The average annuity charges you 1.35% of your assets every year (Morningstar 12/31/06). The majority of that money goes to pay the commissioned salespeople that sell most variable annuities.
4 ways advisors may bill for their services
How much you pay for the services of a professional financial advisor varies depending on what type of advisor you choose—and how they structure their financial practice. Generally, advisor compensation breaks down like this:
| Fee Structure | Advisor Profile |
|---|---|
| 1. Fee Only | These advisors assess fees based on an hourly rate or a percentage of assets under management. |
| 2. Commission Only | These advisors are paid a commission for selling a company's investment products. You don't pay for this commission directly, but you're affected indirectly through increased product costs. |
| 3. Fee-Based (Fee Plus Commission) | These advisors may receive commissions if you buy a recommended product; in other circumstances, they may simply charge you a fee for developing a plan or for providing specific services. |
| 4. Salary | A more limited number of advisors are "salaried," meaning they actually work for a financial services company and focus on selling that company's products. |
Before you agree to work with an advisor, you should know upfront what you're getting—and how much you'll pay for services. Monument Advisor is designed specifically for fee-only and fee-based advisors. Advisors who sit on your side of the table and objectively recommend services. (They're not paid to sell you products.)
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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-advisorfees-20061207