Jackson Launches Morningstar-Powered Tax Deferral Illustrator

New tool from Jackson and Morningstar offers advisers the ability to create client-specific tax illustrations in real time. 

Jackson National Life Insurance Company is now working with Morningstar to deliver the Tax Deferral Illustrator, a new tool enabling financial professionals to visually demonstrate the impact taxes can have on clients’ retirement income over time.

Through a collaboration with Morningstar, Jackson has launched the Tax Deferral Illustrator to show the outcomes of tax deferral throughout the full investment cycle of accumulation and distribution, according to the firms.

“Through simulated data, advisers will have the ability to educate clients about the effects tax deferral can have on their individual investment strategies,” explains Justin Fitzpatrick, vice president of Advanced Strategies at Jackson National Life Distributors LLC (JNLD), the sales and marketing arm of Jackson. “Taxes on investments can be much more complicated than just the long-term capital gains rate.”

The illustrator is powered by Morningstar’s Wealth Forecasting Engine, which allows advisers to examine and then demonstrate scenarios based on a client’s specific financial situation. Advisers can input personalized information including current age, retirement age, state-specific tax policies and investment data to create individualized representations of clients’ investments and their potential returns. They can also “demonstrate to clients the differences between taxable and tax-deferred accounts over a specified period of time,” while using returns specific to each asset class to illustrate tax drag.

The underlying technology can also recognize long-term capital gains tax treatment in a taxable portfolio through accumulation, distribution and legacy planning on a pre- and post-tax basis, the firms explain.

The new tool is available for wholesalers and advisers, and supported by Jackson’s Advanced Strategies team, an group of senior portfolio strategists and retirement and wealth strategy consultants “responsible for providing insight and direction surrounding the ever-evolving investment and tax landscape.” Advisers who wish to learn more about Jackson, can call the sales desk at 800-711-5653, or visit www.jackson.com.