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Who can benefit from flat insurance-fee VAs?
Who can benefit from flat insurance-fee VAs? Long-term investors can build more retirement assets—and pay less taxes. Do you have an underperforming VA? Do you have additional funds that could be earmarked for retirement savings? Could you benefit from deferring taxes on investments that generate short-term capital gains or ordinary income? Then consider a flat insurance-fee VA.
Who can benefit from flat insurance-fee VAs? Here's how a flat insurance-fee VA can help
| If this is your situation: | Here's why you may benefit from a flat insurance-fee variable annuity: |
| You already own a variable annuity. |
You may be able to save on fees and build more assets over time with a flat insurance-fee VA. Under Section 1035 of the Internal Revenue Code, you can transfer directly from one annuity into another—without triggering any tax consequences. Before exchanging your annuity review your existing contract to determine if any penalties, surrender charges, or loss of benefits will apply. Download an application if you're interested in beginning the 1035 exchange process right away. |
| You have "maxed out" your employer's tax-deferred retirement plan. |
It's hard to save for your retirement because of the government's low contribution caps on tax-deferred accounts like 401(k)s and IRAs. Monument Advisor is a low-cost, tax-deferred retirement vehicle with a very high contribution cap – $10,000,000. |
| You have substantial assets in taxable vehicles, like brokerage accounts and mutual funds. |
If some of those assets really aren't needed to meet current obligations, they may be able to accumulate more effectively in a tax-deferred Monument Advisor annuity. |
| You are concerned about planning your estate. |
Sophisticated wealth transfer planners are finding innovative ways to use annuities to manage family assets in bypass trusts, charitable remainder trusts and other estate planning tools. |
| Your portfolio includes "tax-inefficient" investments. |
REITs, bonds, and actively managed stock funds generate short-term capital gains and ordinary income, currently taxed as high as 35 percent. A recent study by William Reichenstein,2 finance professor at Baylor University in Waco, TX, confirms that these types of "tax-inefficient" funds consistently perform better in a low-cost tax-deferred VA than in a taxable account. |
When it comes to low cost, most VAs can't come close to a simple VA that charges one flat insurance fee of $20 per month,‡ no matter how much you invest,3 while eliminating asset-based insurance fees, commissions and surrender charges.
Like other variable annuities, the customer pays fees of the underlying funds selected (currently ranging from 0.23% - 2.72%; except for Rydex VT Inverse Gov't Long Bond Strategy Fund which is currently 5.12%) plus the fees of any advisor hired. The range of underlying fund fees reflect the minimum and maximum charges after contractual waivers that have been committed to through at least May 1, 2008. This VA does not provide any enhanced living, guaranteed death or withdrawal benefits.
According to Morningstar, on a $50,000 contract, this flat insurance-fee VA is lower than 99% of all other VAs. On a $100,000 investment, it's the absolute lowest on the market.4
Like to know more? There is a simple, unbiased online tool using the latest data from Morningstar® to compare virtually any competing variable annuity—985 different products from 117 companies—versus Jefferson National's Monument Advisor. Take the "Annuity Rescue Challenge" to see how much more you can save and how much more your annuity can grow.
Who can benefit? Show me, don't tell me: See how you could save thousands each year.
Today, roughly 76 million baby boomers are nearing retirement while pension plans are rapidly declining and Social Security's future is the big unknown.
Boomers need better options to save substantially more than their IRA or 401(k) will allow, as well as the means to secure an income stream for their retirement years. Flat insurance-fee variable annuities are a powerful tool to accomplish both.
Most annuity companies continue to sell VAs with expensive asset-based fees for complicated features to support their legacy of high overhead and commission-based sales culture. There is only one VA that breaks rank by offering the industry's first flat-insurance fee: Monument Advisor, the only VA with a flat insurance fee of $20 per month,‡ no matter how much you invest or how much your annuity grows.3
So if you're the type of person who says, "Show me, don't tell me," then you've come to the right place. These tools can help illustrate just how valuable a flat insurance-fee VA like Monument Advisor can be.
- Variable Annuity Comparison Calculator:
Compares annual insurance fees, redemption values, surrender values, and hypothetical growth in Monument Advisor versus your current annuity over a twenty year period.
- Investor Profile Survey:
This short questionnaire analyzes investing habits, and risk tolerance, and identifies investor types.
The Annuity Rescue Center is powered by Jefferson National, which developed the first flat insurance fee variable annuity. For more information, visit www.jeffnat.com or call 1-866-WHY-FLAT (866-949-3528).
FORM #JNL2007CL071 04/07
‡ Jefferson National's Monument Advisor charges a $20 flat insurance fee with no transaction fees on more than 97% of underlying funds. Jefferson National also makes available ultra low-cost funds on a transaction fee basis ranging from $19.99 to $49.99 per transaction, depending on the number of transactions per year. See the prospectus for details.
1 The average variable annuity has 38 underlying fund options according to Morningstar data as of 12/31/06.
2 "After-Tax Asset Allocation" by William Reichenstien, Financial Analysts Journal, Vol 62, No. 4, pp14-19, July/August 2006.
3 Minimum contribution $25,000. Deposits in excess of $10 million are subject to company approval.
4 Morningstar, 12/31/06.
5 Morningstar, 12/31/06.
An investor should carefully consider the investment objectives, risks, charges and expenses of the investment before investing or sending money. For a prospectus containing this and additional information, please contact your financial professional. Read it carefully before investing. The summary of product features is not intended to be all-inclusive. Restrictions may apply. The contracts have exclusions and limitations, and may not be available in all states or at all times.
Variable annuities are investments subject to market fluctuation and risk, including possible loss of principal. Your units, when you make a withdrawal or surrender, may be worth more or less than your original investment.
Variable annuities are long-term investments to help you meet retirement and other long-range goals. Withdrawal of tax-deferred accumulations are subject to ordinary income tax. Withdrawals made prior to age 59½ may incur a 10% IRS tax penalty. Jefferson National does not offer tax advice. Annuities are not deposits or obligations of, or guaranteed by any bank, nor are they FDIC insured.
Monument Advisor is issued by Jefferson National Life Insurance Company (Dallas, TX) and distributed by Jefferson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2.
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