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Nationwide Launches New Variable Annuity Aimed at RIAs

The annuity allows for advisors to charge their fees, up to 1.5 percent annual average contract value, without impacting any applicable living benefit or death benefit bases.

Nationwide Advisory Solutions, formerly known as Jefferson National, has introduced a new variable annuity with an income guarantee designed for registered investment advisors and fee-based advisors.

The Nationwide Advisory Retirement Income Annuity (NARIA) charges 20 basis points per year, including a 15 basis point mortality and expense change and a 5 basis point administrative fee. For an additional fee, there’s an optional living benefit, the NARIA Retirement Income Developer, for pre-retirees and retirees who need future lifetime income guaranteed as well as market participation. 

The annuity allows for advisors to charge their fees, up to 1.5 percent annual average contract value, without impacting any applicable living benefit or death benefit bases.

“NARIA is one of the industry's first ‘advisory friendly’ VAs with fee-management capabilities that will not erode the client's benefit base, eliminating a key friction point for advisors while creating greater value for clients,” Nationwide said in a statement.

And for advisors who aren’t licensed to sell insurance, the firm will provide a licensed agent for free, so there’s no need to use a third party.

If an advisor goes with the Custom Choice management option, they’ll have access to a suite of more than 130 funds.

Jefferson National was perhaps the first to come out with a flat-fee variable annuity marketed toward RIAs, called Monument Advisor, in 2005. But the number of choices has expanded. Recently, the push to make an RIA-friendly, more transparent annuity has been on, as insurers and distribution companies grapple with rewriting the investment and compensation models for longevity protection.

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