More Flexibility to Manage Client Accounts
with the TCA by eTrade Platform

The TCA by eTrade Advantage:

 
Flexible portfolio management.
The TCA by eTrade platform enables you to design custom portfolio models, utilize multiple portfolio models in a single account and perform multi-account trades in seconds rather than hours, thus maximizing your efficiency.
 
Outsource
Tap into TCA by eTrade’s MMX models at no additional cost. Please ask your Relationship Manager for available third party manager models.
 
Fee-Friendly
TCA by eTrade now allows you to pull your advisory fee directly from an established TCA by eTrade account.
 
State of the art Performance Reporting
The TCA by eTrade platform now allows you to pull Nationwide Advisory Solutions performance data at the model level.
 
Up-to-the-minute information at your fingertips.
TCA by eTrade enables you to execute trades in real-time using real-time data, so you can make informed decisions based on current market conditions.
 
Easy to use.
Designed with an inviting, user-friendly interface, the TCA by eTrade platform makes it easy to access account information, including positions and pending account activity. It's also optimized for smartphones, tablets and other mobile devices, so you can access your accounts securely from anywhere in the world.
 
Aligned with your interests.
TCA by eTrade does not compete with you for clients. TCA by eTrade provides a conflict-free custodial service, with no advisory network, fund families or investment advice to complicate the relationship.

Monument Advisor—A Barron's Top pick for VAs for 4 Years Running.

With all of their bells and whistles, commissions, M&E expenses, and surrender charges traditional variable annuities are often so bloated that their fees severely hamper the benefit of tax deferral. But Nationwide Advisory Solutions' Monument Advisor re-engineered the VA by stripping away those guarantees, eliminating commissions, and charging a low, flat-fee of just $240/year.1 No commissions means no lock-up periods. And, when compared to traditional VAs charging an average of 135 bps2 in M&E expenses, a tax-free 1035 exchange to Monument Advisor could save clients $2,800 in first-year fees alone.3

Our research has found that locating actively-traded strategies and tax-ineffecient assets (such as REITs, bonds, commodities and Alts) in low-cost, tax-deferred vehicles like Monument Advisor can potentially improve performance by 100 bps annually, without increasing risk.4 Morningstar puts the number as high as 200 bps noting that portfolios not managed for tax efficiency over the last 70+ years may have given up 100-200 bps in additional performance. That's $10,000 to $20,000 of lost opportunity per $1 million invested.

Monument Advisor is 100% transparent and is as simple to grasp as it is to use. Small wonder more than 4,000 RIAs and fee-based advisors use Monument Advisor to help drive and grow their business.

  • Industry's First-Ever Flat Fee IOVA
  • Low-Cost, Virtually Unlimited Tax-Deferral
  • Nearly 380 Underlying Investment Options
  • No Surrender Fees

The Ways and Means to Improve Accumulation

Performance vs. Taxable Account

 
  • $398,541GREATER ACCUMULATION*

Use the Tax Deferral Calculator Now

*Hypothetical illustration based on the following: initial lump contribution of $224,355; Monument Advisor's $20/mo. fee; Current Age of 45 years; retirement at age 65; ordinary income tax rate of 35%; and a moderate investment portfolio. The results of the comparison between a taxable account and a tax-deferred account are designed to be hypothetical comparisons and not actual predictions or projections of future results in the value of your portfolio. You should use it in conjunction with advice from your financial or tax planning advisor and not as the primary basis for your investment decisions. The hypothetical illustration is based on an analysis of the historical performance of asset classes. Past performance does not guarantee future results. Your actual performance, asset allocation or trading patterns may differ from the values assumed by the calculator, resulting in a different outcome from that calculated. Certain asset classes are riskier than others, please consult your financial advisor for more information. If your tax rate changes you should update your choices in the calculator to reflect those changes. Jefferson National Life Insurance Company does not predict or guarantee future results.

A Strategic Approach to Managing Taxes
Through Better Asset Location

3 Challenges Monument Advisor Solves

Short Term
Capital Gains

Meredith, Senior Executive

Meredith is a 45-year-old insurance specialist who has taken a conservative approach to her investment portfolio. Ten years ago, she made an $800,000 initial investment in Long-Term Bonds and reinvests the income. She plans to use the money to help fund her retirement in a decade or so.

Keeping her money in a taxable account over the past decade meant paying short term capital gains year-to-year. This had a significant impact on her retirement earnings. To date, she has accumulated $1,105,790 in a taxable account. If she had initially invested her $800,000 in a tax-deferred Monument Advisor account instead, her earnings would now have hit $1,425,935—a difference of $320,145 in additional accumulation5.

In effect, Meredith lost 266 bps per year in unnecessary taxes. Now working with an advisor and switching to Monument Advisor, she defers short-term capital gains, allowing that money to compound & accumulate until she decides to take distributions.

The Impact of Short-Term Capital Gains

Taxes &
LEGACY PLANNING

Don, Oil Executive

Don is a soon-to-be retired Oilman who has accumulated enough wealth to completely enjoy his Next Chapter. Like many Boomers, he will be part of an enormous wealth transfer—estimated at more than $30 trillion—that will be passed from his generation to their children in the next 30 years (source: Accenture). An estimated $12 trillion has already changed hands, as Boomers inherited wealth from their parents.

Working with his advisor, Don found an ideal legacy planning tool in Monument Advisor. He uses it to fund trusts for his wife and each of his heirs.

Taxes on trusts can be high—39.6% on trust income in excess of just $12,500. But with the smart, flexible Monument Advisor IOVA, Don can build a diversified portfolio and compound what he saves on taxes. It also enables him to control when his trusts generate taxable income, thereby accumulating and compounding more savings for future generations. So when the time comes to transfer his wealth, he'll make the most of it.

How Trust Income is Taxed vs. Earned Income

Low Contribution Limits
for Qualified Plans

Ellen, Advertising Agency Partner.

Ellen is a partner in a fast-track advertising agency. She earns a substantial salary each year and consistently maxes out her 401(k) and IRA.

She needed to maximize tax deferral beyond the limits of her IRA ($5,500) and her 401(k) ($18,000), while avoiding the annual tax headaches with dividends and income in her taxable investments. She looked into traditional variable annuities, but their cost, complexity and lack of liquidity made her squeamish.

Using a JeffNat calculator, her advisor ran a comparison between Monument Advisor and a popular tradtional VA. She was able to illustrate how the simplified, low-cost Monument Advisor VA would cost $2,800 less in the first year alone, and how that cost savings can blossom into greater accumulation. Ellen began investing her post-401(k) and IRA contributions into JeffNat’s IOVA which offers virtually unlimited contributions.

Net/Net: Ellen's annual tax headache is minimal, and those additional retirement savings will benefit from the compounding power of low-cost, tax-deferred growth until she begins taking distributions. (And starts writing her screenplay.)

First-Year Fee savings in Monument Advisor vs. Traditional Annuities

Begin Managing your Monument Advisor Accounts on the TCA by eTrade Platform Today.

Who can use this new solution?

All TCA by eTrade RIAs and their advisors will be eligible to trade Monument Advisor accounts on the TCA by eTrade trading platform.

How will the advisors' experience differ from the way they do business with Jefferson National today?

Advisors will continue to work with Nationwide Advisory Solutions for administrative functions related to Monument Advisor accounts like opening and funding a new account, making additional contributions, managing beneficiaries, and making withdrawals. The difference is that RIAs and their advisors may also elect to:

  • Utilize TCA by eTrade's platform with model trading functionality to manage the sub-accounts in their clients' Monument Advisor accounts.
  • Withdraw their advisory fee from one their clients' non–variable annuity accounts held at TCA by eTrade (as a non-taxable, non-1099 event).'
Questions? Call: 1.877.893.1830
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