open quoteLast year, Jefferson National Life Insurance Co. in Dallas introduced a variable annuity that imposes no commissions or surrender fees, and charges a flat insurance fee of $20 a month regardless of the annuity's size. By comparison, the average variable annuity charges an insurance fee of about 1.38% according to investment researcher Morningstar, Inc. On a $100,000 contract, that is the difference between paying $240 a year or $1,380.
—Wall Street Journal, May 15, 2006.

Investor Profile Questionnaire

This questionnaire is a planning tool developed with help from Ibbotson Associates, a leading provider of investment expertise and technology. Please use it as you develop your variable annuity asset allocation strategy with your investment professional.

This questionnaire is designed to help you:

  • Understand the importance of asset allocation to the success of your investment planning;
  • Complete an investor questionnaire to determine your investment profile;
  • Find an asset allocation strategy that's right for you

Reminder: the variable annuity contract is subject to investment risk, including a possible loss of the principal amount invested.

Fill out this short survey to determine what kind of investor you are, and what investment options will best suit you.

Note that this questionnaire is for illustrative purposes only, and should NOT be used to plan retirement investment allocations without first consulting with a qualified financial advisor.

NOTE: We do not save these results, nor do we compare these results to any asset allocation model that you and your financial advisor may ultimately select.

Questionnaire
  1. Given your investment objectives, when do you expect to begin making withdrawals from this investment? 2 years or less 3 to 5 years 6 to 8 years 9 to 11 years 12 or more years
  2. When you begin making widthrawals from this investment, how long do you expect your withdrawals to continue? One lump sum 1 to 5 years 6 to 10 years 11 to 19 years 20 or more years
  3. The following describes possible outcomes for three hypothetical investments over the next year. Which investment would you feel most comfortable holding?
    Investment Option Most likely return–1 yr Chance of loss–1 yr
    Investment A 4% 5%
    Investment B 8% 15%
    Investment C 12% 25%
  4. Assume that you have $10,000 to invest and just two investment options. Which investment are you more likely to select? Investment A, with a 100% chance of gaining $500 in one year Investment B, with a 75% chance of gaining $1000 in one year
  5. The table below illustrates potential possible gaines and losses associated with four hypothetical $10,000 investment portfolios in any given year. Each portfolio's return will most likely fall somewhere between the best-case and worst-case vlaues. Which portfolio are you the most comfortable holding?

    Value of $10,000 after one year.
      Best case Worst case
    Portfolio A $10,500 $9,700
    Portfolio B $10,800 $9,200
    Portfolio C $11,000 $8,700
    Portfolio D $11,200 $8,200
  6. Investments with higher returns are generally associated with greater volatility and risk of loss. Which of the following statements best decsribes your attitude toward long-term investing? I am most concerned with protecting the principal value of my investments. I am willing to accept lower returns associated with these conservative investments. I am willing to bear some risk in an effort to achieve higher returns, but I prefer the majority of my investments to be placed in relatively low-risk assets. I am willing to accept moderate volatility in the value of my investments in order to achieve moderate returns. Minimizing risk and maximizing return are of equal importance to me. I wish to achieve moderately high returns on my investments. I am willing to accept significant volatility and risk of loss. I am primarily concerned with maximizing the returns on my investments. I am willing to accept large fluctuations in the value of my investments and substantial risk of loss.
  7. Suppose you have invested in a stock fund and experienced better-than-average performance for five years. However, last year the fund lost 15% of its value. Similar funds experienced comparable losses. What would you do at this point? Immediately sell all of my fund shares in search of a more stable investment. Sell some, but not all, of my fund shares and put the proceeds sold into a more stable investment. Hold on to my fund shares with the expectation that the fund will recoup its losses and experience future gains. Buy more shares of the fund (since the shares now cost less) with the expectation of future gains.
  8. Inflation reduces your purchasing power (a dollar buys less today than it did 20 years ago). Investing can help preserve your purchasing power by providing returns on your assets that outpace the rate of inflation. However, investments that have provided higher returns historically have also been associated with greater volatility (risk). Which statement best describes your feelings about investment volatility with respect to inflation? I am satisfied with maintaining the purchasing power of my investments (achieving returns that keep pace or slightly exceed the inflation rate) in an effort to minimize risk. I am willing to accept moderate risk in an effort to achieve returns that moderately exceed the inflation rate. I am willing to accept significant risk in an effort to achieve returns that significantly exceed the inflation rate. Achieving high returns that substantially exceed inflation is most important to me, regardless of the risk involved with such investments.
  9. The table below illustrates best, worst and average probable returns for three hypothetical investment portfolios over three years. Which portfolio are you most comfortable holding?
      Best return Average return Worst return
    Portfolio A 7% 5% 0%
    Portfolio B 9% 8% -3%
    Portfolio C 12% 10% -7%
  10. Although sector funds and investments that are not correlated to the general market–such as alternative investments, real estate or hard assets–can be riskier than many equity and bond asset classes, adding them to a diversified portfolio can reduce the overall risk (volatility) of the portfolio. Would you consider such investment options in your portfolio? Yes No
 

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 59 ½ 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.

Form #: JEF-survey-20061207