exposure to the potential downside risk of equity markets. Other available annuity types include fixed and variable annuities. Fixed annuities offer fixed income over time, while variable annuities offer tax-deferred investments without the downside protection featured in the RILA.
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