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Variable Annuities are issued by Jefferson National Life Insurance Company, (Dallas, TX), or Jefferson National Life Insurance Company of New York (New York, NY) and distributed by Jefferson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2, JNL-2300-3, JNL-2300-1-NY. Mentions of 'Monument Advisor' refer also to Monument Advisor of New York.
*Monument Advisor has a $20 monthly flat insurance fee. Additional low-cost fund platform fees ranging from .10% - .35% will be assessed for investors wishing to purchase shares of low-cost funds. See the prospectus for details. Certain low-cost funds may only be available to you if you retain certain investment advisors.
Retirement Income Comparison Calculator Disclosures
This tool is not designed to give investment advice. It models the analysis and data performed by an independent actuarial consulting firm. Data for each competitor product was collected directly from each official product prospectus. For this study, we used an independent actuarial consulting firm that is not associated with Jefferson National Life Insurance Company (JNL).
IMPORTANT: The projections and other information generated by the Retirement Income Comparison Calculator regarding the likelihood of various investment outcomes are hypothetical in nature and do not reflect actual investment results and are not guarantees of future results. Calculators are made available to you as educational tools for your independent use and are not intended to provide financial planning or investment advice. These tools help you see which factors are most important to consider in making a particular financial decision, and they illustrate the relative impact of each factor on the projected outcome. Other investments not considered may have characteristics similar or superior to those being analyzed here. Results may vary with each use and over time. Taxes are not recognized in the analysis.
The simulation compares Monument Advisor flat-fee VA with the selected competitor variable annuity and rider combination available for more than 30 products from the five top-selling variable annuities (VAs). The calculator allows for single life only, single premium only. Products may include additional restrictions on issue age and withdrawal age. It is important to refer to rider description and product prospectuses for more information on these restrictions before finalizing any analysis.
The results cover the range of possible outcomes for the performance of Monument Advisor and the Competitor product, given your clients' starting balance, current age, planned horizon age, planned distribution age, M&E, rider and subscription fees, an optional advisor fee and identical distributions on a dollar basis. We determine these possible outcomes using a technique called Monte Carlo simulation, which involves simulating a large number of potential market scenarios-up and down markets of various lengths, intensities, and combinations. The sliding bar chart gives you the ability to look at each of the scenarios, varying from worst to best based on market performance of the indices. Note that the chart does not indicate the likelihood of a particular outcome.
For Monte Carlo scenarios, for each year of each simulation, we randomly select 30-day returns from nearly three decades of historic performance (1985 - 2013) for the S&P 500 Index and the Barclays Capital Aggregate Bond Index. Deterministic scenarios allow you to input average returns between -5% and 12%. Using those values, we calculate what would happen to each product, adjusting for fees and distributions. We repeat this process, one year at a time, until the end of your clients' planned horizon age. The next simulation starts the whole process from the beginning. After generating up to 10,000 independent simulations, we've tested a broad range of possible scenarios.
Of course, it's important to remember that Monte Carlo simulation assumes that the future will be at least somewhat like the past-after all, we're using historical data in each simulation. In actuality the future may contain scenarios that are better or worse than anything considered by this tool. It's also important to remember that, despite the sophistication of this method, this calculator makes a number of simplifying assumptions, so these results should never form the sole basis of your financial plan. In particular, the Monte Carlo methodology used here assumes no relationship between asset-class returns from one year to the next. Randomly selected years are considered in sequence.
Finally, Monte Carlo simulation is one approach for modeling the range of possible future investment outcomes. Because other methodologies differ in certain assumptions, they may yield different results.
Median: All instances referencing Median refer to the statistical calculation of the median over all scenarios generated.
Annual Return: Refers to the market return of the blended indices for the displayed scenario.
Simulations in which the competitor outperforms Monument Advisor: Sum of the number of simulations in which the rider would have paid out the benefit base in the competitor product (had an account value of zero or less) and has a greater ending account value than Monument Advisor.
Median Total Rider Fees: Median of all rider fees paid on the competitor product over all scenarios.
Median Additional Client Income of Monument Advisor: Difference between median ending account values in Monument Advisor versus the competitor product, annualized over distribution period.
Variable annuity: Variable annuities earn investment returns based on the performance of the investment portfolios, known as subaccounts, where you choose to put your money. The return earned in a variable annuity is not guaranteed. The value of the subaccounts you choose will reflect the market ups and downs of the underlying investment. If they go up, you could make money. But, if the value of these subaccounts goes down, you could lose money.
Guaranteed Lifetime Withdrawal Benefit (GLWB): A GLWB is an optional benefit available with the purchase of some annuities. A GLWB guarantees that you can withdrawal a minimum amount throughout your lifetime. In the case of a variable annuity, this guarantee exists regardless of the market performance of the annuity's underlying funds. The guarantee is a set percentage of your investment, which generally increases the longer you delay taking payments. There is generally a cost associated with the purchase of a GLWB benefit. There are conditions and limitations associated with GLWBs, such as age restrictions, waiting periods, benefit reduction based on withdrawals. Discuss such limitations with your financial professional for detailed information.
Benefit Base: Used to compute the Lifetime Annual Income and the charge for the GLWB Rider. The Benefit Base is not an amount that is available for withdrawal or as a death benefit.
Roll-Up: This feature is generally a guaranteed increase (roll-up) of certain percentage amount, compounded annually in your GLWB benefit base for each year you delay taking income, up to a specified age, to the end of the then current benefit base roll-up term, or to the date you begin taking income under the GLWB, whichever comes first. The roll-up is typically applied only on the contract anniversary.
The average variable annuity has 57 underlying fund options according to Morningstar data as of 12/15. Monument Advisor has over 350 underlying investment options as of 12/15.
For a $25,000 contract, Monument Advisor’s flat insurance fee of $20 per month is lower than 87% of all other variable annuity insurance charges. For a $241,000 contract, the $20 flat insurance fee is the industry’s absolute lowest variable annuity insurance charge. Source: Morningstar®, 12/15.
Minimum deposit of $15,000. Deposits in excess of $10 million are subject to company approval.
Annual savings are based on an industry average M&E charge of 1.35% (According to Morningstar® 12/15). Monument Advisor’s flat annual insurance fee of $240, and a Monument Advisor average contract value of $239,000 (as of 12/15).
Review current annuity for loss of benefits or surrender charges you may incur. Monument Advisor does not provide enhanced living, death or withdrawal benefits. Until distributed, the Death Benefit amount in the investment portfolios is subject to investment risk. Some of the fees you are paying in your current annuity could be for benefits Monument Advisor does not provide.
The IRS may charge a 10% tax penalty on any withdrawal made before age 59½.
Payments made pursuant to any guaranteed minimum death benefit are based on the claims paying ability of Jefferson National Life Insurance Company.
Testimonials may not be representative of the experience of other Jefferson National variable annuity contract holders. Testimonials are no guarantee of future performance or success. No fees were paid to the individuals who provided these testimonials.
There are no additional tax benefits associated with using a variable annuity inside a qualified plan.
The Jefferson National platform is defined as the website(s) and a combination of software applications, databases, and hardware which process transactions including opening new accounts, creating fund allocations, completing fund transactions, reporting, issuing statements, and managing administrative data, etc.
The cost of a typical variable annuity is about 135 basis points per year in M&E fees. Source: Morningstar® (12/15).
Before switching from one variable annuity to another, one should consider any surrender charges or expenses that may be incurred.
Total client savings derived from annual average Monument Advisor contract size multiplied by Morningstar® average M&E of 1.35%, minus the $240 flat-insurance fee of Monument Advisor, and then multiplied by the number of policies in force. Data spans May, 2005 through December, 2015.
Depending on a client’s time horizon, tax-inefficient asset classes may perform better in a tax-deferred account. Source: Vanguard Total Stock Market Index and Vanguard Total Bond Index. Based on return data from the CRSP Mutual Fund database, calculated for the highest Federal tax bracket. Average state taxes are also included. The 10-year returns are calculated for each 10 year period starting since the fund’s inception in 1993 through 1998.
Variable annuities involve risk, including possible loss of principle.
Past performance is no guarantee of future results.
When assets are withdrawn from the Monument Advisor variable annuity, earnings are taxed as ordinary income.
An investor should carefully consider the investment objectives, risks, charges and expenses of the investment before investing or sending money. For a prospectus and underlying fund prospectuses 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 Life Insurance Company and Jefferson National Life Insurance Company of New York do not offer tax advice. Annuities are not deposits or obligations of, or guaranteed by any bank, nor are they FDIC insured.Form #: jef-retirementincomecalc-20160719